Frequently Asked Questions

 

What is the economic transfer of property?

 

The economic transfer of property means in the notarial contract the date since which all rights and obligations related to the subject of the contract are transferred to the Buyer: incomes, costs, risks, responsibility for ensuring the security of the object, as well as all rights and obligations under contracts concluded by the Seller with third parties (for instance, under a lease agreement).

 

 

The date of economic transfer of property is precisely defined in the contract of sale and is most often the date of payment for the value of the object to the Seller (unless otherwise specified). The registration of a new owner in the Land Register occurs later. Thus, the owner can receive a lease on his account even before the extract from the Land Register is issued to him. Unless otherwise specified in the contract of sale, all contracts of sale are covered by par.446 and 651 of the Civil Code of FRG.

 

 

 

Who will manage my real estate in Germany?

 

Optionally, it is possible to conclude a management contract with the company IV - Internationale Verwaltungen GmbH. Geographically the company is located in the same office with BMG Invest GmbH Company. Specialists of IV - Internationale Verwaltungen GmbH will take lead on all issues related to the object and tenants. For the convenience of communication, we have employed an English-speaking employee, who can be contacted directly.

The cost of services for managing one apartment is 20 Euros/month + 19% VAT.

 

 

What is the procedure for obtaining a visa for real estate owners?

 

Owners of real estate in Germany, when applying to the Embassy of their country to obtain a visa, provide documents for property (contract of sale, extract from the Land Register), which gives the right not to show the confirmed hotel reservation and package tour. It is necessary to understand that each application is considered by the Embassy on an individual basis. As a rule, the first visa is issued for a short period, in the future it is possible to gradually request visas for longer periods. With frequent trips to Germany it is possible to get an annual multiple entry visa with the right to stay in the country up to 90 days in a half-year/180 days a year.

 

 

 

 

With the objects of which German cities does your company cooperate?

BMG Invest GmbH company cooperates with the objects located in North Rhine-Westphalia (West Germany). All objects are within a radius of no more than 100 km from the capital of the federal state - Düsseldorf. The map of North Rhine-Westphalia can be viewed on the Internet.

 

 

What is the tax on gifting real estate in Germany?

 

The tax rate on gifting depends on the value of the property and the degree of kinship. Objects for up to 350 thousand Euros can be gifted net of taxes to close relatives.

 

What is the procedure for purchasing apartment?

Plan of action is simple. You make an advance payment of 2 000 Euros, thereby launching the process of checking the apartment by a notary. Then go to Germany, where you are met by English-speaking specialists of BMG Invest, taken to the object, given assistance in opening an account in a German bank and escorted to a notary. Checking of the apartment by the notary takes 1,5-2 months. If the check is successful, then you pay the total amount into your German bank account.

 

Will I incur any additional costs when buying real estate?

 

 

When you buy real estate, you pay an additional 5% tax, notary services (up to 3%) and the cost of making entries in the Land Register (up to 2%), that is in total – up to 10% of the cost of notary services.

 

 

If a notary finds any problems with the object during the check, do I receive an advance payment back?

 

 

 

Yes, an advanced payment is returned in the amount of 100%, or, at your request, another attractive object of investment is chosen.

 

 

How long does it take to register property rights to the object?

 

Registration takes an average of 2-3 months, because under the Law of German a notary must carefully check the object.

 

 

 

Can I buy objects with a loan?

 

 

At acquisition of object it is possible to receive a loan in a German bank in the amount of up to 50% of the total amount. The price of real estate under the notarial contract must be at least 100 thousand Euros. The more the cost of the object is, the more willingly banks are ready to lend. Detailed information can be obtained individually.

 

 

If I have an account abroad or in European bank, can I get lease payments on it?

 

For your convenience, a separate account is opened with a German bank. All payments for registration of real estate will be made by using this account. Also, lease payments will be credited to this account, and it will be used to pay utility bills. Usually a power of attorney for this account is issued to our specialist, who will monitor receipt of lease payment, make utility payments through the Internet bank and solve all issues related to the apartment.

 

 

 

 

Is it possible to sell the object some time later?

 

Of course. We offer you objects before the auction (20-30% below the market price). In the future, they can be sold at a market price, with each year the price of your real estate augments. Specialists of BMG Invest GmbH will help you to sell the object with the greatest benefit.

