Consultations have been held on the following matters by the Commission:
In the bustling German real estate market, it's essential for potential buyers to be well-informed about the costs and processes involved. Here's a breakdown of what you need to know.
When you're ready to purchase a property, remember to factor in additional costs beyond the purchase price. Common expenses typically add up to around 10-15% of the purchase price. These include property transfer tax (Grundwerbsteuer) at roughly 6%, notary fees (Notar) of 1-2%, land registry fees (Grundbucheintrag) of around 0.5%, and real estate agent commission, which can amount to up to about 3.57% (may vary). These fees combined can significantly increase the total cost beyond the listing price.
Fortunately, digital services are making the property buying process more efficient in Germany. Real estate apps and platforms like Immowelt offer a range of features, such as property search with filters and map view, online mortgage calculators, property valuation tools, access to new build projects, and detailed property information. These digital tools help buyers efficiently identify suitable properties, manage searches, and make informed financial decisions. Additionally, online sources and newsletters from estate agents or developers provide early access to listings before they appear on major portals.
When it comes to financing, it's important to consider the long-term financial burden of an immovable loan. The loan installment paid to the bank monthly consists of interest and repayment. Not setting the repayment too low is worthwhile to become debt-free earlier and accumulate less interest over the years. Banks may charge a fee for a long interest rate fixation, which is offset by a higher interest rate. This amortizes if an increase in the interest level is expected after the conclusion of the loan.
It's also crucial to plan for larger repairs, renovations, or maintenance measures on the property. Budgeting at least one euro per square meter of living space per month for maintenance reserves for new buildings is recommended. For older houses, at least two euros per square meter should be calculated.
In owner-occupied apartments, homeowners' association fees are usually added, covering costs such as garden maintenance, ongoing maintenance costs for the common property, and savings for a joint maintenance reserve.
Remember, when buying a property in Germany, notary and court fees, as well as local real estate agent's commission, are additional costs to consider.
In summary, buyers should budget for about 10-15% extra costs beyond the purchase price, and can benefit from digital real estate platforms that simplify searching, evaluating, and monitoring properties throughout the buying process. Additionally, it's essential to plan for the long-term financial burden of an immovable loan and factor in costs for maintenance and homeowners' association fees.
After taking into account additional costs like property transfer tax, notary fees, land registry fees, and real estate agent commission, ensure your budget accommodates a minimum of 10-15% beyond the purchase price.
When considering financing, aim to make higher loan repayments to pay less interest over time, and factor in costs for maintenance, repairs, renovations, and homeowners' association fees.
