Many Germans dream of owning property abroad. However, the road to the dream house by the sea is fraught with challenges. The language is often still the smallest problem.
There are many reasons for the purchase of a foreign property speak. While in the past only particularly wealthy Germans could show a house abroad, more and more German can realize the dream of the foreign property. Especially with attractive real estate prices and low mortgage interest rates, many normal earners can afford a property abroad. Who would like to buy a foreign real estate, must consider however some important points in the apron, before a sales contract is signed.
Tips for buying property abroad
Tip 1: Test the location of the property
The location is one of the most important purchase criteria for a property. Before buying a vacation home, it is advisable to get to know the region in everyday life. Therefore, a longer vacation is best spent in a rental apartment / vacation home to get to know all the advantages and possible disadvantages in everyday life. Especially in the low season some vacation areas are like extinct.
Also the public transport, the connection to the airport and shopping possibilities should be explored and tested. Also cafes and restaurants in the area should be visited to meet directly possible neighbors. No wonder that many Germans buy houses in Mallorca. The flight time is only a few hours and the climate is pleasantly warm all year round.
Tip 2: Inspection of the building substance by a specialist
In Germany is built with a very high quality standard. Windows, insulation, heating technology, electronics and the building structure should be inspected by a specialist before buying a property abroad. Often houses in Southern Europe are not properly insulated and have only simple window glazing. Mildew and high heating costs can quickly turn a dream house into a nightmare if you live in it all year round.
Tip 3: The financing of a foreign property
Finding financing for a foreign property at a German bank is often very difficult. But there are also in Germany some foreign banks, which certainly finance real estate in their home countries. Alternatively, local banks are often an interesting alternative, as they know the local real estate market well. The involvement of a real estate agent can also create additional opportunities for financing.
Tip 4: Taxes and fees for foreign properties
Basically it is so that real estate taxes accrue in the country at the real estate location. If there is a double taxation agreement with Germany, which is the case in all European member states, then this prevents a second tax burden in the home country of the property owner.
In most cases, the real estate transfer tax is 5%. The further case also still notary and lawyer costs on. If the foreign property is to be rented out, then the rental income must also be taxed.
Tip 5: Rights and obligations in the purchase contract
In Germany land registers for real estate are maintained very thoroughly and correctly, but this is not the case in all countries. A contract of sale for real estate is valid in Spain even without an entry in the land register. Therefore, it is important to seek advice from a local lawyer. Before signing a contract of sale, it must be ensured in any case, what rights they have regarding the use of the property. Also questions concerning rights of way, building restrictions or mortgages must be clarified.