 

I saw on the site that the objects are sold already with tenants in them. Am I anyhow insured in the event that they "will move out"?

 

Tenant at the conclusion of the lease agreement deposits an amount of 2 or 3 monthly lease payment. This is a kind of "safety cushion", that is, it insures the owner against the fact that the tenant will "suddenly" move out. Since our objects are highly liquid, as a rule, for a period of 3 months the management company finds new tenants.

 

Why investing in real estate is more reliable than bank deposits and open-end funds?

 

Bank deposits, open-end funds and other alternative types of investing are the source of income primarily for the "elite of people", leading the process. And the recent financial crisis clearly showed how opaque these processes are. Banks "go bankrupt", open-end-funds are ruined, and it is very difficult to have your money back, and more often impossible to do this in full. Do not forget about inflation, which "chews up" the interests.

 

Practice shows that prices for real estate abroad, on average, grow faster than inflation level. Thus, investments in commercial real estate allow you to save money from depreciation. Investments in real estate are characterized by a significant degree of safety, security and the ability to control the investor.

 

 

 

 

 

I do not have a large sum of money, but I want to invest my money safely. What can you offer?

 

Investing in real estate does not necessarily mean investing huge amounts of money. We offer commercial real estate in the major prestigious cities of Germany with investment amounts from 20 000 to 100 thousand Euros with a level of profitability twice as high as the industry average. In this case, your real estate will grow in price (about 2-4% per year)!

 

 

 

 

How safe is it to invest at the time of crisis?

 

Buying a property in Europe today is not only a safe, but also a cost-effective decision. The market has not fully recovered after the shocks that befell it, prices are more affordable than ever, and competition is insignificant, as investors with a large share of debt capital left the market. This means that you can buy the most profitable objects in excellent condition at low prices. This period will not last forever, because due to small volumes of construction of new housing in recent years and simultaneous withdrawal from the housing stock of obsolete objects there will be a turning point in the market, there will not be enough housing for everyone, so prices will jump to high levels.

 

 

 

 

 

What is the right way to choose the object for investments?

 

It is necessary to take into account a number of factors and discuss several aspects in person. Our specialists will help you to choose the ideal variant that is right for you. Our tariffs are simple and clear, we will show you what you can save on.

 

What income will it bring to me?

 

Investing in real estate in Germany is favorably distinguished by a guaranteed and reasonably fast income. Most of our housing facilities have already been leased, which means that you will receive income right after the purchase of real estate.

 

Our company also exceeds the average market standards: if the average industry profitability level is 3-7%, we have 8-15%!

Pay your attention to the calculation method!!!

Unfortunately, not all our firms-competitors, cunning a little, calculate profitability like we do!

We calculate the profitability by the following formula: a cold rent minus a portion of utility payments that cannot be delegated to a tenant.

 

 

 

 

What risks can I face?

 

 

There are no risks to "go bust" and lose funds. Employees of the company BMG Invest will select the tested options for you and you should not forget about German caution and pedantry, especially in the legal sphere. In addition, in Germany there is an opportunity to insure real estate against force majeure.

 

 

Why real estate in Germany is better than in other countries?

 

When choosing a commercial or residential property every year more and more foreigners choose Germany. Why? Germany means a stable economy, perfect infrastructure, excellent ecology, a high level of security, a significant annual influx of tourists and students. Real estate in Germany is a guaranteed income in a short time, while the owner is fully legally protected. In addition, in Germany, unlike other countries, property prices are at a low level compared to other European countries, and are only growing.

 

 

 

 

 

What are the trends in the real estate market in Germany?

 

The main trend of the market is a stable price increase in Germany. In a precarious economic situation in the world, many investors prefer to invest their money in real estate in stable Germany, which is still popular and is in demand. To date, Germany is the engine of the development of the whole of Europe and will remain such for many years to come.

 

 

 

How can I control real estate in Germany while in EU country?

 

 

You will be able to control your real estate both personally and through a personal cabinet on the site provided by our company.

 

 

What is the procedure for legal formalization of purchase?

 

All the subtleties of the acquisition of housing in private ownership are rigidly fixed at the state level in the Law on ownership of residential property, adopted by the Bundestag. Under this law, all objects, any deals on them and information about their owners are entered in the property registers. Our experts will be glad to explain the details of the deal.

 

 

What are the features and prospects of North Rhine-Westphalia?

