The real estate price calculation

The market makes the prices, as can be seen in the real estate valuations. Where demand is at its highest and supply at its lowest, prices rise and the purchase of houses or apartments becomes rapidly more expensive. Whether a purchase is worthwhile depends on the individual case. The fact is that real estate property is always a good retirement provision and a stable value investment in tangible assets. Therefore, both owner-occupiers and capital investors are well advised to invest in property. Because what must not be overlooked is that rental prices are rising just as rapidly and there is no end in sight. Affordable living space is hard to find. For this reason alone, the purchase of a house or an apartment is worth considering, despite rising real estate prices.

• Do you have a condominium? Read more about apartment valuation here.

Professional valuation must be commissioned

As a rule, the owner commissions a market value appraisal. If you are selling privately and want to save the costs of the valuation, you should by no means react negatively to the market value appraisal in the case of enquiries from interested parties. As a prospective buyer you can ask for the calculation basis of the property price and commission a valuation with the knowledge of the owner. If you suspect an ideal, emotionally determined offer price, this measure can prove to be a cost-reducing strategy.

Determination of market value by experts

As an owner, you should bear in mind that a buyer is making the biggest purchase of their life and therefore wants certainty in terms of a neutral property price. If a property is sold through a real estate agency, in most cases a market value assessment has been carried out. This means that the property price reflects the current factors and was determined on the basis of the equipment, property size and location, the infrastructural integration and on the basis of a detailed market analysis. If you base your property prices on a market value assessment, the buyer is less likely to doubt the property price and more likely to make the decision to buy without a longer term negotiation. If you have dispensed with the valuation, you may well do so retrospectively.

Influence on owner-occupiers and capital investors

As an owner-occupier of a property, you have to weigh up whether the price plus the ancillary purchase costs and interest on the loan is adequate for you. To determine this quotient, take your rent payments over the past 20 years (with a repayment period of 20 years) as a basis and compare the two values. If you have paid more rent or rent that is identical to the purchase price of the property, buying is the best decision for you. If your rent payments are significantly less than the property price, continuing to live in rented accommodation may prove to be a better solution.

Capital investors use a different method of calculation. Here, the profitability of the purchase can be determined by whether the management and maintenance costs are lower than the existing or possible rental income after re-letting. If there is no difference with a prospect of return, the investment is not a good capital investment.

If you are buying a property as a family residence, make sure first and foremost that you repay the financing with a fixed interest rate and are debt-free before retirement. The selection criteria are based on the aspects that you personally consider essential. Set yourself a maximum budget that fits your income and the monthly repayment amount of the financing. Fact is: due to the very high real estate prices, especially in metropolitan areas, the amount of financing for the purchase increases. It is therefore all the more important that you calculate the purchase price of the property including the annual percentage rate of charge and bear in mind when repaying that the bank’s claim is higher than the loan amount.

Selling real estate – How to determine the right price

Are real estate prices negotiable?

The asking price of a property is not a static figure. Even if it has been determined on the basis of a market value assessment, there is a certain amount of room for negotiation in most cases. As a potential buyer, you should therefore ask whether and to what extent a price reduction is possible. Negotiations are more successful with older properties, as you will be in a good negotiating position when you inspect the property and discover any minor defects. However, you should also bear in mind that the owner or the real estate agent acting on behalf of the owner does not have to negotiate. Property prices have risen very sharply in recent years. If you are interested in a property in locations with immense demand, your position in price negotiations is less good.

Skill and tactical strategies in negotiation

If, on the other hand, you decide to buy a property in a rural area, there is definitely room for manoeuvre that you can use to your advantage with a little skill and tactical strategies. When you enter into a negotiation, proceed with caution and empathy. Especially in the case of properties from private sellers, the asking price is not infrequently based on idealistic values and memories of pleasant moments spent in the property. In most cases, a too brash and demanding approach has the opposite effect and can lead to the owner not wanting to sell to you at all. As an owner as well as a potential buyer, you should know that negotiations are definitely part of the business. With expertise and tact, negotiating the price of a property increases the buyer’s interest and the seller’s comfort level. If you don’t like to negotiate yourself and feel uncomfortable in such discussions, you would be well advised to use a real estate agent. Negotiation skills and expertise in market prices are an advantage if you are not acting privately as a prospective buyer, but are having the property search done.

