404 (not found) – But, what about…
Real estate books for children – Would you like to read your children an exciting bedtime story and let them learn about real estate and investments in a fun way at the same time? Then my new Timmy, Lea and Finn stories are just the thing! You can read all the books and stories online for free or download them as ebooks. Click here to go directly to Timmy’s adventures.
Discover the world of real estate with your kids
Join Timmy and his friends on adventurous journeys that not only stimulate the imagination but also enrich the mind! Each story, whether it’s the discovery of the magical tree house or the mission to Color Island, is perfect for read-aloud time and provides a fun way for children to learn about real estate and appreciation.
Adventure and learning, with Timmy, Lea and Finn!
With colorful illustrations and engaging storylines, these books will become an essential part of any read-aloud routine! Discover the joy of reading and learning together with Timmy.
Read online now or download as an ebook and turn reading time into a magical experience! By the way, the author of the little stories is our editor Stephan. Read the books online for free or download the ebook:
A learning adventure full of excitement and inspiration
The stories of Timmy and his friends are more than just entertainment – they are an invitation to discover the world of real estate and investment in a playful way. The fascinating storyline encourages young readers to find creative solutions for the future and to take responsibility for their environment.
Why no nursery should be without these books
Parents watch out! The real estate adventures of Timmy, Lea and Finn are a must-have for every child’s room. Not only do they encourage little explorers’ imaginations and love of reading, they also impart valuable knowledge about real estate, sustainability and environmental protection.
Discover the magical tree house, the abandoned property or the color island and immerse yourself in an adventure full of magic and excitement!
Download the free ebook now and join Timmy, Lea and Finn on their exciting journey through the colorful world of real estate.
Tips for reading aloud: Make reading aloud a daily ritual
Here are 6 good reading tips from FIV Magazine:
- Create a calm atmosphere
- Find the right reading time
- Choose suitable stories
- Read aloud vividly
- Interaction with the story
- Imaginative conversations
Create a calm atmosphere
Provide a comfortable environment without distractions such as a TV or cell phone so that you can concentrate fully on your child and the story.
Find the right reading time
It is best to choose the same time every day for reading aloud. Before going to sleep is particularly good for calming down, but other times are also suitable, such as waiting times or traveling.
Choose suitable stories
Focus on your child’s interests, be it detective stories, adventure stories or non-fiction. If the child enjoys the story, they will also be more enthusiastic about reading it aloud.
Read aloud vividly
Adapt your voice and intonation to the story to make it more lively. This helps to keep your child’s attention.
Interaction with the story
Allow your child to ask questions and comment on the story. Look at the pictures in the book together and describe them.
Imaginative conversations
Discuss what you have read with your child, think about alternative endings or how the story could continue. Let your imagination run wild!
Frequently asked questions about reading aloud
From what age can I read to my child?
Reading aloud makes sense from the age of one or two. There are suitable books for different age groups, even for babies as young as 3 months.
Which books are suitable for reading aloud?
There is a wide range of books for all ages and interests, from picture books to children’s book series.
How often should I read to my child?
Ideally, reading aloud should take place daily, for at least 15 minutes.
Read & download for free!
How much is an apartment building worth? In the world of real estate investment, the question often arises: How much is an apartment building really worth? This question is of crucial importance, whether for potential buyers, sellers or investors looking to expand their portfolio. But determining the value of an apartment building is no simple matter and requires a thorough analysis of various factors.
These 5 factors determine the value of the apartment building
Tip in advance, I recommend my guide:
Decisive for the value are:
- Real estate location (macro and micro location)
- Property and defects (condition)
- Types of use
- Tenants and rental agreements
- Potential
Quickly explained:
Real estate location: Berlin, Wuppertal or a village in the country?
Location is known to be a decisive factor in real estate valuation. Both the macro-location (regional and city-wide factors such as economic situation, infrastructure and development prospects) and the micro-location (immediate surroundings of the property, neighborhood, access to public transport) are taken into account.
Here is a quick offer check on ImmoScout24:
- Rudow, Berlin – 1,149,000 € / for 355 m² living space –
A-location - Oberbarmen, Wuppertal – 629.000 € / for 456 m² living space –
B-location - Wusterhausen/Dosse (Brandenburg) – € 128,000 for 305 m² living space –
C-location
Berlin and Wusterhausen are ~ 100 km apart, the purchase price differs by a factor of ~ 10. The location has this major effect on the property value.
Want to learn more? Read my guide here:
Condition of the property
The condition of the apartment building plays a key role in the valuation. Aspects such as year of construction, building fabric, need for renovation and modernization as well as energy efficiency are taken into account. A well-maintained and modernized building can have a higher value than an older property in need of renovation.
More on years of construction and defects:
Types of use
The various possible uses of the apartment building also influence its value. Is it a purely residential property or are there also commercial units? Are there potential development opportunities, e.g. through conversion or extension?
Tenants and rental agreements
The quality of the tenants and the long-term stability of the rental agreements are decisive factors for the value of an apartment building. A stable tenant mix and long-term rental agreements can increase the attractiveness of the property and thus increase its value.
