Germany is an attractive location for investing into a property. Regardless of whether you are looking for a safe place to invest, or are considering relocating together with your family, Germany is a great choice. Putting money into German Property can be one of the best investments you can make and at a time of ultra-low mortgage rates and stock market uncertainty, this has never been more evident.
Besides finding the right location you will need to consider direct and indirect costs, finding the right mortgage, additional sales costs and you need to think about tax implications, the market situation, the economic outlook, the list goes on. Purchasing real estate in Germany is a complex process, and we are here to guide you through this process. As a mortgage broker with a focus on international home buyers wanting to invest in Germany, EichenCredit works closely with financial lending institutions specializing in lending to international clients. We have recognized that applying for a mortgage can be a somewhat confusing process and we have therefore simplified the mortgage application process so that finding the right financial solution is just four easy steps away.
1. Know why you want to buy
Property can be one of the best investments, but be sure to know why your buying. Do you want to live there yourself or rent it out short-term or long-term? Knowing this will help you select the right financing option and make you become a better landlord.
2. Location, Location, Location
Before you even start looking for a property, research your desired areas first. Identify the location that suits your needs best. For example, if you wish to let your property out short term, ensure that it is located in a city where there is demand for that. Does the area you are looking at have an expanding population or a
developing infrastructure? Does the area you are looking at have good local transport links, shops, schools, parking options and cultural amenities? Do those things matter for the type of investment you are planning to undertake? It is always worth checking with local estate/rental agents as well as online
web portals, to help you identify if an area is right for you. If you need help, our partners at Rubina Real Estate can support you.
3. Check your finances
Buying a property in Germany can be expensive due to additional costs associated with the purchase.
These can be:
- Notary fees (Notar) = 2%
- Property transfer tax (Grunderwerbsteuer) = 3.5-6.5% dependent on area
- Estate Agent fees (Makler) = 3 to 6% plus VAT dependent on area (paid by purchaser)
4. Find the right mortgage
Buying a property in Germany can be expensive due to additional costs associated with the purchase. There are loads of different mortgages available, which initially may look rather attractive. The most important thing however, is to look at the small print.
German mortgages rates for international home buyers wanting to purchase a property in Germany are generally higher than for German citizens. This is due to the associated increased risks.
We at EichenCredit have partnered with Credit institutions who are only interested in lending to international investors, and we have specialized in making the application process and credit offering as simple as possible for you.
Our online application process takes only four clicks:
- Create account
- Provide us with your details
- Upload supporting documents
- Receive your money
If you would like to see how much you can afford to borrow, try this free online mortgage calculator.