Investors are turning to Berlin Real Estate in the best benefits

As Berlin became the hottest property market in Europe, more and more investors are considering spending in real estate to earn better profits. In fact, the real estate market in Berlin is one of the most lucrative investment opportunities throughout Europe, including London and Paris. Several factors have contributed to make Berlin an attractive investment option, particularly for maximum benefit and a great value. Mentioned here are the factors investors consider the real estate industry in Berlin for best results.

Average prices are three to four times less

 Despite being one of the hottest real estate markets in Europe, the average prices of the real estate industry are 3-4 times lower than in Paris, London and France. Today, a Book your Home by Gateberlin.com apartment is sold at an average price of about ¬2000 per square meter, which is less than a quarter of the price in London and a third of the current rate of Paris. The same scenario for France. This has been a growing trend encouraging foreign investment property in Berlin and Book Your Home by Gateberlin.com. Lower average real estate prices are one of the main reasons that attracted investments in real estate for the best benefits.

Attach established legal system and political and economic structure

Germany, especially Berlin, has established a stable and secure legal system, political structure and economy. This significantly reduces the risk of short- and long-term investment. Needless to say, this is what investors expect, especially when it comes to foreign investment. For example, investors in France and London certainly look for factors that reduce their interest rate risk, both in the short and long term. And where the risks are minimal, the benefits tend to be better.

Capital gains are greater prospects

The Maximum capital gain is what investors expect. Not surprisingly, this is true for the real estate market in Berlin too. The city provides better prospects for important gains in most other European markets. Catering to the growing demand, Berlin real estate grew rapidly, offering a better selection of residential and commercial properties for sale at amazingly cheap prices compared to other European cities. By investing in a high quality property with high resale value and that too at relatively cheap prices, there is nothing that can stop bagging investor’s large capital gains. In addition, it is expected that the demand for residential and commercial properties Book Your Home by Gateberlin.com in Berlin grow significantly in the coming years. This further strengthens their power to accumulate an increase in capital gains on your investment property.

Get better value

Investing in real estate in Berlin certainly ensures the best benefits and excellent value. Not only is the real estate sector is booming in Berlin at a rapid pace, but is also expected that the resale value of real estate to grow significantly in the coming years. Thus, investors have both excellent quality and lowest price in the hand, and the best value to be held in the future.

Berlin Real Estate: The ideal place to reside amidst absolute comfort

Berlin has evolved as one of the most sorts after investing locations in UK. Most investors are foreigners.  They have recently discovered the value of the land and decided to invest in property. Such a surge in real estate investment in Berlin has boosted property rates in the area. People are ready to pay huge amount for availing a property or land in Berlin. The real estate market analysis even predicts that with an increasing population of 3.5 million in 2012 Berlin is expected to experience an increase in 7% to 3.8 million residents by the end of 2030. German economy has helped Berlin evolve as one of the main cities which is safe and prospective for the real estate investors.

Real estate market is volatile. Yet even after the burst in 2009, the Berlin property market remained unaffected. A sustainable relationship could be noticed in this division. According to a report published by Price Water Coopers Munich and Berlin are the most prospective cities in Europe in 2013. These are the leading cities of the 27 major European locations. Thus such a prospective location has attracted investors from different parts of the world to invest in Berlin Real Estate. They are also coming up with innovative strategies to capture the mind of the carefully chosen target audience.

Security in investment is essential. People are finding it secured and safe to invest in berlin with residential housing starting from €1.7 billion. However, in the present situation the price of the property has gone up due to too much of demand. Supply and demand is connected. When the real estate management of Berlin is unable to meet the expectation of the buyers due to scarcity in houses, the price of property automatically goes up. Some of the main reasons which attract buyers, such as security, facility, schools, entertainment and offices, are all present here in berlin, Sony has even opened its headquarters in the area. Thus everyone is looking for Berlin.

Berlin Real Estate also offers excellent value for money investment options. According to reports Ernt & Young researched on German capital and mentioned that the price and demand has gone up by 30% in the past few years and is expected to rise more in comparison to other European cities. The real estate market at the same time is coming up with attractive deals and offers to allure prospective clients. Hence, more and more people from different parts of the world are searching areas in Berlin with an hope to stay at the finest areas in the world.

Berlin Real Estate Investments Require Careful Consideration From All Angles

The “me too” syndrome affects investors. If Berlin property market appears hot everyone wants to get on the bandwagon and make a profit while the going is good without considering short term or long term factors or even other factors that could change the scenario. A sound investment strategy must be in place if an investor aims to create wealth.

Consider property taxation in Berlin. Unlike Munich or Hanover, the city relies on property taxes for its funding and there always lurks a likelihood that the property taxes may come in for a hike because most properties in Berlin are undervalued if one considers the current market prices.

This is just one of the many different things that can happen when one considers Berlin real estate investments. Builders start frenzied construction activity to meet anticipated demand created by local and foreign investors and by the influx of people into Berlin. Investors buy property without weighing all factors, knowing that they can always lease or rent out property and get handsome returns (several factors could negatively affect such decision) because demand is pushing up rent.

What happens next in an overheated market is that there is a correction. Demand for rentals may not rise as anticipated. There may be a glut of available property and foreign investors may find some other locations more lucrative. Change in local or government policy or rise in interest rates could put a damper on investor sentiment. As a result all the “me too” investors see their funds locked in with returns far lower than what they expected and no hope of making short term profits.

