Anyone used 'Berlin Capital'? Thinking of pulling out.

After quite a bit of research, including viewings of course, we decided to buy an apartment in Berlin through Berlin Capital

http://www.berlin-capital.com

The apartment is part of Hollanderhof, near Weissensee.

We put down 1000 euro deposit in June 2007.

Much toing and froing since, and LOTS of paperwork for the mortgage thru Baufib.

Quite a lot of delays as well.

Last thing was they sent out the mortgage offer for the wrong apt.

However I believe one of their people left, the person dealing with me, so didnt blame them too much for the mix up.

But it is a bit slack they have not sent the corrected stuff yet.

Going to chase them soon again but before I do - any thoughts?

1. Anyone else used them?

2. Anyone else decided not to?

3. Anyone know any reason why I should be worried?

4. Anyone know that development? Thoughts?

5. Anyone think I should definitely proceed?

6. Thoughts on the Berlin market?

7. Any other comments?

Thank you very much.

Re: Anyone used 'Berlin Capital'?

As per my other Berlin thread, I hope that this is not considered to be bumping my thread as its been a while since anyone responded.

BC have finally gotten back to me with all the paperwork, and now want me to sign asap.

Just wondering if any experienced people out there could give an opinion on them before I commit to a property please?

Re: Anyone used 'Berlin Capital'?

Found them to be very professional and expensive.

Re: Anyone used 'Berlin Capital'?

Thanks for the opinion simplyjoe.

Did you go ahead and purchase through them?

If so, would you be able to share some more details on what you bought and what the experience has been so far please?

If you didnt, could you elaborate as to why not please?

Re: Anyone used 'Berlin Capital'?

berlininvest said:

Thanks for the opinion simplyjoe.

Did you go ahead and purchase through them?

If so, would you be able to share some more details on what you bought and what the experience has been so far please?

If you didnt, could you elaborate as to why not please?

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Did not buy thru them simply because i thought that it was too risky to just buy one apartment. If this apartment is empty you have no cashflow. Instead went bigger and bought a number of blocks instead together with other investors. Management companies are excellent and the legal process is thorough and efficient. Land registry however is very slow. Beware of what you are told. Believe nothing. Check prior rental assertions to accounts, bank statements, look for minutes of management meetings, and speak to locals. Also view the buildings at different parts of the day/night to get a better idea of the area. Go to the local German pub and try to speak to nearby residents. Always assume that the individual apartments are in poor condition unless you have proof otherwise. Difficult to get to see apartments. Consider newer developments as these are beginning to crop up, especially in the South of the city and in Prenzlaurberg.

Re: Anyone used 'Berlin Capital'? THINKING OF PULLING OUT OF BERLIN INVESTMENT

Thinking of pulling out of this investment.

Seems like global conditions are bad and getting worse. Apparently the German economy is beginning to stutter now as well.

The LTV on this investment is only 53%, so I would have to tie up a lot of capital (approx 50k).

The rental income covers the mortgage with a small amount left over.

The transaction costs are not cheap.

Basically this investment gives me only negligible income.

The property has to go up in value before I break even on transaction costs, and it needs to go up a lot for it to make any sense as an investment for the capital tied up in it.

Given the state of sterling, I can't see UK buyers buying into Germany as much as before.

Ditto for the dollar.

Also, with UK and Irish property markets in trouble, will many people either be put off property investment, or even be in such dire financial straits that they can;t afford it anyway?

If so, who is going to provide the impetus for property price growth?

Unless it comes from locals, but they seem a world away from starting any kind of property boom.

Maybe I would be better off sticking my cash in a high interest account than going ahead with this. Or investing in shares. Or waiting until UK or Irish property gets to a level where yields start to make sense again.

Any thoughts? Am i talking myself out of a good investment? Am I being a wuss?

Or am i saving myself a lot of heartache and stress for no return? Would be very interested in opinions please.

Re: Anyone used 'Berlin Capital'? THINKING OF PULLING OUT OF BERLIN INVESTMENT

German unemployment fell by 110,000 last month and stands at 8.4% nationally, down from 9.9% last year.

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Obviously Germany is a federal country with many variances in unemployment rates across the republic. I don't see any evidence the German economy is "stuttering" but this doesn't mean I think you should invest, you have a lot of things to consider there but a stuttering german economy wouldn't appear (without any substantive evidence) to be one of them.