Investing in Berlin

[CarlaJohnson]

Does anyone know what is happening in Berlin? Close friends of ours have just returned from Berlin and are looking to purchase a studio apartment there for personal use and to rent. They found the prices very reasonable. They say Berlin hasn`t experienced the same increases as the rest of Europe because the reunification put the economy behind the rest of the continent. They believe it is poised to take off and will be a smart investment.

We are looking for advice or opinions about the Berlin market and a good Berlin realtor. Any help would be greatly appreciated.

Thank you.

 

[Thomas Beyer]

QUOTE (CarlaJohnson @ Jul 6 2008, 08:59 AM) Does anyone know what is happening in Berlin? Close friends of ours have just returned from Berlin and are looking to purchase a studio apartment there for personal use and to rent. They found the prices very reasonable. They say Berlin hasn`t experienced the same increases as the rest of Europe because the reunification put the economy behind the rest of the continent. They believe it is poised to take off and will be a smart investment.

We are looking for advice or opinions about the Berlin market and a good Berlin realtor. Any help would be greatly appreciated.

Thank you.

proceed with caution .. no MLS system .. 5% real estate tax on property transfer (Grunderwerbssteuer) .. huge legal fees (Notarkosten und Anwalt !).. buyer and seller commissions sometimes 5% each side .. unemployment is approaching 18% .. high taxes .. left leaning government .. tough rent control laws .. very tenant friendly legislation .. low yields .. but yes at the right price it makes sense if you can hold long enough ..

I was born in Berlin .. and now have been in Canada since 1986 .. but Berlin is also on my radar screen as a possible emerging market ..

as to your real question: I have no specific realtor contact .. but try this website which is as close as you get to a North American MLS system: www.immoscout.de .. then click from there and contact some realtors (Immobilienmakler)

Viel Erfolg !

 

[CarlaJohnson]

Thank you, Thomas. That is very helpful information. I appreciate you taking the time.

All the Best!

 

[PhilipMcKernan]

This is some simple comparables that I did from a while back.

Alberta Germany

Stamp Duty 0 3.5%
Unemployment 3.2% 9.3%
GDP 6.9% 1.7%
Rent Increase 18% 4%
Rent Caps No No Yes
Capital Growth 30% 6%

Commercial property in Germany makes more sense. Poland would be one of the watch in Europe for a while.

 

[LukasWywrot]

Why is Poland worth watching as opposed to Germany?

 

[PhilipMcKernan]

I am not comparing but rather pointing out that Poland has a lot to offer and is coming from such a low base. The people have an edge in Europe as they are hard working, very independent, confident and they travel a huge amonth. The economics are strong and it generally reminds me of Ireland 10 years ago.

Personally I know friends who have invested in both at differnt levels and I can see the results.

 

[Thomas Beyer]

QUOTE (PhilipMcKernan @ Jul 7 2008, 11:42 AM) This is some simple comparables that I did from a while back.

Alberta Germany

Stamp Duty 0 3.5%
Unemployment 3.2% 9.3%
and unemployment is MUCH MUCH higher in Berlin ! 15% + !!!
QUOTE (PhilipMcKernan @ Jul 7 2008, 11:42 AM) GDP 6.9% 1.7%
Rent Increase 18% 4%
Rent Caps No No Yes
Capital Growth 30% 6%

Commercial property in Germany makes more sense. Poland would be one of the watch in Europe for a while.
yes, I agree with Philip`s comments here also: Poland has a similar Western-European hard working attitude and comes off a very low base .. HOWEVER: many Polish areas, especially rural areas are emptying out as people leave for UK, Ireland, Germany and bigger Polish cities .. so watch immigration stats carefully ! Some places are booming and others are shrinking ! ditto in many other eastern Europan countries ! Some are net-EX-migration states / regions due to poor economy and better opps elsewhere !

 

[PhilipMcKernan]

15%! Did not know it was that high.

Its when the Polish start re populating their own country again that we will see some serious movment. We saw that in Ireland when people left, made money and came back to start in business etc.

I see a similar trend for Poland and in fact as Ireland and the UK slow down and are building less property we are starting to see this happen..