home / berlin property for sale / faqs berlin

property for sale berlin - property investment berlin
faq´s Berlin

1) Why to invest in Berlin?

There are several reasons why to invest in Germany. One motive is that property prices in Berlin are at a surprisingly low level. In comparison with other European capitals, property prices in Berlin are about 80% lower! However, real estate prices in Germany’s capital are beginning to increase. After many years of reconstructing and investing money into Eastern Germany, property prices are now starting to recover together with Germany’s economy; According to experts, Berlin denoted a growth of real estate prices of 7% last year. Another important reason for investing in Berlin is the secure political situation together with the reliability and professionalism of its people. Furthermore, especially attractive about investing with movewithus international in Berlin is that you can rent out your property for 10 years and sell it afterwards without having to pay any cent of capital gain tax!. More about investing in Berlin

2) What are the rental yields in Berlin?

Of course, the rental yields depend on the district. However, in central Berlin it is about 5% gross.

3) Which district in Berlin is recommendable?

The most sought-after districts in Berlin are surely Prenzlauer Berg, Friedrichshain, Mitte and Charlottenburg. Most of our clients enquire about properties in Prenzlauer Berg. This district, located in the former east of Berlin, has become one of the most popular places in Berlin due to its vivid nightlife, bars, restaurants and shops. Among Berliners it is surely the most sought after district. Friedrichshain borders with Prenzlauer Berg and is just as popular as Prenzlauer Berg. Mitte is another popular district besides Prenzlauer Berg and Friechrichshain. Mitte is so required due to its central location (Mitte means Center in English). Since it is located in the former West of Berlin it is normally more expensive than Prenzlauer Berg and Friedrichshain. Charlottenburg is home to the largest surviving Royal Palace in Berlin, the area is also home to Berlins famous Olympic Stadium (1936). With its many bars and restaurants it is a popular meeting place for Berliners, particularly during the summer. The district is also rich in museums and has become one of the most sought after areas in Berlin centre to live.

4) How do I know whether buying in Berlin is a secure option?

You have the option to purchase an apartment with a 10 year guaranteed rental. This way you can be sure to get a monthly rent with a tenant already in place.

5) Can I sell my apartment with a 10 year guaranteed rental before 10 years?

Yes, you can. The tenant simply will stay in the apartment and the property is going to be once again for sale.

6) How much mortgage can I get from a German Bank?

German Banks aren’t very keen on giving mortgages to any international client. However, we can assist you in getting a mortgage up to 50% to 60%. Due to the strictness of German banks, we always recommend you to ask your bank at home to see if they can help you with your mortgage.

7) Do you arrange mortgages and who will do all the legal paperwork?

Yes, movewithus international will assist you when it comes to financing and will advice and help you when it comes to all the legal paperwork related to obtaining a mortgage.

8) I want to come to Berlin to have a look at several properties, but I don’t know which company is the cheapest one to fly with?

There are several low-cost airlines operating between London and Berlin, however, the cheapest one and most favorable one of our clients is Easy Jet. A return ticket between London and Berlin costs about €100.
see our list of airports and airline companies here

9) I have never been to Berlin. I don’t know where to stay? Can you give me an idea about recommendable hotels, which are centrally located?

Well, it depends on your budget. The lowest priced one, which is centrally located, is the hotel Park Inn at the square Alexander Platz. Hackescher Hof is a little bit more expensive and the Hilton hotel is surely the most luxurious one in central Berlin. Contact us if you need help finding a hotel in Berlin

10) Since I have never been to Berlin, I don’t know how to get to the hotel and to your office.

Anytime, we are going to pick you up at the airport and bring you to your hotel. If you want to have a rest at your hotel before going to have a look at our properties, we come back to your hotel to pick you up. book an inspection trip today with us

11) What are the additional costs when buying a property in Berlin?

In general, you have to add approximately 10% on top of the purchase price to calculate all additional buyer fees of your property investment. Included are government transfer tax, agent fees and legal/notary fees.

Government transfer tax: 4,5%
Agent fee: 3,57%
Notary fee: 2,5%

12) Please explain me how is the buying process working exactly, explaining the purchasing process step by step

Make an offer After carefully consideration you have to make an offer to the vendor, which is normally done by your agent.
Purchase contract Afterwards, the buyer has to instruct a notary to draw up a purchase contract, which has to be in German. This version is the binding one, however, if you want the contract to be translated in English, you have to pay some extra money for the translation and have to have in mind that this is not the binding version.
Checks If a mortgage is necessary, the buyer is legally obliged to show the notary a promise of funds made by a reputable bank; however, if you are a cash buyer it is necessary to present proof of the funds.
Completion If all the paperwork is done and in order, it is time for the final step, the completion. Both parties agree on when the contract is going to be signed and funds are transferred. On the agreed date both parties meet together with the notary, who is going to read the contract in German. Consequently, the buyer transfers the money on an escrow account which will be transferred once the notary completes the transaction by arranging official changes in the land registry. These final arrangements are done after the buyer has paid the agent’s and notary’s fees and after the tax office has confirmed that the property is free of debts. One month after signing the contract, the buyer has to pay the stamp duty.

13) On top of the additional costs of the buying process, what are the additional taxes in Germany for owning a property?

There are, for example, the council taxes which are about 0.1% of the property value yearly.

14) How much is the management costs?

The management costs are between 20 and 30 Euros monthly.

15) How much is the sinking fund monthly and what exactly is included in the sinking fund?

The costs for the sinking fund are between 25 and 50 Cent per square meter and month. The sinking fund is kept by the property manager. It will be used for necessary reparations within the commonly owned areas such as staircase, courtyard, roof, and façade.

16) How much are the maintenance and community costs normally?

If you are going to rent your german property, the tenant has to pay these costs, which are kept by property manager. Included in these costs are heating, lift, insurance, cleaning, waste, etc. It is about 2,00 € - 3,00 € / m² / month.

17) If I am renting out my apartment, is there any way I can cancel the contract before its ending?

No, in the majority of the cases, the rental contract in Germany is indefinite. That means that only the tenant can cancel the contract, giving notice three months in advance. However, if your contract is a determinable one, there is no chance in canceling the contract before its ending.

18) In which cases can I increase the rental charge?

The rental charge of an occupied apartment can only be increased 20% maximum within a period of three years. In case of a new or refurbished apartment, the rental charge depends on its actual market value.

19) If I sell my property in Germany after 10 years, do I have to pay capital gain tax?

No, due to the German law, you are not obliged to pay capital gain tax if you sell your property after 10 years. This circumstance converts a property purchase in Germany into a lucrative property investment.

20) If I want to sell my property, let’s say 5 years after I purchased it, how much are the capital gain tax?

The capital gain tax is 25% in Germany, unless you have owned it for at least 10 years (see above).

property for sale berlin - property investment berlin faq´s Berlin