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Change in the handling of property sales to consumers

For condo sales / purchases there is an important change.

The notary has to ensure that the buyer (consumer) had access to the contractual text 14 days before the signature.
Therefore most notaries and not the seller/broker will (read: has to) send out the contracts them self.
Text of the law in German: Änderung des Beurkundungsgesetzes § 17 Absatz 2a Satz 2 Nummer 2 des Beurkundungsgesetzes vom 28. August 1969 (BGBl. I S. 1513)

Here you can find back round information and argumentation of the politics (Bundestag).



Berlin will increase the land transfer tax from 5,00 to 6,00 % of the purchase price starting 01. Jan. 2014.

All notary contracts signed after 31.12.2013, 12:00 p.m. will be charged the higher tax.
Link to the announcement on the official Berlin site in German.

See the list of costs to acquire property in Berlin, Germany.


tips from a successful investor

photo of Ekkard StreletzkiIn the current issue of German entrepreneurs magazin impulse
constructor and hotel operator Ekkehard Streletzki gives very good insights into his business principles:

“Others say, that the most important thing is location, location, location.
I say, the most important thing is repay, repay, repay !”

And he is right, he decided to open The Estrel Berlin Europe’s largest convention-, entertainment- & hotel-complex, with 1,125 rooms in the Berlin, in the middle of nowhere. Neukoelln was until lately a no-go area for most Berliners.

But because there are just a few hotels in Berlin to host literally thousands of guest,
The Estrel Berlin beats the competition with pure size.

And like other well known investors and business men Ekkhard Streletzki knows that only a few things bring freedom to entrepreneurs and investors:
Real cash flow and the biggest possible equity in the deal.

Location, location, location works for investors that want to secure their wealth,
but if you want to build wealth location, location, location is the wrong strategy.

Location reduces risk but reduced risk always comes along with reduced income (or yield).

To close a deal with minimum equity and to hope for a big capital appreciation is a misleading get-rich-quick-scheme in a new package.

If you think a deal is worth to be sealed, always put as much equity as possible.
If you need a loan, try to minimize the loan from the very beginning.
If you have a loan repay as much as possible.

Hotel Website


Location scouting

We added new locations to our hunting list, and we would like to tell you about it.

Weitlinger Kiez in Lichtenberg, the area around Weitlinger Strasse, named Weitlinger Kiez (link in German)

Kaskelkiez in Lichtenberg, the area around Kaskel Strasse, named Victoriakiez or better know as Kaskelkiez (link in German)

Karlshorst in Lichtenberg, 

Oberschoeneweide in Berlin-Treptow 

Karl-Kunger-Kiez in Alt-Treptow,

on top check our location map link above.




BBC on Living in: Cities known for art and culture

I was interviewed by BBC and a small piece of what I told you can read here:


As the third most-visited European capital after London and Paris, Berlin is still a place where artists come to create their dreams.
The majority of residents in Berlin – nearly 85% – rent, and housing costs have risen more quickly than in other German cities. However, prices are still far lower than in other major Western European cities, including Hamburg, Brussels and Vienna. “There are many advantages to renting,” said Alexander Korte, founder of BerlinInvestment.com, an estate agency specialising in foreign buyers. “The laws are pro-renter and the landlords can’t raise the rent just as they wish.” A 70sqm flat can rent for around 600 euros a month in neighbourhoods such as Kreuzberg or the gentrifying Friedrichschain, while Mitte is seeing rents reach 2,000 euros a month.
But buyers are also flocking to Berlin since apartments and houses are cheap for a major European capital. The property market has seen an increase in residential prices of more than 32% since 2007 and luxury developments and conversions are in demand. The rise in price is fuelled by Spanish, Italian Russian, British and French investors, as well as Germans, who consider Berlin a bargain and want a safe and inexpensive place for their euros. Currently, the average housing price in Berlin is 2,000 euros per square metre.


NY Times discovers hidden pearl in Berlin Real Estate Market

Its is astoundingly how fast and good especially foreign journalist, who seem to live in Berlin, discover new areas that are attractive and or undervalued.
Now NY Times journalist Nick Foster published one of my longtime favourites in the market.
[click to continue…]

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2013 Change in Real Estate Transfer Tax Law in Germany

The transfer of property is subject to German Real Estate Transfer Tax.
Hereby the hight of the transfer tax is between 3,5% and 5% (Berlin) depending on the federal state.

To avoid German real estate transfer tax it was practice to sell shares of a company owning the property (so called share-deal) instead of selling the property it self (so called asset-deal).

Now Germany put a new law (effective on June 7, 2013) to prevent this miss-use and make the German federal tax law more fair.

Here is how the so called RETT-Blockers (RETT stands for Real Estate Transfer Tax) used to work:

Not the property would be transferred but 94% and 6% shares of a company owning the property.

The transfer of shares in real estate-owning companies is in general subject to German Real Estate Transfer Tax if at least 95% of the shares in the company are accumulated or at least 95% of the shares are transferred to new shareholders.

To circumvent this it was use to transfer only 94% of the shares to the new owner and the rest of 6% either stayed with the old owner or were transfer to another entity not equal to the 94% shareholder. However the 6% entity could be owned by the 94% company trough a holding structure.


IVG published Germany Office Market Scoring Report

As the yields in residential markets shrink and the office market seems one possible investment alternative this report might give advise

The IVG Germany Office Market Scoring research report can be found here:



Real Estate Auction Dates (Winter 2012)

Deutsche Grundstücksauktionen (DGA AG)
auction 14.12-15.12.2012
submition: closed
place: abba Berlin Hotel , Lietzenburger Str. 89, 10719 Berlin.

Auktionshaus Karhausen AG
auction 07.12.-08.12.2012
submission: closed
place: im Meistersaal am Borsigturm, Am Borsigturm 11, 13507 Berlin


2012 Berlin Real Estate Conference held in Berlin