Find our favorites in preview and our real estate advices on our networks
Find our favorites in preview and our real estate advices on our networks
In der Ausgabe Nr.465 (19.02.2016) gibt die französische Wochenzeitschrift „Le Figaro Magazine" einen Einblick in die Vermietung als Investition in Frankreich. Die Lage hat sich für Investoren verschlechtert: die Rendite einer vermieteten Wohnung in Paris ist so niedrig wie nie. Dies ist eine Folge der sogenannten „Loi Alur“, ein Gesetzespaket, das unter anderem eine Beschränkung der Miete in manchen Städten Frankreichs vorsieht.
Französische Investoren, die eine höhere Rendite wollen, müssen jetzt neue Wege gehen: entweder in anderen Städten der eigenen Heimat investieren, oder im Ausland ihr Glück versuchen. Die Journalistin Colette Sabarly hat David Nguyen, Mitgründer der ADEN Immo GmbH, nach den Vorteilen einer vermieteten Wohnung in Berlin als Kapitalanlage gefragt.
„In Berlin ist die durchschnittliche Rendite von 3,6% bis 3,8% gerade nicht sensationell, doch man kann mit einer Gebäudeabschreibung in Höhe von 2,5% vierzig Jahre lang rechnen. Hinzu kommt, dass der Gewinn aus dem Verkauf einer Immobilie 10 Jahre nach der Anschaffung [in Deutschland] nicht versteuert wird. [Bei einer in Deutschland vermieteten Wohnung] werden auch keine Sozialabgaben von der Rendite abgezogen.“
Laut der Journalistin überzeugen diese Argumente mehr und mehr französische Investoren, eine Wohnung in Berlin als Kapitalanlage zu kaufen. Der Berliner Immobilienmarkt zeigt auch eine hohe Wachstumsrate, die einen vorteilhaften Gewinn bei dem Verkauf verspricht.
Berlin is not “the poor but sexy city” anymore, as the former mayor, Klaus Wowereit, said. A dynamic growth has been set up. The real estate prices rose by 10% last year. “All indicators plan that the price increase will keep going: 15 000 accommodations are missing per year” and the new law on the rent regulation system, which has come into force on June 1st, does not seem to stop this market pressure. It appears to be even “counterproductive”, Arnaud Schott noticed. “I get the impression that everything remains the same as before with just the difference that there are less available apartments on the market”.
What is the state of the real estate market in Berlin?
The Berlin real estate market is very attractive today, since prices are really low compared to those applied in other European capitals and also to those applied in other German cities like Munich or Hamburg. Our market has kept rising for six years now and probably will not stop increasing, because demand is currently greater than supply. […]
Why did you set up a Franco-German real estate agency specialized in Berlin’s market?
[…] At that time (in 2008), we observed that French people who wanted to buy [in Berlin] found themselves in difficulty, as the sale process is different. […] The language is also a barrier. Therefore, we set up ADEN Immo so that buying in Berlin would be as simple as in France. Our team is bilingual which makes the dialogue easier. However, more than 50% of our customers are German. We also created the concept of real estate agency since there is practically no real estate agency in streets in Germany.
You can find the whole French article in the magazine Hebdo-BOURSE PLUS number 804, published on July 24th 201, or online with the following link: http://www.hebdobourseplus.com/hebdo-bourse-plus_la-vie-de-l-immobilier_111_804.html
More and more French people move to Berlin and “an increasing number turns to Berlin to invest in rented apartments”. At ADEN Immo, “the investors represent 60 to 70% of the French customers from now on”. Those see in Berlin low prices per square meter compared to those applied in other European cities, as well as the opportunity to make profit. “Real estate prices rose by 10% during the last year”. Moreover, although the rental yield remains low, it does not put investors off since the unpaid rents remain unusual and because finding a tenant is easy. Finally French people are also lured by the very attractive German tax law. David Nguyen maintains: “80% of ADEN Immo’s customers pay no tax at all”. Thus, this craze enables ADEN Immo to “close around fifty red, white and blue contracts every year”. Will you be one of them?
While in France, “the hopes of an additional value at the resale” remain hypothetical “and the rental yield limited by the system of taxation makes buying less attractive, in Germany the market keeps attracting investors.
In fact, the prices are still 15% to 20% underestimated and are only slowly reaching the price levels of other European metropoles. The inflation of the real estate market has led the German government to introduce a rent regulation system. However, experts wonder about its efficiency in the future. “So, prices and rents should keep rising. Especially in Berlin, where the vacation rate is under 1,8 %”. Furthermore, the tenant is not secured in case of unpaid rents in Germany and the “German-French tax convention benefits especially the French investors.” Therefore, an investment in Germany is very profitable. Please note that you can find financial means easily as in France, where you have to provide existing asset in France as guarantees, as in Germany, where a loan can be at 50% of the purchasing price.
While the “loi Alur” is controversial in France, in Berlin, the rental control of already existing leases was introduced in the 70’s. The federal government recently changed the law, which limits more owners for the new location. However Berlin continues to attract always more investors. Indeed, the estate price and the cost of living remain quite low compared to the other European cities. The unemployment rate has also fallen since 2005. Moreover “The taxation is a good reason to invest in Berlin since it rests on the value rental thanks to the writing-off of the good and a tax exemption for the profit after having the good for 10 years”. Berlin always captivates more and more people and is now the 4th European urban areas thanks to its positive migration.
