Even though home ownership rates in Germany are relatively low, with around 52% of the population opting for rental accommodation, the stability of the property market makes it an attractive investment choice. Before you can even start looking for a house, however, there are some important things to consider.
Why buy a house in Germany?
If you are torn between buying and renting a house in Germany, consider the following points:
- Owning your own home gives you a sense of stability and security.
- Homeowners have unlimited control over their property and are free to choose their utility providers, make structural changes, redecorate and have pets.
- Buying a home is a sound financial investment, especially if you have unused capital sitting in a bank account, where it is unlikely to increase in value.
- Germany, in particular, is a good place to buy, with low interest rates on mortgages (usually 1-2%) and a very stable property market.
Property buying checklist
Buying a property is one of the biggest financial decisions you’ll ever make, so ensure that you are fully prepared by doing your research. If you aren’t quite sure where to start, we’ve put together a handy checklist of various points you should consider before buying a house in Germany.
Taxes & Costs for homebuyers
Inevitably, buying a property isn’t simply a matter of taking out a mortgage and putting an offer on your dream home. There are several other property taxes and fees involved. Avoid the unpleasant surprise of unforeseen costs by learning what to expect.
Mortgages in Germany
Most people buying a house will need a mortgage. What are the specific requirements in Germany? What types of mortgages are available and what is the process for getting one? How can a mortgage advisor or a financial advisor help? Learn more in our guide to German mortgages for expats.
Buy-to-let properties in Germany
There is no restriction on foreigners buying property in Germany, no matter whether they live in Germany or elsewhere. You can, therefore, buy property as a non-resident with the expressed purpose of renting it out, or you can choose to rent out your own home if you move away from Germany. While rental properties can be a good source of income for homeowners, rental contracts in Germany are pro-tenant, meaning that landlords have strict obligations towards their renters.
Allowances & Subsidies
Buying a home can be expensive. For those who are worried about saddling themselves with unaffordable costs, the German government has made a range of subsidies, loans and allowances available. This includes help with the cost of purchasing or building a new home, making your home more environmentally-friendly, or buying your first home as a family in Germany.