Buying a House in Germany?

aksy · #1 (**permalink**) 18th August 2010, 08:54 AM

I am a citizen from a non-EU country and living outside Germany. I wanted to invest in a property in Europe, and was thinking of Germany. Is it possible for a non-resident/non-citizen to buy a property in Germany?

I am currently not eligible for visa on arrival in Germany. Once I buy a property in Germany (if possible), how would I come to administer the property(rent it out etc). Would I get some sort of residence permit that allows me to come in and out of Germany to do this?

Thanks

Bevdeforges · #2 (**permalink**) 18th August 2010, 09:14 AM

The quick answer is that there aren't normally any restrictions on foreigners owning property in most of the EU. However, owning property does not make you eligible for any visa you don't already have or aren't already eligible for.

To administer your property, you'd probably have to engage a Makler (in Germany) - basically a rental agent or estate agent. They would then, for a fee, handle the property maintenance and administration and send you the relevant documents and reports.
Cheers,
Bev

James3214 · #3 (**permalink**) 18th August 2010, 09:21 AM

Aksy, there are no restrictions on foreign ownership of property in Germany, but if you think that by buying a property you will automatically get a residence permit then think again.
If you are thinking of buying in Europe, then I would consider Germany to be at the bottom of my list of a place to buy a home. Germans tend to buy for life and the rental sector is one of the highest in Europe. This means that there aren't generally changes to house prices. I had a friend who bought a property here about 6 years ago and after moving abroad regrets buying it. There are a lot of costs involved, taxes, etc after buying and selling as well.
For further info take a look at the following :
How To Germany - Buying a House or Apartment in Germany

But basically my advice is to buy somewhere else!

Forres · #4 (**permalink**) 4th December 2010, 08:55 AM

James3214, I am from the UK and currently live in Lithuania. We have been thinking of buying an apartment or home in Germany for some time or may even consider a move there permenantly in the future.

are the legal costs and closing cost etc in Germany expensive? We are not looking to buy as an investment but more of a second home.

Regards

Willie

James3214 · #5 (**permalink**) 4th December 2010, 08:52 PM

Hi Willie,
Personally, I wouldn't really recommend buying a home here in Germany unless you actually come and live here or intend being here for a long time (> 5 years). Property prices don't suffer from speculation like in other Anglo-American countries and remain pretty stable and if you do sell short term and make a profit it is likely to be taxed. If you intend to buy a property and rent it then fine, but the financial returns and the fact that tenants are more protected here, might end up with you regretting the decision.
As regards legal costs, closing (?), etc I would estimate that you budget 10 per cent of the property price.
Hope this helps, but my real advice is only to buy a property here if you come and live here and intend doing so for a longer period.

fido · #6 (**permalink**) 7th December 2010, 08:21 PM

I have read this thread with interest as I'm considering buying a home in Germany with a view to eventual retirement there. One idea is to buy a "zweifamilienhaus", something like a pair of maisonettes we would have in UK. I would rent out one flat to local people and keep the other as a holiday home until ready to retire. I saw one such place advertised that already has a sitting tenant in one flat, paying 250 Euros a month rent. The whole building was on sale for 49,000 Euros which, on the face of it, sounds like a 6.1 percent return with a spare flat thrown in ! In reality I've no doubt the building will need some money spent on it so the investment would actually be higher but it's not in a bad enough state for the tenant to have moved elsewhere.
I read the article cited by James. I notice there is no mention of surveys or valuations. I won't be wanting a mortgage but may choose to have a structural survey if such services are available in Germany.

James3214 · #7 (**permalink**) 7th December 2010, 08:52 PM

Quote:

Originally Posted by fido

I have read this thread with interest as I'm considering buying a home in Germany with a view to eventual retirement there. One idea is to buy a "zweifamilienhaus", something like a pair of maisonettes we would have in UK. I would rent out one flat to local people and keep the other as a holiday home until ready to retire. I saw one such place advertised that already has a sitting tenant in one flat, paying 250 Euros a month rent. The whole building was on sale for 49,000 Euros which, on the face of it, sounds like a 6.1 percent return with a spare flat thrown in ! In reality I've no doubt the building will need some money spent on it so the investment would actually be higher but it's not in a bad enough state for the tenant to have moved elsewhere.
I read the article cited by James. I notice there is no mention of surveys or valuations. I won't be wanting a mortgage but may choose to have a structural survey if such services are available in Germany.

Fido, I think you should get a structural survey (Baugutachten) done on any place you are buying especially the older it is. Although, as you probably know most German properties have been built to very high standards.
Be careful with sitting tenants, they have a lot of rights and you will have great difficulty getting them out, even if they don't pay their rent!

Nignoy · #8 (**permalink**) 8th December 2010, 07:35 AM

we are coming over from australia, in april next year ,and we are hoping to buy property in the minden, schaumberger wald area ,as a holiday hire for visiting overseas hunters and falconers, we thought it would be be a sound investment,can anyone think of any problems we might have??

James3214 · #9 (**permalink**) 9th December 2010, 09:52 AM

Nignoy, sounds good, but the biggest problem with renting out 'ferienwohnungen' (and I know from personal experience!) is being around or even in the country when the problems with property happen, so with you being in Oz and a completely different time zone it is important that you get someone local (and that can communicate with everyone) to do it for you. That obviously adds a lot to your costs. Don't forget that there are now environmental laws that must be adherred to when you buy a property with such things as insulation, thickness of walls, impact on local environment, fire risk, etc. This again could add hidden costs to the purchase, especially as you will need to implement them before renters can move in.
By the way, I have never bought a holiday property here in Germany, but it sounds like you have already done a lot of research about it and having lived here before, know the area and are aware of the way Germans approach buying property (i.e for life!)
Hopefully, there might be others on here who have done it and can also give any advice, but obviously always get independent advice before you commit to anything.
Good luck with the project. I hope it all works out for you.

Nignoy · #10 (**permalink**) 9th December 2010, 08:02 PM

I am definitely no stranger to germany, I still have mein Daueraufenthaltserlaubnis,stashed a way somewhere, I am aiming at a specific group of people as potential holiday guests, and the property will be set up purely for them with a permanent caretaker, ideally it would be a converted farm or smallholding , so that kennels and mews can be built for hunting dogs and hawks it is hopefully going to be a rather exciting venture