Berlin Apartments

[Jane1]

I have been looking at an apartment in Berlin with a ten year rental guarantee from the government. Its really a long term investment. Buyer has to come up with 30% of the price. Just wondering if anyone has bought into any of these developments or has any thoughts on them? Tks

 

[GreatDane]

Hi

Not seen the one you refer to (gotta link ? )

but from what I've read, I think the tenants have excellent rights in Germany and may (?) be able to stay in occupancy after the 10-years, unless:

* There lease is for a specific 10-year term
* They fail to make rent payments when due
* You are able to prove you need to get them out, so you can live there yourself.

I'm no expert, but I'm sure I've read the above somewhere recently. Anyone able to confirm ?

Cheers


G>
[broken link removed]

 

[doberden]

Some of these developments have rent controls where rent cannot go up in the lease period. Make sure it is going up every year!

If you are investing I would make sure you're getting yields of between 6 and 10% because they are available. I seen some company offering a yield of 4% which is not really worth it considering German market will take a few years before you make good gains.

 

[Jane1]

Thats true the tenant rights in Germany are very strict. There is a cap on the amount of rent that can be charged and as you say above it is very difficult to remove a tenant from your apartment.
The government are offering about 4% annually in rent for ten years whether the apartment is occupied or not...[broken link removed]
I'm just wondering as a long term investment (+10yrs) if its good?