Will real estate prices fall anytime soon?

Some industry experts assume that property prices will fall within the next three to five years. This is conjecture, as there is no real reason to make a firm assumption. Currently, demand is rising while supply is tightening. This fact alone precludes you from paying less high property prices in the foreseeable future. An increase in the prime rate and the associated tightening of monetary policy is also neither under discussion nor in prospect.

Buying residential property and investing in real estate

If you are looking to buy a home or invest in the real estate market, don’t rely on guesswork and put off your purchase with hopes that real estate prices will drop. Remember: buying a house or purchasing your home is a way of securing your retirement and a decision you are making for yourself and your family. Real estate prices have been rising rapidly for the past few years and the trend is that the increase will continue for quite some time.

If you find your dream house or apartment that meets your criteria and convinces you at first sight, you have various options for negotiating the property price. Waiting, on the other hand, is not recommended, but ensures that your dream property finds another owner. Already two years ago, critics held that there is a real estate bubble. But the reality is different. The market is booming and the current high real estate prices are a result of increasing demand, reduced supply and the continuously growing interest in buying real estate. So if you are waiting for an opportune time, you should act now and not rely on realizing your dream at lower real estate prices in a foreseeable period of time.

Property price as a criterion for the purchase decision

Are you necessarily getting “less house for a higher property price” today? Even if many potential buyers have the feeling, this thought is not fundamentally true. Do you have a concrete idea of the real estate price and are you looking for a property that you can purchase for the sum you have budgeted?

Lukinski can assist you in your real estate search. You want to sell a house and set the right real estate price? We determine the market value and support you in your sales project!

Lukinski is your core competent real estate agency with whom you can invest properly and rely on a smooth process of your project. We are happy to advise you on “how much real estate you can afford” and the optimal amount of financing based on your basics. Give us a call and choose a strong partner who will help you with your real estate project and work for you with expertise.

Facts & Figures: Statistics on home ownership in Germany

Statistics: Residential property in Germany

How high is the ownership rate in the individual federal states? Here are the “latest” figures from the Federal Statistical Office. There has been no new survey after 2014 so far. As soon as new data is available, we will include it here! Here you can see the ownership rate in Germany in the period from 1998 to 2014 by federal state.

© Statista 2019 – Source: German Federal Statistical Office

Price per square meter for condominiums

You want to sell? Of course, as a property owner in the wider metropolitan area, you will also benefit from the rising purchase prices. Here you can see the cities with the highest prices per square metre for condominiums in a comparison of the years 2010 and 2018* (in euros per square metre).

1. Munich (Bavaria) at 8,342 euros per sqm; up from 6,737 euros per sqm in 2014; up 1,695 euros per sqm in 4 years.
2. Stuttgart (BW) at 5,925 euros per sqm; up from 4744 euros per sqm in 2014; up 1,181 euros per sqm.
3. Frankfurt am Main (Hesse) at €6,060 per sqm; up from €4,373 per sqm in 2014; up €1,687 per sqm
4. Freiburg im Breisgau (Bavaria) at 4,943 euros per sqm; up from 4,740 euros per sqm in 2014; increase of 203 euros per sqm
5. Ingolstadt (Bavaria) at €4,969 per sq m; up from €4,287 per sq m in 2014; increase of €682 per sq m.

You can find more statistics at Statista More about Hamburg: real estate Hamburg.

Your advantages: Real estate agent

✓ national customers and regular customers (direct purchase possible!)
✓ Decades of experience and a well-coordinated team
✓ 100% free valuation and analysis of your property
✓ independent of banks and online portals

The separation year – necessity, benefits & reconciliations

The separation year is intended to give spouses one last chance for reconciliation and enough time to think about this life-changing decision. The law provides many guidelines here that couples must adhere to. Lukinski’s experts reveal exactly how the separation year works and how couples can make the divorce process the easiest. Common issues in divorce are mainly:

• How soon can you file for divorce?
• How soon can you get divorced again?
• How much does the divorce cost?
• What all do you need for the divorce?

