buy-to-let in Berlin

Have been reading about buy to let in Berlin. Prices are very keen, from €35k for studio, 45K for 1 bed, with sitting tenants. Return of 4-6% and predictions of good capital appreciation over 5-7 years. Does anybody know anything about the Berlin property market and any obvious pitfalls or reasons to leave it alone?
Greenhorn

I heard that one thing to be careful of is rent controls. Make sure if you're signing a rental contract there are annual increases in rent. Some people are locking in to guaranteed rental contracts for long periods with no increases in rent possible!

My logic for investing in Germany is that if the german economy does well then interest rates will go up which means it will be more expensive for my property in Ireland but this will be off set by capital apprecation in Germany!

I think property in Germany will go up over the next couple of years mainly because of speculation. I read a detailed report on Germany about 6 months ago and it didn't give much hope for increases i.e. no increases at the moment so what's it going to be like when the interest rates go up! But...because of the amount of foreign buyers now in the market that will drive up prices in the short term.

The only thing I know about Germany is that the property market has really high transaction costs whilst the population is actually falling. I know there are a lot of people out there who are a lot smarter than me but I don't see why speculators are attracted to that sort of market.

when germany allows free movement of eastern europeans into country there will be much greater demand for property,also the demand to own could rise in germany ,it has lowest homw ownership rate in europe ,if it goes way of nearly every other euro country demadn will increase to own and prices should appreciate.either way i dont think property can go much lower in germany and theres an ok yield relative to savings interest rates.

Personally, I think Berlin looks good at the mo. At least prices are low and yields are high relative to interest rates - even at current valuations (not to mention possible capital appreciation). I am seriously considering continuing to rent in Ireland and buying in Germany. It may make no sense to many, but I am very nervous about property in Ireland at the mo. Even on these forums there are more posts on the home and gardens/mortgages boards per day than any other board. Germany seems a safer place to protect the value of ones assets. Just my opinion, and of course research, proper legal advice and local knowledge would be essential.

hi.i've been reading up on Germany and Berlin in particular.i know that there has been a syndicate formed by an accountancy firm in west Cork to invest in a mix of commerical and residential and also one of Cork's big builders has bought in conjunction with AIB(i think)
the point on the opening of the free movement is very valid but when will this happen..it may be a good long term investment .please let me know how you get on