Recently seen some BTL investments in Germany yielding between 8 - 12%. It's got my initial interest.
These opportunities tend to be whole apartment blocks, some of them mixed Residential/ Commercial. Has anyone had the experience in investing in this type of debvelopment - if so, what are the issues to look out for?
Also which German cities are best to look for if I'm looking for a decent yield and good capital growth.

quote:

Originally posted by albert hall:
Recently seen some BTL investments in Germany yielding between 8 - 12%. It's got my initial interest.

I bet it has .

I rent this sort of "mixed" property in Germany. I find it hard to see where that comes from given how much I pay in rent and the capital value of the flat, probably no more than 6% (before expenses and tax) .

When I came over here, I was told there is already an over-supply of rented places - so I got a lot of choice at reasonable prices.

Germany is also famously not known for capital growth in property prices so you cannot rely on that either.

And I also know quite a few Germans that bought in the land grab after unification - in Berlin and the like. Most cannot even get tenants, let alone 8% :O.

quote:

Originally posted by albert hall:
Recently seen some BTL investments in Germany yielding between 8 - 12%. It's got my initial interest.
These opportunities tend to be whole apartment blocks, some of them mixed Residential/ Commercial. Has anyone had the experience in investing in this type of debvelopment - if so, what are the issues to look out for?
Also which German cities are best to look for if I'm looking for a decent yield and good capital growth.

I went for Berlin. Property with land and planning permission to build commercial units with offices or flats above.

Also Ive bought shares in UK companies investing in German property. The business model favours commercial property.

Yields on resi flats have reduced to nearer 5% in Berlin now as investor demand has rapidly increased.

Germany is the ideal investment; Capital safety yet huge potential. If the market doesnt increae, you still get your capital back, so nothing to lose, everyhting to gain.

Please ignore the doom mongers. They really dont understand the nature of investment.
As the worlds greatest investor Warren Buffett always says 'buy when no one else is'.

Dont wait for growth or you will misout.

Id like to post details of agents I used. Other sites allow this but the terrified CH4 officionados have an issue with this. So out of touch

I agree in that it is "possible" - but then many things are .

It will really most likely happen if the population becomes keener to own - and that may happen. The (very feather-bedded) welfare state is starting to be scaled back. People will need to be more reliant on their own sources of income and will not have fall-back income stream that can to pay their rent all their lives.

And lending is becoming more relaxed - more banks popping up, more ads for loans etc.

But I certainly know people who have *not* got their capital back - just *never* found a buyer . And aside from a lot of people having no interest in buying, buyers seem to favour new-builds, and of course there are plenty of these.

if you buy anything with tennants already in beware as you cant increase the rent without improving the property which they probably wont want and you cant get them out to do the same as they all seem to have lifelong contracts. people are born, live and die in the same flat for the same rent as their grandad paid. be careful