Property Details
Munich, Germany
Retail unit on the ground floor of the building.
Description
The total area of the shop is 580 m².
The area on the ground floor is 420 m².
The area of the basement floor is 160 m².
The length of the facade is 12 m.
Financial performance
Absolute annual income is 185,500 €.
The current yield of 5.3%.
Loan
It is possible to obtain bank loan for 60% of the value of the project at 1.75% per annum.
Tenants
The tenant of the unit is a clothing store.
The lease agreement is valid until 2022 and includes an extension option for 5 years.
Transaction costs
Notary (state registration) is 1.5 – 2%.
Acquisition tax is 3,5%.
The broker’s fee of 6%.
Location and nearby infrastructure
The building is located in 15 minutes drive from the city center. All amenities and public transport stops are situated in a close vicinity of the property.
- Asking Price €3.500.000
- Rental Yield 5,3%
- Contract 5 Years
- Area 580 sqm
- Building Age 14 Years
- Renovation None
Location
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Frequently Asked Questions
Can foreigners buy property in Germany?
Yes, there are no restrictions on foreigners buying property in Germany. Both EU and non-EU citizens can freely purchase residential and commercial real estate.
What is the process of buying property in Germany?
The process includes finding a suitable property, signing a purchase agreement, paying a deposit, and finalizing the transaction in the presence of a notary, who will officially transfer ownership. A notary is required by law in Germany for real estate transactions.
What additional costs should I expect when buying property in Germany?
In addition to the property price, buyers should budget for around 7-10% in additional costs, including 3.5-6.5% property transfer tax (depending on the federal state), notary fees (around 1.5-2%), registration fees, and real estate agent commissions (if applicable, typically 3-6%).
Can I get a mortgage as a foreigner in Germany?
Yes, many banks in Germany offer mortgages to foreigners, but the terms and conditions depend on your financial situation and residency status. Typically, a down payment of 20-30% is required for non-resident buyers.
Are there any taxes I need to consider when buying property in Germany?
In addition to the property transfer tax, if you plan to rent out the property, rental income will be subject to German income tax. If you sell the property within 10 years of purchase and make a profit, capital gains tax may apply.