Sunday 21 February 2016

German Housing Market – Price Development in 2015 (Deutsche Bundesbank)

The German Federal Bank (Deutsche Bundesbank) has provided an analysis of the developments in the German Residential Market in their Monthly Report February 2016 The analysis is based on research data published by other institutions like vdp (Verband deutscher Pfandbriefbanken) or bulwiengesa AG.

 Price Development

In 2015 the prices for residential properties saw a significant increase. The spread across the country was wider than in the previous year. The price effect of growing demand combined with continuing favorable financing conditions was again stronger than any increase in availability of housing. Based on price determining economic and demographic factors the value of properties in urban areas will remain high and growing.

Based on information by bulwiengesa AG, prices for residential properties in German cities increased by 6% in 2015 after 5.5% in 2014 and 7.5% in 2013. The prices increase for condos was 6.5%, higher than single and semi-detached houses. Also the price increase for multi-tenant blocks was higher than the annual average since the beginning of the recent upswing in the German property market.

The average price increase for residential properties across all types in big cities slowed down compared to previous years and was the same as in cities in general at 6.25%. The increase for apartment blocks was at 7.25% by 2.0% higher than the average since 2010.

Rent Development

For new rental contracts in cities the increase was at 3.25% close to the previous year’s figure whereas the rent increase for new built apartments slowed down. In big cities the slow down on both categories was discernable. Whether this was due to the rent cap introduced in 2015 in Berlin, Hamburg, Düsseldorf, Frankfurt a.M., Köln, München Stuttgart and several smaller cities and towns.

Economic and Financing Development

The steady economic development in Germany with positive outlook for income and employment supported a strong demand in the residential market. While the price-income-ratio for owned housing increased over the period of the last 3 years the average interest rate decreased in 2015 by 0.5% to fewer than 2%.


Thursday 11 February 2016

How to Find the Answer to a Burning Question About Your Property Manager: Where is My Money?

 Book Review

A practical tool for a Property Management Audit and Self-Audit, this eBook provides a checklist and user guide to cover the key areas of Property Management Services. This tool supports Property Owners and Asset Managers in their assessment of the performance of their Property Manager and the possible, in most cases quantifiable, impact of the quality of service.
The tool also allows an internal auditor to take the outside in view and thus supports quality control for managers responsible for running property management businesses or internal departments of investment corporations.The checklist can be applied to all property asset types, residential, office, retail and any other rented property. Some details are focused on the German and especially the Berlin property market but this does not disturb the general usability in other regions.
The guide explains in detail the intention of the questions and demonstrates the relevance through some real life case studies. The author highlights the consequences of “just letting things take their course” and shows the impact of a legal structure called “Statute of Limitations” and how it applies to the owner – property manager relationship. The exclusion periods vary in different countries but the general fact is present in most legal systems.
It would be a mistake to view this list purely as a raised finger: Caught You! For a successful operation and positive development of a property a structured communication between the owner and the property manager beyond the monthly reports is very much needed. This tool helps to cover the important areas and forces the owners to clearly formulate their expectations.
The eBook also contains a link to download a complementary electronic version of the Property Management Audit Checklist without commentary.

The eBook is available on Amazon, click the link to get to teh download page.

 You might have to change to the shop of your county.