Rent, buy, live in Leipzig

The optimal entry into the real estate world is the purchase of the first condominium. Our interview partner specializes in the brokerage, sale and rental of real estate in Leipzig. For this very reason, we talked about attractive districts, financing options and the Leipzig real estate market in an interview. Here you can learn everything about buying your first apartment, different types of houses and types of apartments.

Here you can see Leipzig at a glance:

Leipzig up close:

Rent: Contract & Settlement

After the successful purchase of the property and the execution of the purchase contract, you will naturally want to furnish your freshly acquired property according to its individual needs. Then you should definitely know more about bedroom furnishing and beautiful terrace design. Home is where you feel comfortable!

Purchase: Borrow

Find your new home in attractive neighborhoods of Leipzig like Connewitz, Bachviertel and Graphisches Viertel. Are you also interested in other cities in Germany? We have selected other interesting cities for you, such as Dresden, Cologne and Halle-Saale.

Real Estate Interview in Leipzig

The real estate market in Leipzig is large and complex. It is easy to lose track of the current market prices and the selection of offers. It is important to know the basic facts in order to avoid serious mistakes when buying real estate and, above all, to save a lot of money. For this very reason, we spoke with a real estate agent from Leipzig, who reveals everything about property taxes, ancillary costs, popular districts and the most effective capital investments.

Interview partner Ic Immoconsult

FIV: Before we go into Leipzig and its real estate market and your recommendations for tenants and buyers, we would like to know a little more about your agency Ic Immoconsult. Could you briefly summarize for our readers what your agency does and what you specialize in?

Ron Kaufmann: I founded IC Immoconsult e. K. in 2009. I am a native of Leipzig, a child of the GDR, so to speak. However, I have been in the real estate business since 1996. From this time I have business and friendly contacts until today, which is remarkable in any case. The resulting field of trust is a building block of success. Likewise, since the beginning we have received super ratings in Google and the real estate portals for our work, or for the properties. That is also a building block. And we are only successful when we have brought together satisfied landlords / sellers and satisfied tenants / buyers.

Real estate orders and target work

Ron Kaufmann: We originally came from the rental of apartments and commercial space and then had more sales transactions after the real estate crisis from around 2008. It must be clearly stated that we also enjoy renting very much, even if sales are of course more lucrative in terms of turnover. But the fun at the job stands for us in the 1st place. That is the backbone of good and goal-oriented work. In the end, we have no special preferences of the property. We look at each real estate order and develop with the client an agenda to the property.

Apartment building in Leipzig:

FIV: As an agent in Leipzig, which properties do you personally prefer to broker?

Ron Kaufmann: As described above, it’s also fun to broker difficult properties. After all, everyone can rent and sell the “raisins”, right? So there is no such thing as a favorite property.

District: A-location, student corner & center

FIV: Neighborhoods for Singles, Families & Co. – For those who do not yet live in Leipzig and want to move to Leipzig, which neighborhoods have a future? Where should you move to in Leipzig if you want to live nicely?

Ron Kaufmann: Let me put it this way – there are not really bad and good locations, since Leipzig’s districts are clustered around the manageable center. Of course, there are AAA locations, student corners, commercial locations ect. In 2022 it is generally hard to get a dream apartment (whether renting or buying) in your dream location. Also the gap between rent and yield is widening in the meantime. So that it must be looked then rather, what gives the purse or the bank.

The “roasted pigeons” have not been flying around in Leipzig for a long time. Thanks to many project and neighborhood developments, even peripheral areas and the “Speckgürtel” of Leipzig have potential. All of them now have all the prerequisites for the private and social sectors.

FIV: Rents are a big topic, all over Germany. How has the real estate market and rental prices in Leipzig developed in recent years and how will they develop in the future?

Ron Kaufmann: On average, rents will rise if you only consider development costs and construction prices, among other things. In addition, of course, there are political decisions that regulate, among other things, the labor market, financing, etc.. But Leipzig also has a very good reputation and life here is also very pleasant for many “foreigners”.

Fitted kitchen in a single-family house in Leipzig:

Rent or buy? Broker assessment

FIV: In Germany, more people rent than buy. What would you recommend to a young couple or even a single person, renting or buying in Leipzig?

Ron Kaufmann: Owning a property as an investment or for personal use is not the wrong decision. A young person, of course, has an easier time with repayment than someone buying in their late 40s. But there are always third parties (bank, property location and property equipment, sense of use, equity) that play a role in what is possible and what is not.

First time buyer errors and experiences

FIV: Anyone who rents in Leipzig is relatively flexible and can move if necessary. Anyone who buys a property, whether a home or a condominium, is at least tied to the property for the long term by the loan or financing. What are typical first-time buyer mistakes from your experience as a real estate agent and how can you avoid them?

