Press Release Summary = Germans are known as a nation of renters rather than property buyers, with this trend creating lucrative opportunities for buy-to-let investors. The nation also favours living in cities, which means urban properties are a particularly savvy choice for a landlord.
Press Release Body = Germans are known as a nation of renters rather than property buyers, with this trend creating lucrative opportunities for buy-to-let investors. The nation also favours living in cities, which means urban properties are a particularly savvy choice for a landlord.
Despite the issues with affordability in the UK, homeownership is still far more prevalent than in Germany. In the UK some 70 per cent of people live in property they own while 30 per cent rent, according to the UN\'s Bulletin of Housing Statistics for Europe and North America 2006.
The rental market overshadows ownership in Germany. The same report found that the split is 58 per cent renters to 42 per cent owners in the country, reflecting a real opportunity for the savvy buy-to-let investor.
With high levels of demand, landlords usually have little problem finding suitable tenants. According to Paul Collins, property editor for online advice portal BuyAssociation, owners of German property have \"particularly good\" chances of being able to let it out.
He explained that the rate of people renting in Germany, particularly in certain areas of Berlin, is in the region of 80 to 85 per cent. However, investors are being urged to consider the reseller market as well if they are not in the rentals game for the long-run.
\"There just isn\'t the same property culture so if you buy a property somewhere like Germany, there\'s not so much of a market to sell it on again afterwards,\" Mr Collins warned.
The Global Property Guide notes that the average apartment in Berlin has an average yield of 6.2 per cent, while yields in major cities such as Frankfurt and Munich respectively rose to 5.7 per cent and 4.5 per cent respectively.
It also claims that properties owned for more than a decade are not liable for capital gains tax, while those receiving rental profits are liable for \"moderate\" income tax rates.
Understanding local tax issues is important for anyone purchasing property abroad. Off Plan International sales director Simon Walker said the impact of capital gains tax on property investment could be significant and advised getting advice from a specialist to assess an individual\'s situation.
\"In some countries, you\'ve got to look out for capital gains tax, so you\'ve got to tie that into the equation of the profit you\'re going to make,\" he said.
\"You do need to take a lot more professional expertise . It\'s best to talk to a tax specialist.\"
Another factor to consider is that tenants enjoy greater responsibility for their property thanks to longer lease periods, it has been suggested. Mr Collins added though that the law favours the rights of the tenant.
\"So again that\'s something to consider if you\'re thinking about buying a property abroad to then let out - the law is very much in favour of the tenant,\" he said.
2022
