Buying an Apartment as a Capital Investment
Investors who buy an apartment as a capital asset expect their property to yield growing rental incomes, retain its value and remain attractive to tenants over the long term. It goes without saying that not every apartment for sale will meet these criteria. That’s why it’s essential to choose your buy-to-let property carefully. At Part-B Immobilien, our team of experts will be delighted to advise you and make sure you find the investment opportunity that best suits your needs. Buying an apartment for sale in Berlin is your chance to make a future-proof investment with a high potential for appreciation in value. More about Capital Investment
31 Apartments in Wilmersdorf, Badensche Strasse
Buying an Apartment is an Investment Worth Making
Owning an Apartment in Berlin is a Capital Investment with a High Potential for Appreciation in Value
Buying an apartment in Berlin as a capital investment means investing in a property in a city like no other, which is currently experiencing a high level of growth and dynamic development. Due to the positive demographic trend, the demand for housing stock in suitable properties in Berlin is set to keep rising steadily over the next few years. Berlin’s population is expected to grow by about 250,000 people between now and 2030. At the same time the supply of suitable apartments is stagnating while low interest rates bring mortgage costs down. Buying an apartment is an increasingly attractive and affordable option for many.
Properties in Berlin – Capital Investments that Promise Good Returns
Property purchase prices in Berlin are still relatively low compared to other European cities – accordingly, they offer high potential returns. In capitals such as London, Madrid or Paris, buying property is significantly more expensive. At the same time, Berlin’s economy keeps growing steadily, creating thousands of new jobs in the German capital and ensuring that the population will continue to increase and property investments will continue to pay off in the long run. Interested in buying an apartment in Berlin? We will be delighted to assist you with the purchase of your new apartment in Berlin.
- a large choice of apartments across Berlin on our books
- in-depth knowledge of the property market in Berlin
- detailed understanding of the different segments of the Berlin property market, including all aspects of the applicable legal regulations
A Few Things You Need to Bear in Mind when Buing an Apartment as a Capital Investment
Getting the right kind of advice before buying an apartment can save you from making poor investment choices. For many people, buying a property is the biggest investment they’ll ever make, so it’s crucial to get it right the first time. By following the practical advice for future homeowners we have compiled below, you can make buying your property a straightforward and hassle-free process.
- Before buying an apartment as a capital investment, get a forecast of its resale value.
If you want to make a profit from your investment, bear in mind that property values develop over the long term. You should look at a time period of at least ten years – that’s how long it takes until the sale of your apartment is exempt from property speculation tax. The value of a property primarily depends on its location. A positive demographic development of the kind Berlin is currently experiencing is a key factor in making a location desirable.
- Assess the Property’s Attractiveness from the Tenants’ Point of View.
When buying an apartment for their own use, people pay attention to every single detail. Buy-to-let owners frequently go to the opposite extreme. Even if the apartment you’re planning to buy is already occupied by tenants, you should always assess its desirability for prospective new tenants. First of all, ask yourself whether you would want to live in the apartment yourself. Then review the future demand for apartments in this location in relation to the development of rent prices. Among other factors, consider the property’s micro-location: are there shops within walking distance, what are the public transport links like, what is the apartment’s layout like? Preparing a detailed check list is a great way to review whether an apartment meets the key criteria that will make it attractive to prospective tenants.
- Find Out How Many Owner-Occupiers Live in the Building.
Owner-occupiers make great caretakers – and they work for free. Owners who use their apartment as their home take a particular interest in looking after gardens and other shared areas, keeping the stairwells clean and tidy etc. That’s why it’s important to find out who else lives in the building – are all the other parties renting or are there any owner-occupiers among them?
- Check the Additional Purchase Costs Before Buying an Apartment.
Don’t underestimate the additional costs of buying a property. For a purchase price of €200,000 for an apartment in Berlin, you can expect to spend an extra €24,000. Land transfer tax and the estate agent’s commission will account for the bulk of these extra costs. Although there is a fixed tax rate, which varies from one federal state (Bundesland) to the next, there are ways of drafting the purchase contract in such a way as to reduce the amount subject to taxation. For example, fixtures such as a fitted kitchen or fitted closets can be deducted from the purchase price in order to reduce the amount of tax payable by the buyer.
- Review the Minutes from Homeowners’ Meetings.
As a future homeowner, you will have to make decisions in consultation with other owners. The minutes of these meetings, which the owners’ association is legally obliged to document, are an important source of information on the dynamics within the owners’ association. Make sure to read the minutes of at least the three most recent meetings before buying an apartment. These documents also contain details on any planned repairs or renovations within the building.
You have decided to invest in a property and buy an apartment? Our Part-B Immobilien team will be delighted to assist you and answer any questions you may have about buying an apartment as a capital investment.