Ron Kaufmann: If you no longer want to use the property yourself, you can also rent it out in Leipzig so that the tenant covers the ideal loan installment. What now first-time buyer errors are exactly, I do not know so. If the buyer asks the real estate agent in advance and the buyer also informs himself somewhat in advance, few mistakes can occur.

Taxes and ancillary costs: What should you expect?

FIV: The purchase price of a property is one thing, but what ancillary costs and taxes must buyers in Leipzig expect?

Ron Kaufmann: Things are still looking good, since the real estate transfer tax is still 3.5% of the sales amount in Saxony. In other federal states this goes up to 6%. The notary should be about 1.8% of the purchase price. There I can speak only for Leipzig. And the brokerage costs. This can be differentiated by the type of property.

Incidental expenses:

• Real estate transfer tax: 3.5%
• Notary fees: 1.8%
• Brokerage costs: Individual according to property type

Real estate as an investment: Best location

FIV: Leipzig districts for real estate investment – we come still to real estates as capital investment in Leipzig, for those, which want to buy and let. If our*r Leser*in for the purchase, with following letting, decides: Which 2 districts or satellites around Leipzig would you recommend to a buyer for their capital investment in Leipzig? In your opinion as an expert, where do the most future opportunities lie?

Ron Kaufmann: There is no bad situation in Leipzig. There is demand everywhere from every social class. The better the floor plan and furnishings (e.g. also when renovated after second occupancy), the better the rent, but also the purchase price.

Here you can see an office building:

Real estate and its future opportunities

FIV: In your opinion, what type of real estate has a future in Leipzig, what should one invest in? Small, large, existing, new construction?

Ron Kaufmann: That depends on the financing possibilities of the buyer. If he pays 20,000 € monthly negative interest, he should buy a multi-family house ect. Buy the parents for their child a dwelling, which studies in Leipzig, there the situation to the university must be perhaps good. The next wants to buy cheap, high-quality renovate and “develop” the rent. The approaches are different each time and not comparable.

But in general, out-of-towners want to live in a renovated apartment in an old building, because they don’t know it from their old place of residence. Newly built apartments usually have underground parking spaces underneath. This is also a decisive factor for many people. That’s why Goethe (Leipzig is my Little Paris) and Schiller already felt at home here.

Safe real estate purchase: avoid mistakes

FIV: Lastly, one more question – you had mentioned the typical mistakes buying a property. Many buy, but some also want to sell. As an experienced broker in Leipzig, what tips can you give to those who are selling a property for the first time? What are the first steps and how to sell a property in Leipzig successfuly?

Ron Kaufmann: Find a broker you can trust. The buyer should already have an idea of the selling price. A broker is more of a price enforcer on the sales market. And getting to know each other personally on the phone is the first step. Before that, the seller should read up a bit on the broker and check his Internet presence.

A market and sales strategy is found when we know the key facts.

Rent, buy, live in Leipzig

The real estate market in Leipzig is large and for this reason it is important to find the best real estate agent for you. In our overview you will find the 10 best real estate agents from Leipzig, which can make your dream of your property possible.

• Broker Leipzig

First apartment? Step by step to capital investment

Buy your own apartment – As soon as you move into your first own apartment, for most people it’s rent, rent, rent. Every month you go to work many hours, to spend the largest part ultimately for the next rent due at the beginning of the month. It’s no wonder that many young people are considering buying a condominium as soon as possible.

• Buy first apartment

How much do I pay for a broker?

A real estate agent can take a lot of the burden off your real estate search. For private purchases, the buyer and the seller share the broker’s commission, i.e. 50:50. If you buy a property commercially, the buyer and the seller can decide for themselves how to share the broker’s commission.

That means in a nutshell:

• Private purchases: buyer:seller split = 50:50
• Commercial purchase: division freely selectable

Brokerage commission: Percentages of the federal states

The respective percentage of the broker’s commission always depends on the federal state in which you buy your first apartment. You can see the distribution of the percentages in the federal states here:

Commission by state:

• Baden-Wuerttemberg 3.57
• Bavaria 3.57 %
• Berlin 7.14 %
• Brandenburg 7.14 %
• Bremen 5.95 %
• Hamburg 6.25 %
• Hesse 5.95 %
• Mecklenburg-Western Pomerania 3.57 %
• Lower Saxony 3.57
• North Rhine-Westphalia 3.57
• Rhineland-Palatinate 3.57
• Saarland 3.57 %
• Saxony 3.57 %
• Saxony-Anhalt 3.57
• Schleswig-Holstein 3.57 %
• Thuringia 3.57 %

The next step: property tax of a real estate

If you own a property or are the owner of an apartment, you have to pay property tax. Depending on where you bought your first own apartment or property, the property tax differs by state or municipality. But how much property tax do I have to pay in the end? Learn everything about the cost of property tax here.

