Berlin was and still continues to
be a hot spot for property investment in 2016. This does not mean one can rush
in, buy any property and expect appreciable returns in the short term. Buying
property in Berlin requires you to keep in mind three things:
Location and neighbourhoods
Berlin is a mix of what was East
and the West that were merged after the wall came down. There can be surprising
contrasts by way of still isolated areas harbouring pockets of busy life known
as Kiez, usually found in the soviet vacated areas. Then there are Boroughs
quite different from Kiez. Mitte, Prenzlauer Berg, Friedrichshain and Kreuzberg
are well administered boroughs that are prime targets of property acquisition
and development but at a correspondingly higher cost. Property prices
appreciate here higher than they do in Kiez or in the satellite areas around
Berlin comprising of Nauen, Zeuthen, Strausberg, Wandlitz, Bernau, Hohen
Neuendorf, Teltow and Oranienburg to name only a few within a 30 mile radius,
each with its individual identity. Even in the most prized Mitte areas there
are pockets of residential and commercial areas that are more highly prized.
Type of Property
Old properties dating back to the
War or even before it in the heart of the city attract a higher price. However,
one must keep in mind that this kind of property will require plenty of
renovation that could be expensive and there may be other factors to consider
as well. Investing in upcoming construction means you are assured of apartments
or houses that are energy efficient and more suited to a large population that
looks for affordable housing or rentals.
Taxes
Investors buy to realize gains on
capital either by way of sale of property, long term lease that can be
converted to a sale or rental. If taxes are not factored in the investor could
be left with very little either by way of sale proceeds or by rental income.
Investors must keep in mind that rental income attracts tax based on various
slabs. Also acquisition of property involves payment of transfer charges,
property tax, municipal taxes, documentation and legal fees as well. Services
of Berlin
property by Gate Berlin gives
investors the benefit of expert tax advice, structuring a company to buy and
hold property, manage the asset and take care of compliances as well as due
diligence. Gate Berlin professionals may also advise about financing options in
order to buy a more prized property at a lower down payment and then structure
rentals to generate a return as well as pay for the loan.
Advice
and assistance on buying Berlin property by Gate Berlin, a leading real estate
agency in the city, gets investors the benefit of a well developed tactical
strategy. This is further reinforced by assistance at each step of the way
starting from finding the right property to its acquisition due diligence,
financing, renovations, asset management and rental management. These and other
details are fully disclosed when an investor consults Gate Berlin before making
any move to buy property in Berlin. He gets off on the right foot.