Potential of the apartment building / surroundings
Finally, the potential of the apartment building is taken into account. This includes possible increases in value through planned developments in the surrounding area, through modernization measures or by optimizing rental income.
Overall, determining the value of an apartment building is a complex task that requires a comprehensive analysis of various factors. A professional valuation by a surveyor or real estate expert may therefore be advisable in order to determine the realistic market value of the property.
If you would like further information on the subject of multi-family house valuation or require professional support, I will be happy to assist you. Write to me without obligation: Contact.
A little reminder, I recommend my guide:
Are you considering selling your apartment building in Munich? Selling such a property is complex, but with the right steps and tips you can achieve a successful sale, regardless of whether your property is fully rented or vacant. Everything you need to know about selling an apartment building 2024.
Selling an apartment building in Munich: step by step
Let’s start with the question: How much is your apartment building in Munich actually worth? Find out all the steps of the sales process, from the valuation to handing over the keys.
Determine the value of your apartment building
The value of your property depends on various factors, including the location, the size of the apartments and the condition of the building, depending on the year of construction. A realistic sales price is crucial for a successful sale.
How to value an apartment building
The valuation of an apartment building is based on specific methods such as the comparative value method, the asset value method and the income capitalization method. A combination of these methods provides a realistic market value.
At least two of these methods are usually used to determine an exact value.
- Valuate apartment building
Typical evaluation procedures - Free evaluation by experts
Selling in Munich: What to look out for?
When selling your apartment building in Munich, you should consider a few important aspects:
- Location and property prices: The target group of buyers depends heavily on the location and current property prices.
- Documents: Make sure that you have prepared all relevant documents such as floor plans, land register excerpts and tenant lists.
- Good contacts or an estate agent: An experienced estate agent can help you to organize the sales process efficiently and to approach the right buyers.
Location and property prices: The buyer target group in Munich
Munich is a sought-after real estate market with high property prices. The target group of potential buyers is looking for long-term investments and is prepared to pay corresponding prices.
You need to reach people who focus on long-term investments and do not need immediate cash flow.
Documents: Floor plans, land register excerpt, tenant lists, etc.
Before you start the sales process, make sure you have all the necessary documents for the property sale ready. This includes, among other things:
- Land register extract
- Parcel map
- Building plans and building permits
- Refurbishment status
- Tenancy agreements and tenant list
- Operating cost statements
- Energy certificate
- Status report or expert opinion
Good contacts or a good broker
As apartment buildings in Munich often fetch high prices, it is advisable to consult an experienced estate agent. An estate agent has the necessary contacts and can help you to approach the right buyers and achieve the best possible price.
Ultimately, it is always a personal question as to whether you want to sell with or without an estate agent.
Taxes when selling in Munich: What will you have to pay?
A quick look at the tax aspects of selling your apartment building in Munich:
- Speculation tax: Sale within the speculation period is subject to tax.
- 3-object rule in Munich.
- Asset & share deals: differences in taxation depending on the sales structure.
The taxes are the same regardless of whether you are selling in Altstadt-Lehel, Ludwigsvorstadt-Isarvorstadt, Maxvorstadt, Schwabing-West, Neuhausen-Nymphenburg, Au-Haidhausen, Sendling-Westpark, Schwanthalerhöhe, Sendling or Bogenhausen.
Speculation tax: selling tax-free?
The speculation period is generally 10 years for rented properties. If you sell within this period, you must pay tax on the profits. After the period has expired, the sale is tax-free.
Further details on the 3-property rule and asset deals vs. share deals can be found in our article
Real estate & tax coaching
Do you need further support with the sale of your apartment building in Munich? We offer real estate and tax coaching by experts and investors. Contact us for more information:
Also discover our resources for real estate beginners:
Selling apartment buildings in Berlin – Fully rented or with vacancies, the sale of apartment buildings (also apartment buildings ) is more special, but also more lucrative, if you evaluate everything from the types of apartments to the land. The sale of old apartment buildings is more specialized, depending on the year of construction. But let’s start step by step, what can you expect when selling an apartment building 2024? My guide, for you.
Selling an apartment building 2024: Step by step
Let’s start with the most frequently asked question: “What is my apartment building worth?”. Then you will learn about all 18 steps of the sale, right up to handing over the keys in Berlin.
How much is your apartment building worth?
Small apartment buildings with 3 or 4 parties or large residential properties, with or without commercial space. There are many questions to answer. If you want to sell your apartment building, one thing is important:
A well-founded, market-oriented, realistic purchase price – the so-called market value.
How to value an apartment building
The property type determines the
As a rule, at least two of these procedures are calculated simultaneously.
- Valuate apartment building
Typical evaluation procedures - Have an apartment building valued
Selling in Berlin: What to look out for?
- Location, property prices: Buyer Target group
- Documents: floor plans, extract from the land register, tenant lists
- Good contacts or a good broker
Location, property prices: Buyer Target group
Berlin is special compared to other small German towns, cities and large cities. Berlin is extremely
You need to reach people who focus on long-term investments and do not need immediate cash flow.
This is why over 70% of apartment buildings in Berlin are sold with estate agents. Targeted marketing on-market and off-market, communication, credit checks, preliminary talks, documents, viewings, negotiations.
