Is it worth buying property abroad?
Is it worth buying property abroad?
Many experts argue that now is the right time to purchase real estate on the foreign real estate market, but this does not mean that it is worthwhile to indiscriminately buy any real estate that is located outside the territory of the Russian Federation. Like any other investment, real estate investing requires careful analysis.
Is it worth buying property abroad? Like the economy, the real estate market is currently unstable and sometimes even unpredictable. Such a situation is attractive for competent investors who can make a purchase at the moment, the cost of which in quiet times will be ten times more. By purchasing the object at the moment for 15 thousand, it will be possible to sell it in the region of 150 thousand. It is already possible in a relatively short period of time.
It is quite natural that the acquisition of such objects is associated with a certain risk.However, if it were not there, it would not be possible to obtain excess profits from the transaction. Depending on the more the investor is guided, the investment is more or less exposed to risks. Ideal personal qualities for the investor can be called a situation in which pragmatism and excitement are balanced in one individual. An investor with these qualities is capable of making a profitable acquisition and will be able to cope with all the tasks perfectly.
For example, it became possible to purchase a villa with a real value approaching one million dollars, for only one hundred thousand. With such a sum, it would be foolish to miss such a chance. And such proposals are found on the real estate market quite often.
Many people who make their investments are interested in the question of whether to buy real estate abroad. This question can not be an unambiguous answer, since out of 200 states, not all are attractive in terms of investing in real estate. Each country has its own legislation, the size of taxes, the specifics of the work related to real estate.Thus, to talk abstractly about purchasing real estate abroad without specifying the country does not make any sense, just as buying a car without specifying its brand.
Is it worth buying property abroad? By analogy, if a person plans to purchase a Mercedes, then the old Gazelle is clearly useless to him. And on the other hand, if he plans to engage in cargo transportation, then an elite Mercedes will be useless to him.
Therefore, before you buy a property, you need to decide on the purpose of the purchase and the type of property you are going to purchase - an apartment, a mansion, land, office or retail space. After you have determined these points for yourself, you should think about the goal that you are pursuing with this investment.
Many of the investors who invest in overseas property just try to protect them from inflation. In this case, attention should be paid to the stability of the local currency in the country, as well as to the economic and political stability in the state, as this can significantly affect the future trends in the real estate market of this state.
Some investors, buying real estate in foreign countries, provide for themselves a “emergency exit”, which they can use to live at any time, especially if something goes wrong. Such options are often considered by big businessmen in case of possible raider seizure of their business or under pressure from the authorities. In this case, choosing a country in which real estate will be purchased, you should be guided by the existence of a contract on mutual issue with the Russian Federation.
Some investors consider the acquisition of real estate (both on the territory of Russia and in the territory of other states) only as a means of investment and no more. Their choice is based on the liquidity of the market in the region, as well as the ease of selling the property when favorable conditions arise.
There are also such purchasers of real estate abroad, whose purpose is something like a villa by the sea or a holiday house, for recreation with family or friends. For this category, the investment features of this region are not important, and they base their choice on the climate, comfort associated with staying in the area, as well as transport accessibility and a number of other parameters.
Real estate abroad can also be purchased in order to obtain a residence permit in the chosen state, or even to obtain citizenship. In this case, it is necessary to understand in advance how the legislation of the selected country meets the needs of the acquirer. Very important factors that you should definitely pay attention to when choosing a potential country of residence are attitudes towards foreigners, cultural characteristics, various social issues. All these are important enough factors that should not be ignored.
Is it worth buying property abroad? Some acquire real estate abroad in order to further lease it. Guided by such motives for the beginnings, it is necessary to compare the cost of real estate with the cost of its rent, while taking into account the tax legislation of the country, and also to study various factors that affect the cost of rent (for example, seasonality).
Buying real estate both in Russia and abroad, it is worth paying special attention to the risks. As practice shows, the most risky transactions take place in our country,therefore, if you are faced with buying or selling in our country, then you will know which points you should pay attention to, since unfortunately, there are scammers abroad who want to profit at your expense.
In order to make the right choice about the country and the firm - the intermediary, you should first look for help on the Internet and read reviews, and better to ask from friends who have recently purchased property abroad.
Is it easy to buy an apartment in Germany?
Germany is one of the most predictable and stable European real estate markets today. Confirmation of this is the fact that the cost of housing here is growing by no more than 3-5% per year.
