Real estate delivery in employment

Real estate acquisition in Germany as capital investments.

Each owner has the right to let real estate. For this purpose it is necessary to sign the lease contract (Mietvertrag) with the tenant of real estate. Such contracts are signed by term of 1 year and more.

The tenant pays the insured sum (Kaution) at the rate of the 2nd or a 3-month rent to the owner of object. This sum guarantees to the owner compensation of losses in case of insolvency of the tenant or a covering of expenses for object repair after lease contract cancellation. Kaution protects the owner of real estate from financial losses. In the lease contract monthly payment + by Kaution + Nebenkosten (additional expenses) is specified. (Nebenkosten — payment of cleaning of garbage, illumination of an entrance, elevator payment, etc.) If in the lease contract is specified that the object is given repaired, after contract cancellation the tenant is obliged to hand over object in the same condition. Otherwise, the owner uses Kaution for repair payment.

In the absence of claims the owner returns Kaution (the mortgage sum) in accordance with the established procedure.

Germany is the country with high social security. For the people who don't have the constant income, the state pays. Therefore always there is a demand for housing.

Real estate in Germany — reliable and favorable capital investments.

Real estate cost for decades constantly grows.

Average growth of cost of houses and apartments makes about the country 3% a year. The average revenue from invested in real estate with attraction of the bank credit makes about 5-6%, at investments into the mixed objects (the buildings combining inhabited, trade, etc. the areas) the income raises to 7% of-12% and more. Therefore, to invest in real estate simply favourably.

Recently in Germany investments into real estate through the closed funds (closed — ended funds) use the increasing popularity. These organizations accumulates money of private investors, and then puts them in inhabited or commercial real estate.

Advantages of investments of this kind in real estate in Germany are:

• The stable income at the level of 8-10% per annum.

• Saving of time on management of real estate in Germany.

• Low threshold for investments (from 5 thousand euros).

• Control of real estate in Germany is exercised by the professionals having the corresponding qualification.

It is necessary to warn at once that investments into similar funds are calculated on long term (8-15 years) and have low short-term liquidity, as well as any real estate. It needs to be considered at a choice of the tool of an investment of money.

The real estate in Germany — is a good choice, but for effective management of means it is better to address for council to the professional financial consultant.

Not a secret that many potential buyers of real estate abroad are interested not so much in rest and entertainments, how many in successful capital investments.

And for them Germany – a right choice. First, housing prices here grow. Living space delivery in rent brings now to 6% per annum. Secondly, in modern Germany political and economic stability that you won't tell, alas, about our homeland is observed. Thirdly, the German housing differs high quality and durability.

The German legislation allows citizens of other countries to acquire real estate in the Federation territory "as equals" with citizens of this country. The Russians owning housing in Germany, have the right to a tourist visa for up to 90 days a year. Having business contacts can apply for the business visa — 6 months a year, sometimes are more.

Real estate prices in Germany

Real estate prices in Germany depend on three major factors.

The first, it, of course, geographical arrangement.  The housing in the territory of the former East Germany significantly cheaper also isn't in demand at all.  Over one million houses between Oder and Elba stand empty, in Berlin the offer exceeds demand for 100 thousand apartments and houses.  The reason is clear:  the housing constructed in communistic Germany, doesn't answer modern standards.  Chances over time it is successful to sell or lease such houses or apartments it is insignificant are small.  The exception is made by some certain cities and their vicinities.  It, first of all, luxurious Potsdam in the suburb of Berlin. 

In the Western Germany the most expensive cities now are Munich (the house price with a small site both in the city, and in the suburb — 3,5-5 thousand euros / кв.м), Cologne, Stuttgart and Frankfurt (3-4 thousand euros / кв.м), Hamburg, Düsseldorf, Berlin, Karlsruhe, Bonn, Regensburg (2-3 thousand euros / кв.м). Apartments cost cheaper a little. Average real estate price in the good regions of Germany makes 1,5-2 thousand euros/sq.m.

The second factor which is considering at an assessment of the house, the sum of future expenses on its contents is. The thought-over planning, the modern equipment, warm and water-proof walls will help to save on water, heating, the electric power. More economic housing upon purchase will cost dearer, but will preserve many means further. In gratitude for preservation of natural resources the state reduces to the consumer a real estate tax.

Besides the cost specified in the contract, be ready to pay in addition 3,5% of a land tax, 2% for the notary for legal registration, 6% for brokerage firm. Her expert will check financial side of purchase, will help to reveal debts and other sins of the previous owners. The help of the independent expert can be necessary for an assessment of a technical condition of the house.

Mortgage in Germany

Upon real estate purchase in Germany it is possible to use a mortgage loan. Deutsche Banks are ready to allow a loan and to foreign citizens. Moreover, the buyers capable regularly to pay by installments, use at hardworking and economical Germans even big trust, than owners of with a lots of money suitcase.

Before giving out the credit, the bank opens a special savings account on which within several years there are regular assignments from your salary. Solvency of candidates is so checked. After examination is passed for reliability, you can count on the sum covering to 80% for a project cost of purchase. After its introduction, it is possible to drive in the new house, but the real estate remains bank property before full payment of a debt. The credit is given for a period of up to 25 years approximately under 5-7% per annum.