The reports are true; Berlin is currently one of the safest countries in the world to make a property investment, but a new report also hints at it being one of the best, writes David Stanley Redfern's Liam Bailey.
According to a major study into the Berlin housing market in the first quarter of 2008, rental rates are growing in every district in the city. It is 50/50; in 6 of the 12 districts rental rate growth is accelerating, and in the other 6 it is slowing, but in none are rents bottoming out or falling.
In the same report last year, rental rate growth was accelerating in only three districts, Spandau, Charlottenburg-Wilmersdorf, and Treptow-Köpenick, in all the rest rents were either bottoming out or falling.
In Spandau, which displayed the fastest growing rental rates in last year's report, rental rate growth has begun to slow according to the recent report, but in the other two districts that saw accelerating rental rate growth last year -- Charlottenburg-Wilmersdorf and Treptow-Köpenick -- rental rate growth is still accelerating.
Mitte and Neukölln, two districts that saw falling rental rates this time last year, along with Pankow and Steglitz-Zehlendorf, that both saw rental rates bottoming out last year, have joined Charlottenburg-Wilmersdorf and Treptow-Köpenick in the rental rate accelerating bracket in this year's report.
The fact that 5 of the 6 districts now seeing rental rate growth slowing, were in the rental rates bottoming out, or rental rates falling brackets in the report this time last year, means that they must have seen accelerated growth at some time over the past year. This shows that Berlin rental rates have been on an upward trend for the past year.
Germany's government is strict about rental rate rises in Berlin. It has to be, to avoid people being priced onto the streets because of the large portion of Berlin's population forced to live in rented accommodation, because they haven't been able to buy their own home. Landlords are only allowed to raise rental rates when the economy and wages are growing, and even then by no more than 20% in three years. Berlin rental growth is so strong now because the economy is at one of its strongest points.
The extremely large proportion of Berlin residents either forced or choosing to live in rented accommodation (82%) gives Berlin one of the strongest residential rental markets in the world, but government control means residential tenancies barely achieve more than a five percent yield.
The current unprecedented level of economic growth, and the fact that it is largely fuelled by growth in the export sector, which should see Germany survive a rocky global economy better than most, has brought reports that the government may soon be able to bring new legislation relaxing the strict laws governing rental rises.
For the first time there is hope of achieving higher yields in Berlin, which should really be the case from the solid all year round rental that is so easily achievable. But even without a government relaxation, the growth in Berlin rental rates without government help, the aforementioned stability of Germany's economy and the high likelihood of it best weathering the global economic storm, is turning Berlin into one of the world's most popular destinations for a property investment.
**Liam Bailey is head of international research for David Stanley Redfern Ltd and is frequently quoted by national and international magazines and newspapers.
Showing posts with label overseas. Show all posts
Showing posts with label overseas. Show all posts
Monday, 14 April 2008
Friday, 4 April 2008
David Stanley Redfern Expands German Operation
Germany was the biggest climber in A Place in the Sun's annual top-20 chart of the top investment destinations, which is based on a survey of visitors to their road-shows. Germany climbed to number 19 on the chart up by a whopping ten places from 29 last year, the only two other countries on the chart that climbed anywhere near as much were Canada and the U.S.A, climbing 7 and 6 places respectively.
It is a fact most people eyeing an investment in Germany are talking about an apartment in Berlin, because of Berlin's strong demand for rental accommodation, giving the potential for extremely high and reliable net yields. David Stanley Redfern Ltd have an excellent portfolio of Berlin apartments.
However Germany as a whole has an incredibly strong economy, fortified by its level of exports. And other places are beginning to show signs of economic growth. This is a part of the reason for David Stanley Redfern's opening a German office in Mitte Berlin. Partly to expedite transactions in Berlin and facilitation of inspection trips, but also as a base of operations for a team of sourcers, who are currently scouring Germany to find and make available to our clients the freshest and best investment opportunities in Germany.
Alongside the new office will be a new website especially for Germany. When the site is first launched it will carry DSR's full Berlin portfolio, as well as an information section on each Berlin district, strengths, weaknesses and any pertinent information on the buying process in each district.
As DSR take on properties in other regions, each will get their own space in the information section, containing all the above as well as what attracted us to take on property there. So, the information section will be a growing force, constantly evolving as facts on the ground change, and constantly growing into one of the most complete sources of information about property investment in Germany on the net.
Find out more about German investment property at: http://www.davidstanleyredfern.de
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
It is a fact most people eyeing an investment in Germany are talking about an apartment in Berlin, because of Berlin's strong demand for rental accommodation, giving the potential for extremely high and reliable net yields. David Stanley Redfern Ltd have an excellent portfolio of Berlin apartments.
However Germany as a whole has an incredibly strong economy, fortified by its level of exports. And other places are beginning to show signs of economic growth. This is a part of the reason for David Stanley Redfern's opening a German office in Mitte Berlin. Partly to expedite transactions in Berlin and facilitation of inspection trips, but also as a base of operations for a team of sourcers, who are currently scouring Germany to find and make available to our clients the freshest and best investment opportunities in Germany.
