Berlin Beware - Page 3

teepeeseller · #21 06-04-2008, 09:18 PM

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

Hail Manic,

Contact Berlin real estate centre. They have an agreement with a finance house and access to some lovely flats in Prenzlauerberg (nice area and not at the top of the pile yet so scope for growth). Arguably a better bet than Charlottenberg because everything in Cberg is already at top dollar for Berlin.
On these I think they arrange tenants and are netting 5/6%. Not sure how they arrange prop management however. I'm sure they will have a reputable company on their books or be able to advise you. I have agents I use for management but they are a small outfit - I've just stayed loyal to em because they are friends as much as anything else nowadays and would never let me down because of that.
Tel nr is 01527 406982 and the fella who looked after my last client was a Mr Hudson. He does most of their btl and commercial investment.
Off to Atlanta for a meeting with a gentleman over there who has his fingers into bank foreclosures. Then to Dresden in June. Hamburg is on the itinerary but subject to change of course. If I find anything of real interest I will let little snippets slip.
Good luck with your German ventures - Berlin is a great place to start and only going to get better.

JMBroad · #22 07-04-2008, 09:47 AM

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.

manicman · #23 07-04-2008, 12:42 PM

Quote:

Originally Posted by JMBroad

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.

Hi All

,
Seems all the banks are in the same position and I agree thing's are going to get worse. I'd be interested to read up on your strategy (JMBroad) if does not compromise non-disclosure agreement or pm me if you have any suggestions.

Happy Hunting

bromley9 · #24 02-06-2008, 12:36 AM

Hi, I have very recently bought auction from the SGA auction. It's one of the big ones. The problem I have is I think they are trying to charge me too much. They quote 6% their commission + VAT, so 7.2. Then there is 3.5% german state tax + notary + solicitor + other expenses. However, they want to charge me 6% commission plus a wopping 10% for other expenses. So 3.5% german state tax + notary + solicitor + other expenses = 10%. I've read that notary & solicitor are standard fixes, around 1%, so the numbers don't add up to 10%. Anyone with any comments? Thanks very much.