Holiday home and apartment: additional costs, location & taxes

Modern property in the countryside or in holiday areas are often on offer. The perfect properties for those who want a quiet retreat. However, such an investment is by no means cheap and finding the right property is not easy. In addition, you should consider a few things before you decide to buy.

Prices of €200,000 to €300,000 are quite common for smaller properties of 40 to 50 square metres of living space.

If you want a luxury property, you have to pay a lot more. Depending on the area, prices naturally differ and properties vary. Whether abroad or at home, before you acquire a second residence, you should clarify important points.

Investing in real estate: France

Living and working abroad is a very memorable experience, professionally, personally, culturally and of course financially. In this free guide, you’ll get investment tips for all the major cities in Europe, America and Asia, from New York to London to Paris.

• Investing abroad: Real estate (external)

Incidental purchase costs: What do you have to pay?

When buying a holiday home, you have to expect similar ancillary costs as with a normal house purchase. Depending on the property, renovation costs may be added to the purchase price first and foremost, as most properties need a little new paint, possibly a new kitchen or bathroom.

Looking for inspiration? In the FIV Magazine you will find tips for living room, kitchen, bathroom & Co (external): Furnishing.

The furnishing of the house is also added to the new construction. Your holiday home also needs to be furnished, because you want to feel comfortable in your place to relax. Apart from these additional costs, there are also costs for the interest.

Financing a holiday home with a real estate loan

If you take out a loan to finance your holiday home, you will usually only get one with high interest rates for such a project. So compare different lenders and check where you are offered the best interest rates. Of course, you will also have to pay, for example, the land transfer tax or the notary.

Buying property abroad in Europe

• New York, LA, London & Co: Luxury Real Estate
• Foreign property France
• Foreign property Spain
• Foreign property Mallorca

Location and property prices

Depending on the location in which you are looking for a house, the real estate prices are cheaper or more expensive. So think carefully in advance about how much space you need in a holiday home and look explicitly only for houses that really meet your size requirements.

Houses that are too big will only make more work for you and drive up the price unnecessarily. Also consider where your holiday home should be located, because the location can also make a lot of difference to the price.

Example: Romantic holiday home by the sea, near Hamburg.

Winter garden and idyllic summer nights:

Taxes: Tourist tax holiday residence (second home tax)

Depending on the municipality in which your holiday home is located, the municipality may charge a so-called second home tax, which is usually around 10 percent of the annual rent.

Secondary residence tax approx. 10 % of the annual cold rent

Allotments with gazebo?

However, owners of allotment gardens with a gazebo are not affected by this regulation as long as the gazebo does not exceed a size of 24 square metres and the premises are not used for permanent living.

Real estate in holiday areas

For real estate in holiday areas, resort taxes are also due. Again, there is an exception for allotment gardens, these spa taxes are only required if a water and electricity connection is available and thus makes the gazebo a property.

Lease, right of termination and technical equipment

Who shies away from these costs, however, there are still other possibilities to get a holiday home. A property could be leased, but there is the risk that the homeowner insists on his right of termination and you can be terminated. The dream of a holiday home is then quickly over.

Of course, you can also build a holiday home yourself. Here, the costs for the land and a building permit are added. In addition, there is a building ban in some holiday areas, for example in flood protection areas. In addition, it must be noted that possible costs for water and electricity connections are added, which must be laid to the construction site.

Real estate transfer tax on the purchase of real estate

When you buy a holiday home, or more precisely a plot of land or part of a plot of land, you pay land transfer tax. The amount of the tax is determined by the individual federal states. As a rule, the real estate transfer tax ranges between 3.5 percent and 6.5 percent. You can find the current real estate transfer tax rate here, with example purchase prices of 1 – 5 million euros:

• Real estate transfer tax table

Holiday home abroad: special regulations & legal situation

Buying a holiday home abroad can quickly turn out to be more difficult than you think and you should be clear about the legal situation of the country before you make a decision. Abroad, some completely different rules than in Germany and blanket guidelines are not possible, because it varies from country to country. Depending on the situation of the country, there are different regulations that you must observe.

Mallorca: #1 for holiday homes in Germany

Exclusive luxury property for sale in Mallorca:

Small, green oasis with fireplace in the backyard.

Purchase contract: Written form & notary are obligatory

Probably the most important thing is that you never buy a property without a written and notarized purchase contract. With a purchase contract you are always on the right side and protected. In Spain, a verbal commitment is usually sufficient to achieve legally binding effects. In Turkey the transfer of ownership on a piece of paper is sufficient. And although other regulations are often customary abroad, you should still insist on the written contract.