 

Today, North Rhine-Westphalia is the most popular developing region in Germany with huge prospects. 27.7% of all foreign investment falls on this federal land. North Rhine-Westphalia has commercial real estate of the highest quality in close proximity to economic centers at relatively low prices. The Northern R-W is the safest federal land in the whole Germany.

 

 

 

 

 

Should I invest in residential real estate?

 

 

When investing in residential real estate, it is necessary to study and take into account all possible factors affecting this sector of market. The issue of investments in residential real estate of the European countries, recently being very popular, slightly receded into the background. Experts advise paying attention to real estate abroad, which at the moment has quite affordable value and attractive development prospects. BMG Invest GmbH Company offers residential investments in Germany as a way to save and increase one’s capital.

 

Germany is a stable market, where there is a constant increase in the cost and return on investments in residential real estate. The crisis, which Germany has successfully overcome, demonstrated the stability and resilience of the German economy to external influence. In 2009, housing in Germany began to go up in price. Experts argue that this is a consistent pattern, in Germany there were no and so far there are no prerequisites for reducing the profitability of investments in residential real estate.

 

 

 

Germany bypassed the consumer's boom in real estate in the residential sector, when against the background of feverish demand for housing investments prices soared to breathtaking heights. Due to a sound approach to purchases, the absence of cheating, strict selection of candidates for mortgages, residential real estate is sold exactly at the price that corresponds to its conditions and the real market value. That is why during the crisis in some districts of Germany, and, in particular, in North Rhine-Westphalia, there was not a decline, but a slow increase in the cost of housing. The volume of foreign investments in Germany's residential real estate is growing every year, about a quarter of them are from Europe.

 

 

At the same time, not all housing in Germany is popular. There are almost no investments in residential real estate in Germany in the east of the country. And although the Berlin Wall was destroyed as far back as 1989, there is still a barrier between West and East Germany - an economic barrier. The base quantity of investments in residential real estate is in West Germany.

 

 

"Concrete gold" - this is what Germans call apartments and houses. Indeed, investments in residential real estate in Germany are as reliable and profitable as buying gold. Germany is a country where the rise in the cost of housing outstrips the level of inflation, this is another reason for investing in residential real estate.

 

What determines the reliability of investing money in German real estate?

 

 

Buying real estate in Germany, each investor can be calm and confident that his property is securely protected. Regardless of the time of the year, the political situation in the country and in the world, the Law of Germany protects the interests of owners.

 

In addition, the reliability of investing in real estate is conditioned by the fact that Germany is one of the few countries that has passed through the global crisis quite easily and without significant losses. In addition, the real estate market in the country demonstrates positive dynamics.

As we said earlier, risks can be different, and no one is immune to natural disasters. But in Germany they found a way out of a possible situation - insurance. The investor insures his property for a "pretty penny", which is easy to get in the event of an insured event. This is not only about local, but also foreign citizens.

 

 

The investor receives the most accurate, transparent information about the object, which makes it possible to estimate the profitability of the investment. Careful analysis, calculation of profitability - this is a reliable capital investment in real estate. Unconditional factor of investment reliability can be called a favorable market condition, which allows returning the invested funds at any time by selling your real estate object.

 

Germany is a country of pedantry and scrupulousness. Verification and execution of sales documents takes at least 2 months. Therefore, there can be no question of scam and fraud with real estate!

 

 

Where to invest money?

 

The issue of successful investing of money, perhaps, is one of the most urgent for a modern person. Finding money a job that they will long and regularly perform is not an easy task due to the availability of a variety of investment tools. The question where to invest money is almost rhetorical, especially in times of crisis.

 

 

At first sight it seems that there are enough attractive ways to invest money profitably and reliably. However, this is at first sight only. Despite the fact that bank deposits, open-end funds, securities are widely known as a subject of investment, experts still recommend investing money in financially secured assets. That is, when deciding where to invest money, it should be remembered that this strategy excludes the investment of idle funds in securities that are not based on a material equivalent.

 

 

 

Speaking about the tangible assets it’s fine to name precious metals, antiques, works of world art. However, these methods of investing require certain knowledge and will only yield income if long-term capital investments are made. Gold and art are those assets where it is possible, but difficult to invest.

