What is Fix & Flip?

The Fix & Flip strategy refers to buying, upgrading and selling real estate within a short period of time with the goal of making a profit.

The process begins with finding an undervalued property to buy and renovate. After the upgrading measures are completed, the property is sold on the market at a higher price.

So Fix & Flip is:

• Buy a cheap property
• Upgrade them cost-effectively
• Sell profitably

Buy Fix & Flip property

The first step in implementing a fix & flip strategy is to find and purchase a suitable property. Remember to do a thorough assessment of the building’s fabric to understand what kind of renovations are needed to increase the property’s value and get a realistic estimate of the selling price.

Here are some tips that can help you with this process.

Search undervalued real estate

These can be properties that are in poor condition or whose owners need to sell them quickly. Nevertheless, when choosing a property, pay attention to its location. The location is decisive for the subsequent selling price.

Use of online platforms

There are many online platforms that make it easier to find suitable properties, such as social media platforms or apps and online markets. Also, private contacts can be an ideal way to find lucrative properties for the fix & flip strategy.

Build a network: Brokers, craftsmen & Co.

Making contacts with brokers, craftsmen and other professionals in the real estate sector is very helpful to be informed about possible offers. Here you can simply use online platforms or contact private individuals.

Maybe your uncle knows someone who has renovated a bathroom cheaply before.

Secure funding & capital

Make sure you have enough capital to renovate and sell the property you buy. Many fix & flip projects fail due to insufficient capital. Generous planning of costs and financial resources is therefore very important.

Fix & Flip offers the possibility to finance them. You can find out how that works here:

• Fix & Flip Financing

After the purchase of the property comes the important step of upgrading.

Fix & Flip property upgrade

Upgrading the real estate is the real work. Here you must pay attention to a detailed planning of the work. With the planning you can better estimate expenses for costs and time. The goal of the revaluation is to increase the value of the property by effective measures, in order to achieve profit. With redevelopment, renovation and modernization measures, these goals can be achieved.

In the following article, you will find out exactly what you need to pay attention to, what work is involved and what costs you will incur:

• Fix & Flip property upgrade

Fix & Flip property for sale

The last step after upgrading the property is selling it. This step ultimately leads to your profit, which is why it is important to choose the right approach here.

First, you should have your property appraised by an expert, such as architects or realtors. They will give you a range in which you can set your selling price.

You can see how such a profit calculation looks like in this article:

• Fix & Flip Cost Accounting

Also interesting! Fix & Flip taxes differ depending on the legal form chosen.

Conclusion. Fix & Flip & Capital Increase

If you find a cheap property, the Fix & Flip strategy is a profitable way to invest in real estate. However, you must keep in mind that the strategy can also be associated with risks, such as unforeseen renovation costs or difficulties in selling the property.

High risk but high reward

In summary, the Fix & Flip strategy, when executed efficiently, contributes quickly and effectively to your capital increase. You must make sure that you are well prepared and understand the risks before starting with this strategy.

For detailed information, check out our partners’ Fix & Flip guide:

• Fix & Flip Real Estate

Rent, buy, live in Gelsenkirchen

Our real estate interview partner specializes in brokering, selling and renting real estate in Gelsenkirchen. We talked to the real estate agent team in an interview about attractive districts, financing options and the Gelsenkirchen real estate market. Here you can learn everything about buying your first home, different types of houses and apartments.

Gelsenkirchen at a glance

Gelsenkirchen from close up:

Rent: Tips on price development

You have decided to rent or even rent a house or apartment? Then you should definitely know more about bedroom furnishing and exclusive terrace design.

Buy: Good yield and districts

Find your new home in attractive districts of Gelsenkirchen such as Erle, Resse or Beckhausen and avoid serious mistakes with your purchase! Find out what you should know before you buy in this article! Are you also interested in cities in NRW? We have selected other interesting cities for you, such as Düsseldorf, Aachen and Duisburg.

Real estate and market in Gelsenkirchen: The interview

In an interview, we got to know a renowned real estate company from Gelsenkirchen better and asked everything about the real estate world. Here you will learn everything from incidental costs to the best investments.

Interview Partner: Schenk Real Estate

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

Thorsten Schenk: We mediate any type of residential real estate such as condominiums, houses, apartment buildings and land. Here we purchase and letting made. In addition then still objects on the favorite island of the Germans Mallorca come. Of course we also mediate commercial properties. As a further service we offer the mediation of notaries, lawyers, financing and craftsmen. Also we have now care real estate and micro apartments in the offer.

FIV: As a real estate agent in Gelsenkirchen, which properties do you personally prefer to broker?

Thorsten Schenk: The company Immobilien Schenk prefers to broker residential properties of any kind. Commercial properties of any kind are also interesting, because they are always different and you always see new facilities and buildings.

Gelsenkirchen district:

Districts with a future: Buer, Sutum & Resse

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

Thorsten Schenk: The most popular districts are in the north of Gelsenkirchen with the districts of Buer, Resse, Resser-Mark, Erle and also still Sutum. But there are also very nice places to live throughout the city.

Buer is a popular district in Gelsenkirchen:

Market prices Gelsenkirchen: The development

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

Thorsten Schenk: There are many older properties in Gelsenkirchen and they need to be renovated. This means that rents could also be adjusted. Many investors are currently coming to the Ruhr region to buy properties, because there are no more properties to buy cheaply in the big cities.

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 Gelsenkirchen?

Thorsten Schenk: It always depends on where you personally see yourself in old age. I know many people who see their retirement home abroad. And of course it also depends on income. But in general, property is a good choice.

Real estate agent Thorsten Schenk:

Beginner mistakes when buying real estate

FIV: Anyone who rents in Gelsenkirchen 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?

Thorsten Schenk: With many first-time buyers, you simply don’t really see the monthly burden and the additional costs for managing the property. In addition, the entry prices are too high today because people want to have a property at all costs.

Taxes and incidental expenses incurred

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

Thorsten Schenk: In NRW we have 6.5% land transfer tax, for the notary you can add a good 2% and then the brokerage fee. Depending on the property and the broker, this is between 2.5% and 5% plus VAT.

Incidental costs in NRW:

• Real estate transfer tax: 6.5%
• Notary: 2%
• Depending on object/broker 2.5% to 5%

Capital investment Gelsenkirchen: Buy and rent

FIV: Gelsenkirchen neighborhoods for real estate investment – Let’s move on to real estate as an investment in Gelsenkirchen, for those who want to buy and rent. If our*r Leser*in decides for the purchase, with following letting: Which 2 districts or even satelites around Gelsenkirchen, would you recommend to a buyer for their capital investment in Gelsenkirchen? In your opinion as an expert, where do the most future opportunities lie?

Thorsten Schenk: The districts in the north with Buer, Erle and Resse certainly have the best potential.

Living room in a single-family house in Gelsenkirchen:

Investment in conversion and expansion of old building

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

Thorsten Schenk: In my opinion, the conversion and expansion of old buildings have the greatest potential in Gelsenkirchen because of the purchasing power. I would also say smaller single-family homes with gardens.

Typical mistakes when buying a property

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

Thorsten Schenk: You have to know the local conditions in the Ruhr area and understand the language of the Ruhrpott.

Thanks to Thorsten Schenk for the interview!

Rent, buy, live in Gelsenkirchen

The real estate market in Gelsenkirchen 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 Gelsenkirchen, who can make your dream of your property possible.

• Real estate agent Gelsenkirchen

First apartment? Step by step to capital investment

As soon as you move into your first own apartment, for most people it’s rent, rent, rent. Every month you go to work for many hours in order to spend most of it on 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

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

Rent, buy, live in Leipzig

Our interview partner, has specialized in the mediation, selling and renting of real estate in Leipzig and the surrounding area. We have talked with the real estate agent from Leipzig in an interview about attractive districts, financing options and the current real estate market. Here you can learn everything about the first apartment purchase, different types of houses and types of apartments.

Here you can see Leipzig at a glance:

Leipzig up close:

Rent: Tips on price development

You have decided to rent or even rent a house or apartment? Then you should definitely know more about bedroom furnishing and exclusive terrace design.

Buy: Good yield and districts

Find your new home in attractive districts of Leipzig such as Plagwitz, Connewitz or Gholis and avoid serious mistakes with your purchase! Find out what you should know before you buy in this article! Are you also interested in cities in NRW? We have selected other interesting cities for you, such as Frankfurt, Munich and Düsseldorf.

Interview about the Leipzig real estate market

In an interview, we got to know a Leipzig real estate company better and asked everything about the real estate world. Here you can find out everything from incidental purchase costs to the best capital investments.

Interview Partner: Home Real Estate

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 “Nach Hause Immobilien”. Could you briefly summarize for our readers what your agency does and what you specialize in?

Daniela Kasch: The vision of our real estate agents is to give the real estate industry a righteous and human face. The purchase and also the sales of a real estate are finally very special and for the most part also very emotional life moments. Our founder, Daniela Kasch, herself comes from a management consulting background and today, as a certified appraiser and business economist, can count herself among the most popular real estate agents in the city with a team of five outstanding female brokers.

