Hi to everyone,

I am a German citizen (21) living in New Zealand with my Kiwi husband (24). We have around EUR 60,000 to spend on a investment property in Germany. We are both working but we have a terrible tax statement history through self-employment and various rental properties in NZ from the past two years. We sold most of our properties now and have returned to a 'normal' job and want to invest some of our money. We own two houses currently with each around NZD 100,000 (around EUR 50,000) equity and have no savings history whatsoever!

How big/small are our chances of getting a (50%) mortgage in Germany?
What area would you most advise? We are looking at small apartments in Frankfurt or Leipzig to rent out.

Or do you think our money would be best somewhere totally different?

When I left Germany after school I had no idea of the property market in Germany and now I am an expert in Kiwiland but don't know much about Germany.

I hope someone can help us as we are planning to go to Germany quite soon to look at different locations, properties etc....

Thank you very much,
Julia

Hello Julia,

As in any market, opinions vary as to what best to do. To get a feel for what might suit you best, this forum is a good place to begin. Just look at the posts here and then follow up what appears good to you. Finally you can make a couple of more specific queries to people here to refine your options.

Some think that Germany offers good opportunity whereas others point to the fact that real estate in this country, excepting a couple of specific micro markets (certain areas of Berlin, the city of Munich) has a recent history of not doing much while neighbouring markets enjoyed good gains.

The amount of money that you have to invest is not sufficent to gain access to many properties, and this would necessarily point you towards the cheaper markets in former East Germany. High unemployment in these areas makes the property cheap, but also makes rental problematic.

Finally there is the question of the global economic problems which, having started in the US, have now begun affecting the European economies. Until there is better visibility, some (including myself) believe that it might be better to hold off a bit before committing.

I hope that this helps.

Neustria

Germany has one of the advantages as a market that it has had no capital growth for the last 10 years, so it must start to go up sometime. Especially when the economy is doing ok. Maybe is cultural. Germans rent in certain cities eg. Berlin.
You should be able to get 50% mortgages and with 60.000 euros should be enough too.
be in touch if I can help.

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Thank both of you for your replies!

We have been talking to an agent in the Frankfurt area, as it is close to where my family lives in Germany. He recommends buying a tiny and easily rentable flat for around EUR 100,000 with a 5% to 6% return around Frankfurt.

What do you think of that idea?

I personally like the idea of buying something bigger in Leipzig for that money (3 bedroom) or 2 small ones there. How difficult is financing in Leipzig compared to Frankfurt?

Even tho I am German, I really don't know who to listen to or who is trustworthy...

I would highly value any other replies to my questions!

Thank you and kind regards from New Zealand,

Julia

The end of the day you make the decisions and you have to live by your results, so if you follow your instincts, you can not blame any one else. And you take responsibility for your actions.

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You will get more for your money in Leipzig and it is unmistakably a city with its worst years behind it. Dresden is in my opinion a better investment. Frankfurt is fine but a more mature market and expensive by comparison.
If you are to live near Frankfurt then maybe that it where you should be concentrating your efforst.
German lenders will offer approx 60% but each purchase and purchaser is based on merit.
Germany is my favourite holiday and residential spot and we have made our plans to retire there. A truly beatiful country with a wonderful standard of living and standard of life. Regards from an Anglo-American couple. Good luck on your new life.

re. "German lenders will offer approx 60% but each purchase and purchaser is based on merit".
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I found myself refused a loan last year because, though I had ample assets, none were located in the country. This was the basis of my previous post where I suggested that 60.000 euros would probably not get you very far unless you decide to go east. This said, I didn't explore all of the possibilities before throwing in the towel.

Also I have to agree with Goldberg, in his above post. It would be folly to sign on the basis of any advice given here. It has to feel 'right' and, if in doubt, I would always advise ... abstain. Reason? It is better to miss what would have been a good deal than to find yourself bogged down in a really bad one.
Cheers!

Best for you and your husband to do is to get in touch with a couple of brokers in Germany they will give all the advice you need you have the lingo