How To Successfully Buy Property In Berlin
It goes without saying that the housing market in Berlin is on fire. Regardless, a buyer must be able to recognize the possible issues associated with buying property. It is also good to know that buying German property is not the same process as we see in North America.
It is also a good idea to be familiar with specific housing regulations and rules prior to relocating. This way, you’ll know what to expect.
In spite of the difficulties and suitability issues of having Berlin property, owning some can be mind-blowing to some people. It is with these buyers who must be able to understand how to be successful while planning to obtain property.
Must Have Commitment
When viewing the Berlin housing market, you will see that it looks similar to how it did in 2000. As we saw, many consumers were spending entire days over the weekend on the hunt for the perfect home. A complete obsession occurred over buying a home. This is how Berlin is currently viewed. Individuals and families don’t feel like forking over rent on a monthly basis and feel fearful of missing their opportunity to own.
Familiarize Yourself with Transaction Cost
Succeeding in buying property in Berlin means you should be familiar with all costs involved with the transaction.
This means being aware of a 7 % “provision” that you will need to pay to the broker. Besides this, a tax of 6 % for transferring the real estate to your name must be paid by the buyer. A minimum of 1% for a Notary and 1 % for your lawyer must also be forked over by the buyer. In the end, a properties total cost for the transaction can be more than 10 % on top of the properties initial price tag, which the mortgage will not cover.
Not knowing the cost for the transaction can make the difference between owning and not owning a home. Succeeding with buying property means that you have complete knowledge of the cost for the transactions as well as the amount that they are able to bear, prior to signing on the dotted line.
Do Your Financing Research
Unless you are a cash buyer, then you may be in need of a mortgage in order to get what you want. Regardless of the route you decide to take, money does not cost much in Germany. In fact, the interest rates are well below 2 % for many mortgages that are offered. This has a downfall though since each bank in Germany is not the same so the interest rate could fluctuate depending on the bank you decide to go with. This will require you to shop around in order to obtain the best interest rates.
When you have your financing all figured out you will be well prepared in deciding if you want a home or not.
Having the knowledge above can easily put the power back into the buyer’s hands. So now all you need to do is see what is currently available and you can click here to find that.