Due to her membership in the BNI – Business Network International – a professional association of regional business people, Daniela Kasch has an extensive network throughout Germany and is in constant exchange with financing specialists, architects and appraiser colleagues about the real estate market. A real estate sale is characterized by memories and the course towards new goals.

We accompany and support on this exciting journey, with know-how, many years of experience, empathy and personality from the first thought to the joyful toast after the notary appointment. Since 2010, Nach Hause Immobilien GmbH & Co KG has accompanied the purchase and sale of real estate in the Leipzig area and our entire team is aware that sellers and buyers place great trust in us.

It is not only our mission to achieve the best possible price in the shortest possible time, but also to find a worthy successor for the properties that have often been the living space of our clients for years. In recent years, we have been able to reunite hundreds of properties with new residents or users. We focus mainly on the areas of single-family homes, condominiums and apartment buildings.

Mediation of trendy real estate

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

Daniela Kasch: The sale of real estate should be carefree and, above all, a pleasure – that is our claim for every owner who wants to part with his property. The more trusting and attentive the cooperation is, the more motivation there is to market the property. Properties where personal stories have been written, divorce properties, historic estates and older estate houses not only demand our mediation talent, but also our marketing know-how.

Also for this reason, these properties are welcome orders in our brokerage office. When selling rented and non-rented condominiums, we carefully consider whether the prospective buyers are owner-occupiers or capital investors. For owner-occupants it is more convenient if the condominiums they wish to purchase are not rented.

In this way, one avoids the notice of owner-occupancy and does not leave behind any worried tenants at the viewings. If the prospective buyers are capital investors, it is of course an easier process if the apartments are already rented. This way, the capital investor can count on secure rental income from day one.

Leipzig old building apartment:

Future districts: Schleußig, Leutzsch & Connewitz

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?

Daniela Kasch: Gentrifying and popular neighborhoods for young people, singles and the like in Leipzig are the trendy Südvorstadt district, the hot spot Connewitz, the creative Plagwitz district, Schleußig and the attractive neighborhoods around Leipzig’s Clara Zetkin Park. Families with children are more likely to be drawn to picturesque Gohlis, the quiet garden suburb of Marienbrunn, or Leutzsch, Böhlitz Ehrenberg and Knautkleeberg for the nature lovers among our shoppers. The peripheral areas close to the city are also currently in particularly high demand, as it still seems financially possible for young families to purchase here, or at least there is hope of an affordable purchase price.

Live beautifuly in:

• Connewitz
• Plagwitz
• Schleußig
• Clara Zetkin Park
• Gohlis
• Marienbrunn
• Leutzsch
• Böhlitz-Ehrenberg
• Knautkleeberg

Marienbrunn district

On our homepage, we have created location descriptions for the advantages and flaws of the corresponding residential locations. In our real estate exposés you can also find out what makes the property and its surroundings so special. For each real estate offer the prospective customer receives an extensive documentation. From technical documents to evidence of ownership and ancillary costs, there is a digital file that gives prospective buyers a precise insight into the property details.

We generally recommend to our prospective buyers that the financing of the property is already clarified before the viewing, in order to be able to prove this in writing at the viewing, if possible. For this purpose we have prepared a guideline for our prospective buyers, so that also here – at least organizationally – nothing can go wrong. So they are then in a position to make a speedy decision when their gut feeling is also right. The probability of being outbid by other numerous competitors is quite low in this case.

Rental price development in the Leipzig area

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?

Daniela Kasch: Leipzig’s housing market can be described as dynamic, but compared with cities such as Berlin or Munich, rental and purchase prices in the trade fair metropolis have risen rather moderately. Currently, the prospects are uncertain, some discourage based on the population growth of recent years with impending housing shortages and unaffordable rents, others predict that the many new construction projects could lead to new vacancies.

The average rent in Leipzig in 2019 was between €5.50/m² and €7.00/m². These figures reflect existing rents and asking rents. Existing rents relate to actual rents for existing tenancies and asking rents are the rents at which apartments are offered on the internet or in other media. In order to assess the market development in Leipzig correctly, some basic considerations would have to be made first.

To put it simply, it is important to remember that the housing market is made up of supply and demand, as well as other key indicators. Since supply does not currently match demand, it is not possible to speak of a balanced housing market. This tight market is therefore characterized by rising rents. In Leipzig, demand has developed more dynamically in recent years than in any other city.

Apartments built in prefabricated slab construction still have rents below the citywide average, while rents in refurbished old and new buildings are above average. Thus, in this level today one can rather expect apartment offers with a rent of 8.50 €/m² to 10.00 €/m².

Rent prices in comparison:

• 2019: 5,50 € to 7,00 € per m²
• 2022: 8,50 € to 10,00 € per m²

Luxurious family house:

Broker recommendation: Rent or buy?

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

Daniela Kasch: Germany has always been considered a country of renters, as the data from the Federal Statistical Office show. About 50% of real estate is occupied for rent, and there are historical reasons for this. Today the restraint is owed to the fact that living became more expensive, thus many city dwellers simply cannot afford their own real estate. Many factors make it difficult to buy real estate. Since the corporate purpose of Nach Hause Immobilien is the sale of real estate, we are biased on this issue, because we generally recommend buying.

Whether renting or buying is the better recommendation depends not only on age but above all on what one’s own life plans envisage.

We would like to advise young families to buy real estate, because the old adage “material value beats monetary value” still holds true today. Older people, on the other hand, we recommend renting an apartment after selling real estate, because what was not a problem in the past can cloud the joy of owning your own little house in old age. The garden is more work than fun. The children’s rooms have been unused for years. The stairs to the upper floor are becoming more and more arduous. Perhaps the time has come to put down new roots, sell the cottage, become financially independent and start the fourth phase of life carefree with a comfortable, barrier-free apartment.

Typical first-time buyer mistakes: tips & 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?

Daniela Kasch: Anyone buying real estate for the first time faces many questions. It is therefore useful to prepare well in advance in order to carry out the real estate purchase safely and without risks. We support our buyers in their preparation. And so that they can plan reliably, we have developed a guide on how the real estate purchase will be successful. And for this, first of all, it is absolutely necessary that the prospective buyers bring all the people who are important for their decision making to the viewing appointment.

In this way, they are able to clarify the points that are open to you and can make an unhindered and binding decision. The right financing advice is what counts: The most important stage to the purchase of the property is the financing concept, because today we conduct viewings only with those interested parties who have clarified the financing of the property and can prove this in writing. A common mistake made by first-time buyers is the assumption that they need to have seen the property before they talk to a financing advisor.

Bedroom in Leipzig apartment:

Now put yourself in the seller’s position: Why should the owner of the offered property let you into his house if he doesn’t even know whether you can afford this property at all. Also the purchase from private holds high risks. Here saving can become then correctly expensive. Simply put, two beginners meet each other here.

Our prospective buyers can avoid the most common beginner’s mistakes by hiring an experienced real estate agent for the purchase, who supports and guides them, procures all documents for their financing bank, prepares an informative exposé for them, explains a purchase contract, checks floor plans and living spaces, takes over their dealings with the authorities, determines the market price, negotiates with the seller, points out critical areas to them and recommends the property to them without hesitation. Because buying real estate is not “without”.

Service charges & taxes: You have to reckon with that!

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

Daniela Kasch: Incidental purchase costs are incurred with every real estate purchase. In addition to the purchase price, buyers of a property must factor in incidental costs of around 10 to 12 percent, because different rules may apply in each federal state and different brokerage commissions may apply depending on the type of property. For example, if a single-family home is offered by a real estate agent, a brokerage commission of 7.14 percent of the purchase price is due.

Since the end of December 2020, in accordance with the new commission law, the buyer and seller share this brokerage commission, so that the purchaser of this single-family house must calculate a brokerage fee of 3.57 percent. The next cost item is for the notarization of the purchase contract and the entry in the land register. These fees amount to around 2 percent of the purchase price. The last cost item to be mentioned is the land transfer tax (GrESt). The amount varies between 3.5 and 6.5 percent depending on the federal state and is currently 3.5 percent in Saxony.

Incidental expenses:

• Commission 7,14 % of the purchase price
• Notary + land register 2 %
• Real estate transfer tax 3.5
• Total 10-12 % Incidental costs

Real estate as an investment

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?

Daniela Kasch: In our opinion, investors will find the most future opportunities in the outskirts of the city, because this is where the greatest development potential lies and purchase prices have not yet been exhausted in the peripheral areas. Popular peripheral areas are, for example, Markkleeberg, Markranstädt or also Großpösna and Taucha. However, if you have the opportunity to purchase a property in districts such as Schleußig or Plagwitz at a moderate purchase price, then you should strike here.

Popular fringe areas:

• Markkleeberg
• Markranstädt
• Großpösna
• Taucha
• Schleußig
• Plagwitz

Markranstädt at a glance:

Schleußig district:

These two districts are very popular with families due to their proximity to the city center, the direct water connection to the river “Weiße Elster” and their proximity to the Clara Zetkin Park. Due to the fact that there are many families with children in these two districts, living space is always needed and also sought in this area.

