Many property investors are now snapping up property for sale in in Berlin. As one the fastest growing economies, developers and property owners are finding this to be the best way to invest in a future that sees a return.
Berlin is a thriving city with a myriad of districts that cater for every taste and currently property for sale in Berlin, specifically apartments can be acquired for a fraction of the cost of their London counterparts. As a vibrant city Berlin offers something for everyone, from bohemian quarters that embrace history and art to buzzing High Streets that cater for the shopping savvy. Even historians and countryside lovers can find a piece of Berlin that matches their luxury living ideals and as property prices are set to rise buying Berlin property seems like a safe bet.
Apartments are generally the type of property for sale in Berlin, from full apartment blocks waiting for your own decoration and renovation to cosy open plan living spaces already furnished to a high standard. Once buying a property for sale in Berlin, you’ll notice one particular trend; almost every resident wants to rent it from you!
Residential letting is an ideal way to make sure you see a return on your investment. This offers a long term solution as most tenancies in Germany are long lets and do not resemble our UK 6 month short hold leases. A tenant will expect to be able to rent the apartment for at least a few years, leaving you with little upkeep and maintenance as you pocket the return. It is important to make sure you familiarize yourself with the rights of the tenant and indeed your rights as a landlord, as there are strict rules to protect the 85% of the population of Berlin that choose renting over owning property.
As a general rule for a long term let you would expect to see a return of between 6 and 10% on your purchase price within a twelve month period depending on the area of your property and the rent guides set out by German law.
Of course, unless you wish to visit to repair a faulty boiler or to clear the guttering you may decide on management for your property. There are plenty of agencies that will act as a go between for a small fee allowing you and your tenant to live in peace.
There’s also the option of short term letting either to tourists or corporates looking for business apartments. This can pull in returns of up to 15% a staggering 50% more than residential letting alone. However you pay more for management as of course after every let the apartment needs to be cleaned. It will also require furnishing and maybe extras such as bedding or towels. If choosing short term lets you should have confidence in your management team as the upkeep needs to be optimum so you can charge the same amount per week from the beginning to the end. Deterioration of furniture or fixtures will lower the price, so weigh up the pros and cons before deciding on this route.