The German property market is atypical with its low housing prices and contributes to its very competitive economy. While the property prices rose more than 100% during the first ten years in France and the UK, this increase was only of 10% in the same period in Germany. First of all it can be explained by the fact that the German economy is not centralized and is distributed on seven big cities. Therefore the pressure of housing demand is dispersed on the whole country. Furthermore, “Germany developed a “tenant mentality” as the quality of the goods is the same for the acquisition and location, and since the rent cost was ridiculous during many years. This mentality is stimulated by a high stability of hosing prices.” “Moreover, the federal state did not undertake anything to develop a “Germany of owners”. Finally, the low birth rate and the possibility to build new accommodations should limit the rise of property prices in the future.
The topic? “First-time buyers who have difficulty to find a dwelling in Paris or Lyon and turn to other cities in Europe, such as the German capital. More and more investors, but also retirees come to Berlin. Borrow in Paris? Never. Into debt in Berlin, why not?”
"Because prices here, with € 2,600 / m², are three times lower than in Paris and because a large development potential exists in Berlin, says Arnaud Schott, one of the directors. The tax advantages are also interesting: a repayment of 2.5% of the construction value of the property per year during 40 years, the taxation of the rental income in Germany … This country can serve as a safe haven in times of crisis.”
Why are they so waiting for? Car this step!
And also in this area the French are not particularly happy: Thanks to Berlins uprising real estate prices Germany wins the duel between the two real estate markets… In this context ADEN Immo is quoted as an expert in the Berlin property market: "Even when buying, Berlins housing prices are just one third of the prices in Paris". "The average price in berlin is € 2,800 / m², says David Nguyen, associate of ADEN Immo, an agency company specializing in Berlin real estate."
Yes, Berlin is worth it!
The m² is a gift there
The intended Act Duflot rent restriction, which will be introduced in the Ile-de-France region, in fall, is largely inspired by the German „Mietspiegel" system. In every city and district a comparative rent, which sets a tariff for each new lease exists. This system allows a more moderate rise in rents to control the market… the prices are only half as the value as in France. But it also has an advantage in terms of competitiveness, since the companies are not required to follow the inflation of wage level to the real estate prices, to enable their employees to pay a flat. A property for sale in Berlin is "three times cheaper than in Paris" because the average price is 2800 €/m², says David Nguyen, associate of Aden Immo, a real estate agency that specializes on the housing market in Berlin. In popular areas such as Moabit it is possible to find quality real estate for 2000 or 2500 € / m². However Berlin’s real estate market does not embodies the rest of Germany. Munich and Hamburg are much more expensive and are about prices are at 5,000 to 6,000 € / m², depending on the district.
Introducing Alur law as a threat to rent increases, Le Particulier Immobilier, a monthly magazine focused on in-depth articles on the real estate sector, presents this government measure which will be implemented by the end of 2014. Supposed to manage the imbalance between supply and demand in urban areas of over 50 000 inhabitants, Alur law concerns equally bare rentals, furnished rentals or flat-sharing rentals. “It is based on the establishment of reference rents, which are themselves determined by local observatories of the rental market. New yardstick, the benchmark rent plus 20% becomes the yellow line to the landlord.”
A similar arrangement exists in Germany: the Mietspiegel (rent index). Nevertheless, the differences are extreme and the new German leases are not affected by this measure.
The opinion of Arnaud Schott (associate of ADEN Immo in Berlin) … about the german system
The French system of rent limitation is strongly geared to the German example. However, the system of rent limitation alone does not explain the balance envied by the French: a decreasing demographics, a large housing stock and the absence of major cities, creating a similarly wide appeal, such as Paris, contribute to the moderation of inflation in Germany. And in spite of the German system of rent index, Berlin, the city that knew no tense rental situation until a few years ago, saw the significantly increasing rents, while more and more new residents have moved.
In Germany, the rent limitation is not bound by any official rule, which means that each owner or tenant may lay down a "reasonable” amount of rent of his object by dragging the website of the local authority for advice. In contrast to the French rental oversight bodies, the German observatories have a luxury catalog of criteria to refine the calculation, such as the situation of the district, or the equipment level of the building and the apartment. The French have only the criteria that take into account such as the number of rooms and the date of construction of the building. The tenant may ask a judge if the by him accepted rent exceeds the limit by more than 20% of the rents of comparable properties. Not infrequently, they argue against the tenant – if the excess is not more than a span of 30 to 40%, that he has signed the contract freely and has to bear the consequences of this agreement. If there isn’t any index clause in the lease available, the owner may request a rent increase up to 15% over a period of three years (but not earlier than one year after completion of the contract and not later than every 18 months).
The introduction of the rent index had certainly a positive effect, since the danger of questioning of high rents meant that the lessors had to moderate their claims. Similarly, thereby inflation was reduced. Nevertheless, we can’t ignore the cultural factor: a lack of antagonism and the desire of balance in the owner-tenant relationship, which are more available in Germany than in France.
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