Real estate with a future: listed properties, apartments & student housing

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

Daniela Kasch: As a native of Leipzig, I have to say that Leipzig as a real estate location is in principle a location with a future. (Laughing face) Nevertheless, this question cannot be answered simply in one sentence, because it is important to ask which type of real estate best suits the investor. Here one must discuss exactly what the ideas and goals of the real estate buyer are.

For example, does the investor have a very high taxable income? In this case, an investment in a listed property can make sense in order to reduce the annual tax burden. Investments in listed properties are very popular anyway because, in addition to the depreciation on listed buildings, they are often also subsidized by the KfW Bank. Another point is, for example, the question of the target tenant group.

Many investors like to buy 2-room apartments, preferably as apartments, equipped with a fitted kitchen. Leipzig is a student city, so such an investment can always make sense. Of course, always provided that the return is right.

Broker tips & first steps

FIV: Finally, one more question: You mentioned the typical buying mistakes of 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 do you successfuly sell a property in Leipzig?

Daniela Kasch: At least once in a lifetime, the moment comes when the previous home no longer fits. Whether it has become too big or too small, the family situation has changed or a move to another city is pending – in any case, we are familiar with these situations and accompany the change to the new four walls in a particularly uncomplicated and charming way. Above all, we ensure that no mistake is made in this situation when selling the property.

Kitchen with dining room area:

We find the fairest price for the property and with a few adjusting screws we can still optimize the price. For example, it sometimes makes sense to spruce up the property with a light renovation or to present the property to potential buyers for viewing in a particularly homely ambience with borrowed furniture – so-called “home staging”. Even if a marriage or relationship breaks down, the joint home does not have to become a cost trap, but should provide both parties with a good financial cushion for a new start.

As trained mediators, we brokers circumnavigate every war of the roses and always keep the greatest benefit for all in focus. We organize flyers, direct mailing, marketing in internet portals, presentation on our homepage and in print media. Your property has now generated a lot of attention. Now it is time to separate the wheat from the chaff among the interested parties. Only a suitable preselection comes to the viewings, in order to spare you the “inspection tourists” in your four walls.

We negotiate with buyers according to your specifications – something that also needs to be learned. The most promising prospective buyers are subjected to a credit check, so the owners are spared the unpleasant question about the financial framework of the possible buyers. It is often helpful to also offer the potential buyers healthy financing, so that the sellers can get their money without complications.

With the notarization of the purchase contract at the notary, the purchase is bindingly completed. And even after that, we are still at your side, e.g. when you move into your new dream property.

In conclusion, the sale of a property follows a well-planned strategy.

At every stage of this process, you have both the professional experience and the passion for the property at your side with the female brokers. Each phase is planned and carried out with the necessary care and the possible speed, so that for the owners the sale of your property is not a stressful feat, but the most exciting business of your life.

Many thanks to Daniela Kasch for the interview!

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 15 best real estate agents from Gelsenkirchen, who can make your dream of your property possible.

• Broker Leipzig

First apartment? Step by step to capital investment

As soon as you move into your first own apartment, for most people it’s rent, rent, rent. Every month you go to work for many hours in order to spend most of it on 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

Documents of the contract of sale: What do I need?

Here we have summarized step by step the structure of a sales contract for a condominium.

Part 1: Master data buyer and seller

First of all, the master data of the buyer and the seller, which should be listed first on every contract. Here should be noted in any case the full name, address and date of birth of both sides.

• Master data buyer and seller

Part 2: Master data of the property

The apartment being purchased should also be described in detail in the purchase agreement. The data of the apartment, such as address and number of the housing unit, also includes the land register sheet number or the extract from the land register.

• Master data of the property
• Land register excerpt

Part 3: Purchase price of the property

Next, the purchase price of your apartment including all additional costs must be listed, as well as the day by which the payment must be received at the latest, i.e. the payment deadline.

• Purchase price and payment term

Part 4: Tenant data

If you are buying your apartment as an investment, you should add the leases of the future tenants both to the documentation for the bank and as the next page of the lease.

What else is listed:

• Tenant data / Tenant list (as attachment)
• Current status of tenancies
• Deposits paid by tenants
• Confirmation: No rent arrears

Part 5: Promises of the seller

It is important for you as a buyer to have listed in the lease agreement all previously verbally agreed commitments of the seller. This includes, for example, renovation work in the apartment or similar.

Should be listed:

• Representations of the seller

Part 6: Billing and costs

You have finally decided to rent out your apartment. To do this, you also need the tenant’s statements of account and the cost claims of the residents’ contributions.

Accounting

If the economic transfer takes place before the middle of the year, the settlement must be taken over by the seller. If it takes place after the middle of the year, you as the buyer must take care of the settlement.

• Before mid-year: Seller
• After mid-year: Buyer

Costs

The costs of the adjoining owners must also be taken into account and listed. Separation is made from the moment of transfer of the apartment. Costs incurred before the transfer are borne by the seller. All costs thereafter must be borne by the buyer.

• Separation from the date of transition
• Before transition: Seller
• After transition: Buyer

What else is there to do?

If you are already a little deeper into the subject, you should definitely know that you should separate items of an apartment. Separate things such as outdoor facilities, garages, fitted kitchens, but also furniture taken over, which reduces land transfer tax. In addition, an assignment of claims against craftsmen should be made. If you have already received the documents from your bank before the notary appointment, you should also have the land charge documents ready.

What else should be in the lease?

• Separate items
• Assignment of claims against craftsmen
• Land charge documents

The first step: types of real estate

The first own property, but in which type of real estate should I invest best? This question is often asked by young investors and this is exactly where we have the answers for you! Whether it’s a house, apartment building, condominium, special real estate or commercial real estate, we have put together a comparison of all types of real estate. With this guide, you’ll find the easiest entry into the real estate world. Besides the profitable sides, the real estate industry also holds some risks for you. In order to keep these as low as possible, we have put together a guide to buying your first property!

Rent, buy, live in Mönchengladbach

Our interview partner, has specialized in the mediation, selling and renting of real estate in Mönchengladbach, Grevenbroich, Neuss and Erkelenz. We have talked with the real estate agent from Mönchengladbach in an interview about attractive districts, financing options and the Gladbach real estate market. Here you can find out everything about buying your first home, different types of houses and types of apartments.

Mönchengladbach at a glance:

Microlocation Mönchengladbach:

Rentals: Child-friendly neighborhoods

You have decided to rent a house or apartment? Then you should definitely know more about bedroom furnishing and beautiful terrace design. Home is where you feel comfortable!

Purchase: Incidental expenses and credit

Find your new home in attractive districts of Mönchengladbach such as Rheydt, Odenkirchen or Wickrath and avoid serious mistakes in your purchase! You can find the 5 steps guide in this article. Are you also interested in other cities in NRW? We have selected other interesting cities for you, such as Düsseldorf, Aachen and Duisburg.

Interview: Real estate in Mönchengladbach

We talked to a real estate agent from Mönchengladbach about the current real estate market, prices, taxes and apartments as an investment. In this article you will also get a checklist to help you avoid typical mistakes and unnecessary costs.

Interviewee Di Lorenzo: Real estate market

FIV: Before we talk about Mönchengladbach and its real estate market and your recommendations for tenants and buyers, we would like to know a little more about your agency Di Lorenzo Immobilien. Could you briefly summarize for our readers what your agency does and what you specialize in?

Di Lorenzo: Dear FIV team, first of all, thank you for choosing us among the best 10 real estate agents! Our real estate agency is specialized in real estate sales and rentals. We sell and rent all types of real estate. From single family homes to large investment or commercial properties. We also provide appraisals for developed and undeveloped land. We specialize in giving the client an answer really in every direction.

Architectural planning, building damage surveys & construction of real estate

We certainly have a unique selling point in Mönchengladbach because we operate under one roof together with our cooperating architectural and expert office. Here the customers receive architect planning, building damage expertises and consultation approximately around the building of real estates. Through our many years of experience and through our constant further training in every direction of the real estate sector, we can really give our customers a great deal of assistance.

The proximity to the market and the large number of sales and rentals mean that we are still learning, even after so many years. We try to offer our customers real added value and see ourselves as a service provider with heart and mind. In addition to all the knowledge, it is also important to offer people a strong shoulder, an open ear and a lot of empathy. That is the beauty of our profession! We can help people even in difficult phases of life, which often entail a house sale, and pave an easier way for you into a new phase of life.

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

Di Lorenzo: We prefer to broker single-family houses, multi-family houses and apartments.

Single-family house in Mönchengladbach:

Districts with a future: Wickrath, Odenkirchen to city center

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

Di Lorenzo: There are many beautiful districts in Mönchengladbach. All the surrounding districts such as Giesenkirchen, Odenkirchen, Rheindahlen, Wickrath, Hockstein, Schmölderpark, Pongs, Venn, Hamern, Windberg offer very beautiful and rural living space in many places and are very popular with families. The Bunte Garten, Großheide and also Windberg are among the high-priced districts that are equally popular with families and singles. Mönchengladbach Oberstadt, part of Bruckner Allee and also Mönchengladbach city center, also in the direction of the University of Applied Sciences are rather popular with younger people.

