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Frequently Asked Questions

FAQ for the investor in Berlin

A foreign citizen may apply for mortgage provided he can submit proof of at least 1,400 EUR monthly salary. He will be required to present 3 salary statements or two tax statements, in case he is self employed.

The amount of funding is dependent on the assessment of the property. Usually, it is 50-54% of the value at fixed interest of 3.25% (10 years term) while repayment is 1% of the fund.

Whenever the interest is lower than the return on the income it pays to take a mortgage. In doing so, you actually create leverage and the return on your own capital grows.

Mortgage interest is tax deductible and therefore will be offset against rental income.

The total amount of all additional expenses will be approximately 12.5 – 16% as follows:

6% purchase tax

2.5%-3%-notarization (1.5% notary fee, 1% registration fee,  0.5% managing fee for notary trust account)

1% mortgage broker (if funding requested)

3%-6% real estate brokerage (depending on property)

A tenant holding a standard German rental agreement is protected by law as follows:
1. As long as the tenant meets all his financial obligations (rent, maintenance, authorities etc.) he can stay in the apartment for an unlimited period.
2. Rent may be increased up to 15% within 3 years, up to the maximum in accordance with the  ‘Mietspiegel’ limit.

First a demand notification will be sent to him. In case he will still not meet his obligations and pay his dues within 3 months, a legal action of eviction will be initiated.

The management company is in charge of two areas:
1. Technical management/services – cleaning, maintenance, renovation of the building, insurance of public space and continuous reporting to the home owners.
2.Rent management -locating new tenants, signing the contract, collection of rent and additional costs, overseeing payments to authorities, general care of tenants, controlling rent increase.
To ensure maximum profit it is recommended to choose a company that practices proactive rent management.

‘Sweet Home’ offers its customers full guidance and support, starting from analyzing the customer’s requirements and needs to locate the most adequate property and the most attractive investment package for him.
1. Locating the adequate property in a good location and at a reasonable price.
2. Coordinating and guiding the financing procedure at the mortgage bank through closure.
3. Personal guidance through the notarization process/signing of the contract.
4. Assistance in finding the most attractive funding package for the investor.

Needless to say that we shall gladly sell your property for you. However, it will be for you to decide, whether to handle it on your own or possibly use a local real estate broker.
The buyer’s market in Berlin consists of both, investors and locals, who realized that, due to increasing real estate prices and rents, they have to act quickly and purchase property.

When choosing Berlin as an attractive investment the focus is on capital gain when selling the property rather than profit from rental income. The gap in real estate prices between Berlin and other major German cities such as Munich, Frankfurt and Hamburg is still very big and even bigger compared to European metropolises such as Paris, London and Amsterdam.

This issue should be dealt with in the same nature as you would usually deal with other property. If you usually insure your property/equipment you could definitely acquire a similar insurance in Berlin.

Basically yes.
In general, the management company has to be notified in writing and will arrange the visit with the tenant. Notification of the planned visit should be given at least 2 weeks ahead.
Nevertheless, following possibilities have to be taken into consideration: 

1. The tenant will agree and be present at the agreed date.
2. The tenant will not show up and give a reason for not being able to be there.
3. By the time of the set date – the property has already been sold.
4. The owner has already practiced his visiting rights (up to 4 times a year) – no further visit is possible.

On ‘’ you can compare prices while using Google chrome for translation. You insert the address of the property and get average prices for the respective area. However, since the website does not reflect current prices, you will have to assess the price a bit higher.

The rental agreement shows the day of commencement, the tenant’s name and his date of birth only.

No. You may complete the entire process from beginning to end in the country you reside in. However, we definitely recommend to visit this fascinating city and enjoy it!

In fact , the only authority appointed by the government to perform real-estate deals and request listing of a property in the land register is a public notary. The registration will be processed after signing on the acquisition contract. (notarization)

The money stays in the fund exactly as the money that was there when you purchased the property.

First of all, that’s a reason to celebrate. A new rental agreement means a significant capital gain, at times twice as much in profit. You can look for a new tenant and collect the maximum applicable rent or, if you wish, consider selling the property. Due to shortage in empty apartments its selling price would be about 30% more than that of an occupied apartment.

One option is to report to the management company and let them take care of it. Invoice will be forwarded to the owner. 

In case insurance coverage exists for this type of damage, the insurance will take over.

1. Full service in Hebrew/English/German/Russian, close to home, high accessibility. 

2. Excellent customer service, full guidance throughout the whole purchase process including financing and notarization.

3. In most cases, we charge you 50% less for our broker services than local agents would.

Although you might naturally be curious, truth is that there is little meaning in visiting the property. Let’s assume you visited the apartment and liked it, let’s assume the tenant moves out after 10 years, will it still be in the same condition? Probably not.
At times, a touch up may be necessary or it might even be in a better condition than before. The locals usually take good care of their apartments and sometimes even renovate themselves. Therefore, it is not crucial to visit the apartment. Should you insist,  we will of course arrange for a visit, after notifying the management company and the tenant, taking the local terms/limitations into consideration.

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