Category: Germany

German Property – in for the long-haul

Many buying foreign propertys are looking to the German market to snap up a bargain. According to Halifax, Germany is the only western European country to have had negative property price growth in the last five years – and this downturn could lead to a property boom in the country.

House prices are low and Germany’s economy, once stagnant, is now starting to recover. There are no shortage of tenants and many large corporations are starting to buy up German commercial property. This has given confidence to the property market and some experts believe that this could start off a mini-property boom.

Germany – the Buying Process

Once you have found your perfect property in Germany, the first thing you should do is find a good notary or lawyer. In Germany, a legal representative is required to carry out all legal work and contract obligations as well as ensuring that there are no existing liabilities on the property. When the sale is completed, the notary will register the amended title deeds with the local land registry, allowing the title to transfer to the new owner. When choosing a notary or lawyer, it is advisable to pick one who speaks your language fluently as well as German and who has a good understanding not only of German law, but also of your own country’s laws, particularly in the areas of tax.

The cheapest city in Europe?

According to a recent report, the German city of Leipzig is the cheapest city in Europe for property. One of the major reasons of this is that the city still bears the scars from World War 2, with many buildings still riddled with bullet holes. When Germany was reunified in 1990, 25% of Leipzig’s residents chose to uproot and return to the West, leaving a city with a huge surplus of properties and not enough people to fill them. In fact, even today, nearly every street bears a ‘For Sale’ sign and the local council are contemplating knocking down 20,000 apartments to make way for commerical property and roads.