So be prepared, you are not selling a condominium with hundreds of prospective buyers, you have to address the right target group.
Documents: Floor plans, land register excerpt, tenant lists, etc.
Before the sales phase begins, you need all the relevant documents for selling your property. To cut a long story short, these are the documents you will need when selling an apartment building in Berlin:
- Land register extract
- Parcel map
- Building plans and building permits
- Refurbishment status / refurbishment backlog
- Rental agreements
- Tenant list
- Operating cost statements
- Energy certificate
- Status report or expert opinion
Good contacts or a good broker
This brings us back to the right contacts. Apartment buildings in Berlin are usually not under 2 million euros, which requires special contacts with sufficient creditworthiness. This is precisely why over 70% of apartment buildings in Berlin are sold with estate agents.
Ultimately, it is always a personal question whether to sell, with or without an estate agent.
Anyone selling with an estate agent does not want to invest time in lengthy research, communication and negotiations. But it’s also about the selling price. If you only talk to 3 or 4 people yourself, you will be lucky to get 1 offer. Professionals use their contacts and talk to many potential buyers in order to get the best, highest offer that can be achieved in the current market situation.
Here are a few more details.
Taxes when selling in Berlin: What will you have to pay?
A very quick look at taxes when selling an apartment building in Berlin:
- Speculation tax: sell tax-free
- 3 objects rule in Berlin
- Asset & share deals: only 1.54% tax
Speculation tax: selling tax-free?
The speculation period explained more quickly:
- (Exclusively owner-occupied = 3 years)
- Rented = 10 years
If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. If you want to do a quick calculation, use my free
There is also the 3-object rule and, of interest to you, the difference between an asset deal and a share deal. Read more here:
Real estate & tax coaching
Real estate & tax coaching from experts and investors. I am happy to bring you together with the best:
Here you can find more for:
Share deals – saving taxes, but the right way? In my guide to
Only 1.54% tax on real estate sales
One option for a tax-optimized sale is the share deal. In this case, however, the property must already have been purchased by a company (such as Immobilien GmbH) (not as an individual). A share deal is possible if you have the company in a holding structure. This means you only pay 1.54% tax due to the intercompany privilege(§ 8b KStG).
- Asset deal = property is sold
- Share deal = company is sold (with real estate ownership)
Here is the construct for a share deal in a holding company:
Now let’s calculate our example again, starting with the direct sale of a property!
Sale of a property as a company 🡆 Asset deal
Let’s calculate the exemplary tax in Berlin for the sale of a property as a company (asset deal).
- Purchase 2024 = 2,100,000 euros
- Sale in 2028 = 4,100,000 euros
- Taxable profit Berlin approx. 19.1 % (trade tax 4.1 %, corporation tax 15 %) = EUR 2,000,000
- At 19.1 % = 382,000 euros
Sale of a real estate GmbH as a company 🡆 Share deal
Here is a comparison of the tax burden for the sale of a real estate GmbH as a company in Berlin (share deal):
- Purchase 2024 = 2,100,000 euros
- Sale in 2028 = 3,100,000 euros
- Taxable profit = 1,000,000 euros
- For GmbH 1.54 % = 1,540 euros
You can see how huge the difference is.
Bonus! No land transfer tax on purchase
Let’s delve a little deeper into the subject of real estate and tax optimization!
Again, simply put:
- Sale of Immobilien GmbH below 89% = no real estate transfer tax
Why is this the case? In Germany, the sale of shares in a GmbH that owns real estate is not normally subject to real estate transfer tax as long as the shares are below a certain percentage(§ 5 GrEStG).
What are the advantages? Real estate as an investment must bring a profit, usually calculated by the rental yield. The land transfer tax increases the purchase price by up to 6.5%, depending on the federal state. For 1 million euros, this is a cost of 65,000 euros. This directly increases the yield by a few percent.
Want to learn more?
Real estate & tax coaching
Real estate & tax coaching from experts and investors. I am happy to bring you together with the best:
Here you can find more for:
There are 2 types of sales when we are in the professional real estate business – i.e. not the condominium or the dream house. Typically, it is about apartment buildings or apartment buildings (rented apartment buildings). Asset deal means that a property is sold directly and share deal means that a real estate GmbH is sold (with its property/properties) – simply put. Here is a look at the typical asset deal and the taxes on the sale. Here you can find out more about the
The typical sale: “asset deal”
The difference: In an asset deal in the real estate context, specific assets such as land and buildings are sold individually, whereas in a share deal the shares in the company that owns the real estate are transferred.
Simply put:
- Asset deal = property is sold
- Share deal = Immobilien GmbH is sold
A share deal means that the buyer does not acquire the property itself, but the – in this case – Immobilien GmbH. Here is a short infographic. Then back to the direct sale of the apartment building, after which I will explain more about the holding company and taxes on the sale.
Here is a small infographic:
Tax calculation: Example
If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. As a single person, this would typically mean a top tax rate of 42%.
Asset deal as a private individual
In this example, we are selling an apartment building in Berlin, as a private individual, single person with full tax rate.
