FAP Turbo

Make Over 90% Winning Trades Now!

Friday, November 27, 2009

Berlin Investment Property

By Sofie Vincent

The popularity of investing in Berlin property is on the rise, there is a continuously growing number of prospective buyers and investors researching and learning about the large financial returns from Berlin investment property from this quickly growing business venture.

In Germany there has been an economic increase rate of 2.5 percent that was posted in the year 2006; this has caused Germany to be at its highest level to at its highest level of confidence in about 15 years. The country of Germany is having a great time of economic revival due to its strong export market and rising housing price index, which makes it and very attractive time to invest there.

Berlin has had a steady and increasing rise of investors after many years of the economy being very slow. It has been especially sluggish in the eastern parts of Germany and of course Berlin. Due to this fact, prices of property have nominally low. Many German citizens are choosing to buy their homes instead of renting them now a days, the outlook on mortgage's is very encouraging because the governments has relaxed on its policies concerning mortgage's.

The economy in Germany is growing at a steady rate of 2.5 percent throughout the year of 2007, house purchasing prices have been seen to increase slightly however. There are low costs and very affordable commercial properties and office spaces, there have been many British and European investors that have constantly poured money into the city of Berlin to build their businesses home offices and headquarters. After the Berlin wall had fell, the city began to race with others of Germanys advanced cities such as Munich or Frankfurt it their economic development. But a surprising occurrence has happened in Berlin, the price of property are more low in the capital than in all of the other minor cities of its country making Berlin investment property extremely attractive to investors.

The districts of Charlottenburg and of Mitte have become the choosiest investment properties, the properties in these districts are some the best deals in highly valued property across the continent. However, in just a few short years the prices of the properties will increase at a very high several times what they are worth now.

Serious interest is growing in the Berlin investment property arena due to the profitable returns on investment. The development of the Schlosspark-Carree for instance, is supported by a 10-year rental guarantee by a consortium of participating banks making it one of the most attractive investment opportunities in the whole continent. What is more, the 10-year rental guarantee is also complimented by a counterpart 10-year maintenance and modernization plan, and even free rental management of the properties offered for sale.

In terms of population, which is the backbone of any structured economy, Berlin has a stable population of 3.4 million people, or almost the same population of three cities; Frankfurt, Munich, and Hamburg; combined, making it the largest populated city in the entire country.

In 2003 there were a little bit more than 1.8 million households in Berlin with each household made up of around 1.8 persons. Over the recent years, this statistic has grown steadily, and by the year 2025, the number of households in Berlin is expected to breach the 2 million household mark. Over an'-year period, this translates to an annual household increase of 8,400. This population expansion would trigger an exodus of big and small investors going into investment property in Berlin, and with the local residents having difficulty getting mortgages for their houses, many would resort to renting or leasing their homes.

The goal of many of these foreign investors will be to buy attractive properties in Berlin and the sell them to the locals for a large profit, because Berlin has all the key ingredients to have a high property market.

The Advantages Of A Berlin Investment Property

Berlin has a very liquid rental base market, unlike other investment centres across the globe. A surprising 87 percent of the population, or close to 3 million people, have opted to rent their homes instead of purchasing them for ownership. The vacancy rates of rental apartments and homes are at a very low 3.4 percent during the latter part of 2008. This gives a very wonderful opportunity to investors in purchasing 'buy-to-let' apartments and properties, as it assures them of consistent and profitable rental income.

Another fantastic advantage in the Berlin investment property industry is the clearness of information, which the German government give to its foreign investors. They give information in the likes of property prices, rental rates, returns on the investment, and sales information that will be given correctly and in a straight and decent manner so they may be informed to make the right decision for them. - 23159

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home