Advice for purchasing vacation apartment in Munich or Berlin?

Question

I'm looking for advice about buying a second home (apartment/flat) in either Munich or Berlin. I know Berlin is a lot cheaper, but I'm not very familiar with the area. What's a good part of town? What about financing? Is it available if you live overseas? What are the monthly costs and what's included? I'm looking for something modest. Around 50sq m or less...studio is fine. Less than 60,000 Euro. Any advice from someone who has done this? What was your experience, and what is the process for the transaction. I live in the US (if that makes a difference for providing comparisons)

Answer 1

Financing would have to be done by your bank in the US, if you live there. You also need to be aware that when you buy property in Germany it is as if you were married to it, ie it is easier to get a divorce than to sell real estate fast in Germany. You'll need to hang on to it for at least 10 years in order to avoid paying a ridiculous amount of taxes on it.

Best way to get your hands on cheap real estate is "Zwangsversteigerung". When people can no longer pay the mortgages, their property is auctioned off to the highest bidder. These houses or appartment can be a real bargain. Contact a real estate agent in Berlin on how to go about acquiring a studio that way. People at http://www.toytowngermany.com should have adresses of english-speaking agents as well as be able to give you further advice.

Answer 2

Hi,

I'm an American that has been living in Munich for 30 Years. I am planning to go back to the states in appr. 6 Months and am now starting to sell everything I have here incl a small apartment in Munich for less than the price you have mentioned. If interested, drop me a line under [e-mail] and I can send you more details.

Answer 3

Not sure about Munich and whether you could get anything there for 60K Euro. I've heard it's more expensive.

For Berlin, there would be plenty in this price range. You could get financing in Germany, but you would need at least a 50% deposit. And I read this before the recent shenanigans with American mortgages, so it may have changed.