- Purchase 2024 = 2,100,000 euros
- Sale in 2033 = 4,100,000 euros
- Taxable profit = 2,000,000 euros
- At 42 % (single person) = 840,000 euros
Asset Deal as a company
In this example, we are selling an apartment building in Berlin, as a company, already with significant tax savings.
- Purchase 2024 = 2,100,000 euros
- Sale in 2033 = 4,100,000 euros
- Taxable profit Berlin approx. 19.1 % (trade tax 4.1 %, corporation tax 15 %) = EUR 2,000,000
- At 19.1 % = 382,000 euros
Share deal property: tax advantages
Saving taxes, but the right way? In my guide to
Share Deal Real Estate Asset / share deal difference
You want to sell your apartment building, what will you have to pay? When selling residential or residential and commercial properties, first-time sellers ask themselves one question in particular: How much tax do I have to pay on the sale? Here is a quick insight into the typical taxation of real estate sales. Want to learn more? My tip: the right experts and real estate tax coaching (not from a tax advisor, but from real-life investors). I will be happy to put you in touch with my experts, just write to me: Contact.
The typical sale: “asset deal”
The difference: In an
Simply put:
- Asset deal = property is sold
- Share deal = Immobilien GmbH is sold
A share deal means that the buyer does not acquire the property itself, but the – in this case – Immobilien GmbH. Here is a short infographic. Then back to the direct sale of the apartment building, after which I will explain more about holding companies and taxes on the sale.
Want to learn more?
Typically, as a private individual, you usually sell the apartment building directly. These are relevant for you:
- Speculation tax
- Three-object rule
Taxes on sale
A very quick look at taxes when selling an apartment building in Berlin:
- Speculation tax: sell tax-free
- 3 objects rule in Berlin
- Asset & share deals: only 1.54% tax
Speculation tax: sell tax-free
The speculation period explained more quickly:
- Owner-occupied = 3 years
- Rented = 10 years
If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. After the period has expired, the sale is tax-free. If you want to do a quick calculation, use my free speculation
Tax calculation: Example
If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. As a single person, this would typically mean a top tax rate of 42%.
Sale within the speculation period (< 10 years) as a private individual:
- Purchase 2024 = 2,100,000 euros
- Sale in 2033 = 4,100,000 euros
- Taxable profit = 2,000,000 euros
- At 42% (single person) = 840,000 euros
Sale within the speculation period (< 10 years) as a company:
- Purchase 2024 = 2,100,000 euros
- Sale in 2033 = 4,100,000 euros
- Taxable profit Berlin approx. 19.1 % (trade tax 4.1 %, corporation tax 15 %) = EUR 2,000,000
- At 19.1 % = 382,000 euros
Sale within the speculation period (> 10 years):
- Purchase 2024 = 2,100,000 euros
- Sale in 2034 = 4,100,000 euros
- Taxable profit = 2,000,000 euros
- Tax free
But you can’t buy 10 properties now, wait 3 years and take the profits from property appreciation, because:
3 objects rule in Berlin
There is also the 3-property rule. If you sell more than 3 properties in 5 years, it is commercial real estate trading.
When selling real estate, the “3-object rule” refers to the fact that private individuals in Germany can sell up to three properties within a five-year period tax-free. If a person sells more than three properties within this period, this is considered commercial real estate trading and is subject to income tax – even if they are not rented out but are owner-occupied.
After 10 years of holding, however, the sale is always tax-free.
Why does this rule exist?
Just like the speculation tax, the rule is intended to curb speculation on the real estate market and encourage the sale of real estate for residential purposes.
So how do the “big players” save on taxes?
Share deals: selling a company “instead of” real estate
One option for a tax-optimized sale is the
Only 1.54% tax on sale
A share deal is possible if you have the company in a holding structure. This means you only pay 1.54% tax due to the intercompany privilege(Section 8b KStG).
- Asset deal = property is sold
- Share deal = company is sold (with real estate ownership)
Let us now calculate our example again, starting with the direct sale of a property:
Sale of a property as a company (asset deal):
- Purchase 2024 = 2,100,000 euros
- Sale in 2028 = 4,100,000 euros
- Taxable profit Berlin approx. 19.1 % (trade tax 4.1 %, corporation tax 15 %) = EUR 2,000,000
- At 19.1 % = 382,000 euros
Sale of a real estate GmbH as a company (share deal):
- Purchase 2024 = 2,100,000 euros
- Sale in 2028 = 3,100,000 euros
- Taxable profit = 1,000,000 euros
- For GmbH 1.54 % = 1,540 euros
You can see how huge the difference is.
No real estate transfer tax on purchase
Let’s delve a little deeper into the subject of real estate and tax optimization!
Again, simply put:
- Sale of Immobilien GmbH below 89% = no real estate transfer tax
Why is this the case? In Germany, the sale of shares in a GmbH that owns real estate is not normally subject to real estate transfer tax as long as the shares are below a certain percentage(§ 5 GrEStG).
What are the advantages? Real estate as a capital investment must bring a profit, usually calculated by the rental yield. The land transfer tax increases the purchase price by up to 6.5%, depending on the federal state. For 1 million euros, this is a cost of 65,000 euros. This directly increases the yield by a few percent.
