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Welcome and Happy New Year!
I’d like to welcome you to the first property update of 2011 from ProVenture, especially if this is your first issue. We hope you find this short newsletter of interest and that it keeps you up-to-date with the property investment scene in Germany.
Please scroll down to read the newsletter, if you have any questions regarding investment properties in Germany, please do not hesitate to get in touch.
enquiry@proventureproperty.com
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Base Level Rents in Leipzig Set to Increase
An effective floor to the market in any German city is provided by the level of rent the government pays to tenants in receipt of unemployment or income support benefit. It has been interesting to note that the level of this payment, 3.85 Eur per sqm in the usual case, has remained for the past 10 years unchanged. Leipzig has one of the lowest levels of rental payments by the government, making it look a little odd. For example, the nearby and less-prosperous city of Halle has a level some 13% higher at 4.35 Eur per sqm. The Leipzig council have now released plans to hike the level of payments to a more normal rate of around 4.5 Eur per sqm
in the coming years, around a 15% increase. This will have a dramatic effect on the rental market across the city. Please click here to read more on this exciting development.
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Does the Euro Crisis Threaten Germany’s Economic Miracle?
In 2010, Germany’s economy grew by almost 4 percent, or faster than it had at any time in the last 20 years. Over 40 million Germans are currently working, more than ever before. There has also been a corresponding drop in unemployment, with the figure even dipping below the much-touted 3 million target a few months back. The success has even led some politicians to become somewhat overconfident. Can the effect of the ‘poorer’ Euro-Zone countries put a stop to the German ‘vorsprung dirk technic’ Steam Train? Click to read more.
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 LTV Percentages in Leipzig Look Set to Increase
Good news from the bank this week, after cutting the LTV offered to International investors to 60% in June 2010, the banks appear happier to lend again. Our most recent mortgage offer for a client was at 72%, so looking good to hopefully get back to the ‘glory days’ of 80% LTV in some areas of the city!
Want to read more on how finance works for foreign investors? click here
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Ifo Business Survey – December 2010
The Ifo Business Climate for industry and trade in Germany has shown renewed improvement in December from an already high level. In the course of the entire year 2010, the business climate index has risen sharply. Following an increase in exports, especially investments have been responsible for the upswing, and the outlook is now even good for consumption. Full Summary
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We are focused on helping you make successful investments in the German property market. Our team has offices in Germany and the UK. We will not only find you the very best German property for sale in Berlin, Leipzig, Dresden and Saxony- we will also assist with the purchase and make sure that your investment property is well managed throughout your term of ownership.
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PV173 – 11 Units in Popular District
PV186 Small Complete Apartment Building