Why invest in Germany? Why in Berlin?

In turbulent economic times, the German economy is the strongest performing economy in the developed world, with projections of being the first to emerge from the global crises.

This is correlated by high confidence rates of the German public in their economy.

Aiming to transform Berlin into the future capital of Europe, the German government is investing heavily in the creation of an ultra modern infrastructure. Governmental spending in public projects is the highest in Europe. Amongst the major projects are: the completion of the German Ministry of Defense and the relocation of 12,000 state employees from Bonn to Berlin, the construction of a new international airport, the rejuvenation of the Spree river front, and the monumental development of a commercial, residential and tourist center on the grounds of the former Tempelhof airport.

Throughout the city neighborhoods such as Neukolln, Wedding and Friedrichshain are quickly transforming in an accelerated rate as property prices rise in adjacent established neighborhoods.

  • Berlin has the most affordable real estate prices in the western world.
  • Yields are amongst the highest in Europe.
  • A growing population with a taste for more spacious apartments, is demanding quality residential units. A lack in supply is sure to cause a rise in prices.
  • Berlin is the seat of the Federal government and the center of higher education in Germany.
  • Berlin is reinventing itself as an innovation hub, the capital of hi tech and services industry.
  • Robust legal structures safeguard investments.
  • A cultural evolution from rental to ownership of property is supported by the governmental legislation and bylaws – this transformation is projected to dramatically increase demand.

These developments make Berlin an extremely attractive location for investors interested in acquiring property.

 

What investment opportunities do you offer?

Generally speaking we offer 3 main investment models tailored to the needs of different investors.

  • GbR Model – The investor purchases an apartment at bellow marker costs in a building acquired by Inspiration Group. The apartment is registered in the German land registry, under the name of the investor. Inspiration Group supervises the operation of a local management company which runs the regular maintenance of the building. This model offers a 4%-7% net annual yield and an opportunity to sell the property capitalize upon the forecasted appreciation in value.

  • Entrepreneurial Model – The investor becomes a shareholder in a company created for the purchase of a specific property. The investor does not own specific apartments, but is a member of the investment entity. Within 1-3 years, The property is renovated and sold whole or as individual apartments. Projected returns in this case are 15% per annum.

  • Whole Buildings – It is possible to acquire an entire building with 15-30 apartments. The property will be managed by Inspiration’s management company. All financial and legal aspects of the deal will be managed by Inspiration.

What are the required funds for making an investment?

  • In the GbR model, it is possible to purchase an apartment with a capital of 35,000 EU, and receive a 40%-50% loan from a local german bank.

  • The Entrepreneurial model requires a larger investment of at least 200,000 EU.

  • Whole buildings can be purchased beginning at 500,000 EU.

Inspiration Group