German real estate boom crack magic mark

The low interest rates boost the real estate business in Germany even more. Last year, apartments, homes and properties worth a total of 200 ° to 210 billion euros changed hands, it is apparent from estimates of the official peer review committees. “We break the first time the 200-billion-euro mark,” said Peter Ache, branch manager of the working group of experts. Evaluation teams shall cover all sales contracts with real estate throughout the country. They rise since 2007 nationwide figures. Given further lower interest rates is to be expected that the sum of 2016 continues to rise, said appraiser Ache. Since 2010 it go straight up, in 2015 had the purchasing figures even rose a bit more.

New Songs 2016
latest whatsapp status 2016
apple iphone 7 price
love shayari 2016
New Punjabi Songs 2016 Diljit Dosanjh
Latest Smartphone Reviews 2016

Not everyone expects now still buying, Ache said. “In the high-price segment now I would not buy anything but wait.” The risk of a property bubble see the committees is not, however, a further rise in prices they judge skeptical. “We are watching with interest and eager to see what happens when interest rates rise. Keep then the property its value?” The trend therefore cities include further Dusseldorf, Leipzig, Munich, Frankfurt, Hamburg and Berlin. In the environment of these cities, prices rose significantly, it said. In cities like Hildesheim and Holzminden also increases now be observed. “Even in rural areas, we see that the prices are rising. The people in the cities anymore.”

Next expensive has in the past year and farmland as Ache said. In some places, it was hardly more favorable than commercial land. “Because you can better milk their cows on a commercial space and have the same full development.” Many farmers put under pressure because the rents rise accordingly. The highlight of the increase in prices of farmland could be achieved, however, from the perspective of the working group in the West. In East Germany more ups are possible. With rising property prices comes some owners to sell the idea. Is this the right time? Or should wait and see if the boom continues Sales willing?

It depends on the situation: both on the personal as well as on the property. Who, for example, in cities such as Berlin, Hamburg, Frankfurt or Munich owns property, “has a very good chance to make a huge plus,” says “financial test” expert Jörg Sahr. Even in affluent suburbs, ie in counties in the immediate vicinity of large cities, a sale may still be low. Are also in demand for flats and houses in almost all German university towns.

Swarm cities attract young people to

These so-called swarm cities attract many young people who desperately need homes, the rents will rise. This will “also the rise in purchase prices fueling again”, states the spring report of the Central Real Estate Committee (ZIA). According ZIA cost condominiums in Stuttgart last year, nearly 19 percent more than in 2014, in Berlin there were about 14 percent more, in Munich nearly 13 percent. On average, prices climbed nationwide by about 14 percent, say the experts of the analysis company Empirica. Its data are based on information in sale advertisements – which does not mean that the seller received the amount demanded also.

Due to the historically low interest rates, the good employment situation and the growing housing needs – also due to the significant migration – expect the Landesbausparkassen (LBS) with a continuation of the high demand for real estate property. Whether it succeed, to keep prices in check further, depends ultimately on how quickly responds, new construction on the now visible not only in metropolitan areas and university towns shortages, said LBS Association Director Axel Guthmann. Ultimate bottleneck is not the willingness to invest, but the availability of land.

Reinvestment of capital poses problems

Facts and prospects entice actually for sale, especially since there will be many buyers considering a record low interest rates. For owners, however, interest rates can be a problem. Because what they should do with the money that brings the property? “Do I want to use it for world travel, car, pension, it is logical to sell now,” says Empirica director Reiner Braun. “I have no other alternative, I could wait to see if the price continues to rise.”

Financial advisor Max fall from Frankfurt / Main wonders whether it makes sense to invest in shares in order later to redeem more than a possibly relocated object sale. Another possibility would be, using the proceeds to fund a new property and as the owner-occupied single-family house with large garden for a chic Elderly Accessible apartment in the city exchange.

The low interest rates are owners also prepare headaches when overloaded even mortgaged their property up for sale. Because then the Bank is playing with: You will require a prepayment penalty, so that the borrower can get ahead of the loan agreement. Because in old contracts often significantly higher interest rates are, as they are at present market rates, this type can be expensive damages. Therefore, substantial amounts quickly come together.

The tax office collected with

“Financial test” expert Sahr expects the front with an example: The remaining debt is 100,000 euros, the credit agreement runs for five years, the interest rate is 4.0 percent, the monthly installment 600 Euro. The result is a prepayment penalty of 17,000 euros or the equivalent of 17 percent of the remaining balance. Depending on the contract can absorb the costly, unscheduled leave early or special notice periods. The prepayment penalty deny property owners usually from the sale – so they do not end the entire sum in the account.

In addition to the bank often collected with the tax office. “Whoever buys an apartment for rent and sold within ten years back, it has to pay taxes,” explains the Head of Tax Law at the Federal Chamber of Tax Consultants, Claudia Kalina Kerschbaum.

The amount of the tax on speculation is based on the individual tax rate of the seller. His profit remains exempt where since the acquisition took more than ten years. For owner-occupiers who have lived exclusively in this own home since purchase or completion of the property, selling profit is completely tax free. The ten-year period does not apply.

The same applies to apartments and homes, “which have been used at least in the year of sale and the previous two years for their own occupation”. Lived someone before buying as a tenant in the same apartment, which is not considered a time of owner-occupation, as Kalina Kerschbaum. Last but not least the Land Registry keeps on hand. The existing land charges there must be deleted. dpa / N.S.