The total investment amount consists of the purchase price and relevant closing costs.
Over the lifetime of the investment, its value appreciates.
When the investment is sold after 10 years, no tax is owed on the capital gains.
If you need some time to think about your offer, to get further advice, or to seek financing approval, the property you are interested in can be reserved, free of charge, for up to three weeks.
If necessary, the help of an independent solicitor can be sought. By signing a Power of Attorney authorisation (POA) relating to the property, the solicitor can act as your representative in all legal matters and as authorised recipient. After this, the purchasing process can begin.
With German mortgage rates amongst the lowest in the world, it makes perfect sense to arrange some kind of financing to assist you in buying an apartment. There are no restrictions on non-Germans, or non-EU citizens, from owning property or obtaining a mortgage in Germany. Although 100% mortgages are possible, a loan of 80% of the property’s value is far more likely. However, each case is individual, and depends on your own circumstances.
A draft contract will be drawn up and provided for your approval. This will include our expert risk assessment (Due Diligence). In accordance with German law, after the fifteenth day of receipt, the contract can be signed.
The purchase contract must be certified by a notary. The buyer (or buyer’s representative), and seller sign the contract in the presence of the notary to officiate the sale. In addition to responsibility for the notarisation of the contract of sale, the notary often also arranges for its entry in the land register. The costs for these services amount to approximately 1-1.5% of the purchase price, plus VAT. Additional costs of around 0.5% are incurred for the land register entry itself.
When purchasing a property in Germany, the buyer bears the transaction costs. These costs include the property transfer tax (6% of the purchase price in Berlin; 3.5% in Leipzig), the notary costs (around 1-1.5%), registry charges for property (approx. 0.5% of the purchase price) and the applicable estate agent’s commission (all EverEstate properties are commission-free).
To ensure a hassle-free investment period, administrative services can be provided by our partner agencies. A property management team or letting service will act as the link between tenant and owner, and ensure the smooth running of the property.
Once financing is approved and purchase completed, the final handover takes place. Congratulations on acquiring your own property!