Dedication: What does that mean?

In some countries, the use of the property as a holiday home requires a specific dedication. Check before you buy whether such a regulation has been included in the contract, so that you can use the property properly later. You should also check whether you, as a foreigner, can expect to own real estate in the desired country / area at all or whether you are not entitled to do so. Here, too, there are different regulations depending on the country.

Regulations on coastal protection, inheritance law and planning permission

When buying abroad, you should also pay attention to existing regulations on coastal protection, inheritance law or rights of way.

Many houses or apartment complexes have been built without planning permission or in coastal protection zones and can therefore be demolished at any time by a government order. Properties are also often of dubious construction quality or built illegally, which puts your protection at risk.

So when buying a property, ask to see all the necessary documents and insist on planning permission. A cadastre is also important to delineate what the property includes. In some countries, only rough indications have been made here and there is no legal certainty for you.

Europe: France, Italy, Turkey & Co.

Holiday home in Istanbul:

Exclusive furnishings in Kartepe.

Relaxing above the rooftops of the city.

Rent out a second home as a holiday home: Tips & Tricks

Many people buy a holiday home under the assumption that they will also rent it out if the property is not being used themselves. Not a bad idea, because a little extra income is actually always quite good. However, if you want to rent out your property, there are a few things you need to consider.

Good location generates interest

For example, location is very important.

Holidaymakers want central holiday apartments.

For example, close to the beach or just downtown. They usually want to see the place and not just stay in the apartment all day. An attractive location is therefore the key to successfuly rent out your property and also to be able to charge a good price for it. The better the location, the higher the price you can charge.

Attractive equipment

In addition, your property must have some equipment to be attractive for guests. Sufficient bedrooms, possibly a sofa bed to create more sleeping possibilities, a good kitchen with modern appliances and entertainment program, such as TV or Wi-Fi.

Your property should leave nothing to be desired and offer your guests everything they need on holiday. Bed linen, towels and a well-equipped kitchen are just as important as tips for great excursions and restaurants nearby and cleanliness on arrival. Special features such as a rooftop terrace or a pool will add tremendous value to your property.

Buy and rent

The real estate market is booming, everyone wants to get a piece of the pie. They also know that if you’re smart about it, you can get really rich with real estate investing. But how do you get started? How do you get there, buy your first apartment and rent it out? You can find out here, from real estate investor Alex Fischer:

• Buy and rent (external)

Viewing appointment: convince seller / broker

You have been looking for a new property for a long time. Berlin, Hamburg, Cologne or Munich, a house for the family because the apartment is simply too small for everyone, a new apartment because you want to move in with your partner or simply a move to a new city. When looking for an apartment, you always come to one point – the viewing appointment. For many an exciting appointment, because you can now see the property in real life, which you have only seen on pictures until then, but for others also a stressful appointment, where you meet other co-interested parties, the landlord or the agent.

• Do you need to bring documentation?
• What is your best course of action?
• How do you make the perfect first impression to actually get the property of your dreams?

In order to avoid making mistakes that in retrospect will be your undoing, there are a few things to keep in mind. From the important first impression at the viewing appointment, to the good organization of all documents. So that you don’t forget anything and can soon move into your dream property, here are the 11 most important tips.

• Viewing appointment

Buying a weekend home: Get out of the daily grind

Buying a weekend house – A weekend house can be used in a very diverse way. You can spend your free time and holidays there. In addition, it is possible to rent out the weekend house and thus generate additional income. Weekend houses are quite often on offer in Hesse and Rhineland-Palatinate. There are many beautiful regions in the federal states that are very popular with the people who live there.

Some weekend homes are located in popular holiday regions. Others are considered more of an insider tip and are hidden away on the edge of the mountains, near the Main River or in the middle of nature. If you want to buy a weekend house, you can choose whether you prefer nature, water or mountains. Decide on a location that you individually prefer. Weekend homes are not designed for residential purposes. They are for recreational purposes. For this reason, it is important that you feel comfortable in the area. If you are planning a rental, you should find out which locations are particularly popular. We will be happy to assist you in this and offer you weekend houses that exactly meet your individual requirements.

• Buy weekend house

Buy a farm: Country house in the green

Buying a farm – The decision to buy a farm is made by families as well as couples or singles in middle or older age, who want to change and appreciate the individual form of living in the midst of nature. We offer you farms in attractive rural locations.

Buying your own farm as a permanent residence or as a weekend home. You need to decide if you want to buy a property in need of renovation. These farms can often be purchased at a very reasonable price. Alternatively, there are properties that have already been refurbished by their previous owner and are in a modern and very good condition. These farms are usually ready for immediate occupation. However, you will have to expect a higher purchase price. This is especially true if the farm is in a very central location with a good infrastructure.