By resorting to the help of various real estate agencies and real estate agencies, you can quickly find profitable and interesting options for investing funds. Two-room renovated apartments twenty minutes from Leipzig and up to 50 square meters can be purchased for only 15,000 euros. However, residents of Russia are rather reluctant to invest their money in real estate located in Germany.
Is it worth buying property abroad?
Is it easy to buy an apartment in Germany? The indiscretion of investing funds in German real estate by foreign investors, according to numerous consultants in this area, is vain and pointless. This can be explained by the fact that in the next two to three years, real estate prices in this country will increase dramatically and this will happen on the example of the nearest states located in the neighborhood of Germany, which put up higher prices for apartments, houses, and other real estate. For example, the following figures: the cost of one square meter of housing on average is in Prague - the capital of the Czech Republic - 2000 euros. It is self-evident that a more remote location from the capital of the country or the city center entails a significant reduction in the cost of the facility. In the very center of Berlin, a square meter of apartment will be offered to you for no less than 3,000 euros per square meter. Two-bedroom apartment with an area of 150 sq.m. will cost about 500 000 euros. The view from the window of such an apartment can be simply magnificent (for example, the windows can overlook the famous landmark of the city - the Brandenburg Gate).
The average price per square meter in one of the most historic and culturally attractive regions of Germany - Munich, is about 2,500 euros. In the center of the price will rise to 5 - 6 thousand euros per square meter. Good apartments in the center of Munich cost the buyer 1 million euros, and in the suburbs many times less - just around one hundred and fifty thousand.
Is it easy to buy an apartment in Germany? According to the rules in force in Germany, the purchase of housing for the local population and for foreigners is carried out according to practically the same rules, and the process for foreigners is even easier for attracting investments from abroad.
The main difficulty for everyone who wants to buy real estate in this country is the issue of a visa or obtaining permission to enter and stay in the country for a long time. Residents of the countries of the European Union with the solution of this issue is much easier.
Investment flows from foreign countries to Germany rise by twenty to thirty percent annually. Increasingly, representatives of the countries of Russia and the Czech Republic express a desire to acquire real estate in Germany.Most often these are all kinds of businessmen who have their own business in Germany. The quality of education in this country is increasing every year, so an increasing number of apartments and houses are purchased by parents for prospective students who want to get an education in Germany.
All stages of the procedure of buying and selling real estate do not take a long time - only two - three months (for comparison, in the Czech Republic and Austria, the preparation of such documents and the passage of this procedure takes about a year). Almost all the worries about processing the necessary documents for the acquisition of real estate are within the jurisdiction of the nearest territorial notary. His task is to open a bank account, prepare a contract, as well as his jurisdiction includes control over prepayments and imposing a ban on the sale of this property until the completion of the last stage of the purchase-sale contract.
The legislation also provides for compulsory payments that will need to be paid to the new owner of the acquired real estate.This is a tax in the amount of 3.5 percent of the value of the property and a notary fee of up to 2 percent of the same amount.
If intermediaries (real estate agencies, realtors) took part in the purchase process, from 3.5 to 7.4 percent of the total value of the contract for the provision of services is additionally paid.
Is it easy to buy an apartment in Germany? A feature of Germany, distinguishing it from other countries of the European Union, is its land, which is fairly easy to buy and sell. The procedure for making such an acquisition is not complicated by any additional requirements and the cost of land plots is relatively low compared to other countries of the European Union. For example, one hundred square meters in the center of Berlin can be purchased for 100,000 euros, in another area of the capital the cost will be about 11,000 euros, and on the outskirts it will be up to 2,000 euros.
For the convenience of investors, a single property register Grundbuch has been created in Germany to select the real estate itself, which contains all the necessary information that is of interest to potential buyers. This database contains information about the price of the object, its area, information about the current owners, etc.
German banks today offer mortgage loans at a favorable rate - from 4% per annum, but using such services of banks for foreigners is a very difficult and almost impossible task.
The only way to do this is to provide a certificate of the amount of your income. Also, you must already have real estate in Germany, which will act as a pledge on this loan.
It should be borne in mind that the import of cash currency in Germany is strictly regulated and amounts to a maximum of 10,000 euros. If to transfer money by transfer, the amount of commission is 2–3% of the total amount.
To make an advance payment for an apartment or house, experts advise you to use a tourist or guest visa that will allow you to enter Germany. A competently drawn up and certified real estate purchase agreement allows you to come to Germany freely throughout the year.