You can find all the answers a little further down the article!

• Tip! Newly separated? Our guide with tips on sellinga house and apartment in the event of divorce

The basis – Why a year of separation at all?

Marriage and the family are regarded as one of the most important social institutions in the legal system. The separation year is therefore intended to act as a preventive measure against possibly wrong, purely emotional and only temporary decisions that could be regretted afterwards. Even though the separation year is seen by many married couples as harassment or a pure burden, the intention behind the regulation is clear, to review and possibly revise the decision in the given time. In addition, the time is useful to take care of some matters that are important for the divorce process going forward. Although there is a requirement to prove that the separation year has been completed, it is not possible to apply to the court for the start of the year or have it notarised. It therefore makes sense to record the beginning in writing.

A shortening or even a complete omission of the separation year can only be brought about by a hardship decision of the court according to § 1565 paragraph 2. An example of such a decision can be extreme domestic violence, which the court classifies as undue hardship.

• The separation year should be considered as a reflection period for the couple
• The shortening of the year of separation is only permitted in special cases.

Attempts at reconciliation – the guidelines in the law

Attempts at reconciliation during the separation year are certainly permitted. However, these are subject to certain guidelines. Attempts at reconciliation that do not last longer than three months do not lead to an interruption of the separation year. The time during which the separation was interrupted therefore counts towards the 12 months of the separation year. For any attempts beyond three months, the family court will assume that the couple have reconnected. The couple also has the option of withdrawing the divorce petition themselves within this year. If the divorce is still to be carried out after this period, a new petition for divorce must be filed and the separation year starts all over again.

• Attempts at reconciliation are permitted, but are subject to certain guidelines
• Reconciliations of less than three months do not interrupt the separation year

The benefit – this is what you should arrange in the year

The separation year should not only be used to review the right decision, but can also be used to arrange important things for the divorce. These things include, for example, insurance. In particular, health insurance should be rewritten and amended, since spouses are usually insured together in a family insurance. However, joint rental agreements for real estate must also be amended and rewritten at an early stage. In addition, the joint bank accounts, if any, should be separated and joint financial obligations, such as credits and loans, should be resolved.
Probably the most important, however, is the divorce settlement agreement. This can be determined by the spouses during the separation period in order to avoid costly negotiations before the family court. In this agreement, practical matters such as contact with the children, their maintenance and custody, as well as their own maintenance, the handling of property matters and the equitable division of household goods are regulated. If the spouses are in agreement, this document will help with a quick and inexpensive divorce. The document must be notarized by a notary and always be set down in writing.

• The separation year can be used to clarify important things for the divorce
• A divorce settlement agreement can be drawn up by the couple

Divorce – separation year, application & costs

Divorce – amicable or in dispute

Divorce can happen in two different ways. There are contested divorces and amicable divorces. The court decides how a divorce is to proceed. If the couple has already drawn up a divorce settlement agreement in the year of separation and clarified all relevant points in private, it is an amicable divorce, as the two parties are in agreement. In such a case, only one lawyer is needed and the costs for the court are much lower. Such a divorce is probably also the most pleasant for the spouses, as they do not part in a dispute. However, a contested divorce proceeds differently. If the spouses could not agree in advance on the issues to be discussed, they will be resolved in family court. In this case, both parties need a lawyer, which is a major cost factor. Points of dispute, such as custody of the joint children or the handling of property matters are discussed with the parties by the judge and then determined. A divorce in dispute is probably never a simple matter and can often drag on for years.

• Amicable divorces are inexpensive and easy for the spouses
• Contentious divorces can often be difficult and costly to resolve

The most important questions about divorce with separation year

Especially in the case of contentious divorces, the legal situation is not always clear and there are many unanswered questions for the spouses. So that you know exactly about the regulations around the separation year, the experts of Lukinski answer the most important questions.

Can you file for divorce before the separation year?

In principle, the divorce can only be filed after the separation year, because according to German law, the spouses must live at least one year apart before the divorce may be filed. Only in special exceptional cases, the divorce can be filed before.

How long does it take from divorce petition to divorce?

