Germany can be complicated for real estate buyers.
Germany is a great real estate market for overseas investors, and many of the market dynamics make it unrivalled, but it can be complicated for investors unfamiliar with the processes involved as well as the requirements.
It is important to structure your German property investment with expert advice in order to maximise the investment returns. Some of the problems with the German real estate market for overseas buyers:
- Germany consists of 16 states, each with separate tax codes, constitution and government.
- Financing your investment as a foreign investor is very challenging to obtain the most competitive rate. Depending on which location of Germany you are purchasing a property, the lenders will differ and if you are investing from overseas dealing with lenders in a foreign language consistently leads to a higher interest rate from the lender.
- Overseas real estate investors that are not residing in Germany will need a reliable property management company in order to service and manage problems with the building and tenant.
- When purchasing a property, for various parts of the process you will require translation of German legal documents.