Quote:
Originally Posted by manicman
Hi Teepeeseller & all,
Don't get me wrong, i'm not risk averse (just want Garuntees LOL), but measured risk with sound fundamentals will be my way forward. I agree, Berlin isn't the only place to be looking, but with limited funds you have to start somewhere and Berlin seem's very attractive. I also believe that BTL has a place within an investment strategy, used in the correct manner and can limit the amount of exsposure within a single market or the European as a whole. I looked at Hamburg when first got interested in Germany, and think I will revisit the subject. Don't have alot of cash (don't Know where it goes) so I'm very interested in leverage and would appreciate yours (and JMBroad) insight to the subject at (small, for now) invester level WRT the current issues within the finance sector and the Liberalisation of the Mortgage market in Germany. Max ltv of 70% and a min lend of 50K euros I'm led to believe. I will for many years to come be a slave to my paymasters ( a labour prostitute as my colleague puts it  lol), but the gradual increase of income coming from other areas sounds a lot more attaractive  |
It will get worse before it gets better - lots of big German banks took a hit from the US subprime and more are yet to disclose the scope of their losses. At the moment the norm is 60% max LTV, min 50k however I can see that going down to 50% LTV 50k min before too long. You can still get 70% but the paperwork needed, the time and the hassle are more than most investors are willing to go through.
As for other cities in Germany - I'm not convinced personally. A friend runs the real estate side of an investment bank in Rostok and while they are still making sales and business is seemingly ok, it's not exactly a market for everyone.