 

 

More attractive against the background of the above methods is investing in real estate. Capital investments in finished construction projects is one of the oldest, time-tested ways not only to conserve, but also to increase the accumulated funds. "Concrete gold", where you can invest for both short and long term, is able to generate revenues stably, reliably (provided the object for investment is adequate).

 

 

The specificity of the real estate market in Germany is the emphasis on rental income. Apartments, private houses, commercial real estate objects are built mainly for leasing. Those objects are offered for deals, which have been already occupied by tenants, or for which lease agreements have been already signed, which is an excellent way to invest money.

 

The real estate of Germany is a "live" active business, in which it is possible to invest for real and for a long time. The culture of leasing relationship in Germany has been formed for decades.

Rental business in Germany attracts not only stability and reliability of income. This is a business that works by itself. The business you are doing personally is an occupation where you invest not only money but also your own time. Management, control, decision-making - time costs can be quite high. In Germany, as a rule, these are professional management companies, which run your business. They are responsible for payments of taxes, utility payments, search and selection of tenants.

 

 

 

 

Where can you invest money during crisis?

 

The crisis has forced many residents of European countries to take a fresh look at the issue where it is possible to invest money profitably. The search for a suitable business, profitable open-end funds, reliable banks, where you can invest money at interest, began to be carried out on new parameters. If earlier on the first place was the search for the maximum benefit, now the key criterion is the reliability, stability of guaranteed incomes.

 

The crisis showed that there are not so many options left, where it is possible to invest money profitably.

Germany has long established itself in the international market as a country of reliable and profitable investing of money. German real estate, both residential and commercial, attracts investors from around the world because it has a positive growth dynamics, which suffered little even in the time of crisis. Those who are looking for a profitable investing of money will be pleasantly surprised by the profitability of housing in Germany, which is 8-15% per year. If you use credit funds to purchase property in Germany, the average annual income can reach up to 18%. Real estate in Germany - is a profitable investing of money for residents of all European countries.

 

Investments in real estate

In modern man's thoughts about money, as a rule, two main questions dominate: "How to make money?", and if money is already earned, then the second one arises: "Where to invest money, do investing?"

 

Among all types of capital investments, investments in real estate remain the most popular way to save your capital. Compared with other types of financial instruments, it is investing in real estate that has an adequate risk-return ratio, which guarantees a stable income from a reliable source.

 

 

The level of return on investments in real estate can fluctuate, but at the same time the investor will receive dividends.

 

Investing in real estate

On the one hand, investing in real estate and earning income seems paradoxical: housing is aging, and at the same time is growing in price. The rent also increases with time. Whatever the risks caused by economic or political turmoil, real estate still generates revenue.

 

 

 

The level of return on investments in real estate in Germany depends on the object location region, what are the costs of its maintenance. The BMG Invest GmbH Company offers investment proposals for the acquisition of high-yield real estate in one of the economically developed regions - North Rhine-Westphalia. Almost a third of foreign investment falls on this region.

 

 

 

It is very useful to understand the difference between real estate abroad for living and investments, that is, investing funds to increase capital. When people hear about investing in real estate abroad, they often refuse to even get a superficial look at such proposals. There is a myth that investing abroad is expensive, troublesome and not so profitable. Meanwhile, investing in real estate abroad is a way to preserve and increase your savings, which is incomparable with bank deposits and participation in open-end funds in terms of reliability and yield level. That is why more and more foreign investors from around the world are looking for beneficial offers in Germany.

 

 

 

 

 

What is the attractiveness of investing in real estate abroad?

 

 

Availability. The cost of housing, infrastructure facilities abroad is quite affordable for European citizens, even without the need to take out a loan. The attractiveness of investments in real estate abroad is at a relatively low price entry threshold. Real estate in Germany, which is a specialization of our company, is quite affordable for a small private investor: offers in the portfolio of our company start from 11 thousand Euros. The cost of revenue houses starts from 150 thousand Euros. For large investors, with purchases from 100.000 Euros, we offer services for obtaining a loan in German banks on very favorable terms. A wide range of start-up investments makes investments in real estate abroad available for a wide range of clients of our company.

 

 

 

Loyalty to foreign investors.