• Buy farm

Buying property abroad: Tips

• New York, LA, London & Co: Luxury Real Estate
• Real estate agent
• Foreign property France
• Foreign property Italy
• Foreign property Spain
• Foreign property Mallorca
• Luxury Real Estate Mallorca
• Off market – especially in hot real estate markets

Buying real estate: Tips from the investor (external)

Buying real estate but also investing in real estate requires a lot of knowledge and expertise. The best way to learn is to draw from the experience of professionals. Therefore, in conclusion, a recommendation for real estate beginners.

Newcomer Tips + Germany Comparison: Buying Real Estate

External guide (link opens in new tab):

• First property purchase
• Buying real estate: What to look out for?
• Buying mistakes
• Save taxes with real estate

Comparison of cities: Purchase prices in Germany (external)

In these individual guides to the major German cities are the important districts for real estate buyers, information on the infrastructure, as well as prerequisites for the purchase such as income, creditworthiness (credit rating), banks and equity. But much more important: mistakes, risks, rental yields and more. What is decisive for the purchase price and the valuation? Everything about location, building fabric, renovations, equipment and all that, free of charge.

External guides (link opens in new tab)

City / Purchase Price Current:

• Munich ~ 8,993 Euro / m²
• Frankfurt ~ 6,701 Euro / m²
• Stuttgart ~ 6,324 Euro / m²
• Berlin ~ 5,578 Euro / m²
• Hamburg ~ 5,507 Euro / m²
• Düsseldorf / Cologne ~ 5,470 Euro / m²

An overview of equalization of gains: The equalisation of assets

• Equal division of the acquired gain during the marriage, in case of divorce
• Can the spouse with less or no gain claim
• The gain is the difference in the assets of the spouse whose assets are higher at the end than at the beginning

Back to the wiki: Real Estate

Subdivision Plan at a Glance: The representation of the division of a building

• Construction drawing with seal or stamp
• Informs about the division, location, size and location of the building parts
• On a scale of 1:100

Back to the wiki: Real Estate

Declaration of division at a glance: Establishment of residential and partial ownership

• Property is divided into co-ownership shares
• Each share of the division shall be connected with the separate ownership of a dwelling or of a room not used for residential purposes
• A notarial certification must be submitted for the land register entry
• Objectives of the declaration of division: Determination of the amount of the shares, qualification of the special property and its purpose of use, guarantee of special rights of use

Back to the wiki: Real Estate

Move stress-free and enjoy the new property to the fullest

Most think of stress-free moving directly to moving companies and of course this is also a good method to keep the stress of moving as low as possible. However, this is usually associated with high costs and even with moving companies sometimes one or the other goes wrong. Especially if the new property, new furniture, the renovations, etc. have already devoured a lot of money, many would like to take the move into their own hands. To do everything right, to go well planned and thus save money, time and nerves, here are some tips & tricks for stress-free moving.

More tips? The 3-part special on the subject of moving:

1. Part – Moving Checklist: Moving, Schedule & Packing
2. Part – Moving Tips: Moving house & apartment without stress
3. Part – Moving in & congratulations: The most beautiful sayings

Sorting out – what has to go, has to go

Once the contracts are signed and the new property is officially yours, you should start packing & planning. First and foremost on your checklist, however, should be decluttering. Moving is the perfect opportunity to separate old from new and get rid of the stuff that is just lying around anyway. Start with the attic/basement so that in your new property, the same boxes don’t just disappear back into storage and never get touched again. But things like your wardrobe, storage cupboard, kitchen or even decorative items should also be thoroughly decluttered. Don’t be afraid to sort things out and maybe give them away, sell something at the flea market or donate something to charities or the Ark.

Packing boxes – organisation is the be-all and end-all

Many take packing boxes lightly, but it is a lot of work and requires good organization. This is where you lay the first building block for a stress-free move. Pack boxes systematically according to the rooms in the new property. For example, pack everything that belongs in the future bedroom – even if the items are not in the bedroom in your current property – into boxes and label them not only with ‘bedroom’ but also with the contents of the box. During the move itself, the helpers will then know exactly which box belongs in which room and you will know immediately what is in the box and where it belongs when you unpack. This way, no things get lost or you have to search for specific things. The better you pack the boxes, the easier it will be to unpack them later, too. Be especially careful not to pack the boxes too heavy. No more than 20 kilos should a box weigh, because such a weight will not only be hard to carry, but can also be too much for the box and it can crack. Pack heavy items down and distribute the weight evenly throughout the crate. Cushion fragile items well to prevent loss. Simple newspaper already helps keep glasses or dishes from breaking. You should also pack liquids that could leak well to avoid nasty surprises.