Desirable neighborhoods:

• Odenkirchen
• Wickrath
• Hockstein
• Giesenkirchen
• Windberg

Popular district: Wickrath

Development of rental prices: Rising rents

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

Di Lorenzo: The real estate market in Mönchengladbach rose later than in the surrounding cities. In recent years, however, Mönchengladbach has also followed suit, but is still below average compared with NRW and Germany. Last year, rental prices in Mönchengladbach also rose sharply. I think that the level will now consolidate and no longer rise so considerably.

Rent or buy as a young couple?

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 Mönchengladbach?

Di Lorenzo: It always depends on how much people can afford. If it’s feasible, I advise everyone to buy. But it also has to be compatible with income and capital. It should not be bought at any price. If you can afford to buy property as a young person, then a small apartment is a good start to build on later.

You can then use the proceeds to buy a larger property in a few years, since you can save up equity through the apartment. This is more likely to be possible in Mönchengladbach than in surrounding larger cities.

Facade of an old building apartment in Mönchengladbach:

Home ownership and condominium: follow-up costs

FIV: Anyone who rents in Mönchengladbach 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?

Di Lorenzo: When you buy a property, you should consider whether it can also be rented out well in the event of a move and whether the rent will cover the loan in an emergency. Mistakes I see first-time buyers make is that they see the low rate at the beginning, because the interest rates on loans have been very low in the past. Some buyers want to own a home at any cost, but don’t think about the subsequent costs.

Financial plan: Avoid unexpected surprises

Here you should have a good financial plan, because many properties can also bring surprises, e.g. special allocations for condominiums, renovations, refinancing of the loan after the fixed interest rate. First-time buyers should seek advice from a professional. Real estate agents in cooperation with a good financing advisor can be of good help here.

Living and dining area in a Gladbach apartment:

Service charges and taxes: Everything you should know!

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

Di Lorenzo: On the one hand, there are the typical ancillary purchase costs that the buyer always incurs when making a purchase. Land transfer tax 6.5% of the purchase price, notary’s fee and land registry costs approx. 1.8% of the purchase price, and, if applicable, brokerage costs 3.57% of the purchase price. But then you should also have the renovation costs estimated by a professional. Also the removal causes costs, which one should not disregard.

Incidental purchase costs:

• Real estate transfer tax: 6.5%
• Notary fee/land registry costs: 1.8%
• Brokerage costs: 3.57%

Real estate as a capital investment & future opportunity

FIV: Mönchengladbach districts for real estate investment – Let’s move on to real estate as a capital investment in Mönchengladbach, for those who want to buy and rent. If our*r reader*in decides for the purchase, with following letting: Which 2 districts or satellites around Mönchengladbach would you recommend to a buyer for their capital investment in Mönchengladbach? In your opinion as an expert, where do the most future opportunities lie?

Di Lorenzo: There are many parts of town that would be suitable. However, when I compare the purchase prices and the rents, I would rather buy in good surrounding locations of Mönchengladbach. At the Bunten Garten, the rents are high, but also the purchase prices have risen to such an extent that you don’t get a good return here, so I would rather point in the direction of Windberg or other surrounding districts such as Hockstein.

Di Lorenzo team photo:

Investing in different types of real estate such as apartments & plots of land

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

Di Lorenzo: I would buy an existing property that has manageable renovation costs. Condominiums are always a good investment for small investors and will be profitable in the future. An investor with a lot of equity should go in several directions (apartments, MFH, land) and spread his capital to have a lower risk. Mönchengladbach is a city with rather low income, so you will surely get a condominium rented.

Tips and first steps in buying real estate: avoid mistakes

FIV: You mentioned the typical mistakes in buying a property. Many buy, but some also want to sell. As an experienced real estate agent in Mönchengladbach, what tips can you give to those who are selling a property for the first time? What are the first steps and how do you successfuly sell a property in Mönchengladbach?

Avoid mistakes from the beginning – Step 1

Di Lorenzo: There are many pitfalls here, too. But you don’t realize that until you’re in the middle of it. Selling real estate doesn’t just mean taking photos, putting them online and writing a little text and I’m already sitting at the notary’s office. Many of my clients have experienced the opposite and come to us for professional help after an unhappy start to the sale. You have to check many things. First of all, the right selling price is very important, which many sellers first of all estimate incorrectly and thus delay the sale.

Documents for the sale and legal basis – Step 2

As a seller, you need to know what documents you all need to provide. What is the legal situation with my property. Are there encumbrances and rights in the land register, are all the components of the house approved, what do I have to tell the seller, what about liability for false statements, even if they happen unknowingly. Nowadays the banks want to receive complete plans and living space calculations from the architect. Are there building encumbrances, are the costs of the adjoining owners settled, is there an energy certificate, etc.?

A good plan is the key – Step 3

You sell successfuly if you have a good plan, set the right sales price and have all documents complete. Floor plans, building plans, building description, calculation of living space, building insurance, notice of real estate tax, certificate of occupancy (not older than 3 months), information on building encumbrances (not older than 3 months), cadastral map (not older than 3 months), energy certificate (not older than 10 years), extract from the land register (not older than 3 months), in the case of condominiums the declaration of division and the certificate of seclusion, minutes of the meeting, utility bills, reserve account. If the declaration of division is amended, the deed of amendment and any other documents recorded in the land register are required.

• Floor plans
• Construction plans
• Building description
• Living space
• Building insurance
• Property tax notice
• Residents’ certificate
• Information on building encumbrances
• Parcel map
• Energy certificate
• Land register excerpt

Checking the land charge in the land register – Step 4

You should also check whether a land charge without a certificate or a certificated land charge is entered in the land register. If it is a securitized land charge, then you need to find the land charge certificate in your documents, if it is no longer with the bank. If you have checked and collected all this, then you are one step further. If you know everything about the condition of your house and create nice pictures and write a good text about it, then you can put the property online in the common real estate portals. After you have received some inquiries, you should check who will enter your house soon.

Not Every Prospect Should Be In Your House – Step 5

Do not let just anyone into your home. People should provide you with their complete contact information. If the viewing appointments are successful, then you can hand over all the documents to the customer for the bank. You must then wait to see if the prospective buyer receives written confirmation of financing. You will not get any information from the bank, so you have to wait for the potential buyer’s response. Check the financing confirmation for correctness and authenticity! If everything is correct, then you can give all the details of the sale to the notary, which the buyer may choose. Then wait until the buyer has paid.

If the buyer has paid, then you may hand over the keys. During the handover, any discrepancies, meter readings, number of keys, documents and costs still to be settled, e.g. insurance, property tax, should be handed over.

Get good advice from a professional. You will save a lot of nerves and also money. A good and reputable broker will advise you without obligation and free of charge and will definitely bring you added value.

Rent, buy, live in Mönchengladbach

The real estate market in Braunschweig 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 Braunschweig, who can make your dream of your property possible.

• Broker Mönchengladbach

Thanks to Di Lorenzo Real Estate for the interview!

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

Rent, buy, live in Wiesbaden

Our interview partner, has specialized in the mediation, selling and renting of real estate in Wiesbaden and the surrounding area. We have talked with the real estate agent from Wiesbaden in an interview about attractive districts, financing options and the current real estate market. Here you can find out everything about buying your first home, different types of houses and apartments.

Here you can see Wiesbaden at a glance:

Wiesbaden from close up:

Rentals: New construction to old building

You want to rent an apartment or even a house? Then you should definitely know more about bedroom furnishings and beautiful terrace design. With us you will find valuable tips so that you can feel really comfortable in your new home.

Purchase: Incidental purchase costs

Find your new home in attractive districts of Wiesbaden such as Dotzheim, Bierstadt or Naurod. Are you also interested in other cities in Germany? We have selected other interesting cities for you, such as Frankfurt and Kassel.

Interview: Wiesbaden real estate market

Are you looking for a suitable property in Wiesbaden? But you are wondering which are the most popular districts to live in, whether it is better to rent or to buy or how high the additional costs and taxes are in Wiesbaden? Then you have come to the right place. Because we have talked to a real estate agent from Wiesbaden, who will answer all your questions about real estate in Wiesbaden.

Interview with Herberich Real Estate

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

Herberich: We are active for years in the market value determination, sales and letting of residential and commercial properties. We are active in the regions of Wiesbaden, Mainz and about 40 km in the surrounding area. One of the main focuses are multi-family houses and building plots which we build with our 2 developer partners.

FIV: As a real estate agent in Wiesbaden, which properties do you personally prefer to broker?

Herberich: We prefer to broker multi-family houses, villas and plots of land.

Apartment building in Wiesbaden:

Popular districts: Frauenstein, Bierstadt & Co.

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

Herberich: For nice living you should choose real estate in the districts Frauenstein , Sonnenberg and Bierstadt.

Beer city from close up:

Development of the current real estate market

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

Herberich: In recent years, there has been a steep rise in purchase prices and, depending on the district and the size of the apartment, also in rents. Depending on the development of interest rates, the market will tend to calm down with a flatter increase in prices.

Better to 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 Wiesbaden?

Herberich: If you want to live in the same place for at least 10 years and have a secure income, buy. Otherwise, rather rent.

Here you see real estate agent Rainer Herberich:

Current purchase situation in Wiesbaden

FIV: Anyone who rents in Wiesbaden 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?

Herberich: The costs involved in refurbishing old properties are often underestimated.

Taxes and ancillary costs: You have to reckon with this!

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

Herberich: As usual in Hesse divided brokerage commission, land transfer tax, notary and land register together about 11% of the notarial purchase price for the buyer.

Incidental costs are made up of the following factors:

• Broker commission
• Real estate transfer tax
• Notary
• Land register
• Total: 11

Real estate as an investment: Future urban districts

FIV: Wiesbaden neighborhoods for real estate investment – Let’s move on to real estate as an investment in Wiesbaden, for those who want to buy and rent. If our*r Leser*in decides for the purchase, with following letting: Which 2 districts or satellites around Wiesbaden would you recommend to a buyer for their capital investment in Wiesbaden? In your opinion as an expert, where do the most future opportunities lie?

Herberich: Most of the future opportunities are in the Rheingauviertel, Sonnenberg, Bierstadt , generally everything near the Rhine.

Future Quarter – Sonnenberg:

Different types of real estate and their future

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

Herberich: You should invest in old buildings and then renovate them to increase their value.

Successful sale of a property: pitfalls private sale

FIV: Finally, 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 Wiesbaden, what tips can you give to those who are selling a property for the first time? What are the first steps and how do you successfuly sell a property in Wiesbaden?

Herberich: There are many pitfalls when selling privately, so it’s better to choose a competent real estate agent as a partner and go by the very personal impression rather than the size of the company.

Rent, buy, live in Mönchengladbach

The real estate market in Braunschweig 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 Braunschweig, who can make your dream of your property possible.

• Real estate agent Wiesbaden

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

Selling real estate – how to make the sale uncomplicated and profitable

Selling a property successfuly as a beginner is harder than you think. There are many things to consider and many mistakes that can be made. So you should be aware of the procedures from the start and be sure that you are doing everything right. If you are approaching a home sale without any help you should be prepared for a lot of time commitment and a lot of self-organization. The only way to make this process easier is to have the right expertise on the subject. Learn more about selling a house (external)!

Determining the value of real estate – this is how experts proceed

What are the exact criteria for determining the value of a property and how exactly do appraisers proceed when preparing the appraisal? In general, according to § 194 BauGB, the market value should reflect the price that would have been achieved in the normal business year at the time of the determination without regard to unusual or personal circumstances. In order to determine this value, experts are guided by various criteria:

The ground value

The standard land value is probably the most important criterion for determining the market value, as it is the basis for its calculation. The standard land value indicates the value for one square metre of undeveloped land in the respective standard land value zones.

The structural and technical condition of a property

The second important criterion is of course the condition of the property. This includes not only the materials used, such as building materials, wiring, pipes or electrical systems, but also the age of the property and the materials. In addition, extras such as outdoor facilities, carports, gardens and garages can have a positive effect on the valuation and reinforce a positive assessment.

The location of the properties

On the one hand, the location of the property includes the infrastructure of the nearby surroundings, such as transport connections, shopping facilities, but also connections to doctors or hospitals. On the other hand, trendy locations have an advantage, especially in large cities. The higher the popularity of the neighbourhood, the higher the value of the property there.

The energetic state

First of all, of course, the presentation of the energy certificate is necessary. This shows how high the energy consumption is. The higher, the worse. In addition, how high quality and new the insulation of the outer walls and the roof are. These significantly determine the energy consumption and the energy costs increase enormously with poor insulation.

The degree of development of the property

Also important for the value of the property is the degree of development. This means that it must be checked whether the property is connected to important networks such as the water system, the telephone network but also the electricity. Of course, it is an advantage if the property is connected to all important networks.

Contaminated sites on the property

Contaminated sites on the property are of course not advantageous for the property, as they have to be taken over by the new owner. Such contaminated sites are noted in the land register and negatively affect the appraisal, since more costs come to potential buyers.

The current market situation

The price of a property is always determined by supply and demand, which is why this criterion also plays an important role for the expert. Here, sales data from comparable properties in similar locations are used and compared with the data for the property under review.

The right presentation – this is how you put your property in the right light

The right advertisement is the be-all and end-all for the self-marketing of a property. But other aspects must also be taken into account. If you approach a house sale without help, you should be prepared for a high expenditure of time and a lot of self-organisation. This process can only be made easier by having the right specialist knowledge on the subject.

The advertisement – correct wording, the pictures and the first impression

There’s nothing worse than your ad getting lost in the shuffle. Short, sober descriptions bore potential buyers and are uninviting. Therefore, pay attention to a loose but still serious formulation already in the title. To achieve this, you should use language that is as rich in imagery as possible, which arouses emotions and thus attracts attention. Think about which headline you would stick to yourself. Special advantages of your real estate can be emphasized thereby by formulations, like ‘elegant old building with stucco’ or ‘sun-flooded south terrace’, because you work enthusiastically and invite the Immobiliensuchende directly. Try to attract the buyer already with the headline, so that he continues to click on your ad.

The text of the advertisement – exact description and mentioning of the advantages

Once the potential buyer is on your ad, two other factors can convince them of the property. The text of the ad and your pictures. In your text you should explain important key data of the property as well as object criteria. This includes the number of rooms, district, balcony, fitted kitchen, floor, but also full bath or basement rooms. Describe the location of the apartment, the advantages and also name the equipment as precisely as possible. This includes kitchen equipment, heating systems but also other objects that will remain in the property. In the course of this, mention the costs for the compensation payments for existing equipment and brokerage fees. Also important is information such as rent, service charges and the size of the apartment in square meters.

The images – the be-all and end-all of a good ad

Probably the most important factor, however, are the pictures. A buyer naturally wants to see as much of the property as possible to get an idea of whether the property could be something for them. To take great pictures of your property, there are a few things you need to consider. First and foremost, of course, the rooms should be tidy and clean. You should make sure you take the pictures in daylight, so that the rooms can really be seen and buyers can assess how much daylight falls into the rooms. Your cover photo should be the most expressive and represent the best thing about the home. The most beautiful room, the roof terrace, the open kitchen or maybe the bay window with a view. Pictures of all rooms and if available the garden/balcony/terrace, an exterior view and above all a floor plan should never be missing. The floor plan should never be missing, because the potential buyers get an impression of the size of the individual rooms to each other and can see the layout of the rooms better.

Buying, selling and investing – Immobilien Magazin

You can find out more about real estate in the Real Estate Magazine.

• Apartment for sale? All about the topic: Selling a condominium
• Real estate valuation and appraisal? Ask the experts: IHV Broker & Valuation (external)
• Selling or renting? Earn money with your apartment: rent it out or sell it?
• Want to buy? Here are our tips on buying your first property
• Buy and live? Our guide to buying an apartment
• Retirement Tip: Got a few euros saved up? Read more about: Real estate as an investment

House forms at a glance: List

In the real estate market, there are a lot of different types of construction. Both in the field of apartment and houses, there are many forms and types according to which a property is designed. These are divided into different formats. We have clearly listed some of the most common house and apartment types for you here. You can find more information about the respective property type in the corresponding article by clicking on the corresponding link.

Overview of house types: from bungalow to prefabricated house

Here you will find a list with an overview of all common house types. The linked article provides you with more information about the respective house form, introduces you to characteristics and definitions and you also learn which house type is suitable for whom and why. In addition, we introduce you to the advantages and disadvantages of the respective house form in the associated articles.

• Bungalow
• Semi-detached house
• Single-family house
• Half-timbered house
• Holiday home / weekend house
• Beach house
• Prefabricated house
• Country house
• Massive house
• Terraced house
• Villa
• Low-energy house
• Zero-energy house
• Passive House

The legal basis – notary, land register and the purchase contract

Selling a home is a big decision with many legal procedures, contracts and requirements involved. As a homeowner, you should be well informed in advance about what to expect and what you need to keep in mind so that you come out of the deal profitable. For the uninformed in the field, there are many legal basics to consider and especially small stumbling blocks that should be avoided at all costs.

Learn more about the legalities of selling a home from the experts at IHV!

The notary – legal person supervising the purchase contract

The tasks of a notary is to regulate the sale of real estate as an impartial legal authority in such a way that all parties are satisfied and all possible points of dispute are avoided or settled from beginning to end. The notary draws up a public deed (the contract of sale) in which all the necessary legal issues are settled transparently and clearly.
In addition, the notary certifies the real estate purchase contract. Section 311b of the German Civil Code (BGB) stipulates that all legal contracts relating to land, assets, estates and real estate must be notarised. Another task of notaries is to ensure the protection of the buyer and seller. For the legal protection of the buyer, the notary reserves the property for the buyer in the land register as a priority notice, so that the seller cannot sell the property to someone else at short notice. For the legal protection of the seller, the notary arranges for the final transfer of ownership in the land register as soon as the buyer has actually paid the purchase price.
Notaries additionally ensure immediately enforceable claims. This means that the claims set out in notarised contracts are immediately enforceable. Thus, in order to execute the claims, it is no longer necessary to file an extra complaint with a court, but a bailiff can be commissioned immediately. This takes place, for example, if the purchase price is not paid. In addition, a notary explains all unresolved legal issues in a real estate sale. He must explain all legal and juridical questions to all contracting parties so comprehensively, understandably and sufficiently that a documentary registration of the actual will of both parties is possible. You are obliged to do this by virtue of your public office.

The costs incurred by the notary are always the same, because the notary fees are regulated uniformly throughout Germany in the Court and Notary Fees Act (GnotKG). Should a notary seek to regulate costs in a different way, this is ineffective, as this is prohibited by law. This applies to both cost reductions and cost increases.

The purchase contract – the most important points must be regulated

The contract of sale is the legal basis on which a house sale is built. Depending on the case, a purchase contract always looks different, contains more or less regulations, depending on what the parties have agreed. A contract of sale is a complex and extensive contract, which holds many legal ambiguities and also traps for one or the other. The implementation can also take quite some time. Sometimes up to 8 weeks pass between the signing of the contract at the notary’s office and the transfer of ownership in the land register. This disparity between the transfer of the purchase price, the change of ownership and thus the change of use and encumbrances and the final change of ownership and handover raises further legal issues in the sale of a house, which must be regulated in detail in the purchase contract.
The key points that should be covered in any purchase agreement are as follows:

• Which object of purchase is being sold?
• Who is selling to whom?
• What all is sold with it? (Fitted kitchen, property,…)
• How is it sold?
• How does the payment take place? (Cash, bank transfer, …)
• When is the transfer date?
• What is the breakdown of utilities and maintenance costs?
• How are the development costs regulated?
• Are there any possible warranty claims?
• What is the condition of the object?
• Does the object have defects?
• Which permits are available and which are missing?
• Cost allocation
• Authorisation of the notary’s office

The 6 most common mistakes – how to avoid stumbling blocks

Most home sellers are rather inexperienced in the field and don’t know where to start. They often snap a few pictures and post them on a real estate portal. However, homeowners don’t know what to expect, what to look out for, and what all to expect. To prevent this uncertainty, the most important thing to do before selling a house is to inform yourself and seek help from experts in the field.

A broker is excluded from the outset

Of course, it is also possible to successfuly complete a property sale without an estate agent. So before you decide for or against an agent, consider what makes the most sense for you in your situation. An estate agent can take a lot of the work and time out of selling a property. In addition, he advises you in financial as well as in marketing-technical questions. So ask yourself the questions:

• Do I have the time to organize, accompany and complete the entire house sale on my own?
• Is my level of knowledge and professional expertise really sufficient to successfuly complete the sale without a broker?
• Can I coordinate the sale on my own in the fast-paced, regional and targeted real estate market?

You should be aware that selling real estate requires a lot of time, organisation and expertise. An estate agent receives a commission on a successful sale, but this can be set out in an agency agreement. In addition, the agent will then take over work from you, such as the correct advertising of the property, the arrangement and conduct of viewing appointments, the preparation of purchase contracts and the presence at the notary appointment. You have thus permanently someone competent with sufficient expertise at your side, who can advise you in all matters.

You are unprepared for viewing appointments

Potential buyers, are faced with the decision to make a big investment, or not. They want to be on the safe side and be 100% sure about their decision. In order to complete the house sale successfuly, you should give potential buyers as much security as possible. At a viewing appointment, you should therefore be prepared for many questions from buyers and have a good answer to all of them. Often these will be about the condition of the house – how old are the windows / doors? When was the last renovation and refurbishment? What kind of insulation is there? How much are the service charges? and and and – be prepared for all these questions and find out exactly about your house from the outset. Ignorance can unsettle potential buyers or be an excuse to drive down the price. Also, be open with appraisers and understand that your buyers just want to play it safe.

The real estate market value is unknown to you

Every homeowner remembers how much they paid for their house and how much renovation, refurbishment etc. cost. However, it often happens that the value of the property differs from the original purchase price, as property prices are determined by supply and demand. So before you put your property up for sale, you should know the value of it. You can have the property value estimated by an appraiser but also by a realtor and thus know better in what range you can move in the price. Small defects in the house can lower the value of the property and be a reason for potential buyers to depress the purchase price. Therefore, before selling, consider whether you can have minor defects repaired beforehand and thus demand a higher selling price. However, appraisers or estate agents can also help you with this decision and assess whether such an investment is worthwhile.

They are not willing to negotiate

Of course, as a seller, you want to sell your property as profitably as possible. Opposite you, however, is a buyer who is happiest to record a profit at the end. So don’t ruin your chances of buying a house by being unwilling to negotiate, but also accommodate your buyer. There is only one thing that helps in negotiations and that is good preparation. You should consider from the outset, in which framework you can move and what is the absolute minimum for you. You should also come up with good arguments to justify your selling price. This includes, for example, a good infrastructure, the location of the house or even special advantages of your property. An estate agent experienced in negotiations can also help you prepare for a successful negotiation or even support you on the spot. Stubbornness can spoil a lot of things for you and drag out the negotiations unnecessarily. Approach each other and find a price that both parties are happy with.

Your exposé gives a false impression

The exposé is one of the most important things in the successful sale of your property. The exposé is the first thing a potential customer sees and should therefore make the perfect first impression. A bad exposé can even put a spanner in the works of the most beautiful house. What you should definitely pay attention to are good pictures. It helps to have these taken by a photographer, but homemade pictures can also look great. Make sure the pictures are taken in daylight and that the room is easy to see. In addition, it should be tidy and clean so that the potential buyer feels immediately comfortable and can imagine living there. Take pictures of all the rooms and preferably also of the floor plan so that the buyers can get a clear picture of the property. Pictures of the garden or special features of the house also look good. Be honest in the text of your exposé. Do not give the customer false hopes or exaggerate, because this will only lead to disappointment at the viewing appointment.

You do not properly review the purchase contract

The purchase contract and the appointment with the notary are the last steps on the way to a successful house sale. At the notary appointment, the purchase contract is read out again by the notary and both parties sign it. After this appointment, the contract is legally binding and the sale is completed. Before this appointment, you should check the contract of sale thoroughly and be clear about all the points noted. If you are unsure, consult an estate agent in advance who will go through the contract and advise you. You can always ask questions at the notary appointment itself, but the notary will not advise you. He is only responsible for ensuring that the contract is legally correct. To be sure that there are no hidden uncertainties, it is better to have the contract checked in advance.

The house purchase – broker, commission & loans

When first thinking about buying real estate, many questions immediately arise. What is the best way to proceed? Do I need a real estate agent or should I search on my own? How big should the house be, how many square meters and rooms does it need? In which area do I search and above all how much budget do I need? We will now get to the bottom of all these questions.

Learn more about buying a house at IHV!

Requirements – the way to your dream property

In the first step on the way to your dream property, you should first consider what requirements you have for your home. How many rooms do they need and how many square meters should their house and their property have in the best case? Of course, they should also be clear in which area they want to move and adjust their needs according to this scheme. A house in a city will be more expensive than a house in a suburb or in the country. Do you need a school nearby or should a supermarket be within walking distance. Do you want a garden or a child friendly environment. Of course, you should also think about the exterior of your property. Do you prefer a certain style of house, should the house be more modern or more Nordic style? After you have clarified these basic questions and know how you imagine your dream property, you can move on to step 2.

Financial planning – financing options and requirements

The financial planning takes a large part in the path to owning a home, because with construction financing and loans you enter into a large commitment that can span several decades. Accordingly, anyone who is thinking of buying a property should first check their own financial resources. This includes, for example, whether property or a building savings contract is already available and how much it is. Also should be checked which funds can actually be called in the short term. In order to obtain a loan from a bank, it is recommended to have at least 10-20% of the required sum (purchase sum and ancillary purchase costs) as equity capital. The higher the equity, the better.

Of course, personal circumstances also play a role in financial resilience. These include, for example, family planning and the desire to have children, the employment situation of the partners and, of course, marital status. You should consider whether further major financing is planned for the next few years and how this will affect your financial situation. It is also important to determine the permanent expenses in order to be able to include them in the planning. These include fixed costs such as insurance and ancillary costs, but also holidays, car purchases or provisions for financial security.

The next important point is the repayment period, as one should think about how long they want to repay and hence how long they want to be in debt. It is recommended to plan the financing in such a way that the debtors are debt free by the age of 60. However, this also depends on how high the repayment rate can be. The shorter the repayment period, the higher the repayment rate, but there are also slightly cheaper interest rates for shorter loan periods. As a rule of thumb, with a repayment rate of two percent, the repayment period is approximately thirty years.

Once these questions have been clarified, it is time to compile the documents for the banks, because they need many different documents in order to be able to apply for an offer in the first place. Such documents include monthly income, which is evidenced by the income tax assessment, as well as a list of regular expenses and current assets. Also, at this step, they should already have a purchase property and, in the best case, cost estimates, because the more accurate and comprehensive the documents they provide, the faster and better the bank can make an offer. Compare many different offers, from several credit institutions as there can be many differences and they can thus find the best offer for their project.

Search – brokers, patience and ads

There are many different ways to approach the house hunt. Of course, a real estate agent has many advantages, because he accompanies them from start to finish on their search, knows insider tips and can help them with the decision with words and deeds. If you prefer to search on your own, there are many online portals, such as ‘Immonet’ or ‘Immobilienscout24’ where you can view a large selection of properties. Let your friends and acquaintances know that you are looking for a house, because a lot can happen through contacts. When viewing a property, there are a few things you should bear in mind in order to gather as much information as possible about the property. First of all, you should only visit the property during daylight hours, as you will be able to see defects and faults much better than in artificial light. Take a close look at the surrounding area and pay attention to possible noise, smells and the parking situation. The infrastructure around the property should also be explored carefully to compare if it fits their requirements. Talking to the neighbours can also uncover helpful information.

At the property itself, they should pay attention to the condition of the facade, roof and attic, as well as the basement rooms and windows. Water stains on the walls and ceiling, outdated windows with low insulation or a leaking roof can be discovered during these observations. Take pictures and of the property and any faulty areas. Of course, the exposé already tells you a lot about the property, but not all questions will be answered here. Create a list of questions so that you can find out as much as possible about the property during the viewing. Possible questions could be for example the following:

• Do renovations or refurbishments need to be carried out?
• What is the condition of the roof and windows?
• What heating is in the property, how old is it and what insulation does the house have?
• Useful here is always the energy certificate, so ask them explicitly for this.
• The floor plan with drawing of load-bearing walls to be able to plan a possible reconstruction.
• The statement of operating costs
• Check the incidence of light and the cardinal directions, for example, to find out when the sun shines into the garden.
• Ask them the reason for the sale and the duration of the vacancy
• Do fixtures such as kitchen, cupboards, etc. remain in the house and do they have to be taken over?
• Visit different objects to create a selection and to be able to see different offers. In case of uncertainties, such as damp walls, etc., it is better to consult an expert and let him assess the whole.

Legal basics – purchase contract, land register entry & Co.

To buy a house, legal ways must also be followed and many standards must be observed. In order to do this correctly and make the house sale also right some things must be followed.

Lots of helpful tips on the legalities of selling a house!

Notarisation of a purchase contract – the notary helps with land register entry and more

The purchase contract fulfils the standard that according to § 311b BGB a notarial certification must be present if the ownership of a property or rights equivalent to real property is transferred. However, the transfer of ownership is not valid after signing and notarial certification, but only after registration in the land register.
First, a notary drew up a draft contract of sale that should suit both sides. This is fixed some time before signing so that both parties can check it. During the notarization, the notary reads the contract again and both parties can ask questions. The notary also informs about the consequences of the sale of the house and explains the further steps of the transfer of ownership.

Until registration in the land register, the buyer’s claim to the property is secured by the registration of a so-called priority notice of conveyance in the land register. This ensures that the transfer of ownership of the property can be processed safely. The transfer of ownership in the land register is only initiated by the notary when the purchase price has been transferred in full. Likewise, the tax office must confirm with a clearance certificate that the buyer has paid the real estate transfer tax. From which point in time the property is transferred to the buyer, i.e. the “economic transfer” takes place, is also determined in the notary contract. From this point on, the buyer bears all costs and is liable for the property. However, he is not the final owner until the transfer of ownership is complete and his name is entered in the land register.

Transfer of ownership – from seller to buyer

By entering into the purchase agreement, not only does ownership of a property pass to the purchaser, but the purchaser also assumes all risks, taxes and encumbrances associated with ownership of the property. This allows the new owner to do with the property as he or she sees fit. The transfer of possession is precisely defined in terms of date and is completely independent of the new owner’s entry in the land register, i.e. the transfer of ownership.

Building money & costs – what you have to pay when buying a property

After you have decided to buy your dream property, the question of the right financing arises. Here you should inform yourself about all the options, because you will have to live with the decision about financing for the next few years. Especially for inexperienced a real estate purchase is a big step, which is why you should be especially sure that you find the right offer.

Learn more about construction money!

Building money – 6 tips for successful financing

• Tip 1 – Determine your initial situation

  Before you start your search, you should determine your budget and your requirements in detail. This includes the living space, the number of rooms, the construction and equipment, the location, the architecture, the local transport and the distance to important places such as the workplace or schools. Once you are sure of your requirements, clarify your budget. How much equity can you raise? It is also important to determine what your maximum future monthly costs may be and how much you can really afford. To do this, compare your current monthly fixed costs and expenses. Once you’ve created an overview, you’ll have a rough idea of what to look for.

• Tip 2 – Include a redemption payment

  Rent and interest are real costs, but when you make a repayment, the money is used as a kind of installment savings plan. This means your loan debt goes down, but your net worth goes up. So you should also include the repayment you have to make on the loan each month in your calculations. Think of how many years you would like to have the debt paid off in and calculate with that figure. Remember that the rent you pay each month is not an investment in value, while the repayment will still increase your net worth each month.

• Tip 3 – Compare as many offers as possible

  The more listings you request and compare, the more choices you have and the more likely you are to find your dream property. Do not be afraid to search extensively and look at many properties. Search not only on property portals but also in newspaper listings, ask your friends and acquaintances and always keep your eyes open. The effort you put into your search will definitely pay off for you in the long run.

• Tip 4 – Choose long-term financing

  The important thing with long-term financing is that you secure the low interest rates for as long as possible. Preferably for the next 15 years or longer. This guarantees you a solid repayment rate. Depending on the purchase price, use 20% equity or less and choose a classic annuity loan. With this loan, the repayment should be about 2%. If this is higher, your return is also higher in the event of inflation. But if it is lower, you do not meet the certain repayment amount that you need, so that you do not get into trouble with a follow-up financing. If you also take out another loan, such as a subsidy loan, the terms must match, otherwise they can threaten early repayment penalties in the event of a sale.

• Tip 5 – Get multiple financing quotes

  Of course, the easiest and simplest way is to simply take out the loan at the house bank and handle the financing through it. However, there are big differences in the financing offers from different banks. For this reason, you should get at least two different offers, if not more, to find out which bank offers you the fairest and best conditions. Never lose sight of the fact that the loan is for a long term, so an interest saving of 0.2% per year can make a huge difference to you.

• Tip 6 – Do not be afraid of debt

  Going into debt is a big decision, but if you choose a ‘good debt’, you actually gain money in the end. Home finance is one of these ‘good schools’ as you save on housing costs and protect yourself well against inflation. You end up gaining real wealth and not losing any, like investing in consumer goods. For this reason, don’t repay too quickly and stick to an initial repayment of 2% and a term of 15 years. That way, you won’t have to worry about rising interest rates either.

Follow-up loan – debt rescheduling and long-term planning

When financing, it is important that you prove to your bank that you are a future borrower. For borrowers who have already proven for several years that they are able to service the loan according to the contract, banks are happy to offer better conditions. At the beginning of a loan, the monthly installment is usually a large part of interest and only in the course of time, the share of repayment is larger. In a debt restructuring is therefore usually a part of the loan already repaid. For the banks this means that the loan-to-value ratio is lower than with an initial loan and also the consultation effort is lower, because the customers already know how a financing runs and what is expected of them. The bank therefore has less work to do with the customer and therefore the preparation of the offer is easier and takes less time.

So the banks have good reasons to woo debt reschedulers, as you can gain advantages from it. But also for the borrowers a debt restructuring is often more favorable. Depending on the financial market situation, interest rates can be so favourable that it is more worthwhile for you to reschedule an old loan than to continue paying it off at the old conditions. Today, the interest rates are often better than at the time you took out the financing. So if it can be assumed that interest rates will rise in the future, it is quite advisable to choose a long fixed interest rate and to secure good interest rates. Thus, you achieve a rapid adjustment of interest rates in the event of early termination of the old loan.

If you want to do everything right, start thinking today about how they will approach rescheduling your loan in a few years to secure good follow-up financing. These are even more worthwhile doubly if providers take over the costs of the debt rescheduling for the borrower.

Incidental costs – hidden costs when buying real estate

When a purchase contract is signed, the financing is already under wraps. However, the additional costs are often underestimated. The bills from the estate agent, notary, land registry and tax office come as soon as the loan is fixed. This is often set too low because of this. 20% ancillary building costs should be included in the loan at least in addition to the purchase price and are quite realistic. The overview shows the 4 biggest additional costs that you can expect when buying a house.