Alongside the new office will be a new website especially for Germany. When the site is first launched it will carry DSR's full Berlin portfolio, as well as an information section on each Berlin district, strengths, weaknesses and any pertinent information on the buying process in each district.
As DSR take on properties in other regions, each will get their own space in the information section, containing all the above as well as what attracted us to take on property there. So, the information section will be a growing force, constantly evolving as facts on the ground change, and constantly growing into one of the most complete sources of information about property investment in Germany on the net.
Find out more about German investment property at: http://www.davidstanleyredfern.de
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
Tuesday, 25 March 2008
David Stanley Redfern Opens Berlin Office
So full of enthusiasm about the underestimated established Berlin property market, David Stanley Redfern Ltd have opened a new office in Mitte Berlin, and employed the necessary staff to run the office. Berlin property is one of DSR's best sellers, and the new office is to make it easier to source new developments and partners, as well as making it easier to arrange inspection trips. The office officially opens March 12 2008.
David Stanley Redfern Ltd are widely revered as investment specialists, from top level down their staff are regarded as experts in the field of overseas property investment. According to David Stanley Redfern's Head of International Research Liam Bailey, the whole team feels very strongly about the strength of Berlin:
"We are all booming and brimming with excitement about the new emerging markets, and there is little doubt that if you're in the market to turn a quick profit, hoping to nip in and out of overseas property investment in a few years with a sizeable back-pocket bulge then the emerging markets are probably your best bet. But if you're in it for the long haul, want to put something past for your retirement and/or your kids future, and have been scared by recent economic events like pension funds losing money, then a property investment in an established market is perhaps your best bet, and Berlin is one of the best among them -- the best for some people."
Liam refers to people who are looking for a solid rental income as well as capital appreciation. "For long term investors who want to start making money right away, and continue earning a stable rental income, as well as being safe in the knowledge that their property's value will grow sustainably, Berlin is the best place for them to buy in. The demand for rented accommodation far outweighs the supply, giving Berlin the strongest residential rental market in Europe."
There are many opportunities in Berlin to buy tenanted apartments; these instant-earners provide an excellent opportunity to approach a bank for buy-to-let finance. Buy-to-let finance is usually based on the bank's estimate of the property's rental yield, which often means only a low percentage of the value can be raised this way, often no more than 60% Loan to Value. If you have a tenant and a contract in place, the fixed rental yield may allow you to seek a higher percentage of buy-to-let finance.
The new Berlin office will excellently complement David Stanley Redfern's industry leading range of Berlin property and financial services, most notably DSR's deal with a major German bank allowing them to offer 70%LTV mortgages on their Berlin properties, and independent financial advice with a certified mortgage planner. The new level of involvement in Berlin's property market is already paying dividends, DSR's ability to offer 70% LTV mortgages in Berlin already makes them one of the strongest in the industry, but on one of their developments, Wilhelmshavener Strasse, DSR are now able to offer 75% LTV mortgages on one and two bedroom apartments -- a first for Berlin from David Stanley Redfern Ltd.
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
David Stanley Redfern Ltd are widely revered as investment specialists, from top level down their staff are regarded as experts in the field of overseas property investment. According to David Stanley Redfern's Head of International Research Liam Bailey, the whole team feels very strongly about the strength of Berlin:
"We are all booming and brimming with excitement about the new emerging markets, and there is little doubt that if you're in the market to turn a quick profit, hoping to nip in and out of overseas property investment in a few years with a sizeable back-pocket bulge then the emerging markets are probably your best bet. But if you're in it for the long haul, want to put something past for your retirement and/or your kids future, and have been scared by recent economic events like pension funds losing money, then a property investment in an established market is perhaps your best bet, and Berlin is one of the best among them -- the best for some people."
Liam refers to people who are looking for a solid rental income as well as capital appreciation. "For long term investors who want to start making money right away, and continue earning a stable rental income, as well as being safe in the knowledge that their property's value will grow sustainably, Berlin is the best place for them to buy in. The demand for rented accommodation far outweighs the supply, giving Berlin the strongest residential rental market in Europe."
There are many opportunities in Berlin to buy tenanted apartments; these instant-earners provide an excellent opportunity to approach a bank for buy-to-let finance. Buy-to-let finance is usually based on the bank's estimate of the property's rental yield, which often means only a low percentage of the value can be raised this way, often no more than 60% Loan to Value. If you have a tenant and a contract in place, the fixed rental yield may allow you to seek a higher percentage of buy-to-let finance.
The new Berlin office will excellently complement David Stanley Redfern's industry leading range of Berlin property and financial services, most notably DSR's deal with a major German bank allowing them to offer 70%LTV mortgages on their Berlin properties, and independent financial advice with a certified mortgage planner. The new level of involvement in Berlin's property market is already paying dividends, DSR's ability to offer 70% LTV mortgages in Berlin already makes them one of the strongest in the industry, but on one of their developments, Wilhelmshavener Strasse, DSR are now able to offer 75% LTV mortgages on one and two bedroom apartments -- a first for Berlin from David Stanley Redfern Ltd.
About David Stanley Redfern
David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.
Media enquiries should be directed to Liam Bailey: media@davidstanleyredfern.com
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