Investments in real estate abroad will always bring live money. The Law of Germany does not impose additional requirements on buyers from other countries, they are equal in rights with German citizens. A strong legal framework reliably protects private property in Germany. Verification of documents for the sale of real estate in Germany will take about 1.5 months. Long waiting is compensated by the purity of the deals and by the fact that the client receives a "clean" property, without black spots in the history. When investing in real estate in Germany, you can be sure of the legal purity of the deal.

 

 

 

Stability and reliability. Investments in real estate abroad will be reliable if the country you have chosen, its economic situation can also be called reliable. The real estate market in Germany is extremely popular among foreign investors. First of all, this is due to the typical feature of the German society - stability. Stable economy, stable law. In Germany, those invest in real estate who wants to be confident in the future.

 

 

 

 

Why investing in real estate is more reliable than in bank deposits and open-end funds?

 

Interest rates on deposits rarely exceed the level of inflation, so the bank deposit is more the conservation of capital without generating income for it. Open-end funds can make a profit, but can also go to negative profitability. In this case, the commission to the manager of the open-end fund should be paid in any case. Investments in real estate not only conserve the investor's capital in the long run, but also bring a stable income with practically minimal risks.

 

 

 

More details about the advantages and risks of the most popular investment tools can be found in our specialists.

 

 

What will be the prices for real estate in Germany in the next 20 years? ;)

 

 

According to the forecasts of the Institute for the Formation of Assets ​​(IVA), of the 440 studied settlements in Germany only 79 cities expect an increase in the price of residential houses by 70% by the year 2020. Also it is also forecasted that the price will fall to 40% in regions with high unemployment rates, including the lands of Mecklenburg-Vorpommern, Saxony and Saxony-Anhalt. The unemployment rate in them is about 15% (with the average level in Germany at 8%), while West Germany, namely the federal state of North Rhine-Westphalia, reserves the lowest unemployment rates and economically stable region for investment in the real estate.

 

 

 

 

Already on the basis of the forecast of the Hamburg Institute of the World Economy, in the next 20 years the value of real estate in a number of regions of the country will rise by 40% or more. A significant increase in the cost of apartments is expected in six regions of West Germany.

Against the background of serious economic problems in other countries of southern Europe, namely, Spain and Greece, the attractiveness of real estate investments in German cities has significantly grown. As a consequence, many investors are eager to actively invest in Germany, seeking to protect money from inflation, as well as other negative consequences of the crisis.

 

 

Where to invest spare money?

 

If you asked this question, then you have spare money. So, you have long been interested in the issue where to invest, shoveled a lot of literature, added a couple of articles in your favorites and just do not give rest to Google and Yandex, making inquiries "where to invest money today", "where to invest money in the right way", etc.

If this is so, then you have probably already made sure that there is no universal recipe. Access to super-profitable projects has units, and they certainly will not tell where you can invest money. Doubtful and well-known bank deposits, securities - although these projects are profitable - do not bring profits to make it possible to compensate the level and the rate of the inflation.

In addition, the risks in this sector overlap with the possible benefits - in one day you can lose everything. But this does not mean that there is no answer to the question "Where to invest money".

There is an old and proven method - to invest in the purchase of real estate. And not just real estate, but real estate abroad. Fortunately, among European countries there are those where investing in real estate is an absolutely safe and reliable means of saving money. In Germany, which is rightly called the locomotive of the European economy, they know exactly where to invest money. Of course, in German real estate, which the Germans themselves call "concrete gold."

Private investors from around the world, also concerned about the question of how profitable to invest money, are discovering the fact that Germany today is perhaps the only country that has coped relatively easily with the crisis and has preserved the real estate market with untouched global collapses and a sharp decline in cost.

 

 

The problem - where to invest - should not be so sensitive here as in other countries. The profitability of residential and commercial real estate in Germany at the moment is up to 15% per year.

 

Among foreign investors who invested money in German houses, apartments, hotels and shops, European buyers account for about 25%. You can safely say that these European residents found the answer to the question of where to invest money correctly.

 

If you, while reading this material, are still in doubt as to where to invest spare money, then you should familiarize yourself with such facts regarding investing in real estate in Germany:

 

- prices for housing are quite affordable - from 11 thousand Euros; revenue houses - from 150 thousand Euros;

- foreigners (as well as residents) can count on mortgages in German banks at 3% per annum;

- the real profitability of real estate objects is 8-10% per year, taking into account the "cheap" mortgage loans profitability on own funds is rising to 15%.

