How to buy a house in Germany?

Discussion in 'Finance, Property, Law' started by HEART_STOPPER, Jan 20, 2009.

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  1. Is it just a case of rocking up to the bank or is the market a bit different.
    Im after a little advice on how the system works with the mortgages and legal side as I dont want to buy it and be told that German law states this that and the other so any help on this please.
  2. It is a lot different from UK. Standby for lots of legal nausea. The bod who does the paperwork is a notary, not a solicitor. The local court (Amtsgericht) gets involved as they keep records of who owns what. If you buy through an estate agent (Makler) he will charge about 3% of the purchase price. Finally the taxman will send you a begging letter, I think that's about 3% of the purchase price. The notary and Amstgericht will also want their unfair share as well. In rough terms the total will cost you about 10% of the purchase price. The good news for those on the German labour market these costs are tax deductable. I have been through this twice and lived to tell about and am still sane- mostly, but it is more complicated than UK.

    I don't know what the situation is with bank loans at the moment, it used to be that banks threw money at you, something tells me that has changed! Building Societies as we know them do not exist here. It would be a huge advantage if you have a good knowledge of German, the legal documents are horrific.
  3. i Bought in 2007 and the market has changed in the last 2 years,

    haggle like hell, most land prices seem to have fallen by at least 10 euros a square meter, but it could be different where you are looking.

    as Drlligaf says the paperwork is a bind and it all has to be done By a Notar and they will want 3-3.5 %. and the the stamp Duty ( Grunderwerbssteuer ) is a kick in the b*lls i paid 10,500 euros on a 280,000 house.

    but the best advice i can give you, is to reserch a little in energy costs and what is avalible, ie solar, fresh water from your garden to use as your primary source, and for god sakes stay well clear of any house with Oil Heating, the price has settled a little now but last year i would have cost 4500 euros to run the hot water and heating in my house for one year.
  4. Bloody hell, Spanner, that must be a large house! My house is a 4 bed detached house that burns oil and I reckon that my annual heating bill will come in below £800 this year.

  5. Litotes,

    my house isnt the best when i comes to modern day insulation etc and this is something i would have spent more time reserching. to the best of my knowlage if you run on oil then the tank in the keller/outhouse will be roughly calculated to last 12 months, i have 4500 litre tank, and at last years prices equates to about 4500 euros.

    as im still serving there is the possability to get heating fuel tax free providing there is no-one else living at the residence, but due to the current finance climate most firms will not let you order oil with out paying for it on recipt, as so many people have ordered the not paid.
    oh and the area matters as the square meter of land price changes but this info is avalible at the local town hall( Rathaus/Gebäudeamt) its gone down 10 euros a square metre were i am( near to Schloss-Holte Stukenbrock NRW)
    were did you buy yours?
  6. My house is in the south of England.

    I guess it is about 1700 sq ft, IIRC, but I no longer live there! :D

    I have a 1000 litre tank which I pay to be filled twice a year. The last fill was in December last and cost me 47.2p/lt for 900lts.

    I reckon I will pay £800 for this year's heating and hot water. Electricity on top of that.

    The house has 3-400mm of loft insulation and cavity wall insulation.