Want to learn more?
Real estate & tax coaching
Real estate & tax coaching from experts and investors. I am happy to bring you together with the best:
Here you can find more for:
Selling a villa estate agent commission in Germany – How high is the estate agent commission when selling a villa? Whether Berlin, Hamburg, Munich or Düsseldorf, here is a guide to the typical commissions charged by real estate agents in the high-price segment.
Negotiation of the broker’s commission
In contrast to the letting of real estate, where the ordering principle applies, i.e. the estate agent’s client must pay the commission, the situation is different for the sale of real estate. When selling, the estate agent’s commission can be freely negotiated between the seller and buyer. This offers scope for individual agreements that can meet the interests of both the seller and the buyer.
“When selling, the broker’s commission can be freely negotiated between the seller and buyer.”
No legally defined commission amount
An important aspect to consider is that the amount of commission for estate agents in Germany is not set by law. There are therefore no maximum commission levels that may not be exceeded. This freedom leads to a wide range of commission rates, depending on the region, the value of the property and the negotiation between the parties.
“The commission for estate agents is not set by law in Germany. So there is no maximum commission amount.”
Typical estate agent commission for house sales
Despite the lack of legal requirements, estate agent commissions are often based on the standard rates of the respective federal states’ estate agent commissions. For properties under 1 million euros, the typical commission is between 5.95% and 7.14% including VAT. These rates can be used as a guide when estimating the costs of selling a villa.
Does the commission remain the same for more expensive properties?
Reduced commission for high-priced properties
For properties with a value of more than 1 million euros, the broker’s commission is usually reduced. The commission is often in the range of 4-5%. For even more expensive properties, such as those over 10 million euros, the commission can drop further to 2-3%. From a sales price of 50 million euros, the rates are even 1-2 %. This staggered adjustment of the commission rates takes into account the fact that for very expensive properties, an appropriate remuneration can be achieved for the estate agent even without a proportionally high percentage.
- < 1 million euros, typically 5.95% to 7.14% (incl. VAT)
- > 1 million euros, typically 4.76 to 5.95 %
- > 10 million euros, typically ~ 2.38 to 3.57 %
- > 50 million euros, typically ~ 1.19 to 2.38 %
Most deals are done with real estate agents, in Germany and cities like Berlin over 80%. Here are 3 reasons why many people work with real estate agents:
Why is an estate agent worthwhile when selling real estate?
- Time saving
- Discretion in sales
- Background check of interested parties
Time saving
Selling a property requires a considerable amount of time, from preparing the documents to organizing viewing appointments and negotiations. An estate agent takes on these tasks and relieves the seller considerably by handling the entire sales process professionally and efficiently.
Discretion in sales
Many sellers value discretion when selling their property, whether for personal reasons or business considerations. An estate agent can help to keep the sales process discreet by filtering potential buyers and only contacting serious interested parties. In addition, an agent’s experience and expertise can ensure that sensitive information about the property and the sales process is kept confidential.
Background check of interested parties
An experienced estate agent has the necessary resources and knowledge to thoroughly vet potential buyers. This includes, among other things, credit checks to ensure that they are serious prospects, as well as checking their intentions to buy to avoid wasting time with unreliable prospects.
Nothing is worse than an almost perfect deal that falls through just before the notary and everything starts all over again.
That means…
The commission is usually based on the typical rates of the respective federal states and is often reduced for high-priced properties. This makes it possible to keep the cost of the sale within reasonable limits, while at the same time using the services of a professional estate agent to ensure the best price and the smooth completion of the sale.
Munich Grünwald – When it comes to real estate dreams, the category of villas reaches a whole new level. Generous space, luxurious furnishings and a breathtaking location make the villa a unique living concept and a first-class investment in the future. But how do you find such exclusive properties and what should you look out for when buying a villa? Here you can gain an insight into the world of luxury real estate in Munich Grünwald and Bogenhausen. Are you currently looking in Grünwald or Bogenhausen? Feel free to contact me without obligation.
Buying a villa in Munich 2024
In the world of luxury real estate, discretion is paramount. Exposés for first-class villas (from 5 million euros) cannot be found on conventional real estate portals. Celebrities, successful business people and public figures value discretion and rely on real estate experts with an exclusive circle of buyers and carefully selected communication channels.
By the way, for sellers, I am always looking for villas in Grünwald and BOgenhausen for my clients. Contact me without obligation, back to buying in Grünwald now!
Here you will find tips & villas in Munich Grünwald.
- Buying a villa: Tips, procedure until the keys are handed over
- The 2 most popular districts for villa purchases
- Purchase process, location and more
Buying a villa in Munich Grünwald: city or countryside?
Do you dream of a luxurious lifestyle with plenty of space and privacy? A villa offers you just that. You can live in a spacious property that offers all amenities. Keep in mind that the costs of buying and maintaining a villa are often considerably higher than for other types of property. A villa requires a considerable financial investment and regular maintenance to maintain its splendor.
My recommendations for you:
Classic, as in the cover picture above, or modern, as here, Munich Grünwald has a variety of architectural styles.
