Why invest in Berlin?

CLAERHOUT
IMMOBILIEN

1. Attractive Property Prices

Median price of 1-bed apartments in European cities (in €)

Source: Global Property Guide

Despite a tight rental market owing to limited supply, Berlin is still significantly cheaper than other European capitals like London, Paris or Amsterdam

2. Generous tax credits

Depreciation rate for residential builings (in %)

Generous tax credits, especially for the newest residential developments, mean that buy-to-let investors can essentially generate tax-free rental income

3. Low mortgage rates

Fixed mortgage rates: USA v. UK v. Germany

Sources: Interhyp, Federal Reserve Bank of St. Louis, Bank of England

Attractive financing conditions are also available to non-residents, with 15-year fixed mortgages in Germany being cheaper than mortgages in the UK and in the US.

Return Calculation for Berlin Buy-to-Let Investment

Property details:

Purchase price:

358,500 € (*)

+ Transaction costs:

32,265 €

(6% stamp duty + 3% notary/legal fees incl. POA)

+ Built-in kitchen:

8,500 €

= Total initial investment:

399,265 €

Rental income and expenses:

Monthly rent (unfurnished except built-in kitchen):

1,400 €

Annual rental income:

16,800 €

Monthly expenses:

250 €

(service charges + utility expenses** + property taxes)

Annual expenses:

3,000 €

Net operating rental income:

13,800 €

Return on Investment (ROI) disregarding capital appreciation:

Rental ROI before taxes:

3.4 %

Rental ROI after taxes:

3.4 %

(due to 5% annual depreciation of building value)

Return on Investment (ROI) assuming 5% p.a. capital appreciation:

ROI before taxes:

8.4 %

ROI after taxes:

8.4 %

(as capital gain is not taxed in Germany after 10 years’ holding period)

*Ground floor new-build apartment in Berlin’s Friedrichshain district

**Including heating but excluding electricity as in Germany the latter is paid by the tenant

Why work with Claerhout Immobilien?

buyer agent with high levels of integrity and professionalism
... we aim to create value by guiding potential buyers to the right type of property for them

access to main developers of new-build condos and to resales
... we offer properties located in all central Berlin districts including Mitte, Charlottenburg, Friedrichshain, Kreuzberg and Schöneberg

network of Berlin-based property professionals
... we connect buyers with mortgage brokers, lawyers, tax advisers, kitchen studios, interior designers, etc., or speak with them on their behalf

no upfront costs or hidden advisory fees
... we are highly motivated to find a suitable property as we only get remunerated in case of success

full-service letting and property management available
... we make sure buyers have high-quality tenants and tenancy agreements resulting in a secure cashflow from their property

contact

CLAERHOUT IMMOBILIEN welcomes your inquiries.

Why invest in Berlin?

CLAERHOUT IMMOBILIEN