View Single Post
  #6  
Old 02-04-2008, 12:45 PM
Liam Bailey Liam Bailey is offline
Active Member
 
Join Date: Feb 2008
Posts: 26
Default

Rayk150:

Like I said, most of the Germans making property investments outside their country are doing so to increase their buying power to obtain a property back home. Those who have and are buying recently and now (like yourself) should hit it perfect to sell to those people when they return with their profits in 4-5 years time to get onto the property ladder.

Also Berlin rental rates have been rising across the board for the past year, and if the economic growth in Germany continues to be as strong as it has, it is almost certain the government will relax the laws governing rental rate increases, as wages continue to rise. When this happens, it will suddenly become more favourable for people to buy their property than rent.

Of course there will still be a few who simply can't afford to buy, but nonetheless I predict somewhat of a buying frenzy in Berlin, first when the government actions the rental law legislation, and then in around 4-5 years when the people now buying outside germany bring their money pots back to get on the property ladder.

Even if my prediction is wrong, you will have no trouble selling your properties. Berlin is known for its world-beating residential rental market, when rental rates are easier to increase and rental yields start to increase across the board, doubling in many places, apartments in Berlin will be a doddle to sell. There's no downside, even if you and up with your property on the market for a while, you'll be making a killing on the rental of it all year round.

Liam Bailey
Head of International Research
David Stanley Redfern Ltd

Last edited by Liam Bailey; 02-04-2008 at 12:50 PM.
Reply With Quote