Berlin is the biggest city in Germany. The city is characterized by internationalism as well as diversity. Also, Berlin is a great spot for real estate in Germany.
For years, the prices of properties here have been rising, you will still find great deals at low-level prices.
As of 2021, it’s still a smart idea to purchase an apartment in Berlin rather than rent it. Compared to cities like New York, Paris, or London, you can find a nice apartment to buy in Berlin at moderate prices – at low-interest rates.
Keep reading to learn more about buying a property in Berlin.
How to Buy A Property in Berlin ?
Like other cities in the world, there are certain things you must know before venturing into buying a property. Below are things you need to consider before buying an apartment in Berlin, Germany :
Important documents to request for
Before you purchase a property in Berlin, there are key documents you need to request from the owner(s). Request for these documents:
- Ground view (Grundriss): This is the layout of the property. It’s important.
- Declaration of division (Teilungserklärung): Here is the document that highlights the belongings of the property as well as what’s for the joint property – for instance, the stairs.
- Economic planning (Wirtschaftspläne): This document states the financial motive of the property owner(s). It also details the expenses involved for the maintenance of the property, as well as possible evolution with time. Always look out for ‘Rücklage’ in this document – it’s the reserve of a fund within the regular budget of the apartment. Also, check for ‘Hausgeld’ which represents possible monthly expenses.
- Assessment for energy consumption (EnergieAusweis): This document shows you information regarding the property’s energy efficiency.
Use estate agencies
If you don’t want to stress yourself with the process of buying a property in Berlin, you may use estate agencies. These middlemen make direct transactions with private owners of properties, especially big-scale deals. Although you may not need this if you are dealing with a small private owner.
One benefit of using an agent is that you will be provided with all the required details about a property. They can also assist you with getting your dream property, they have the necessary database and also work with other agencies.
Note, you shouldn’t pay any fee while hiring an estate agent until your deal is completed. Agents work on the basis of performance. This is how it’s around the world. It’s not different in Berlin.
Find great deals on social networks, newsletters, and classifieds
Few people use these routes. But there are lots of good deals to be uncovered via these platforms. They are also less expensive.
For instance, there are categories for real estate on Facebook and eBay.
You will always find great property deals on Facebook groups in Berlin. There are more groups for interesting deals. Also, a ton of estate agencies run their bulletins and newsletters. This is where the latest available apartments for purchase in Berlin are frequently listed. Their newsletters often first feature these deals before outsiders can access them. To benefit from this, simply sign-up for their lists.
Offer a financing confirmation
On request, your bank or representative can give you a document known as ‘Finanzierungsnachweis’ or ‘Finanzierungsbestätigung’. This document expresses that your current monetary circumstance can give you admittance to a home loan for a certain sum. It’s extra security for the seller that the procedure will go without a hitch assuming they choose to arrange with you.
This report is non-restricting for the bank since it needs to have subtleties of the property to completely approve the home loan. It is a subtle contrast.
Get great deals from auctions
Many properties are being sold on auctions, yet few people know about it. Also, this could present a chance to offer and make a deal to purchase a condo in Berlin. But it may come with a couple of issues.
Oftentimes, you may not be allowed to visit the spot of the property since it is a closeout. The occupant or the proprietor isn’t obliged to allow individuals to see it. However, you may have access to the necessary documents of the property.
Again, you need to be present at the auction. And you must be able to transfer at least ten percent of the assessed worth to participate in the auction.
Understand legal issues and taxes
You may need the service of a tax consultant in Berlin if you will be purchasing a property with tax issues.
It’s also important to note that additional fees on a property may differ. It can be up to fifteen percent of the initial price of the property. Some of the fees to expect may include:
- Agents fees – about 3.57% starting from 2021.
- Notary (notary costs) – this is between 1 to 2%.
- Grunderwerbsteuer (property transfer tax) – this is about 6%.
- Grundbucheintrag (land registry office fee) – it costs 0.5%.
It’s also important to understand that German law seeks to eliminate speculation as well as the rapid change in the price of estates. There is a hefty tax that removes benefits made from reselling a property, especially when you disrespect the certain terms and conditions put in place. Ensure that you understand property laws in Berlin before making a deal.
Buying a property in Berlin is simple. You will always find amazing deals with moderate prices whenever you need an apartment. Use the tips above to secure your dream property. Finally, search for flats for sale in Berlin online too.