Advice on buying Property in Germany

Germany has no restrictions on Foreign Property Ownership.
Former East German states property holds a generally lower value.
Real Estate and Property Prices In Germany
Property prices range Varies, for example:
From around £80,000 plus for a terraced home.
Detached Homes from £140,000 - £600,000and beyond.
City apartments vary from £300,000 with Munich a premium
Locations to buy property and real estate in Germany
It is popular in Germany to rent.This accounts for over half of the population.
Apartments in the cities and suburbs are popular where there can be a shortage of housing.
At least 75 of German houses have been built since the Second World War, though you are still likely to find many lovely traditional village homes in rural areas.
There are many properties in the former East Germany which need modernisation.
Rhine and Mosel valleys are popular for rural lifestyles.
Living Costs in Germany
Germany enjoys a very high standard of living with fairly low inflation.
The cost of living is higher in Germany than some other EU countries but not very different to that of France and the United Kingdom.
Buying real estate and property in Germany
When you have found your property that you want to buy and agreed a selling price, a German solicitor / lawyer or notary is required to carry out the legal work and contract obligations, checking that no liabilities exist.
On completion of the sale of the real estate, the title deeds are registered with local land registry enabling the title to transfer to the new owner.
Solicitor / Lawyer
A German solicitor / lawyer who specialises in conveyance work would normally carry out all the legal work on your behalf, a public notary can also be used when buying real estate.
Fees
You would expect to pay a total around 6-7 of the buying price, which comprises of the
Transfer tax of 2 and
Notary fee of about 1.5.
The Real Estate Agents fees vary up to 5-6 and would ordinarily be split between the buyer and seller.
Property Tax
Land tax is charged in Germany to cover local services and is rated usually below the current market value and would be around 1 of the rateable value.
Non-residents are subject to wealth tax on property owned in Germany of around 0.5.
Mortgages
You can borrow up to 70 from German banks and building societies and they would normally expect a proven track record of regular monthly savings of up to six years before it is approved.
The maximum term would be up to 30 years on a fixed rate of interest.
These guidelines are meant for guidance only and describe a straightforward purchase scenarios. However this information is not meant to replace proper legal advice, which we always insist you take.