Shared house for professionals? Madness!

[Rupert_Baehr]

...I also have to say I find it very odd that someone who resides in Germany finds property prices in England high. In my previous line of work, my German counterparts were on 3 times my salary, but living in properties not a patch on mine, as property in Germany was so expensive.

 

Were they living in their own houses, or were they living in rented property?

 

Germans are often reluctant to buy property because the costs involved in doing so are high (property transfer taxes, agent's fees etc) and because the penalties incurred in selling a house within 10 years of buying it are also high.

 

Furthermore, rental property tends to be of fairly high standard and the rents are usually very reasonable.

 

I've had two houses in Germany. - One which I own and one which I rented. Neither was cheap, but both were rather better built and equipped than any house I owned in the UK which cost a similar amount. The last time I was in the UK, I saw a magazine article extolling the benefits of an energy-efficient house. I thought I'd read it to see what the new energy-saving techniques were.

 

They were the old energy saving techniques. Most of them were included in EnEv2007 - the building regs introduced in Germany 4 years ago.

[Mecky]

Perhaps the government is trying to force communism on us all.

[Darth Vader]

Were they living in their own houses, or were they living in rented property?

 

Germans are often reluctant to buy property because the costs involved in doing so are high (property transfer taxes, agent's fees etc) and because the penalties incurred in selling a house within 10 years of buying it are also high.

 

Furthermore, rental property tends to be of fairly high standard and the rents are usually very reasonable.

 

I've had two houses in Germany. - One which I own and one which I rented. Neither was cheap, but both were rather better built and equipped than any house I owned in the UK which cost a similar amount. The last time I was in the UK, I saw a magazine article extolling the benefits of an energy-efficient house. I thought I'd read it to see what the new energy-saving techniques were.

 

They were the old energy saving techniques. Most of them were included in EnEv2007 - the building regs introduced in Germany 4 years ago.

 

A mixture, to be honest, on reflection, yes. One, even belonged (not rented) to someone with several millions in the bank. The best, was a self-build/new build in the Black Forest. And, for that one, at least, you're right on the energy efficiency. Otherwise, I'd say they were less well equipped too, although, I can't comment on energy efficiency. Most were flats, so I'd guess they would compare well in terms of engergy efficiency v a larger, detached, or semi anyway.

 

One couple, living in a small, adequately, but not well-equipped flat, with a small balcony but no garden, told me that their flat cost 250k and that was over 10 years ago and it wasn't in a particularly good location.

[Cyclone]

Germany is acknowledged, along with the nordic countries as leading the way in energy efficient housing, it's hardly surprising that they are ahead of the UK where house building is still largely conservative in approach.

It's a larger country with not that many more people, it's no surprise that housing is cheaper.

[TJC1]

Were they living in their own houses, or were they living in rented property?

 

Germans are often reluctant to buy property because the costs involved in doing so are high (property transfer taxes, agent's fees etc) and because the penalties incurred in selling a house within 10 years of buying it are also high.

 

Furthermore, rental property tends to be of fairly high standard and the rents are usually very reasonable.

 

I've had two houses in Germany. - One which I own and one which I rented. Neither was cheap, but both were rather better built and equipped than any house I owned in the UK which cost a similar amount. The last time I was in the UK, I saw a magazine article extolling the benefits of an energy-efficient house. I thought I'd read it to see what the new energy-saving techniques were.

 

They were the old energy saving techniques. Most of them were included in EnEv2007 - the building regs introduced in Germany 4 years ago.

 

I was looking at the price of Berlin properties a few years ago and they were CHEAP. Is that still the situation, are property investment bargains still to be had?

[Rupert_Baehr]

I've never been to Berlin, so I couldn't tell you.

 

I do know, however, that there are areas in Berlin where I certainly wouldn't want to go and no doubt properties in those areas are extremely cheap. Whether you would class them as 'investment bargains' or not is another question.

 

If you decided to buy a house in Germany and re-sell it, you would be taxed heavily on the sale if you sold it within 10 years. Buying (and selling) costs are high, as are property transfer taxes. The intention is to make property speculation unattractive.

 

If you want to make money from property in Germany, then 'buy to let' is the way to do it. You won't be able to charge exorbitant rents and you will be required to maintain the property to a high standard, but you will get a fair return on your investment, you will be eligible (I understand) for a number of tax benefits.

 

Rental contracts protect the tenant - but they also protect the landlord. I've no doubt that some tenants manage to 'do a runner' - but that will only work if they leave the country completely. Even then, I wouldn't bet on it. - I've heard numerous examples of people being chased for unpaid money (and caught) in other countries.

[TJC1]

I've never been to Berlin, so I couldn't tell you.

 

I do know, however, that there are areas in Berlin where I certainly wouldn't want to go and no doubt properties in those areas are extremely cheap. Whether you would class them as 'investment bargains' or not is another question.

 

If you decided to buy a house in Germany and re-sell it, you would be taxed heavily on the sale if you sold it within 10 years. Buying (and selling) costs are high, as are property transfer taxes. The intention is to make property speculation unattractive.

 

If you want to make money from property in Germany, then 'buy to let' is the way to do it. You won't be able to charge exorbitant rents and you will be required to maintain the property to a high standard, but you will get a fair return on your investment, you will be eligible (I understand) for a number of tax benefits.

 

Rental contracts protect the tenant - but they also protect the landlord. I've no doubt that some tenants manage to 'do a runner' - but that will only work if they leave the country completely. Even then, I wouldn't bet on it. - I've heard numerous examples of people being chased for unpaid money (and caught) in other countries.

 

interesting stuff, you obviously know a lot / have had experience in buying properties.

[Rupert_Baehr]

I've lived in a lot of houses ... the move into this house was the 34th house move since I left home at 18. Sometimes I rented a house, but wherever possible (provided I knew I was going to be there long enough to make it feasible) I bought a house. (I've owned a total of 9.) The houses weren't bought as 'investments' - I bought them to live in.

 

When I bought this house, I knew I would be stuck with it for at least 10 years. That wasn't a problem. - We knew that we would both be retired this year and intended to live in this house during the summer and in Florida during the winter. For a number of reasons, that plan may have to change - in which case I will rent this house out on a (standard) 3-year lease.

 

I owned a house in the UK until 2007 and I let that out for a couple of years. Never again!