How much will it cost me to buy a property?

It is worth noting that in Germany it is normally the buyer and not the seller that pays the Estate Agent fee.
This fee can be substantial, usually around 6%. When you add the stamp duty (currently 4.5%) and notary fees, total extra costs can add up to around 12%. Remember though that most properties are already priced incredibly cheaply

If I am buying to let, who will manage my property?

Germany has a well developed letting system with many letting management professionals. A Management company should be engaged to run your property purchase. This company would do complete management including collecting rents, installing new tenants, preparing annual accounts etc. The charge for this service may vary but typically would be €15-20 per apartment per month. We will be able to put you in touch with some agencies.

Germany has a well developed letting system with many letting management professionals. A Management company should be engaged to run your property purchase. This company would do complete management including collecting rents, installing new tenants, preparing annual accounts etc. The charge for this service may vary but typically would be €15-20 per apartment per month. Typically we will have arranged this for you.

What are the ongoing running costs?

Apartments in Berlin have a ‘Hausgeld‘ a monthly charge which normally covers such things as heating, hot water, maintenance, buildings insurance and rubbish collection. If your apartment is let, the tenants will usually be responsible for a proportion of this charge.

What are the rental yields?

This varies from property to property and area to area. On blocks of apartments in cheaper areas of Berlin yields as high as 8 to 10% can be found. More affluent areas around 6-8%. On individual apartments the yields can fall to around 5-8% dependent on location and the condition of the property. At Palmer Collins we believe that you should be investing for potential HUGE CAPITAL GROWTH that this market offers, not just for short term yields.

Viewing my property purchase

Unfortunately, the viewing of the flats a sensitive issue in Germany. Firstly the tenants have more rights to decline a request and secondly the vendor may not want his tenants to know the property is for sale. The most common procedure is as follows,

1. You are offered a number of properties that fit your investment requirements. We will provide background information for the specific apartments.
2. Once an apartment has been selected we can organise for an accompanied inspection trip. During this inspection you can view he common areas of the property and the surrounding areas.
3. Once your offer has been accepted and the date set for the signing of the purchasing agreement with the notary we can request for the vendor to arrange for an internal viewing