Berlin is a fine city for working and for living. It is also a hot property destination with a continuous upward growth, making it a perfect destination for property investments. The economy is stable and demand is high in commercial, residential and industrial real estate. There are few restrictions in acquisition, ownership and sale of property in Berlin coupled with favorable tax laws and easy funding at historically low interest rates. If you plan on investing in Berlin with long term or short term capital appreciation aim, then it is the right place provided you have a strategic investment policy in place. The best way is to have a local Berlin realtor with expertise in these matters define such a strategy aligned with your objectives.
Given that each investor’s goal is different there is no set investment strategy but even then, as a starting point, you can consider the broad categories described below as a guideline.
Conservative Investments
Your realtor assists you in locating the right priced property in safe locations that have potential for low or medium yields. You can invest outright or have the realtor assist in leveraging equity through bank loans and mortgages with long term rent contracts or lease agreements.
Balanced strategy
You have the option of selecting property that is absolutely safe and available at medium rates but with good future potential. This could be tied in with mortgage, medium term rentals or lease and asset management program that leaves you free yet delivers a steady stream of revenue to your bank account.
Value Increase strategy
The focus is on targeting specific properties in locations that have historically shown the highest appreciation values in the past two years with still more potential left according to market trends. Your realtor assists in locating and buying the property and then with tax optimization strategy along with loan and a long term rental or lease contract.
Speculation strategy
Here, your realtor not only assists you in singling out property in commercial and residential areas but also to look for auctions or distress sales where you can dive in and then come up with high returns in the shortest time. Profits are high as are investments. While you put up this Berlin property for sale and wait for the right buyer to come along, your realtor arranges short term rentals, asset improvement and other value addition activities.
Maximized yield approach
There are several ways you can go about implementing this in association with your realtor. You look for specific properties in select locations where appreciation is the highest. Old properties are valued highly and have certain nostalgic value and appeal to a certain section of buyers who are willing to pay more. Investing in such properties, tied with lease or rentals is one way to optimize yields.
Prices of property in Berlin are on the rise but are still below what you pay for similar assets in other prime cities of Europe. Let your Berlin real estate agent advise you about the right investment strategy keeping tax and other legal angles in view and come out on top.