First and most importantly for citizens of other countries, Germany imposes no restrictions on foreign ownership of German real estate. This means that citizens of other countries may buy real estate in Germany wherever it is located and no matter its size or type. In fact, Germany has a diverse population which includes large numbers of Greek, Italian, Spanish, British and American expatriates, and without a doubt many of them own German real estate.
Price Ranges
As in other countries, real estate prices in Germany vary with location and type. As a general rule, property within the territory of the former West Germany commands higher purchase prices than real estate that is situated within the former East Germany.
Prices for terrace homes in Germany begin at around $115,000. Detached homes range from about $200,000 to $875,000 and more. Apartments in the cities are very popular in Germany, and they sell for high prices. They may cost well over $400,000, especially if they are located in Munich.
Locations
More than half of Germany's population lives in rented apartments, making apartment living extremely popular in Germany. Housing shortages in German cities and suburbs make apartments located there even more popular.
Three-quarters of all German homes are fairly new, having been constructed after the end of World War II. It is still possible, however, to locate many lovely traditional or older homes in rural parts of Germany. The Rhine and Mosel valleys are popular with people searching for real estate that offers a rural lifestyle. Many of the properties located in the former East Germany require some renovation and modernization as they are a bit run down.
Standard of Living and Cost of Living
Germany's cost of living is somewhat higher than several other European Union countries, but it is about the same as the cost of living in the United Kingdom or France. The country has low rates of inflation, and the overall standard of living in Germany is very high.
The Real Estate Purchase Process
Buying a piece of real estate in Germany will require the services of an attorney or notary in order to complete the legal work and check for any liabilities that may be recorded against the property. After the purchase is completed the title to the property transfers to the new owner, and the deed to the property will be registered at the local land registry office. You should anticipate paying fees totaling around six to seven percent of the real estate's purchase price. The fees include the buyer's portion of the real estate agent's commission, the real estate transfer tax and the notary's charge.
Taxes
In Germany, property tax is paid so that local services can be provided. This tax is a small percentage of the real estate's assessed value, which typically is lower than its current market value. A wealth tax of about 0.5% of the property's value is paid by non-residents who own real estate in Germany. If a property is sold within ten years of being purchased, the capital gains on the sale are taxed at the normal income tax rates.
Mortgages
German banks typically lend up to 70% of a property's value, so down payments of at least 30% are in order. Mortgage durations range up to 30-year terms for loans with a fixed rate of interest.
Price Ranges
As in other countries, real estate prices in Germany vary with location and type. As a general rule, property within the territory of the former West Germany commands higher purchase prices than real estate that is situated within the former East Germany.
Prices for terrace homes in Germany begin at around $115,000. Detached homes range from about $200,000 to $875,000 and more. Apartments in the cities are very popular in Germany, and they sell for high prices. They may cost well over $400,000, especially if they are located in Munich.
Locations
More than half of Germany's population lives in rented apartments, making apartment living extremely popular in Germany. Housing shortages in German cities and suburbs make apartments located there even more popular.
Three-quarters of all German homes are fairly new, having been constructed after the end of World War II. It is still possible, however, to locate many lovely traditional or older homes in rural parts of Germany. The Rhine and Mosel valleys are popular with people searching for real estate that offers a rural lifestyle. Many of the properties located in the former East Germany require some renovation and modernization as they are a bit run down.
Standard of Living and Cost of Living
Germany's cost of living is somewhat higher than several other European Union countries, but it is about the same as the cost of living in the United Kingdom or France. The country has low rates of inflation, and the overall standard of living in Germany is very high.
The Real Estate Purchase Process
Buying a piece of real estate in Germany will require the services of an attorney or notary in order to complete the legal work and check for any liabilities that may be recorded against the property. After the purchase is completed the title to the property transfers to the new owner, and the deed to the property will be registered at the local land registry office. You should anticipate paying fees totaling around six to seven percent of the real estate's purchase price. The fees include the buyer's portion of the real estate agent's commission, the real estate transfer tax and the notary's charge.
Taxes
In Germany, property tax is paid so that local services can be provided. This tax is a small percentage of the real estate's assessed value, which typically is lower than its current market value. A wealth tax of about 0.5% of the property's value is paid by non-residents who own real estate in Germany. If a property is sold within ten years of being purchased, the capital gains on the sale are taxed at the normal income tax rates.
Mortgages
German banks typically lend up to 70% of a property's value, so down payments of at least 30% are in order. Mortgage durations range up to 30-year terms for loans with a fixed rate of interest.
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