Buying your Berlin Investment Property
Hints and Tips

1. Make sure you get a company who can speak English fluently - with the paperwork and reading (the notary reads out the buying contract) it is essential that you have a professional helping you that can translate and converse in your mother tongue.
2. Beware of quoted yields - it is common for agencies to quote gross yields - whilst these look more attractive in advertisements and attract attention there are still costs to come off - it is the net yield that counts.
3. Use experienced property consultants - Berlin’s property market is complex and very different to most places in the world due to its unique historical background. Experienced consultants are knowledgeable about Berlin’s history and areas. When Berlin’s property market became a popular investment a number of estate agents sprang up overnight - many not even located in the city or indeed with mandates from developers. Property is a big commitment and a long term commitment so use experienced professionals.
4. Know the financial strength of the housing associations in which your prospective apartment will be a member. Attractive yields can hide the fact the housing association needs to raise high levies in order to shore up its finances and the collective costs it may face.
5. Check when the rent was last reviewed and by how much - rental increases in Berlin are restricted to 20% in a three year period. It is important to ascertain when the last rental increases were and how much they were in order to judge future increase prospects.
6. Inspect existing rental contracts - when you purchase your apartment you take over the existing lease agreement - know what you are getting into.
7. Look for up and coming areas - Berlin has seen major growth in the last few years and with continued European funding this is likely to continue. With property development not meeting the supply needs, previously not-so- popular areas, are being upgraded and becoming hotspots - furthermore the continued integration of the old East provides some excellent investment opportunities.
8. Know the location - things such as infrastructure, crime rates, amenities and transportation matter. They all add to the rent-ability and sale-ability of your property.
9. Investigate the trends in pricing, rental rates and development - these provide an excellent indicator of the apartment and areas standing.
10. What are the vacancy rates - popular areas will have low vacancy rates which help to drive the value and rent upwards.
11. How old is the apartment - the published rental tables distinguishes the amount you can charge for rent according to the age of the property.

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