The length of the divorce usually depends on whether it is amicable or contested. Amicable divorces can take between one and six months, while contested divorces can take more than a year.

Can the divorce be denied?

Divorce can be refused by the spouse in principle. However, this is not possible on a permanent basis, as a compulsory divorce can be decided by the court after three years at the latest.

How to shorten the separation year?

The separation year cannot generally be shortened. Shortening or omitting the separation year is generally only possible if there is evidence of hardship.

How much does a simple divorce cost?

The costs of a divorce are determined by the court and are based on the value of the proceedings. To calculate this value, the income and assets of the spouses are included.

Who pays the costs in a divorce?

The court determines the costs of the proceedings, including the lawyer’s fees. These are divided so that each party pays its own legal fees and half of the court costs.

What all do you need for the divorce?

The following documents are always required for a divorce: Marriage certificate or family record book in the original or certified copy, the birth certificates of the minor children and possible marriage contracts and/or divorce settlement agreements.

Real estate agent & consultant: divorce and talks

Many of our clients discuss the sale of their property with us in advance of the divorce. Why? The sale of a house or a condominium takes a lot of time. All formalities should be known in advance, so that afterwards, after the separation, no unpleasant surprises arise. As a real estate agent in Frankfurt, Berlin or Cologne, you are often confronted not only with questions about the process of selling a house, but also with general questions that arise in the run-up to a divorce.

Divorces happen for a variety of reasons and at all stages of a relationship. No matter if it is the first month after a hasty wedding, the famous darn seventh year or the divorce after decades, in the second half of life.

Top 5 reasons for divorce

1. Married too fast – pressure
2. Lack of communication
3. A new partner
4. Mistake of the other
5. Disinterest in one’s partner

Married too fast – pressure

As just mentioned, the couple did not marry 100% for love, but because it was rushed or because their own environment around family and friends built up pressure. Some also got married because they built up pressure on themselves, just before 30 or even much earlier, for example with the first boyfriend or girlfriend. When one’s own will was not fully there, many couples separate.

Lack of communication

Lack of communication in married couples is a very common reason, especially in relationships that have existed for a long time. When “man” is again only with the friends on the road and no longer find time for tenderness or when the “woman” prefers to be at home, cuddling and watching series on Netflix. Theoretically, this is all no problem, as long as the spouses still talk and communicate with each other beyond the kitchen table.

A new partner

The “new partner” who will make everything better. Those who have settled down want to experience something “new”. Many look for hobbies or go on vacation. But some are on the lookout for a new partner who will make everything better. Here, the communication may be there, but the inner desire becomes too great. Not only with private persons, also with big stars one experiences these outbreaks from relationships.

Mistake of the other

Who always only looks for faults in the other, will not be happy. Who is pessimistic and only looks for the hair in the soup, will not become happy. Nobody is perfect, nobody. Accordingly, small flaws and mistakes belong to us. Much more: they make us who we are. They make us unique and special. But not everyone sees it that way. If you assume that everything that can go wrong will go wrong, you risk losing your partner.

Destinterese at the Parnter

This results in another common reason, disinterest in the partner. Who no longer shows interest in the spouse, which has either already given up or he or she takes the partner for granted. It is so important to constantly show the other again, that he or she is something special for you.

You see, whether escape from the marriage at the smallest problems or the lack of interest and the laziness to woo the other after marriage, the reasons for divorce are many. Who is in such a life situation, which needs allies on the side to reorganize and restructure their own life.

Even in such situations we are at your side with advice and action.

Statistics: Separation and divorce

You can find more statistics here: Real Estate Statistics.

Number of divorces in Germany

Number of divorces in Germany from 1990 to 2017

You can find more statistics at Statista

Number of divorced marriages by duration of marriage

Number of divorced marriages by duration of marriage in 2018

Average number of marriages to one divorce

Average number of marriages to one divorce in Germany from 1951 to 2017

You can find more statistics at Statista

Average age of divorcees at the time of divorce

Average age of divorcees at the time of divorce in Germany from 2000 to 2018

You can find more statistics at Statista

You can find more statistics here: Real Estate Statistics.

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide