Prospective buyer | Lukinski https://lukinski.com Sun, 11 Feb 2024 13:38:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 Selling an apartment building in Munich: What is important? Steps, taxes, estate agent https://lukinski.com/selling-an-apartment-building-in-munich-what-is-important-steps-taxes-estate-agent/ Sun, 11 Feb 2024 13:38:31 +0000 https://lukinski.de/selling-an-apartment-building-in-munich-what-is-important-steps-taxes-estate-agent/ 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.

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.

Selling in Munich: What to look out for?

When selling your apartment building in Munich, you should consider a few important aspects:

  1. Location and property prices: The target group of buyers depends heavily on the location and current property prices.
  2. Documents: Make sure that you have prepared all relevant documents such as floor plans, land register excerpts and tenant lists.
  3. 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:

  1. Land register extract
  2. Parcel map
  3. Building plans and building permits
  4. Refurbishment status
  5. Tenancy agreements and tenant list
  6. Operating cost statements
  7. Energy certificate
  8. 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:

  1. Speculation tax: Sale within the speculation period is subject to tax.
  2. 3-object rule in Munich.
  3. 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 here.

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 an apartment building in Berlin: steps, estate agents, taxes – what to look out for? https://lukinski.com/selling-an-apartment-building-in-berlin-steps-estate-agents-taxes-what-to-look-out-for/ Sun, 11 Feb 2024 13:06:09 +0000 https://lukinski.de/selling-an-apartment-building-in-berlin-steps-estate-agents-taxes-what-to-look-out-for/ 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? My guide, for you.

Selling an apartment building: 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 valuation method used to determine the market value. There are three standardized valuation methods for determining the market value of properties: the comparative value method, the asset value method and the capitalized earnings value method. Property, substance, year of construction, rental agreements, tenants and potential. We pay attention to all of these aspects when valuing apartment buildings in Berlin.

As a rule, at least two of these procedures are calculated simultaneously.

Selling in Berlin: What to look out for?

  1. Location, property prices: Buyer Target group
  2. Documents: floor plans, extract from the land register, tenant lists
  3. 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 extremelysought-after (A-location), not only by German buyers, but also abroad. Property prices are therefore so high that the expected return is rarely positive. This makes the investor target group more special.

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:

  1. Land register extract
  2. Parcel map
  3. Building plans and building permits
  4. Refurbishment status / refurbishment backlog
  5. Rental agreements
  6. Tenant list
  7. Operating cost statements
  8. Energy certificate
  9. 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:

  1. Speculation tax: sell tax-free
  2. 3 objects rule in Berlin
  3. 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 speculation tax calculator. Once the period has expired, the sale is tax-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 deal in real estate: sell company “instead” of property – save taxes https://lukinski.com/share-deal-in-real-estate-sell-company-instead-of-property-save-taxes/ Sun, 11 Feb 2024 13:01:08 +0000 https://lukinski.de/share-deal-in-real-estate-sell-company-instead-of-property-save-taxes/ Share 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 deals and share deals. You will quickly recognize the advantage and why professional investors work with holding structures.

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:

]]> Selling an apartment building Taxes: Asset & Share Deal https://lukinski.com/selling-an-apartment-building-taxes-asset-share-deal/ Sun, 11 Feb 2024 12:08:21 +0000 https://lukinski.de/selling-an-apartment-building-taxes-asset-share-deal/ 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 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:

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:

  1. Speculation tax
  2. Three-object rule

Taxes on sale

A very quick look at taxes when selling an apartment building in Berlin:

  1. Speculation tax: sell tax-free
  2. 3 objects rule in Berlin
  3. 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 period calculator.

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 share deal. In this case, however, the property must already have been purchased by a company (such as Immobilien GmbH) (not as an individual).

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:

]]> Buying a villa in Munich: Living & Investment – Procedure, Costs, Off Market & Co. https://lukinski.com/buying-a-villa-in-munich-living-investment-procedure-costs-off-market-co/ Sun, 04 Feb 2024 10:25:48 +0000 https://lukinski.de/buying-a-villa-in-munich-living-investment-procedure-costs-off-market-co/ 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

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.

  1. Buying a villa: Tips, procedure until the keys are handed over
  2. The 2 most popular districts for villa purchases
  3. 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:

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 successfuly realizing your dream of owning a villa in Munich Grünwald.

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