Buying in a House in Germany isn’t Easy. But its not just for Germans, expats and internationals can buy a house in Germany too. Before diving into the complicated process of buying a house in Germany I would like to share 6 things you should consider before Buying a house in Germany!
Investment opportunities in Germany
I learnt the basics about investing in the stock market. I started with 500$ and then I kept on adding more funds on a monthly basis. And in less than a year I got a profit of 30% on my investments in the stock market. You can have a detailed look at my portfolio in this video. I also started investing in cryptocurrencies like Bitcoin and Ethereum.
Long term plans / Mobility
If you are an expat, chances are that you are not sure about your future in Germany, maybe you want to live here for a couple of years and then move back to your country. Maybe you are someone who just wants the German nationality and want to move to an English speaking country in a couple of years then it might not be a good idea to invest in Real estate. At this point you might be thinking of buying a property now and selling it if you change cities, its not as easy as you think.
Costs of buying Real Estate
Did you know that when you are looking at apartments and houses on your favorite Real estate website and find a nice place that is good and is within your price range. The price that is given there is not the actual price you have to pay?
Nope you have to pay between 8 to 16% additional costs on top of the buying costs. These costs include
- Brokerage commission 3.5%- to 7.5%
- Real estate transfer tax 5.00%
- Notary fees 1.50 %
- Land register entry 0.5%
Getting a loan
Talking about loans, you cannot get a loan if you are not a permanent resident. Doesn’t matter if your job contract is full time or not , banks will not give you a loan if you don’t have a permanent residence.(I have recently learnt that some times there are exceptions)
Getting a good deal /Inflated housing market
Because of the low interest rates the Real Estate prices have gone to the moon. Most people have just been priced out of good locations because of these inflated prices. According to a study by the Swiss bank UBS, the real estate markets in Munich and Frankfurt are the most overheated in the world.
Buying due to Fear of Missing out
Finally the 6th Point is are you thinking of buying a house just because you have a fear of a missed opportunity? is it just because you have been in Germany a couple of years and people you know are buying houses and you think that you should also buy a house just because they are.
*None of this is meant to be considered as investment advice, as I am not a financial expert and am only sharing my experience with stock investing. The video and articles are accurate as of the posting date but may not be accurate in the future.