BUYING A PROPERTY IN GERMANY

Please take our first point fully on board - about formality

FORMALITY

The Germans are a very formal race.  Christian names are reserved for close members of the family and ONLY for your relatives and a few close friends.  Do NOT start addressing ANYONE by their Christian name until you are asked - and they won't ask !  In fact they will be very offended and if you want their help in purchasing your property then listen hard to this important bit of advice and take it fully on board however much you might find it odd.  It is their custom and is rigidly adhered to.

VALUE FOR MONEY

In recent years the German economy has been in the doldrums and property prices fell considerably in the 1990's due to the general weakening of the economy.  The Germans are renowned for their attitude to hard work and industry and without doubt their economy which is already showing signs of picking up will regain its former strength much as we have seen in Japan.

Prices are, therefore, as low as they are ever likely to be and in our view property prices just have to recover in the coming years.  Whilst this is a catastrophe for the Germans themselves with negative equity rampant it is a major opportunity for you.  You can't buy in France or Spain at these prices. It is the only remaining country in Europe where property prices have not yet risen.

For you as an investor the timing just could not be better.  Germany is solid - just like their properties - and things are always done properly.  Right now you can buy a holiday apartment for as little as £31,000 and this has to be a far better and safer investment than in some of the ex-communist countries with similar low prices.  The infrastructure is excellent and the climate good.  The whole country is easily reachable from everywhere and the road infrastructure is a true world leader.

Our advice is to buy now whilst prices are still low.

COST OF PURCHASE

You should allow approximately 10% in addition to the purchase price when buying a property.
This covers the 'stamp duty', land registry charge, estate agent's fee, lawyers' fee and some vat.
Estate agents in both Germany and Austria charge both buyer and seller 3% by law.  The selling agent will set all this out for you.

ORDNUNGSAMT

The laws of Germany are entirely different to what you might be used to.  In most countries you are free to do as you wish provided it doesn't contravene the law.  Basically, German law operates the other way around.  Everything is illegal unless there is a law allowing it.  You will see guests arriving on say a camping site and looking at the notice on the board to see what they are allowed to do.  If it doesn't say that BBQ's are allowed then they are not permitted.

Each area has it's Ordnungsamt.  (In the local town hall)  This is a department which makes sure that everyone is keeping their garden tidy, dealing with their rubbish correctly and generally making sure that everything is spick and span.  Just look around you - the grass is cut, the litter is cleared, everything is painted and so on.

Do not allow your property to become unsightly or your neighbours will complain and you will have a visit from them.

It's a great place to own a property and wonderful for all types of holiday.