Just a quick question regarding the german property market. Would it be worth investing in property there. Seems quite cheap, well, relative to here anyway at the moment.
Germany is undervalued because property prices haven't risen there in ten years, a lot of which is to do with overseas investors' money has been flowing into risky emerging which simply do not have the economic fundamentals to support the investment.
I know that Germany has been seen as the best destination for European property investment for several years now
geordie, when you advise to go for fully tenented property, I assume that the idea is to benefit from the good rental returns. the figures in the ads look good; and they are good.
however you can't avoid paying the german tax-man 25 % of you net-income as non-natiunal and after that comes the irish tax-man. the idea of the "double taxation agreement" is misleading because you will not be exempted from the irish income tax for the german rental income but you will get a relief.this relief is computercalculated and turns out to be very minimal against the tax that you have already paid.
so this is very painful and I have shed many tears over this. if you or anybody else has an answer to this dilemma I would be very grateful indeed.
Great post Michael.
In relation to the above...
I assume from your post that you have a financial stake in commercial property in Germany and possibly thru a syndicate. (If you do then i am in the same situation as you) I understand too the upside to the introduction of REITs in Germany (in 2009 i think ?) but can't quantify it. If you have any insights or links to what benefits the introduction of REITs may bring i'd be grateful if yuo could post them.
Will they definitely introduce REITs or is it still a bit up in the air ?
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