In its issue from February 19, 2016, the French weekly “Le Figaro Magazine” gives an overview of rental investment in France. There are clouds on the horizon: in Paris, the rental income has decreased due to the application of the “Loi Alur”, a rent regulation law voted in March 2014. The investors are now turning to other markets like French regions or foreign countries to improve their rental income.
Berlin is one of these new directions to explore. The journalist Colette Sabarly asked David Nguyen, co-founder of ADEN Immo, about the benefits of having a rental property in Germany for French investors:
“In Berlin, the rental income fluctuates between 3,6% and 3,8%, which is far from exceptional. However, the investment cost is amortized up to 2,5% during forty years and there is no capital gains tax if you sell your property more than 10 years after buying it in Germany. Also, [as a French investor,] you won’t have to pay social security contributions on your rental income.”
According to the journalist, more and more French investors are seduced by the idea of buying a rental property in Berlin. One can add that Berlin only has a vacancy rate of only 2% and that the demand is increasing due to the demographic growth. Also, the real estate market is growing: you will be sure to make profit when you sell your property.