What to Consider When Buying Property in Berlin

 

Berlin was and still continues to be a hot spot for property investment in 2016. This does not mean one can rush in, buy any property and expect appreciable returns in the short term. Buying property in Berlin requires you to keep in mind three things: 

Location and neighbourhoods

Berlin is a mix of what was East and the West that were merged after the wall came down. There can be surprising contrasts by way of still isolated areas harbouring pockets of busy life known as Kiez, usually found in the soviet vacated areas. Then there are Boroughs quite different from Kiez. Mitte, Prenzlauer Berg, Friedrichshain and Kreuzberg are well administered boroughs that are prime targets of property acquisition and development but at a correspondingly higher cost. Property prices appreciate here higher than they do in Kiez or in the satellite areas around Berlin comprising of Nauen, Zeuthen, Strausberg, Wandlitz, Bernau, Hohen Neuendorf, Teltow and Oranienburg to name only a few within a 30 mile radius, each with its individual identity. Even in the most prized Mitte areas there are pockets of residential and commercial areas that are more highly prized. 

 

Type of Property

Old properties dating back to the War or even before it in the heart of the city attract a higher price. However, one must keep in mind that this kind of property will require plenty of renovation that could be expensive and there may be other factors to consider as well. Investing in upcoming construction means you are assured of apartments or houses that are energy efficient and more suited to a large population that looks for affordable housing or rentals.

Taxes

Investors buy to realize gains on capital either by way of sale of property, long term lease that can be converted to a sale or rental. If taxes are not factored in the investor could be left with very little either by way of sale proceeds or by rental income. Investors must keep in mind that rental income attracts tax based on various slabs. Also acquisition of property involves payment of transfer charges, property tax, municipal taxes, documentation and legal fees as well. Services of Berlin property by Gate Berlin gives investors the benefit of expert tax advice, structuring a company to buy and hold property, manage the asset and take care of compliances as well as due diligence. Gate Berlin professionals may also advise about financing options in order to buy a more prized property at a lower down payment and then structure rentals to generate a return as well as pay for the loan. 

Advice and assistance on buying Berlin property by Gate Berlin, a leading real estate agency in the city, gets investors the benefit of a well developed tactical strategy. This is further reinforced by assistance at each step of the way starting from finding the right property to its acquisition due diligence, financing, renovations, asset management and rental management. These and other details are fully disclosed when an investor consults Gate Berlin before making any move to buy property in Berlin. He gets off on the right foot.