Munich: Apartment, house and investment
Munich is the most expensive city in Germany. Square metre prices are rising for tenants but also for buyers. Building land, land, condominiums, single-family homes and apartment buildings, the prices are rising but also the profits for investors. We take a close look at the Munich property market, financing, buying tips but also tips for tenants. Right at the beginning we start with buyers and our view on the price development. After the overview you will find the purchase price for newly built condominiums in Munich. From 2009 to 2019 the price per square meter for an ETW (new building) has increased from 3,400 Euro / square meter to 8,100 Euro / square meter. An increase of 4,700 euros / square meter, a whole + 138.2% in only 10 years.
German Real Estate Info
If you’re looking into buying real estate in Germany, there’s some details you have to know about. Germany has substantially different laws relating to real estate than other countries. Therefore, to know where to save, what to look for, and the nitty gritty details, you have to get specific information. You should know about things like the Immobilien GmbH and Grunderwerbsteuer and German real estate taxes.
Buying Property in Munich
If you’re thinking about investing in Munich’s real estate, the question about rent or buy is probably in focus. The recommendation here is clear: Buy or, when possible, build. In recent years, the development has been towards low interest rate on mortgages. This means you’re likely to lose money renting, as opposed to buying, when looking at one property. Furthermore, with the inner city filling up, and with the market extremely tense, the best option is likely to invest in the outer parts of the city. Comparing the buying price and yearly rent in these parts shows that the ratio here is good. Most importantly though, the price is increasing, meaning that your investment will likely pay off.
Buying a House in Germany – Additional Costs
What additional costs can you expect buying a hosue in Germany? It can be maddening trying to understand the German real estate laws and regulations. Below we explain the most important additional costs, and hidden fees which you may not know about. This short how-to guide should let you know a lot about what to consider when buying a house in Germany. Low interest, mad loan offers and irresistible purchase prices entice and the seducive dream of home ownership can become reality. However, most people do not deal enough with the subject and forget about the additional costs that buyers and sellers expect in a purchase contract. Which additional costs arise with the purchase of a condominium?