Why buy property in Germany? - Page 3

JMBroad · #21 28-04-2008, 02:34 PM

Quote:

Originally Posted by investinvalue

You are right, but although writedowns and credit situation is not really improving, German banks I am in touch with did tell me that they are still willing to finance some acquisitions. Spreads vs swaps will undoutedly be wider but I am told that max LTV has not changed if rental yield and location is correct.

I'm hearing the same thing too, the situation isn't getting worse, it's stable.

I was replying more to GG's post asking "when is the loosening of mortgages going to happen in Germany?" - In my view don't hold your breath.

sheymoose · #22 29-04-2008, 10:18 AM

Mortgages are only restricted on apartments. It is possible to get very high mortgages on blocks - my last client managed 92% finance on an Oranienburg portfolio - but I know this is exceptional for non German investors - but 75% is relatively easy if the cold rent yield is high. You will get higher mortgages on both products if you are German or if you have a Gmbh which has accounts for 2 years - all our clients buy using a Gmbh (or a Gmbh & co KG depending on their investment strategy).

Rentoroni · #23 09-07-2008, 10:08 AM

Why not?

Nest Egg · #24 22-07-2008, 08:08 PM

Sheymoose, you're right. We just did a deal for a client where they purchased a 1.6mil Euro portfolio for just under 1mill Euro and they were able to finance up to 92% of the purchase price.

As we're working with a German investment partner they understand what we need to deliver to our UK based leverage hungry clients...

The other point to mention are the macro indicators for Germany compared to the rest of Europe. It's undoubtedly going to become the powerhouse of Europe again and will be at the forefront of the EU economies and no doubt driving demand for property with its upcoming properity.