Notary Fees,
Stamp Duty and other important "legal" information how to buy/sell in
Germany
Tenancy Laws - How to raise your rent
Prices per m² in the most sought-after and fashionable areas of
Berlin City Rule of Thumb:
The better the location, the
higher the prices and the lower the yield. This is because the rent you can
charge for a tenanted property in a prime location tends to be only marginally
higher than for slightly more average areas. For instance, if you are
interested in good rental return, your best option might be a decent, but not
overhyped district. How much capital gains will be achieved in a fashionable
location - and it that location will still be fashionable when you want to sell
the property - remains to be seen. I would avoid those overhyped areas and
focus on good-quality rather than hype.
Expect that the % increase in
capital gains in districts with more room for appreciation will be
substantially higher than hyped locations.
You should also take into
consideration that the "affluent" German does not necessarily live in the City
Center - but in chalets on the outskirts. The districts of Grunewald (south
west), Frohnau (north) or Karlshorst (in the east) are upmarket expensive
locations. Further afield from the City Center for the liking of the
international investor, but sought-after locations anyhow.
Therefore, a good
compromise is a peaceful side street within a radius of 10 km. Just remember
that the City of Berlin has an area 891 km² - in comparison the City of Paris has only 106 km².
The
City has excellent public transport, so getting from Zone A to B to C is
secure, fast and efficient.
You will also note few cars in the City
Center - because Berlin residents prefer to use public transport or go by
bicycle. Watch out for the bicycle lanes all over town - bikers can go fast and
minor accidents can occur, especially when the ever-growing crowds of tourists
use the bicycle lanes as pedestrian walkways.
When choosing an
apartment, ensure that public transport such as S-Bahn, U-Bahn, Tram are within
easy reach, and don´t fall the hype of any certain area. Noone knows what
will be trendy in 5 years? Just remember what happened to Chueca in Madrid over
the last few years.
|
District |
Price Range per m² |
|
Mitte |
3000 - 6000 |
|
Tiergarten |
2500 - 4500 |
|
Schmargendorf, Zehlendorf, Grunewald |
1800 - 5000 |
|
Prenzlauer Berg |
2500 - 5000 |
|
Friedrichshain, Kreuzberg |
1800 - 3500 |
|
Wilmersdorf, Charlottenburg Schöneberg |
2500 - 5000 |
|
Karlshorst, Köpenick, Treptow, Lichtenberg |
1000 - 3000 |
|
Pankow, Wedding |
1200 - 3000 |
|
Reinickendorf |
1100 - 2000 |
|
Neu-Kölln, Moabit |
1300 - 2000 |
|
Spandau, Hellersdorf, Marzahn |
800 - 1500 |
The details above confirm the importance of "micro-locations /
micro-district". A micro-location is the local area where residents live
and mix, also called "Kiez".
Which location to chose? My
advice:
Avoid the "fussy" places (like "Unter den Linden") because there
are no residential properties, the same goes for Potsdamer Platz Sony Center or
Kurfürstendamm. Don´t buy the Kurfüsten-Hype if the property is
one mile apart. Just a few stops by Underground you might find your dream
property at more accesible prices. We cater for "value investors".
If you
really wanted to go the hyped places for shopping, hop on a bus. You can easily
get on the S-/U-Bahn and be anywhere within minutes.
If you are
interested in purchasing a tourist apartment, make sure that you have shopping and
Underground nearby. Remember that tourist sites are spread over the 891
km² city, so it really doesn´t matter too much where the property is
located providing it´s easily accessible and nice. Please bear in mind
that running costs for a holiday apartment can be fairly high and
administration more complex than a normal tenant.
You are well-advised
to forget the myth of Berlin´s districts: There are superb places in
Neu-Kölln or Wedding with lots of life and action, just as there are in
Prenzlauer Berg or Friedrichshain.
Forget about the "craze" of "Mitte" - a
bad translation for the word "Mitte" lead many foreign investors to believe
that this is the "Center of the City" where all the action is. That´s not
quite the case.
Due to the sheer size of the City, Berlin really has two
centers, "West" (Zoologischer Garten) and "East"
(Alexanderplatz).
Value-conscious investors looking for capital
appreciation should choose the right mix of location, price and yield. Some
micro-locations can offer terrific opportunities for short and longterm
profits.
Districts, boroughs, locations or areas of Berlin
are:
Adlershof, Britz, Buch, Charlottenburg-Wilmersdorf, Charlottenburg,
Dahlem, Friedenau, Friedrichshain, Friedrichshagen, Frohnau, Gatow, Grunewald,
Gesundbrunnen, Hansaviertel, Haselhorst, Heiligensee, Hellersdorf, Hermsdorf,
Köpenick, Karlshorst, Kladow, Karow, Kreuzberg, Lichtenberg, Mariendorf,
Marienfelde, Marzahn, Mitte, Moabit, Neukölln, Pankow, Prenzlauer Berg,
Reinickendorf, Schöneberg, Scheunenviertel, Spandau, Staaken, Steglitz,
Tempelhof, Tiergarten, Treptow, Wedding, Westend, Wilmersdorf, Weissensee,
Zehlendorf. |
