Monday, March 28, 2016

Housing market: German real estate boom crack magic mark – THE WORLD

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 crack 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.

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 cities therefore continue to count 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 any more.”



farmland has become significantly more expensive

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 arable land but might be achieved from the perspective of the working group in the West. In East Germany more ups are possible.

In view of rising house prices many owners come up with the idea to sell. Is this the right time? Or should sell willing to wait if the boom continues

It depends on the situation on: 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.

Also in the commuter belt, 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

pull

These so-called swarm cities many young people at that desperately need homes, the rents will rise. This will “also fueling the rise in purchase prices 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 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 and

Due to the historically low interest rates, good employment situation and on. 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 more under control, 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 brings problems

Numbers 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?

“I Will engaging in world travel, car, pension, it is logical, now for sale “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, in stocks to invest in, 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 town to trade.

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 usually significantly higher interest rates are in old contracts, than are currently customary in the market, this type can be expensive damages. Therefore fast substantial sums come together.



The tax office collected with

“financial test” expert Sahr expects that at one example before: 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 may make unscheduled or special notice periods to cushion the costly, early exit. The prepayment penalty deny property owners usually from the sale – so they do not end the entire sum to the account

In addition to the bank often collected the tax office with.. “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 speculation tax depends 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 .

LikeTweet

No comments:

Post a Comment