The most popular districts
Munich has many beautiful corners, two districts are particularly sought-after by buyers of villas and if you want to live and/or invest exclusively, you should take a look at Grünwald and Bogenhausen.
Green Forest
Quasi AA-location within Munich’s A-location, Munich Grünwald. If you want to live away from the hustle and bustle of the city but still be right in the middle of it.
Bogenhausen
A little closer to the city center in the northwest, Munich-Bogenhausen.
Are you buying your first property or villa? These will be your most important steps until the keys are handed over:
Procedure: explained step by step
Buying a villa is a structured process, similar to buying a conventional house. There are various steps, ranging from budget planning to handing over the keys. Each of these steps is crucial to a successful completion.
Buying a villa – The process explained step by step:
Steps | Explanation |
---|---|
1. budget planning | Before you start looking for a villa, it is important to clearly define your budget. Take into account not only the purchase price, but also the incidental purchase costs. |
2. real estate search | Once the budget has been set, the active search for real estate begins. Use various sources for this. In the off-market area, you can find exclusive properties that are not yet publicly listed. |
3rd tour | Viewing potential villas in person is a critical step. Not only can you evaluate the structural aspects, but you can also get a feel for the surroundings and the location of the property. |
4. financing | Clarify your financial resources at an early stage and check the various loan options. Solid financing is crucial to ensure that the purchase goes smoothly. |
5. notary appointment & purchase contract | After a successful viewing, the legally binding purchase contract is signed in front of a notary. All relevant agreements are recorded and both parties give their consent. |
6. payment of the purchase price | Payment of the agreed purchase price and the applicable taxes, in particular land transfer tax, shall be made at the agreed times. |
7. handover of keys | After successful completion, the keys are officially handed over and you take possession of the villa. The final formalities are also clarified and you are now officially the owner of your dream property. |
Find the right villa: Checklist
Various factors play a decisive role when buying a villa. The location of the property, the size of the plot, the room layout, furnishings and extras as well as safety and accessibility aspects are just some of the points to consider.
- Location
- Size of the property
- Room layout
- Equipment
- Safety of the environment
- Accessibility of the villa
Buying a villa involves various cost factors that need to be taken into account. In addition to the purchase price, there are also incidental purchase costs, including estate agent’s commission, notary fees and land transfer tax. Detailed financial planning is essential to avoid unpleasant surprises.
Purchase price and typical ancillary purchase costs: Overview
When buying a villa, costs are incurred that are made up of the purchase price for the property and the ancillary purchase costs. Here are the most important cost factors:
- Real estate transfer tax: 3.5%
- Notary fees: 1.5%
- Land register entry: 1.5 – 2.5%
- Broker commission: 7.14% depending on the purchase price
Where to buy in Munich Grünwald? Most exclusive locations
Munich Grünwald offers spacious plots, majestic avenues and prestigious estates. If you are looking for a villa in the most exclusive locations in Munich Grünwald, you will find what you are looking for in the Grunewald and Dahlem districts, among others. These districts not only offer an excellent quality of life, but also an exclusive living environment characterized by tranquillity and elegance.
Buying a villa in Munich Grünwald is not only an investment in exclusive living comfort, but also in a prestigious lifestyle. The city offers a wide range of villas in different locations, so there is something to suit every taste and requirement. Thorough planning, expert advice and transparent financing are key factors in successfully realizing your dream of owning a villa in Munich Grünwald.
Nesting privilege, my new favorite word! Although I’ve known about the holding model for ages, today was the first time I heard the term “Schachtelprivileg”. Simply put: only 1.54% tax on the sale of real estate! If you’re wide-eyed now, check out this short article on real estate holding. Tip! Learn more about legal forms and alternatives in Germany here: Legal forms in Germany.
Box privilege: save taxes when selling real estate
Nesting privilege: a term worth knowing!
Although I have been using the holding model in the real estate industry for years, I only recently came across the term “nesting privilege”. The bottom line? Only 1.54% tax on real estate sales! If you’re wondering, let me introduce you to the world of real estate holding in this short article.
The taxation of a real estate GmbH
A GmbH is subject to corporation tax, the solidarity surcharge and trade tax, which results in an effective tax rate of approximately 30%.
However, if you set up your GmbH in the context of real estate projects, you can benefit from the extended reduction in trade tax.
In this case, you only pay 15.83% tax on rental income and lease fees.
The same low tax rate also applies to the sale of real estate. However, care must be taken here to avoid falling into the category of commercial property trading. You may sell a maximum of three properties within five years, otherwise the tax rate rises to 30%.
The share deal offers an even more tax-efficient option for real estate sales.
Real estate holding company: Reduce the tax burden to 1.54%
By cleverly structuring your GmbH, you can reduce the tax burden on the sale of real estate to just 1.54%. A little more striking:
1.54% Taxes on sale
This concept, known as a share deal, benefits from a holding structure and the nesting privilege. Your business structure consists of two limited liability companies. One of the companies acquires the real estate, while the second limited company acts as the parent holding company. If you now want to sell your property, the holding company transfers the shares in your real estate GmbH to the buyer.
The nesting privilege comes into play here
If a corporation sells shares in another corporation, 95% of the profits remain tax-free.
This means that your effective tax rate on the profit from the sale of the property is only 1.54%.