Get the moving boxes early enough and start packing as early as you can, because then you won’t get into any unnecessary stress later on. Moving boxes can be bought as well as rented, because if you’re honest, you probably won’t need that many boxes anytime soon. Removal companies hire out boxes, but there are also some deals online. How many boxes are needed depends on a wide variety of factors. There is a rule of thumb to approximate the number needed. Accordingly, you should plan for a WG room about 10-15 boxes, for a small 1-2 room apartment about 30 boxes and for a larger household with several people is calculated 20-25 boxes per person.

Once you have received the key to your new property, it is worth gradually moving boxes into the new property before you move in order to keep the moving effort to a minimum. Boxes for the basement or the attic, or simply things you don’t need in your day-to-day life. Not only will this reduce the amount of work you have to do on the move, but you’ll also avoid stress by getting a lot done in advance. Also, remember to put the most important everyday items in a separate box, as you might need them right away in the new property. So mark this particular box well so that you have tools, cleaning supplies or a torch immediately to hand.

Organize helpers – provide movers or friends

Of course, a moving company is definitely a good option to have the move done, however, it is very costly among other things. The other option is to hire helpers to carry out the move with you. Mostly friends, acquaintances or family members offer themselves here, to whom a pizza in the evening is enough as payment. Make sure you have enough helpers and also plan for some with a lot of strength. Boxes are one thing, but furniture can quickly become a challenge and require a few strong hands. It’s best to ask your friends and family directly once the moving date is set, as helpers may need to take a day off or request leave. To avoid as much stress as possible on moving day itself, make sure you schedule your movers well in advance. Who will drive the van? Who will carry boxes and cartons? Who will assemble the furniture? Who will look after the children and who will take care of the catering? Form teams and work as such. Organize enough drinking water for everyone in advance and also the catering should be right to keep your helpers happy.

Organize also the transporter early enough, so that you do not stand afterwards with empty hands. It is worthwhile to pick up the transporter one day before the move and to make some test rounds, because such transporters drive differently than normal cars. Also make sure that you have the necessary driving licence to be able to drive such a van. Often vans are cheaper during the week than at the weekend and many movers also offer special vans for rent, with packing blankets, straps or moving boxes.

Pre-organization – all the little things you need to think about during a move

One point that is often forgotten are the little things that need to be organized in advance. This includes, for example, organizing the no stopping sign for the moving day. A sufficiently large parking space in front of the old and the new property is essential. This way you avoid a lot of stress with the search for a parking space or possibly also with the public order office. You will need to apply for this at the relevant road traffic office, local authority or district council office. You may have to collect, put up and take away the signs yourself, so be sure to ask how the organisation works. You will usually need to apply for this 7-14 days before your moving date. There are also costs involved, which you should calculate and which vary from city to city. Other little things you need to think about are the dates for handing over the old apartment keys, applying for the post to be forwarded, making an appointment to re-register with the local authorities, taking the meter readings for electricity, gas and water in both properties, and so on. To make sure you don’t forget anything, here is a checklist of the most important things to organise before you move.

Moving checklist – so that you don’t forget anything during the move

• Clear out and clean out apartment / house
• Get moving boxes
• Plan the interior of the new apartment
• Buy new furniture early enough and pay attention to delivery times
• Request leave for the move
• Renovation work in the new and old apartment
• Plan the moving date realistically
• Organize removal helpers
• Organize dates for the transfer of the old apartment
• Inform the authorities, health insurance companies, banks, insurance companies, etc. of your new address.
• Apply for mail forwarding ( 2-3 weeks before moving date)
• Rent a van / moving company
• Apply for no-stopping zones in front of the old and new home
• Organize babysitter for children / pets
• Get packing material, such as newspaper, bubble wrap, packing blankets, etc.
• Assemble toolbox
• Defrost freezers / refrigerators in good time
• Organize catering for removal workers
• Inform neighbours about the move ( new and old )
• Cleaning the old and new apartment
• Check the staircase for possible damage before the move and document this damage.
• Request an appointment at the registration office
• Car reregistration
• Record meter readings for electricity, gas and water in the old and new apartment

More tips? The 3-part special on the subject of moving:

1. Part – Moving Checklist: Moving, Schedule & Packing
2. Part – Moving Tips: Moving house & apartment without stress
3. Part – Moving in & congratulations: The most beautiful sayings