While investor’s mantra is “location, location, location”, my advise is “preparation, preparation, preparation”.
Good offers won’t last long and the following tips from Alexander Korte will help you to successful source good property deals in the current competitive sellers market in Germany.
1. know your search profile, especially your budget and the areas you prefer
2. be aware of German broker law and customs
3. talk to as many brokers as possible
4. try to shorten the broker chain
5. track all offers to gain market knowledge and to be able to proof an earlier offer
6. make sure you give feedback to offers
7. be sure to tell the second or later offer/broker, that you received this offer before (give the others brokers name, date, price)
8. make sure to know berlin zoning law (Sanierungsgebiet, Millieuschutz, Denkmalschutz, Ensembleschutz)
9. have a lawyer and a tax accountant before you start searching
10. buy each asset with a single company, depending on your personal tax and investment strategy
11. make sure the company is registered as an asset management company (Vermögensverwaltend), according to German tax laws
12. don’t form a new company, buy a fresh company including a bank account
I will give a detailed explanation of each point in the next blog posts.
This could be of interest as well: How to find and secure an apartment block (suitable for flat buyers as well).
written by: Alexander Korte, Berlin-based Broker, Developer and Real Estate Advisor.