More about GmbH & asset-managing GmbH
Learn more about the GmbH here
What valuation methods are there for real estate? When is a valuation by a real estate agent sufficient and when do you need to commission an expert? Apartment valuation, house valuation, multi-family house valuation, at least 2 of these methods are always used when it comes to real estate valuation. This is how they determine your market value 2024.
Valuation methods for house & apartment
The property type determines the valuation method used to determine the market value. There are various standardized valuation methods for determining the market value of properties.
Comparison of valuation methods: quick overview
As a rule, at least 2 of these procedures are calculated simultaneously:
- Comparative value method
- Income capitalization approach
- Asset value method
- Residual procedure
- Determination of mortgage lending value
Method | Short explanation |
---|---|
Comparative value method | Land value by comparison with similar properties; often in the case of undeveloped land & apartments |
Income capitalization approach | Generated income is capitalized; main method for rented properties & companies |
Asset value method | Material value by deducting the wear and tear value of new construction costs; for single-family houses & apartments |
Residual procedure | Determining the maximum amount that can be invested; guidance for investors |
Determination of mortgage lending value | Mortgage lending value by banks to minimize the risk of loans; security of sale over time |
Comparative value method for undeveloped properties & ETWs
What does the comparative value method mean?
In the comparative value method, we simply look at what similar properties or properties nearby have sold for and use these prices as a reference to determine the value of a property.
It’s like saying, “This property is similar to the ones that have sold recently, so it will probably have a similar price.”
This valuation method is based on a comparison of sales prices of similar properties or apartments in the surrounding area. Various factors are taken into account, such as the size of the property, the location, the local infrastructure and other features that can influence the value of the property. By comparing with similar transactions, real estate valuers can make a realistic estimate of the current market value.
Explained quickly and simply:
- Determination of the land value by comparison with similar properties / real estate
- Based on the idea that similar properties achieve similar prices
Read more about the:
Income capitalization approach for rented properties
What does the income capitalization approach mean?
In the income capitalization approach, we estimate the value of a property based on the rental income it can generate. If a property has high rental income or has the potential to generate it, its value is estimated higher. It’s like looking into the future to see how profitable the property could be.
This method focuses on the potential income that the property can generate. For this purpose, the current or expected rental income is used and converted into a capital value using a capitalization factor. This capital value forms the basis for the valuation of the property. In addition to rental income, other factors are also taken into account, such as operating costs, tenant turnover, any vacancy periods and possible future developments in the market environment. The income capitalization approach thus enables a sound assessment of the long-term economic potential of a rented property.
Explained quickly and simply:
- Capitalization of the income generated
- Main method for the valuation of rented properties, land and companies
- Focus on potential future income from the property
Read more about the:
Material value method for single-family houses and apartments
What does the asset value method mean?
The asset value method looks at how much it would cost to build a new property today. It then deducts how much the property has lost in value in the meantime because it has become older. It is mainly used for houses and apartments to determine their pure material value.
In this method, the asset value of the property is determined on the basis of the production costs or new construction costs. These costs are adjusted for reductions in value due to ageing and wear and tear. Special features or structural characteristics can also be included in the valuation. The asset value method is particularly suitable for properties whose value is defined less by their earning power and more by their material substance.
Explained quickly and simply:
- Determination of the asset value by deducting the wear and tear value from the new construction costs
- Mainly used for single-family homes and condominiums
- Focuses on physical characteristics and reconstruction costs of the property
Read more about the:
Residual method: Determination of the maximum investable amount
What is the residual method, simply explained?
The residual method is like looking at the money an investor has left over after deducting all costs. It helps determine the maximum amount an investor can spend on a property based on expected future income. It is a kind of safety net to ensure that an investment is profitable.
The residual method is not a standardized method, but is used to determine the maximum amount that can be invested. The costs to be borne by the investor are deducted from the sales value of the property. This method gives an indication of the maximum amount an investor can spend on a property based on the expected income.
Explained quickly and simply:
- Determination of the maximum investable amount by deducting investor costs from the sales value
- Not a standardized method, but a guide for investors
- Gives an indication of maximum investment potential based on expected returns
Determining the mortgage lending value: Minimizing the risk of loans
What does mortgage lending value calculation mean?
The mortgage lending value calculation is used by banks to determine the value of a property before it is used as collateral for a loan. The banks want to make sure that the property is worth enough to secure the money borrowed. They take into account how safely the property can be sold over a longer period of time. This helps to minimize the risk for the bank and to grant loans safely.
The determination of the mortgage lending value is also not standardized. Banks and the lending industry generally determine the mortgage lending value of the property in order to minimize the risk when granting a loan. The probability that the property can be sold safely at the mortgage lending value over a longer period of time is included in the valuation. In most cases, 70 to 80 percent of the achievable market value is made available as a credit line.
Explained quickly and simply:
- Determination of the mortgage lending value by banks to minimize the risk of loans
- Takes into account the security of selling real estate over a longer period of time
- Banks generally offer 70 to 80 percent of the expected market value as a credit line
Valuate property 2024
You now know the typical methods we use to value a property, with a simple explanation. You can find more on this topic here:
Are you planning to sell your apartment building in Düsseldorf? Selling a property requires careful planning and execution in order to achieve the best possible price, regardless of whether your property is fully rented or vacant. Your guide to selling an apartment building 2024.
