There are many reasons why you should want to purchase a property in Berlin, Germany. Some of these reasons include the rapid development of Berlin, investment security, and tax advantages in Germany. Furthermore, the price of properties in Berlin is constantly increasing. This means you are sure of great returns if you decide to invest in Berlin by buying a property.
Fortunately, you don’t have to be in Berlin before you can buy a property there. This is because you can invest in Berlin from wherever you are through a trusted international real estate agency in Berlin. Want to buy a property in Berlin, Germany, but don’t know how? This article will be your guide when buying that first property in Berlin.
1. Make the Necessary Preparations
The first thing to do if you plan on buying a property in Berlin is to make the necessary preparations beforehand. These preparations include checking your affordability. This step is critical if you plan on taking a loan from your bank as it provides you with information on how much the bank will be willing to lend to based on your financial status. You can use this information to know the range of property prices you should be looking at.
Thanks to your affordability, you will know the maximum price of a property you will be able to afford.
2. Reserve the Property
After choosing a property, you can secure it by signing an official reservation form. After viewing a property, the seller will send you a reservation form. You will need to pay a reservation fee, which is usually 0.5 or 1 percent of the property price. If you don’t purchase the property, the reservation fee is paid back partially or not at all.
If you qualify for a mortgage, start sharing the necessary documents as this can get your approval quicker.
3. Sign the Important Documents
After receiving the mortgage approval, you have up to 2 weeks to sign it. It is not a legal obligation to sign it after receiving the approval, thus you will not be fined or charged if you refuse to do so. The vendor or you can select a notary public to create a draft of the first contract. Usually, the final and acceptable contract is signed at the office of a notary public. But ask the notary public pertinent questions that may border you.
4. Pay the costs
As the purchaser, you will be required to fund the services of the notary public. After paying the notary, you will need to pay the property transfer cost (Berlin’s 6% property transfer tax).
You might need to pay the property manager a small fee if their approval will be required. After that, you will be asked to pay the complete purchase price to the seller
5. Gain Complete Access to the Property
Arrange for the vendor or seller to hand over the keys to the property after you made the full payment. Make sure the newly acquired property in Berlin enters the German land registry. This process takes between 8-16 weeks and only after that are you the lawful owner of that property.
4 Tips For Buying A Property In Berlin
Knowing how to buy a property is one thing and buying the right one is another. To help you in buying the right property in Berlin, keep the following tips in mind.
1. Prepare a budget
The most important thing you can do if you are planning to buy a property in Berlin is to plan a budget. Preparing a budget gives an idea of what you can afford and how much money could be given to you as a loan from your bank. Budget making might seem like a tedious task where you will have to be an accounting expert to make, but it is not. Technology plays a vital role in budget planning as there are apps that can be used to plan a budget and get an estimate of how much you could be given from the bank as a loan.
2. Include extra costs
Most people don’t include extra costs in their budgets because they think that the only thing that will be added is the purchase costs, and that is entirely wrong. Extra costs might seem like little things initially, but if you leave them to accumulate, they end up being things that could hinder your purchase of the property or leave you feeling stranded after purchasing the property. These extra costs include lenders’ mortgage insurance, loan fees, or home insurance fees that may come with the property. It is best to include these little costs so that you will be prepared when it is time to pay them.
3. Make enough research
When you want to buy a property in Berlin, you must make adequate research when looking for a property to buy. People who buy properties without researching often find themselves stranded with a property that may lack social amenities, good transport systems, e.t.c.
Researching also protects you from greedy property owners who may try to milk you for extra cash than what the property is worth.
4. Negotiate before buying
The worst thing to do when buying a property is to accept the seller’s price without negotiation. Always negotiate before buying a property because all sellers will set a price bigger than the value of the property. In addition, know when to walk away if the property’s price is too high. Negotiate with confidence because the seller will know if you are desperate for the property and will not allow the price to be changed.
Conclusion
Now, you have known all the steps to buy a property in Berlin and the things to keep in mind when doing so. Even if you don’t reside in Germany, there is an English-speaking real estate agency to help you out. Finally, all you have to do is hire an English-speaking real estate agency like First Citiz, Berlin, to help you out. First Citiz will show you all property prices in Berlin and more.