Fees – Notarisation of the purchase contract

The fees for the notary appointment are probably one of the largest items in the incidental costs of buying a house. Although the notary fees are fixed and may not deviate from them in any direction, they are also quite high. As a rule of thumb, about 1.5% of the purchase price is fixed – and that’s just for signing the purchase contract. So if you buy a property with a purchase price of 100 000 Euro, there are fees for the notary of 1500 Euro, which mostly have to be paid by the buyer. The exact fees for notaries in Germany are set out in the notarial fee schedule, but can also be calculated online.

Taxes – Real estate transfer tax for the tax office

As soon as the contract is signed at the notary and the purchase agreement is notarised, the buyer receives mail from the tax office. Next, the buyer is required to pay the land transfer tax. This tax varies slightly. Normally it amounts to 3.5% of the purchase price of the property in Germany. In some federal states, such as Hamburg, Berlin and Saxony-Anhalt, it is 4.5% of the purchase price. So for a purchase price of, say, 100,000 euros, you will pay another 3500 / 4500 euros for land transfer tax. This debt should be paid immediately, because only when the amount is received by the tax office, this issues the so-called clearance certificate. This is mandatory in order to make the transfer of the new owner in the land register. This is arranged by the land registry and costs fees again, which are comparatively low.

Commission – brokers calculate your share

If you buy a property or a plot of land through an estate agent, you must of course include the agent’s commission in the overall calculation. You will usually receive the invoice from the estate agent directly after the transaction has been recorded by the notary. How high the commission is varies and depends on various factors, such as the region. Usually it varies between four and six percent of the purchase price of the property. With a property purchase price of 100,000 euros, you pay between 4000 and 6000 euros only for the agent. However, it is important to know that it is well worth negotiating the broker’s commission, because this is known to have a large margin. A recommended total commission of 3.48 percent including VAT is a recommendable and realistic value.

Advantages & disadvantages – the purchase of real estate

The purchase of real estate also offers advantages and disadvantages. Depending on the individual life situation, different scenarios offer themselves more or less. However, a house purchase is always a large investment and should be well considered and completely thought through in any case. To help you decide, we list some of the advantages and disadvantages of buying real estate.

Find even more pros and cons to buying real estate!

Advantages: no rent, security and your own four walls

Buying a house can offer many advantages. By buying a house, you live in your own four walls, you are the master of the house and can design it according to his own wishes. In addition, you have no monthly rent that you have to pay and as long as the loan is paid off, there are only monthly utilities. A house also offers a lot of space and, depending on your life situation, plenty of room for family planning and hobbies. In addition, changes can be made in your own house at any time if you want to and you do not have to clarify this with a landlord beforehand. Another advantage is the security for old age, because even if the pension should not be so great, you can continue to live in your home and do not have to move to smaller or cheaper conditions. A house is also a part of the inheritance for the next generation and represents a value investment, because spent rent amounts are lost and cannot be passed on to the children and grandchildren.

Disadvantages: Debt and personal responsibility

The disadvantages of buying a house include, for example, the debt and borrowing that usually accompany it. Likewise, from the moment of purchase, one is responsible for the property and must have repairs, changes, etc. carried out themselves. In addition, they have a lot of space and room, which must also be maintained and thus, for example, work in the garden or cleaning the house and consume time. In addition, with a house they are tied to one location and cannot just move to another city or live abroad for a while, as they are entering into a commitment with the purchase.

House forms at a glance: List

In the real estate market, there are a lot of different types of construction. Both in the field of apartment and houses, there are many forms and types according to which a property is designed. These are divided into different formats. We have clearly listed some of the most common house and apartment types for you here. You can find more information about the respective property type in the corresponding article by clicking on the corresponding link.

Overview of house types: from bungalow to country house to prefabricated house

Here you will find a list with an overview of all common house types. The linked article provides you with more information about the respective house form, introduces you to peculiarities and definitions and you also learn which house type is suitable for whom and why. In addition, we present the advantages and disadvantages of each house type in the corresponding articles.

• Bungalow
• Semi-detached house
• Single-family house
• Half-timbered house
• Holiday home / weekend house
• Beach house
• Prefabricated house
• Country house
• Massive house
• Terraced house
• Villa
• Low-energy house
• Zero-energy house
• Passive House

Sell property: You should consider this

Anyone who decides to sell their condominium is faced with a number of challenges. We have summarized for you, the most important things that it applies to note in this article. From the valuation to the handover of the property, everything is included.

Procedure & planning of apartment sale

When planning the sale of a condominium, a number of things need to be taken into account. In addition to the classic documents in which the apartment does not differ from the home, further documents and proofs are necessary. This is particularly important when it comes to a rented condominium or a community of owners as a capital investment.

There are documents that are especially important and that you should get: The land register extract that gives clarity about your ownership.

If, on the other hand, you are still paying off the apartment and the bank is still in the land register, you should consult with them before the planned sale and discuss the remaining repayment in detail. A floor plan is absolutely necessary and the proof of fire insurance, the building description and the energy certificate are of enormous importance.

If you want to hire an estate agent to sell the apartment, you can insist on the commission payment by the buyer according to the legislation. In case of a rental, you as the owner bear the costs. A decision between selling a condominium and renting it out is a lot easier.

When it comes to private sales, you’re gonna have to take care of support. As a rule, you will need a notary, a lawyer and a tax advisor to advise you on financial losses incurred by foregoing tax savings. Since the market value determination is also necessary, you will also need an expert.

The bottom line is that the cost of individually commissioned services to sell the condo is higher than if you decide to cooperate directly with an estate agent and decide to purchase all services from a single source. You should plan the sale of the condo favorably and calculate how you can best save money, spend the least time and do not have to visit a different contact point for each service.

The valuation

In order for you to obtain a fair price for your condo, it is important that you first determine the fair value. Because what feels worse than selling the inherited home of your parents, where you spent your entire childhood and with whom you associate the most beautiful memories, for a lower value than it would actually be worth. You have taken your first steps in this property, spent cosy evenings together with your family or searched for the best hiding places.

If you are emotionally attached to your condominium, you should consider whether it might not be best to hire a real estate agent to do the valuation of your property. There are many different factors that are taken into account when determining the value of an apartment. The market value is the most important basis that must be determined.

Find buyers – Tips & Tricks

Especially if you are emotionally attached to a property or have lived in a condominium for a long time, it is important for many people to find a buyer who meets their expectations. If the bond is particularly strong, some even go so far that they say the condo will only be sold to relatives or close friends. For those it is important that they plan enough time to find the right buyer. If you have certain wishes regarding the buyer, you should agree these criteria in advance with the broker.

Problems in case of sale

Of course, it is not always the case that the sale of a condominium runs smoothly. Problems may occur at different points throughout the procedure. In order to be sufficiently prepared for possible problems, you should pay attention to the following

• disagreements with administrator
• several owners

Possible costs

Whoever sells his condominium is often interested in achieving a price similar to the one he himself once paid for the property to achieve. Once the valuation of the condominium has been completed, the question arises as to whether there are any further costs that one should be prepared for. Of course, it is not possible to calculate a flat rate for the costs incurred in selling an apartment. However, you can expect that some of these costs will be incurred by you:

• Value assessment fee by broker or other expert
• Speculation tax
• Exemption from charges costs
• other costs for real estate agents
• possible advertising costs, e.g. for placing an advertisement in the newspaper

Sales experience

You still don’t feel sufficiently prepared for the sale of your condo? Then it can be useful to exchange views with relatives or close friends who have already sold a condominium. It is often the case that former sellers already know exactly what is important and have valuable tips for you. With these valuable tips you can save not only a lot of time, but also money. Whether it’s a recommendation for hiring a broker, or tips on how to find out who might be the best potential buyer. – Good luck.

Frequently asked questions before selling the apartment

Not infrequently there are still some questions that arise when you have decided to sell your property. We have compiled the most frequently asked questions for you so that you can find the answers to your questions as quickly as possible.

Who bears the notary costs when buying an apartment?

If a house or apartment is sold, the supervision of a notary is absolutely necessary. As a rule, it is the case that the notary’s fees for the sale of real estate are largely borne by the buyer. There are also special agreements in which a part is taken over by the seller and a part by the buyer.

What is a declaration of partition condominium?

A declaration of partition is of particular interest to owners who own a property together with other people. The declaration of partition specifies exactly how the property was divided among the owners.

What is a Certificate of Completion?

The question of what a closure certificate is is is a recurring one. A Completion Certificate is a certificate confirming that a condominium or part ownership has been sufficiently completed from other dwellings and rooms.

What is a special right of use?

The special right of use is interesting for owners who own a property together with other owners. A special right of use establishes a power that an owner may use certain parts of the common property alone.

What percentage notary costs?

The buyers in particular are interested in the amount of notary costs they have to expect. The notary costs are always different, because they are based on the purchase price of the property. As a rule, this is 1.5 to 2 percent of the purchase price.

What is the real estate transfer tax?

Real estate transfer tax is levied on the basis of the Real Estate Transfer Tax Act. When a plot of land or part of a plot of land is sold, it is calculated and passed on to the municipalities.