Update: Increase or Property Sales Tax in Berlin

www.properties-in-berlin.com

The Berlin Senate has now decided to raise the property sales tax (stamp duty) in Berlin from 5% to 6% taking effect 1. January 2014.

As a compensation the Senator of Justice will introduce a legislation for agent's commission to be limited to 5% plus VAT. Currently there is no regulation but the custom is 6% plus VAT - negotiable, especially for bigger investments. In Berlin as in most parts of Germany the commission is fully paid by the buyer.

Both the level and the fact that the buyer is paying the full commission is a "surprise" for many international investors but in the current "seller's market" situation hard to negotiate.

See the previous posting in this blog.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities. We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service) Please use this link to the contact facilities provided there to place any requests .
Uwe Falkenberg 

Update: Increase or Property Sales Tax in Berlin

Increase of Property Sales Tax in Berlin!

The Berlin Property Market
is very popular with
Inernational Investors

According to several Berlin newspapers the Berlin city government is planing to raise the property sales tax from 5% to 6%. This is to compensate for a reduction in subsidies Berlin receives from other German states like Bavaria in the 2014/2015 budget.
It is not clear yet when this increase will take effect. The Christian Democrats in the government want to compensate this by reducing agents commissions but there currently is no legal tool to achieve this.

Anyone considering a property purchase in Berlin might want to speed up the selection process to save that extra 1%.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.
We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)
Please use this link to the contact facilities provided there to place any requests .
Uwe Falkenberg 

Increase of Property Sales Tax in Berlin!

Berlin's Housing Market - Skyrocketing Prices | Made in Germany

This article was shown on DW - Deutsche Welle. It characterises the situation in the central districts of Berlin and highlights the fact that compared to other German and European cities this is only the beginning.

Use this Link if the video does not show: http://youtu.be/mIokc-VFKRA

An overview of price developments is available on our website. Provide your details on the left of the page and have the latest report sent by email.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .


Uwe Falkenberg 

Berlin's Housing Market - Skyrocketing Prices | Made in Germany

Berlin Housing Market Report 2013

Download the HousingMarketReport 2013 by GSW Immobilien AG and CB Richard Ellis.

For the most comprehensive and up-to-date survey of the Berlin housing market, more than 400,000 advertised rental, purchase and investment properties were evaluated and trends derived for both the city as a whole and its 12 districts. The Housing Cost Atlas provides information about rent levels, purchasing power and relative housing costs for 187 Berlin postcode areas.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .


Uwe Falkenberg 

Berlin Housing Market Report 2013

Berlin Housing Market 2013 - What's up?

During the last few weeks there were some significant changes in the Berlin Housing Market.

Berlin Rent Table 2013

The new Berlin Rent Table 2013 (Mietspiegel 2013) was published and showed significant rises (20+ %) in some areas and hardly any changes in others compared to the 2011 rent table.

Location Grading Map of the Berlin Rent Table 2013

Reminder:

The official rent table determines the limit to which rents for existing contracts can be raised. Other regulations apply as well, (see below). The table does not apply to new rental contracts, even though tenants looking for apartments will tend to take their information from there.

New Cut Off Rate for Rent Increases

A change in the tenant law by the federal government allows the local governments at state level to reduce the cut off rate for rent increases in existing contracts from 20% over a period of 3 years to 15%. Two of the states, Bavaria and Berlin were very quick in applying this option and have issued regulations for Munich and Berlin respectively, meaning that as of March 2013 this new limitation applies. By the way,  both states have elections coming up this year as there will be elections at the federal level.

Setting up the right strategy

First of all - do not have your property manager send out a rent increase to all tenants at the same time, you might find yourself with more simultaneous vacancies than you would like. This really does happen!

Before applying the possible increases of the the rent table draw a development plan for your property. This does not necessarily mean spending extra money but have a guideline for you property manager where you want to be in 5 or 10 years. Some examples:

• Use repairs and tenant changes for upgrades if this is what gets you into a better bracket within your location.
• Groom some tenants that you would like to keep and take it easier on increases, engage them into a dialogue.
• Take good care of the first impression of your property. If you want to attract tenants that are prepared to pay higher rents you have to do just that, attract them.

Falkenberg Solutions - Real Estate Consultants have supported the development of such plans. Good property managers should be able to help you but are often to involved in the property to take a step back for the assessment. Sometimes they would have to ask themselves why they have not done x or y long ago but this lies in the nature of being tied down in day-to-day business. A fresh look from a third party is often the best way. Click here to find out more about the services and/or contact us.

Berlin Housing Market Report 2013

Shortly we will send out the 2013 Berlin Housing Market Report with the latest developments for the different regions of Berlin. If you requested the 2011 report from us you will receive the update automatically. If you have not requested it, you could sign up for the 2012 Report here on this blog by using this link:
http://germanproperties.blogspot.de/2012/04/berlin-residential-market-report-2012.html
or you come back here as it will be announced soon. There is also a sign up box on our website http://www.berlin-portfolio.com.

Berlin Housing Market 2013 - What's up?