 

 

It is worth taking care of successful investing today. The current level of prices for housing, offices and hotels in Germany are at the post-crisis level and are available even for small private investors. Investors who are interested in safe markets and where to invest money today can safely direct their investments in real estate in Germany.

 

 

 

 

How safe is it to invest in real estate?

 

 

All the risks of investing in real estate can be foreseen in advance and practically reduced to zero. When choosing a real estate object, you need to choose a liquid object in good condition in a stable country. The location of the object should be popular with potential tenants. In order not only to save, but also to increase the value of real estate, especially purchased abroad, it is necessary to turn to the services of a professional management company. In developed countries, particularly in Germany, real estate will be insured even from the force majeure (natural disasters, for instance).

If the return on real estate will be slightly less than from other tools, it is only a guarantee of practical absence of risks.

 

 

 

 

Why do I need a real estate in Germany?

 

The investor needs to invest capital in real estate in Germany, if he:

- appreciates economic stability and reliability of investments

- wants to safely conserve its capital in the long run

- wants to profitably increase its capital without risks

- wants, at the same time, to receive a passive income from the leasing real estate, apartment, tenement house, commercial real estate is from 6 to 15% per annum

 

- is looking for an opportunity to obtain residence permit and permanent residence in Germany

- wants to accumulate its own "pension fund"

- wants to send his children to study in Germany

 

 

Why real estate in Germany is better than in other countries?

 

It is possible to opt for buying real estate in Germany because of a number of undeniable advantages:

- stability and predictability of politics, economics and finance

- developed institution of private property and detailed legislative regulation of lease relations, activities of management companies and construction standards

- equality of foreigners along with German citizens when buying real estate in Germany

 

 

- the purity of the deals is guaranteed by the state and by the notary

- legally prohibited sale of real estate with debts

- affordable lending: at the moment the rate ranges from 2.5% to 3.5% per annum, which allows for leverage increasing profitability and reducing taxable profit

 

- market undervaluation of real estate value is confirmed by fundamental indicators

 

 

What are the trends in the real estate market in Germany?

 

According to surveys conducted by large international consulting companies CBRE and Ernst & Young among a large number of institutional investors and bankers, Germany is the most attractive country for real estate investing.

 

Various funds and insurance companies are attracted by decent dividends, which they can get on the real estate market without much risk, as well as the opportunity to buy an undervalued real estate. In addition, most real estate experts agree that the rise in the value of real estate, as well as the growth of rent, will continue in the next few years. The main reason: growing demand for housing with its deficit, especially in megalopolises and their suburbs.

 

 

 

Inwhich German cities are the objects from our real estate catalog located?

 

All objects that our company offers are located, basically, within a radius of 50 km from the city of Düsseldorf - the capital of the western land of North Rhine-Westphalia.

 

 

Is it possible to buy real estate if you do not have a large sum?

 

 

Yes, the price range of real estate in our catalog starts from 11 000 Euros. And this is an adequate price for a German market for a small apartment in the suburbs of megalopolises.

 

 

What is the right way to choose object for investments?

 

It depends on the purpose of investing in real estate in Germany. Our specialists will offer the optimum alternative for each investor during no-cost consultation.

 

 

What income does real estate purchase bring?

 

We can confidently talk about the triple income when purchasing real estate in Germany:

- passive growth in the value of real estate on average by 2% annually and an increase in the value of real estate as a result of improvements in the condition of the  object

- income from the rental of real estate with a profitability of 7-15%. Moreover, most of our objects are sold with the tenants in them, allowing the investor to make profit from the moment of the economic transfer of the property.

- profit from the sale of the property at the end of the tenure period

 

What additional costs does the investor incur when buying real estate?

 

When buying real estate in Germany, the investor incurs one-time purchase costs, which include a purchase tax of 5%, a notary's services of 1.5%, court fees (making changes to the Land Register entries - a unified state property register) of 1%. Total, as a rule, is 7.5% of the notary's services on the object, which must be paid during the visit to Germany.

 

 

 

What does the process of buying an apartment look like?

 

After making an advance payment of 2000 Euros, the investor goes to Germany. During the visit to Germany, the object is inspected, an account is opened in the bank, and a contract of sale is signed at a notary’s office. Accompanying is made in English. The visit takes 1-3 days. After that, the investor comes back to his homeland. After the notary performs all the prerequisites specified in the contract of sale, the investor pays for the value of the property and after a while receives the documents confirming the property rights.

