Ruminating on the burgeoning property market in Berlin one cannot but help think that many investors will rush without a sound customized strategy and then wonder what went wrong when returns do not match expectations. Investment strategy for property in Berlin is not like clothes you buy off the rack in high street stores. One size does not fit all and for a strategy to work for you, it should be aligned with your objective. Each investor has a different one when they look for Berlin property for sale.
Consider the different options when you think of Berlin property from an investment perspective. You could invest, hold and then sell off after 10 years to minimize capital gains tax, renting out the property in the meanwhile. You could invest all your capital in one property or leverage equity and avail capital funding from German banks, thus being able to invest in higher priced property or in a number of properties or in a property in prime location that will fetch higher rent to offset loan repayment. You may invest in a second home in Berlin and do that without tax fears since taxes on second homes here are lower than in other EU countries. Most investors rush to prime locations, ignoring peripheries or think that investing in old Berlin apartments is a good deal without considering refurbishing costs. These and other factors should make you sit up and think that it would be better to consult a Berlin realtor and design a strategy before even putting a foot forward. Then you can put it in the right direction.