Have any of you thought about investing in Germany?The market here has been falling for many years and seems to be at the bottom now .The German economy is going well and the property prices is beginning to appreciate right now. I live in another country but not the US, what would be the best strategy for you and me to go into that market? The goal is to buy as many properties as possible to rent out(people like to rent in Germany).I have been looking at the sub2 strategy maybe that would be the smartest,but I dont know how I could do this. What do you think?
Have you given any thought to exchange rate fluctuations and their impact on both your investment principal and rental income? Consider that you might find a bargain RE property but in three years when you decide to sell the exchange rate could have moved such that you sell at a significant loss. Just another risk you should be aware of in the cross border business. Obviously if you are in a Euro based economy then this is a non-issue.
like alwhile, you must understand your market
having worked and lived in Germany there are a number of things that would would be issues in my mind (this info is based upon 5 yrs. ago).
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financing—they want huge downpayment (40%?) and re-fi is a non-existant concept.
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houses even in “cheap” areas are expensive comapred with the average working person salary.
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large mansions in the former East side can be bought almost for free but have to agree to renovate and take care of.
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every German I have every known to buy a house will completely gut it and remodel. It seems to be a cultural issue. Rehabbing/flipping seems to be a unuseable model there
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Germany has a near zero birth rate/population growth.
You really need to link up with an experience investor who has worked that market and knows do to get good deals done. German gov’t and society is full of bueraucracy.