Because the German market is so complex there is no manual to help investors. We have built up extensive knowledge about the market through working and investing in it. The investment strategy appropriate to each buyer will vary depending on what they want from the market, how much they want to invest and how they want to invest.

Once you have decided what you want from the market and how you intend to invest then the next thing is to pay a fair price. German estate agents can legally charge 6% + 19% VAT inside Berlin and most of them do. Non German agents charge what they like and most of them include commission in the price - this is also the case for German sellers who sell large developments to foreign investors. From our experience the commission can be up to 30% and if you buy in an area which can expect only growth at the rate of inflation then it will be many years before you get a return on your investment. We source over 95% of our properties direct from sellers so the price we ask is the price they ask.

Next is how to choose your property. If you buy in your own country would you buy an apartment that you cannot see? Resale as we know depends on many factors, for example the light inside, condition and many complex nuances. If we sell 2 apartments in the same block then the price per sqm of each will vary significantly because of the different condition and the floor - in Germany the higher the floor the higher the price (generally).

Then there is the question of finance. German banks are conservative to put it mildly. You can expect to borrow no more than 60% of the price and higher in exceptional cases unless you are buying a block in which case very high percentages are possible (around 90% in some cases). German banks lend a minimum of 50K so the property price has to be greater than 85K. The exception to this is if you have already bought a property for cash (at any value). In this case a German bank will lend you 60% of the value of a 2nd property and there will be no minimum mortgage. We arrange mortgages for both apartment and block buyers.

There is much misinformation about German tax. What tax you pay will depend on where you are resident. If you live in the UK or Ireland then you will be taxed on your world wide income so it is irrelevant if you pay no tax in Germany. There are legal ways of only paying tax in Germany but they are only suitable for the "larger" investor and it involves setting up a Gmbh (a German limited company). We are extremely familiar with this process and have developed all the necessary contacts to achieve this. Please call us to discuss.

When you buy an apartment you will likely want to rent it. Almost every apartment is either managed whether it is owner occupied or tenanted. The management company is sometimes a large company outside the building and sometimes it is someone who actually lives in the building and is likley to own most of the building. For every tenanted apartment you will pay a monthly management and maintenance fee. Rent in Germany is controlled by the Mietspiegel. You can find the range for any address in Berlin providing you know the year the building was built and a number of other factors. People only pay higher than the Mietspiegel where there is high rental demand. If you buy an owner occupied property you can ask rent up to the max range or higher in the more sought after areas. Most managment companies do not deal directly with tenants. You can either pay a smaller additional fee to address this (approx 15 EUR per month) or you can deal with it on an adhoc basis and deal with each situation if it arises. If you do not speak German then it is advisable to have email contact with your tenant and you can forward tenant emails to us.

If you rent an apartment the tenant will pay you "warm" rent which is "cold" rent plus running costs (electricity etc). You keep the cold rent and pay the running costs to the management company. All of our properties show the actual cold rent or estimated cold rent based either on the Mietspiegel or an estimate from the owner. The other running costs will be the management and maintenance fees and an annual accountancy fee. You can expect to pay around 20-30 EUR per month for any German apartment for management. The maintenance fee will vary depending on the size of the apartment, the location, the condition of the building and the shared facilities. You can expect to pay 10-60 EUR per month. Most of the maintenance fee is pooled and is used to address larger works when necessary. Our accountant charges 92 EUR per hour which is quite competitive. If you keep your records neatly then the once yearly exercise should hopefully take 2-3 hours.

We have particular expertise in the sale of blocks. We only work with one German block partner and they only work with us. This is the 1st important thing as those of you who have received block information to date from other companies will possibly have found it difficult to get answers to all (or any) of your questions. Buying blocks is more complex than buying apartments and there will be a different strategy for each one. Our block partner is also a block manager and you can choose to use their services or not after purchase. Note they will only manage blocks in locations where they believe there is little chance of significant tenant issues. For example they will not offer their service in many parts of Neukollen, Wedding, Hellersdorf, Marzahn etc. There are obviously exceptions in these areas. It is also often possible to "take over" the existing block mortgage where it is more attractive than current conditions. Once you own a block you will use the German system and common sense. Some will be in locations which are suitable for selling individual apartments in which case we will be happy to provide this service. Some will have a roof space which can be developed at a cost which makes sense in light of the potential increased rent or the potential resale. In some locations the cost of developing a roof space will not make sense. Grants are available for various things paying up to 2/3 of the work required. As a block owner you can also benefit from very low interest borrowing. In some cases the block will have been badly managed (perhaps by an individual who is not properly trained in block management). In many cases it will immediately be possible to manage the rent upwards without the tenant actually paying more! The purchase and management of a block is an ongoing thing and we hope to assist our clients before and after the sale.

All in all our service is personal, honest and objective.