Real estate transfer tax: incidental costs of the first apartment

Your real estate agent has found your dream apartment at a dream price? Good, but in addition to the purchase price, there are the ancillary purchase costs, which include, among other things, the land transfer tax. But how high is the real estate tax that I have to pay additionally, once when buying my first own apartment? Depending on the state in which you buy, the land transfer tax has a different percentage. How you can easily calculate this, you can find out here!

• Real estate transfer tax

8 mistakes when buying real estate: location, owner-occupancy and resale value

Mistakes always like to creep into the purchase process of a property. Whether it’s a bad location of the property, reasons against self-interest or a purchase out of emotion – mistakes cost you a lot of money. In order to avoid this, we have put together a guide for you, with which you are guaranteed never to make a mistake again when buying your next property.

• Mistakes when buying real estate

Buying real estate: What costs will I incur?

When buying a property, you always have to reckon with compound costs. On the one hand there is the purchase price, or the price for which the property is advertised, and on the other hand there are the ancillary purchase costs.

Incidental purchase costs: What are they?

The ancillary purchase costs are not always the same, they differ depending on the federal state. Therefore, always inform yourself in advance about the land transfer tax and the brokerage costs of the federal state in which you want to buy. The notary costs and the land register entry, on the other hand, always remain the same in percentage terms.

Incidental purchase costs are derived from:

• Real estate transfer tax (3.5-6.5%); varies by state
• Notary fees (1.5%)
• Land register entry (0.5%)
• Broker commission (3.57-7.14%; 50:50 for private purchase); varies by state

How do I calculate the total cost of my dream property?

The calculation of the service charges and the subsequent total costs of a property is actually quite simple. So that you understand it directly, we have an example calculation for you here. Let’s assume you buy a condominium in North Rhine-Westphalia with a purchase price of 200,000 euros. The final price is made up of six steps.

The six steps to the final price:

1. Purchase price
2. Real estate transfer tax
3. Notary fees
4. Land register entry
5. Brokerage costs
6. Incidental purchase costs

Step 1: Purchase price of the property?

Let’s start with the purchase price. In this example, it is 200,000 euros for a condominium in NRW.

• Purchase price: 200.000 Euro

Step 2: Amount of real estate transfer tax?

In NRW, the land transfer tax for each property is 6.5%. For our apartment, this means a surcharge of 13,000 euros

• Real estate transfer tax: 13,000 euros

Step 3: Amount of notary fees?

The notary fees are the same in every federal state. They amount to 1.5% of the purchase price, which corresponds to 3,000 euros.

• Notary fees: 3,000 euros

Step 4: Costs of the land register entry?

The costs of the land register entry are also the same in every federal state, namely always 0.5%. So another 1,000 euros are added to the purchase price.

• Land register entry: 1.000 Euro

Step 5: Calculation of the brokerage costs?

When you hire a real estate agent, you always pay a certain fee in brokerage costs in addition. These costs vary depending on the federal state. In NRW these costs amount to 3.57%. The positive thing about it? The brokerage costs are divided equally between the buyer and seller, i.e. 50:50%.

• Brokerage commission: (3.57% [7,140 / 2]): 3,570 euros

Step 6: The result of the total cost

Once you have calculated the incidental costs in relation to the purchase price, you can determine what you will ultimately have to pay.

• Purchase price: 200.000 Euro
• Real estate transfer tax (6.5% in NRW: 13,000 euros
• Notary fees (1.5%): 3,000 euros
• Land register entry (0.5%): 1,000 euros
• Brokerage commission: (3.57% [7,140 / 2]): 3,570 euros

Total amount:

• Total incidental costs: 20,570 euros
• Total price at purchase: 220,570 euros

The next step: land transfer tax

You have found your dream apartment at a dream price? Good, but the purchase price is accompanied by ancillary costs, which include land transfer tax. But how high is the land transfer tax that I have to pay additionally, once when buying my first own apartment? Depending on the state in which you buy, the land transfer tax has a different percentage. How you can easily calculate this, you can find out here!

Determine maximum purchase price: Creditworthiness, equity & Co.

How much real estate can I afford at all? This question is asked at the beginning of the process of buying what may be your first home and depends on many factors. These include your creditworthiness and self-disclosure, in terms of assets, the monthly asset balance (repayment), the equity and the mortgage lending value of the property to be financed. Here you will learn everything you need to know to determine the maximum purchase price.

• Maximum purchase price