Frequently Asked Questions (FAQ)
General Questions
Does it make sense to buy property in Germany?
Buying a property in Germany can be an attractive option, offering a stable economy, high leverage options and long-term investment opportunities. Before making a decision, it is important to assess your financial situation, your residence permit and your investment goals. You will need detailed information about costs, taxes and regional market trends. Contact us for a free initial consultation and let our experts guide you.
What are the advantages of buying a property in Germany?
Especially for those living in Germany, it allows you to invest a small amount of cash and invest your money in a safe investment class in the long term. This high leverage create an immense amount of return on equity in the long run. For those who do not live in Germany, it offers a return on investment in EURO, providing a hedge against currency fluctuations and a stable source of income.
Can I buy a property in Germany while living in abroad and what documents do I need for this?
Acquiring property in Germany does not necessitate a residence permit or citizenship. Once you've identified a suitable property, you can simply go to a notary with your passport and sign the purchase contract. Proficiency in German is not a prerequisite! You can seamlessly complete the property-buying process in Germany by attending the notary appointment with an interpreter.
What are the criterias to consider when buying a property in Germany?
The two fundamental criteria to evaluate are the price per square meter and the rental yield. When calculating the rental yield rate, potential initial renovation costs for the property should also be considered. Additionally, it's crucial to accurately determine the rental yield, the landlord's monthly payments, and the tenant's monthly payments to ensure a comprehensive assessment.
How do the tax implications differ between purchase for residence and investment?
Basically, when you buy your property as an investment, you can deduct the financing costs and many other related costs from your income tax. If you are going to invest, you can expand your search area regardless of location.
Costs & Tax Benefits
What are the side costs when buying a property?
Buying a propoerty in Germany is a significant investment and comes with various side costs. These costs mainly include taxes, notary fees and, in the case of a real estate agent, the real estate agent's commission.
- Taxes: Property acquisition tax varies by state and is calculated on the purchase price of the property. For example, in North Rhine-Westphalia it is 6.5%.
- Notary and Land Register: These are calculated on the purchase price of the property, regardless of the notary. The rate varies between 1.5-2% depending on whether you have financing or not.
- Agent Service Fee:It is a commission determined based on the sale price. It is usually calculated at a rate of 3.57% including tax. It may be less or more depending on the real estate agency and property type.
Contact us for more information about these costs and the process of buying a house in Germany. Our experts will guide and support you through the process.
What are the rental yields in Germany?
Although it varies by region and property type, there is an average of 4% (Annual rental income / Purchase price). You can contact our team to learn strategies that can increase this rate.
How can I transfer money to Germany when buying a property from Turkey and do I have to pay additional taxes?
Some specific banks in Germany allow you to open an account even if you do not live here, helping you to bring your money safely to Germany for real estate transactions. You can contact our team for more information about the process details.
How much tax do I pay on rental income?
While rental income is subject to personal income tax rates, you only pay tax on the taxable amount after deducting eligible expenses incurred. These deductible costs include financing charges, depreciation expenses, and applicable fees. By accurately accounting for these deductions, you can effectively minimize your taxable rental income and optimize your tax liability. Contact us to learn how to optimize your strategy.
How much cash do I need to buy a house?
When purchasing a property, banks typically require a 20% cash down payment of the purchase price. However, this amount can fluctuate based on the property's value and your personal financial situation. Alternatively, you may have the option to invest by covering only the side costs (approximately 12% of the purchase price) and financing the remaining balance through a loan. Through our bank contact, we can guide you to reach 100% financing maximizing your leverage.
How can I get information about prices?
First of all, we identify the most suitable services for you and create personalized offers for your needs. You can contact us using our contact form to get more information and see our personalized offers .
Process
What are the main steps in the process of buying a property in Germany?
The primary steps in the process of purchasing a home in Germany are as follows: It begins with searching and viewing properties based on your budget, desired location, and property type preferences. Next, a comprehensive analysis is conducted on the shortlisted options to select the most suitable choice. The necessary steps are then taken to secure financing approval. Afterwards, the official process commences by signing the purchase contract by notary. Finally, you become the proud owner of the property through a turnkey delivery process. Our experts are available to provide end-to-end support and guidance throughout this journey.
How long does it take to get a property, from the search to the final step?
The duration of the property-buying process can vary significantly, ranging from 4 weeks to 6 months, depending on your personal preferences and the time required to find your desired property. Once you've identified the perfect home, the subsequent steps – submitting an offer, obtaining offer approval, securing financing (if applicable), scheduling the notary appointment, and finally taking possession of the property – typically span approximately 3 months. Our experienced team can guide you through each phase, ensuring a seamless and efficient transaction tailored to your unique needs.
My residence permit in Germany is not yet unlimited. Can I still buy a property with a loan?
From which step should I start looking for a house?
When embarking on your property search journey, the initial step should be establishing a clear budget. Collaborating with a financial advisor can provide valuable insights into your financing options and help you determine your purchasing potential. With a well-defined budget in place, you can then proceed to the next phase - selecting the desired area for your property search. Our experts are readily available to guide you through each step of the process, ensuring a seamless and informed decision-making experience.
Real Estate and Tenant Management
I have a property I want to rent out, can you help me with this?
Our comprehensive rental management services include a thorough market analysis of your property to determine the optimal rental price. We leverage market data and insights to ensure you receive the maximum potential rent. Additionally, we handle the entire process from start to finish - determining the costs to be passed on to the tenant, drafting the rental contract, and managing the handover of the property to the incoming tenant. Our end-to-end approach allows you to enjoy a hassle-free rental experience while maximizing the returns on your investment.
Do you provide services in asset management and tenant management?
For properties that align with our investment criteria, we offer landlords a guaranteed rental agreement with annual rent increases pegged to the Euro inflation rate. Through our furnished rental program, we provide a comprehensive suite of services, including handling tenant issues and minor repairs, without requiring direct landlord intervention. This turnkey solution allows property owners to benefit from a stable rental income stream while minimizing the day-to-day management responsibilities associated with their investment.
Location
In which region should I buy a property in Germany?
When investing in German real estate, key criteria to consider include population demographics, economic growth opportunities, proximity to university facilities, and accessibility to other cities and countries via transportation networks. It is crucial to conduct a detailed analysis of regional market conditions and make informed purchasing decisions aligned with current market values. This strategic approach ensures that your investment yields optimal returns and long-term stability.
Which regions do you offer services in Germany?
We offer a range of services tailored to your specific needs, with coverage across various regions in Germany. To receive a more detailed and personalized response, we encourage you to submit your request using our convenient contact form. Our team will promptly review your inquiry and provide you with a clear understanding of how we can assist you in achieving your real estate goals, regardless of your location within Germany.