You are looking to buy a house in Berlin? The capital of Germany represents currently one of the best cities in the world for buying a property. It goes without saying that the incredible city popularity and its economic boom made the real estate market in the region quite dynamic and attractive.
Most international and local home seekers are always looking for the best deals to buy a house in Berlin considering the property prices are favorable compared to Frankfurt, Munich and Hamburg. In Berlin, the residents of the region usually have access to international ad urban environments. The apartments in Berlin are well maintained, and considering the lifestyle is affordable. The capital of Germany is among the best cities in the world to buy a new property.
About the Housing Market in Germany
The property market in Germany usually varies from one city to the next. If you want to acquire an apartment in Germany, you should know that the neighborhoods around differ a lot such that each one of them has unique characteristics. It also means the pricing of each apartment will be different. There will also be different restrictions and advantages if you choose to reside in a new city. You should start by scheduling a visit to one of the neighborhoods that have caught your eye before you can commit yourself. You should also take time to learn more about the public transport in the area where you want to reside, lifestyle preferences, and local amenities.
In the past decade, the number of residents in the capital of Germany has grown significantly. As a result, the demand for apartments in the city has also risen. The demand is mainly because of population growth and the shortage of housing offer for rent and for sale. Also, there are many opportunities for professionals in different fields.
The economy in Germany has grown significantly, which means the residents of the region also have considerable purchasing power. Besides that, there are also numerous other reasons to buy a house in Berlin. The environment is welcoming, the city is one of the best to live in the world and the property mortgage interest rates in Germany are also quite attractive.
What are the Benefits of Acquiring a New House in Berlin?
One of the advantages to buy a house in Berlin, Germany, is that the real estate market is prosperous. It doesn’t matter whether you’re acquiring the property for personal use or investment purposes. As you buy a house in Berlin, be considerate about each room in the house, especially if the house is meant for investment purposes.
Other merits include:
- There are many welcoming neighborhoods as you start your new homeownership journey
- The real estate market prices in Berlin are affordable and attractive
- The economy in Berlin, Germany is thriving such that people can easily find access to different opportunities within the region
If you’re currently renting a room or an apartment in the region, you should consider buying a house in Berlin. The money you pay monthly as your rent can be substituted to cater to the monthly mortgage payments. For those with temporary property, the same money you pay can be used to invest in assets, which will pay off with time, and you’ll gain ownership eventually. Additionally, the rental prices are set to increase in Berlin and all Germany.
How to Buy a House in Berlin?
After you’ve decided to buy a house in Berlin, there are various steps you need to follow. In this section, this guide will be detailed, and you’ll be conversant with the whole property acquisition process.
Select Your Preferred City Areas for Buying
One of the important decisions to make as you buy an apartment in Berlin is to first check on an area that suits you best. Always keep in mind that the capital of Germany is quite large and that every city area has its own lifestyle, hotspots, points of interest as well as property sale prices! The best thing to do is to take the necessary time to look around and to visit each area. In east and south Berlin, you’ll find most cool and youth-populated areas like Neukölln, Kreuzberg, Prenzlauer Berg, Friedrichshain and Mitte the historcial centre of Germany’s capital. On the west side, you’ll rather find residential & family-friendly areas such as Charlottenburg, Schöneberg, Steglitz and Wilmersdorf.
As you buy a house in Berlin, keep in mind your happiness and comfort matter. Carry out intense research and visit different areas of the capital of Germany. You should know the aesthetics will vary from one neighborhood to another. Ensure you’ve had an authentic feel of where you want to relocate to. If you’re yet to find an area you’re interested in right away, you should be patient while expanding all your search parameters.
The neighborhood you choose should have access to public transportation, entertainment, and park proximity. Some of the purchasing factors to consider include the size of each apartment, the floor level, your budget, and the building type.
Determine a Realistic Purchase Budget
Before you start viewing an apartment, you should first carry out some research regarding the real estate market. Ensure you have an idea about the sale price range of the apartments in the German capital. Property sale prices in Berlin varies a lot and depend whether you will go for standard property where you can expect 5000 to 8000 EUR per sqm. To buy a luxury property in Berlin, you should count minimum 8000 and you might end up with 15000 EUR per sqm if you look for a penthouse to buy in one of Berlin’s prime quarters. Th best deals you can get are those of long-term tenanted investment properties where prices start as low as 4000EUR per square meter. Of course, if you buy a house in Belin with a mortgage, you can get in touch with a mortgage broker in advance in order to have a high-level idea on your borrowing capacity and not have any bad surprise during the process.
Search for your New House
After looking into the sale price of houses in the capital of Germany, you can go ahead and liaise with a real estate agency to get the right home. Ensure you’ve used a suitable criterion such that you’ll get the type of house you need. When you stick to a certain criterion, you won’t have to bother with listings that are non-relevant.
Hire Someone Who Speaks English
You can look for a notary who speaks English fluently such that they can help to oversee the whole real estate transaction. The notary is supposed to check the land register while determining whether a particular property can be sold. If the property is eligible for sale, the notary will go ahead and look into whether there are usage restrictions.
Each party is supposed to sign a contract. The contract is supposed to list all obligations and the steps to be taken when a particular party fails to fulfill their end of the deal. After signing the agreement, the notary will oversee everything to ensure that the ownership change reflects at the local administration in the capital city of Germany. The details will then be forwarded to the land register by the municipal government.
When you buy a house in Berlin, it is your right to choose a notary who suits you best unless a notary is already appointed (especially for new build apartments in Berlin). Ensure you have exercised such rights as you go ahead and buy your house in Berlin. Always request the purchase and sale agreement and make a copy. Go through the whole agreement. If there are some things that you don’t understand, a translator can assist.
If you have any questions, you should list them in advance. You should not shy away from asking all the questions that you have. For instance, if you’re applying for a mortgage, ensure each party gets into an agreement before hiring a notary.
Another way to skip this complicated process, is to hire an English-speaking real estate agent in Berlin. The Agent can help on legal aspects, recommend you the best options and path the way for your transaction. Of course, you need to check in advance the quality of service and the market reputation of the agent, as all agents are not the same!
The Process of Buying a House in Berlin
The first step is to select a home for sale that suits most of your criteria. The acquisition process will then follow. As you buy a house in Berlin, the entire process can take at least three months. If you’re dealing with leased property, a tenant will be issued a pre-emption right. This means he can afford a period to decide whether he buys the property, which rarely happens but this means the property acquisition process will take longer.
Reserve your House in Berlin
To reserve property, you should issue a deposit for the sale. After you’ve acquired the property, you’ll be issued a refund. The deposit can also be deducted against the brokerage fees. The reservation deposit amounts generally to 0,5% of the property purchase prices without side costs.
Sign and Purchase the Property
When you reserve a house meant for sale, as a buyer, there is the need to have a sale agreement draft. If you want to apply for a mortgage, you should start the application process immediately. You can hire a legal firm to represent you during such transactions and ensure you get every detail is checked when you buy a house in Berlin.
The notary will oversee the signing ceremony. They will ensure all details about the sale are included in the contract. The notary will also ensure that all the parties have an in-depth understanding of everything required of them.
Conclusion about Buying a House in Berlin
The price of the house you want matters. Always factor in your budget before you start looking to buy a house in Berlin. Ask your broker or agent about your borrowing capacity and the mortgage you might get in Germany. If everything checks out, you can go ahead with the search and the purchase of your apartment in Berlin, as prices are set to increase for years and better to buy a house in Berlin today than tomorrow!