Selling an apartment building in Düsseldorf: step by step
Let’s start with the basic question: How much is your apartment building in Düsseldorf actually worth? Find out all the steps of the sales process, from the valuation to handing over the keys.
Determine the value of your apartment building
The value of your property depends on various factors, including the location, the size of the apartments and the condition of the building. A realistic sales price is crucial for a successful sale.
How to value an apartment building
The valuation of an apartment building is based on specific methods such as the comparative value method, the asset value method and the income capitalization method. A combination of these methods provides a realistic market value. The principle is the same for all districts, whether Stadtmitte, Pempelfort, Derendorf, Golzheim, Oberkassel, Unterbilk, Friedrichstadt, Bilk, Carlstadt or Flingern-Nord.
At least two of these methods are usually used to determine an exact value.
- Valuate apartment building
Typical evaluation procedures - Free evaluation by experts
Selling in Düsseldorf: What to look out for?
When selling your apartment building in Düsseldorf, you should consider a few important aspects:
- Location and property prices: The target group of buyers depends heavily on the location and current property prices.
- Documents: Make sure that you have prepared all relevant documents such as floor plans, land register excerpts and tenant lists.
- Good contacts or an estate agent: An experienced estate agent can help you to organize the sales process efficiently and to approach the right buyers.
Location and property prices: The buyer target group in Düsseldorf
Düsseldorf is an attractive real estate market with various districts and a high demand for residential space
You need to reach people who focus on long-term investments and do not need immediate cash flow.
Documents: Floor plans, land register excerpt, tenant lists, etc.
Before you start the sales process, make sure you have all the necessary documents for the property sale ready. This includes, among other things:
- Land register extract
- Parcel map
- Building plans and building permits
- Refurbishment status
- Tenancy agreements and tenant list
- Operating cost statements
- Energy certificate
- Status report or expert opinion
Good contacts or a good broker
As apartment buildings in Düsseldorf often fetch high prices, it is advisable to consult an experienced estate agent. An estate agent has the necessary contacts and can help you to approach the right buyers and achieve the best possible price.
Ultimately, it is always a personal question as to whether you want to sell with or without an estate agent.
Taxes when selling in Düsseldorf: What will you have to pay?
A quick look at the tax aspects of selling your apartment building in Düsseldorf:
- Speculation tax: Take into account the speculation period for tax-free sales.
- 3-object rule in Düsseldorf.
- Differences between asset deals and share deals: effects on taxation.
Speculation tax: selling tax-free?
The speculation period is generally 10 years for rented properties. If you sell within this period, you must pay tax on the profits. After the period has expired, the sale is tax-free.
Further details on the 3-property rule and asset deals vs. share deals can be found in our article
Real estate & tax coaching
Do you need further support with the sale of your apartment building in Düsseldorf? We offer real estate and tax coaching by experts and investors. Contact us for more information:
Also discover our resources for real estate beginners:
Real estate books for children: Timmy’s Abenteuer – Mit Spaß ein bisschen Investment lernen (in German)
in Law, Real estateReal estate books for children – Would you like to read your children an exciting bedtime story and let them learn about real estate and investments in a fun way at the same time? Then my new Timmy, Lea and Finn stories are just the thing! You can read all the books and stories online […]
How much is an apartment building worth? 5 value factors for apartment buildings
in Law, LessorHow much is an apartment building worth? In the world of real estate investment, the question often arises: How much is an apartment building really worth? This question is of crucial importance, whether for potential buyers, sellers or investors looking to expand their portfolio. But determining the value of an apartment building is no simple […]
Selling an apartment building in Munich: What is important? Steps, taxes, estate agent
in Law, Real estate, SellAre you considering selling your apartment building in Munich? Selling such a property is complex, but with the right steps and tips you can achieve a successful sale, regardless of whether your property is fully rented or vacant. Everything you need to know about selling an apartment building . Selling an apartment building in Munich: […]
Selling an apartment building in Berlin: steps, estate agents, taxes – what to look out for?
in AgencySelling apartment buildings in Berlin – Fully rented or with vacancies, the sale of apartment buildings (also apartment buildings ) is more special, but also more lucrative, if you evaluate everything from the types of apartments to the land. The sale of old apartment buildings is more specialized, depending on the year of construction. But […]
Share deal in real estate: sell company “instead” of property – save taxes
in Law, prensa, Real estate, Sell, taxesShare deals – saving taxes, but the right way? In my guide to selling a multi-family home for tax purposes, I have just given a short, simple explanation of the share deal, with an example calculation. Instead of 382,000 euros in taxes, only 1,540 euros! How does that work? Here is an insight into asset […]
Real estate asset deal: What is it? + tax example
in Law, prensaThere are 2 types of sales when we are in the professional real estate business – i.e. not the condominium or the dream house. Typically, it is about apartment buildings or apartment buildings (rented apartment buildings). Asset deal means that a property is sold directly and share deal means that a real estate GmbH is […]