Avoiding this trap is easy if one starts the right way with consultations from a local Berlin Real Estate Agent who not only keeps tabs on current markets but also has the analytical abilities to anticipate future developments and advise clients accordingly.

Sound Investment Strategies for Berlin Real Estate by Gateberlin.com

 

Investment in property is a high value proposition where an investor could sink if a decision is made without due forethought, appropriate planning and a sound strategy. International businessmen have a “man on the ground” when they wish to enter and profit from new territories. The same analogy applies to real estate transactions in one of the fastest growing cities of Europe: Berlin. If an investor were to buy today, he could possibly realize a small profit tomorrow but that is not the way to create wealth. Wealth creation is based on short and long term perspectives factoring in taxes, equity leveraging and selection of right investment target.

 

If an investor plans to realize profits in Berlin real estate transactions he must start first of all with a “man on the ground”. A simple broker will not work since brokers are primarily interested only in selling whereas wealth creation and growth rests on the right buying decisions based on a perfect investment strategy. Strategies for Berlin real estate by gateberlin.com help investors in a variety of ways such as formation of an entity, registration, opening of bank accounts, funding, property seek, due diligence, purchase negotiations and documentation. Once a purchase is complete, investors can also obtain services such as lease and rental arrangements as well as property management. All of these rest primarily on a strategic tactic devised in conformance with an investor’s objective to assure wealth creation, not just quick in and out transactions.

Consider Investment Strategies When You Look for Berlin Property for Sale

 

Ruminating on the burgeoning property market in Berlin one cannot but help think that many investors will rush without a sound customized strategy and then wonder what went wrong when returns do not match expectations. Investment strategy for property in Berlin is not like clothes you buy off the rack in high street stores. One size does not fit all and for a strategy to work for you, it should be aligned with your objective. Each investor has a different one when they look for Berlin property for sale.  

 

 Consider the different options when you think of Berlin property from an investment perspective. You could invest, hold and then sell off after 10 years to minimize capital gains tax, renting out the property in the meanwhile. You could invest all your capital in one property or leverage equity and avail capital funding from German banks, thus being able to invest in higher priced property or in a number of properties or in a property in prime location that will fetch higher rent to offset loan repayment. You may invest in a second home in Berlin and do that without tax fears since taxes on second homes here are lower than in other EU countries. Most investors rush to prime locations, ignoring peripheries or think that investing in old Berlin apartments is a good deal without considering refurbishing costs. These and other factors should make you sit up and think that it would be better to consult a Berlin realtor and design a strategy before even putting a foot forward. Then you can put it in the right direction.

Professional, Comprehensive Assistance in Berlin Real Estate by Gate Berlin

 

If you chart property price trends in various locations of Berlin, the currently hot investment destination in Europe, you can interpret trends and make an informed choice as to the location where yields may be the highest. 

Take Adlershof as an example. Prices have been showing huge dips and peaks since 2009 with a pronounced upswing from June 2012 onwards. Prices dipped sharply in or around January but rebounded to a peak in April. However, prices have not gone beyond the maximum of 2200. Interpretation is that it is not wise to invest since prices are high and unless there is a breakout, you may have to sit on the investment for quite some time. 

The Biesdorf area pricing chart is somewhat more interesting in that after a low in middle of 2010, prices have been rising steadily and are still on the up with trend line indicating still higher pricing indicated by head and shoulders formation of last quarter of 2013. Inference is that investment here will yield a nice but not quantum returns. 

In comparison, the chart for Mitte, the central area of Berlin, shows a peak breaching 11000 sometime around the last quarter of 2013 followed by a sharp dip to below the 4000 mark. This is tantalizing in that property is scarce in Mitte and investors may possibly have to sit it out before prices reach the 11000 mark.  However, it is the prime area so simply going by the chart that shows a sharp downtrend and refraining from investing here may not be an absolutely smart thing to. 

The point of this exercise is that there are other factors other than charts influencing investment strategies. Investment strategies in Berlin real estate by Gate Berlin are more refined and encompass various factors while fine tuning them to your objectives so get started at the right place and grow your wealth.

Buy Property Berlin by Gate Berlin Expertise and Get High Capital Appreciation

One size does not fit all when it comes to developing investment strategies for investors with different objectives in mind. In any case, if you wish to take advantage of the rising property markets in Berlin, the best way to start is to get in touch with a local buyer advisory service such as Gate Berlin. 

You receive sound guidance on state of property in various locations of Berlin, their historic values and future yields and advice on the best way you could go about getting maximum returns. One investment strategy is to leverage equity. You put up only 30% of the property value and the rest is arranged through bank loans arranged by experts.  Yet another avenue is syndication as an investment strategy to buy property Berlin by Gate Berlin.  

Syndication is a nice way to go for foreign investors in Berlin properties. Your local realtor combines equity from individual investors; uses the pool to leverage still more funding and then use the substantial resource to acquire large, high yielding asset or invest in development project. Your interests are secured through a tightly knit legal and tax structure designed to maximize wealth growth while minimizing personal risk and liability. The common route is to form a corporate company or limited liability partnership with each investor holding proportionate shares while Gate Berlin manages the whole operation.  Think about syndication as a possible investment strategy and discuss it further. This opens up avenues that were simply beyond the horizon.