Long term overseas property investments will benefit from buying into the German property market. This is even more so when buying German property in the areas with a good infrastructure. Little competition from German house buyers You will not be met by much competition in the housing market. The percentage of Germans owning their homes is surprisingly low compared with elsewhere. At about 42 percent, it is the lowest in the entire European Union. As in other countries, the ratio differs according to income levels. The more affluent the people are the more likely it is that they will own their homes. The housing market has to go up the market has been depressed for so long and has reflected the poor state of the economy since reunification in 1994. Foreign investors are beginning to see the prospects. A UK finance company in 2005 bought 150,000 apartments for 7 billion Euros whilst in the same year a US finance house Fortresss bought 80,000 flats from the German government. There are no legal restrictions on non-Germans owning property, and many expats have significantly higher income levels and housing aspirations. The only bar to foreign ownership of property might lie in the financial institutions that offer mortgages. So where to buy in Germany It is popular in Germany to rent property. This accounts for over half of the population. Apartments in the cities and suburbs are popular where there can be a shortage of housing. 75 % of German homes were built since 1945 so as you can imagine prices for period properties are more expensive. Former East Germany house prices are some 30% cheaper so buying a period property in Honover, Berlin or Dusseldorf is going to be a good investment. Its a good bet that house prices will rise Once the German thinking goes toward mass home ownership individuals will push the German house prices up. Its only a matter of time that the German government will want to benefit from this and observers say that the mortgage market in Germany will soon be liberalised. This will push up demand and then houses prices in Germany. This coupled with expected extensive overseas buyer purchases make Germany a long term property investment candidate Overseas property investors who are in it for the long term will benefit from investing in the German housing market. |
