Back What to consider when buying real estate as an investment

The very first question that an investor has to ask himself is, can I even afford the purchase and the associated additional costs of a property?

Because in addition to the pure purchase price, there are costs such as real estate transfer tax, notary fees, entry fees in the land register and possibly a brokerage fee for the buyer. These so-called ancillary costs can add up to around 10 percent of the purchase price and should not be underestimated.

Another crucial factor when buying a property is the location. But what is a good location? A well-developed infrastructure and transport connections as well as the condition of the neighboring buildings and the streetscape determine the assessment of the location.
If you have chosen the right location, you should deal with the floor plan of the property. Apartments with a well thought-out room layout are easier to rent.

However, before buying a property, the following documents should be requested and obtained:

  • rental contract
  • field map
  • declaration of division
  • Year
  • ground plan
  • Building specification
  • Land register extract
  • Energy Performance Certificate
  • building insurance certificate
  • Current economic plan
  • Housekeeping
  • Betriebskostenabrechnung
  • Owners meeting minutes for the last 3 years

The bank also needs these documents to finance the property.

After all documents have been successfully checked, the draft purchase contract can be requested from the notary. The notary not only certifies the purchase contract, he also impartially answers the legal questions of the contracting parties. He accompanies the transaction until the buyer is entered in the land register as the owner.

home salesman holding a model house in hand L3X7DTH
by Dagmar Klemig
09 / October / 2019
1 comment
buying property, Purchase contract

Comments

As with any good deal, the profit lies in the purchase. There are also very good investments in middle locations. You can often get better entry-level prices here. In addition, you should take a close look at the property. A good price doesn't say much. A high investment backlog can quickly make the property expensive. Therefore, you should get the advice of experts (experts, property developers, appraisers, etc.). If you invest in a condominium in a community of owners (WEG), you should check it carefully. Legally one enters into a GbR. This means that you are jointly liable. There should be no house money arrears from owners. As a rule, information can be found in the minutes of the owners' meeting of the WEG.

More blog posts

The WEG administrator – the backbone of a condominium community

MWW WEG administrator

It's already late in the evening. The WEG manager is on the way home - exhausted after a day at work, on…

The technical real estate manager - expert for the technical and infrastructural control of your real estate

MWW Blog Job Description Technical Administrator

The Society for Real Estate Research defines the tasks of real estate management as follows: “Property management is the performance-oriented management of a property…

Changes for tenants and property owners: Preview 2023

MWW Outlook 2023

 

Aerial view of small european city with city streets and residential buildings. Katy Wroclawskie panoramic cityscape

The new year has many relevant changes in store for real estate, which we would like to summarize for you as follows:…