Aztec,
You are right to consider the exit strategy as an integral part of your investment plans.
Unlike so many other so called "Hot spots" there is little scope for flipping props in weeks as some have experienced elsewhere. Most of those places are now awash with unsold props as a result of greed feeding oversupply. For those just wanting their own little pile in the area of their choice this is of course wonderful. For the hard nosed investor not so.
Germany in general has to be seen as a long term, relatively safe investment. Long term means exactly that it does not mean two weeks longer than it takes the ink to dry on the contract - unfortunately the feeing frenzy was cause by such.
Change is in the air in Germany. Mortgages are going to be more freely available than hitherto. The German government is keen to turn more Germans into home owners.
No capital gains after ten years. I disagree you would only be able to sell on to another investor. Though if one comes along and makes a good offer he may as well be the beneficiary as any other type of purchaser eh?
There are many buying as a lifestyle choice, others wanting BTL, others just considering the capital growth. People like me have all three in mind.
Germany is awash with management companies. The competition is quite tough and as a result charges differ wildly, you can shop around pitting one against the other, purchase through an establish co which has an agreement with a management co and likely to be offering competitive rates because they do not wish the agent to consider any company other than their own, buy as an all in package or DIY (My advice would be to avoid this like the plague - far too many who have tried it have run into problems - it is quite a complex business and you really do not want to P your renters off as they do have the power to hurt you in Germany (I have had no problems because I have a company which treats them fairly and it is usually reciprocated)
I think if you have the property priced correctly and market it well it will sell on far more easily in Berlin than the equivalent in some parts of Spain, Turkey, Bulgaria, Florida. Be sure to purchase quality in the right area. An apartment in say Charlottenburg is likely to be expensive by Berlin standards but is in a des res area and the demand is high. If you wish to have a company recommended feel free to ask, I'm not touting my own so will not make any great efforts to push someone elses. I have a couple of tried and tested outfits I put my faith in and lived to tell the tale. Hope this helps.