Consultations have been held regarding the following matters with the Commission:
Buying property in Germany is an exciting yet financially complex process, with a range of additional costs, known as Nebenkosten, to consider. These costs typically amount to between 7% and 12% of the property's purchase price.
Among the most significant additional costs are the land transfer tax (Grunderwerbsteuer), which varies by federal state and ranges from 3.5% to 6.5%; notary costs (Notarkosten), which are approximately 1.5% plus VAT; land register fees (Grundbuchkosten), approximately 0.5%; real estate broker commission (Maklergebühren), which can be up to 7% if a broker is involved; and property appraisal fees, around €450.
For instance, purchasing a €250,000 apartment could involve an extra €17,500 to €30,000 in these additional costs. Beyond these purchase-related fees, other ongoing costs such as property tax and maintenance should be expected.
However, digital tools can help manage these costs effectively during the real estate purchase process. These tools provide precise cost calculators and breakdowns, facilitate digital notarization and document management, offer platforms for virtual property viewings and meetings with agents, enable comparison of broker fees and services, track budgets and payments digitally, and even offer access to digital financial advisors or tax consultants.
By leveraging these digital tools, buyers can gain clearer insight into the total investment required and manage all steps of the purchase efficiently, ultimately controlling extra costs more effectively. Furthermore, many aspects of the real estate purchase can be handled digitally, including researching financing options and handling administrative tasks.
It's essential to plan for larger repair, renovation, or maintenance measures on the property from the beginning, as these costs can be substantial. Additionally, financing real estate requires long-term thinking and planning, as an immovable loan often runs over 20 to 30 years. The monthly financial burden of an immovable loan should not be underestimated, with no more than 40% of net household income recommended for housing expenses.
Ideally, equity should cover all acquisition costs and 20% of the purchase price for a lower interest rate surcharge. However, with high house and apartment prices, it may only be possible for a few people to cover 20% of the purchase price with equity. Some banks offer loans that cover 100% or more of the financing, but these loans are often expensive due to lower bank security.
Lastly, it's crucial to remember that longer interest rate fixations (15 years or more) are suitable with current low interest rates. Refinancing an existing construction financing can be done if the interest level has fallen after ten years. For owner-occupied apartments, there is usually a house money that includes costs for garden maintenance, ongoing maintenance costs for the common property, and savings for a common maintenance reserve.
By understanding these costs and utilising digital tools, potential homeowners can navigate the real estate market in Germany more confidently and make informed decisions about their property investments.
- In addition to the real estate broker commission and other purchase-related fees, personal-finance aspects such as long-term thinking and planning for an immovable loan, ensuring equity covers at least 20% of the purchase price for a lower interest rate surcharge, and remembering to account for larger repair, renovation, or maintenance measures, are crucial for effectively investing in real estate.
- Digital tools can help manage these costs and complexities more efficiently, offering features like precise cost calculators, digital notarization, property viewings and meetings with agents, comparison of broker fees, track budgets and payments, and even access to digital financial advisors or tax consultants, making it easier for finances to be controlled more effectively during the real estate purchase process.