 

 

 

How long does it take to register property rights to the object?

 

Typically, about 2-3 months, since the timing and procedure for the formalization of the purchase are regulated by the Law of Germany.

 

What documents does an investor get when purchasing real estate?

 

- pledge agreement (advance payment)

- documents to account in a German bank

- contract of sale

- extract from the Land Register

- at will: contract for the services of a management company and a tax consultant

 

 

What does the contract of sale look like?

 

The contract of sale of the real estate object (adapted translation into English) can be found on our website. The contract is made only in German and upon signing it is fully read long by a notary. Our English-speaking colleagues help with the translation and explain all the details.

 

 

Is it possible to buy a real estate object on loan?

 

 

Yes, a number of German banks willingly lend to foreigners when purchasing real estate. With current lending rates of 2.5-3.5%, you can get financing of up to 50% of the object value. In this case, the notary’s services on the object should be not less than 100 thousand Euros. More details about lending can be found here.

 

 

The economic transfer of property - what is it?

 

 

The economic transfer of property means in the notarial contract the date since which all rights and obligations related to the subject of the contract are transferred to the Buyer: incomes, costs, risks, responsibility for ensuring the security of the object, as well as all rights and obligations under contracts concluded by the Seller with third parties (for instance, under a lease agreement).

 

 

The date of economic transfer of property is precisely defined in the contract of sale and is most often the date of payment for the value of the object to the Seller (unless otherwise specified). The registration of a new owner in the Land Register occurs later. Thus, the owner can receive a lease on his account even before the extract from the Land Register is issued to him. Unless otherwise specified in the contract of sale, all contracts of sale are covered by par.446 and 651 of the Civil Code of FRG.

 

 

How will real estate management be carried out in Germany?

 

 

All the "pain in the neck" related to real estate management can be assumed by a professional management company IV - Internationale Verwaltungen GmbH, with which the trust management agreement is concluded. In addition to direct communication with its employees, the company provides monthly reports to the owners of apartments or houses in English. The cost of management services is 20 Euros / month + 19% VAT for one apartment.

 

 

What are the guarantees of stable receipt of lease payments?

 

 

Our company offers investors an exclusive service: insurance against non-payment of lease payments and damage to property. The cost of insurance is 160 Euros per year. Investors receive the first year of insurance as a gift from us!

 

the cost of insuring apartments is approx. 15-20 Euros per month, depending on the level of coverage

 

 

Are there visa benefits for real estate owners in Germany?

 

 

The availability of real estate in Germany does not guarantee obtaining a visa. Each application is considered by the Embassy on an individual basis. However, the availability of real estate increases the chances of obtaining a visa. In addition, if for the first time a visa is issued for a short period of time, with frequent trips to Germany, you can get an annual multiple entry visa with a stay in the country up to 90 days within six months. When applying to the Embassy you need to provide documents for property in Germany. However, presenting your package tour and hotel reservation is not required this time.

 

Can I receive lease payments to my account opened abroad or in a domestic bank?

 

 

As practice shows, it is more convenient and more profitable to open a separate account with a German bank, from which the cost of registration of the purchase and the cost of the purchased property is paid. In the future, lease payments will be received on this account, and utility bills will be paid from this account too. Investors draw up a power of attorney to manage this account by our specialist, who controls the receipt of lease payments and through the Internet bank conducts utility payments. Investors control the movement of funds on their account through an online bank.

 

 

 

 

 

Is the advance payment returned if the notary finds problems with the object during its check?

 

Yes, it returns in 100% of cases. At the request of the investor, we can select another real estate object.

 

Where can I see the instructions for the online bank?

 

The bank will give you the instructions for using an online bank in Commerzbank, with which we cooperate. Attention: instruction is in English! We will explain all the details to you in English.

 

 

Is it possible to sell the object some time later?

 

 

Yes, it is possible. The objects that we offer our investors are lower in price of up to 20-30% than the market price. Therefore, it will not be difficult to sell it in the future at the market price, and our company will help to make it as profitable as possible.

 

 

Do I have to pay a tax on gifting real estate in Germany?

 

Objects for up to 350 thousand Euros can be gifted to close relatives without taxes. In other cases, the tax rate depends on the value of the property and the degree of kinship.