Investor's Guide

 
June
222013
 

So what’s the profit yield for the apartment in Berlin? What’s the final price of the apartment? What is the yield, and how is it calculated? How do you read the data in a sales chart? To analyze the performance of an apartment, you should come equipped with a pen, a calculator, common sense and some basic insight. Sometimes the data missing from the chart are no less important than the data presented. A thorough understanding of the parameters according to which the data is calculated – such as the yield calculations – are crucial for reaching the right decisions. The first part of this article will analyze the various components of the price chart and will teach you how to thoroughly understand the information presented, including the yield calculation. The second part of the article, which will be published later, will review the process of taking out a loan

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June
222013
 

Since there are many parameters to be considered when calculating yield when taking a loan, we have prepared a brief explanation about the method of calculating the yield for personal gains. This includes references to expenses regarding the purchase of the property in addition to the current expenses.This also demonstrates how the yield might be “inflated” in a way that does not represent the actual predicted yield. For this calculation we will use the same data from a previous article, “How to calculate the yield”, where the loan is 45% of the apartment’s value, taken for a period of 10 years with an interest rate of 3.8% and an principle repayment of 2% per year. The final cost of an apartment with an area of 36 m2 is 57,000 Euros (including brokerage, purchase tax and legal costs in Germany), so the loan will be 25,650 Euro (45%) and the financing

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June
222013
 

So you’re thinking of investing in an apartment in Berlin and you want to do a market survey to compare the prices. You could, of course, come to our real estate investment seminar or you could simply surf one of the German second-hand sales websites. Here we will teach you how to use Immobilien Scout 24—the leading real-estate website in Germany. If you do not speak German, we suggest you use Google Chrome internet browser, which will automatically translate the text of the website from German to English. Usually, the browser provides a relatively effective translation, though there may be small “bugs” in the translations of certain pages. OK, let’s go. In the Google Chrome address bar, type the website address www.immobilienscout24.de. Once on the homepage, enter the address of the building where the property-of-interest is located (circled in red). Let’s enter the information for apartment No. 4 of Weserstrasse

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June
222013
 

One of the common dilemmas that arise when considering investing in Berlin is whether to invest in a large apartment or a small one. The answer, of course, depends on the investor’s needs and goals. A small apartment, roughly 30-40 m2 in size, demands a lower capital investment and therefore fits the wallet of a wider range of potential investors. Statistically, the rate at which tenants change in these flats is much higher, allowing the owner more freedom of rent adjustment making the process much easier. In addition, these flats can conveniently serve as vacation apartments. Short term rental is an accommodation-niche that has been growing rapidly in Berlin, which is in the top three tourist destinations in all of Europe. Another interesting advantage in buying small apartments is the capacity of risk distribution the buyer can achieve by purchasing two or three studio apartments instead of one large apartment.

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Inspiration Group