Real Estate in Germany
Last updated on Mar 04, 2024
Summary: An expat should begin their search for a home to buy in Germany by researching the local real estate market and familiarizing themselves with the different types of properties available. They should also consider their budget and the type of property they are looking for. It is also important to research the local area and amenities available. Foreigners are allowed to purchase property in Germany, however, there are certain restrictions in place. For example, foreigners may not purchase agricultural land or land designated for military use. Houses in Germany typically include amenities such as central heating, double glazing, and modern kitchens and bathrooms. Many homes also have balconies or terraces, and some may include a garden or garage.
How do I find a place to live in Germany?
We asked expats how they chose their neighborhood and found a place to live. They answered:
"When looking for a place to live in Germany, it is important to do your research and select the location that best suits your needs. Start by considering the size and type of property you are looking for: house, apartment, townhouse or shared living space with roommates. Next, familiarize yourself with the local property markets and regions to determine the best area to live in. Once you have identified your preferred area, browse online listings to review available properties and visit open houses to find your ideal home. It is also important to understand the cultural influences, especially related to renters’ rights. Finally, contact a professional real estate agent to help you navigate the process, from making a purchase offer to finalizing your rental agreement," explained one expat living in Germany.
"We were staying with my father-in-law and his wife who had a 1 bedroom apartment, hmm 4 adults, one toddler and 2 cats. We called just about every listed apartment in this area (Mainz/Ingelhiem/Bad Kreuznach) and found this one as soon as possible. We were lucky, this is the first place we looked at, it's a little small but the location and the view are pretty good," said one person in Stromberg.
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What is a typical expat home or apartment like in Germany?
"We live in a 2 bedroom apartment. I think it's pretty small but not too small, I would like one more room for an office. Most of the expats that live here are not from Europe or the states and I've been told it's normal," said one person in Stromberg.
"Typical expat homes and apartments in Germany are modern and comfortable, often with modern and updated amenities such as stainless steel appliances, hardwood floors and balconies. Furniture is typically simple and functional, and many places come equipped with washing machines and dryers. Many homes have an open plan kitchen and living area and perhaps a study or work corner. Homes come in various forms such as individual houses, townhouses, contemporary apartments or loft-style living," said one expat who made the move to Germany.
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What is the average cost of housing in Germany?
If you are thinking about moving to Germany, cost of living in probably a key consideration. Expats commented about the cost of housing:
"The average cost of housing in Germany is generally considered to be relatively high. Prices for rent and purchase tend to depend on the specific location, with larger cities and urban areas typically being more expensive than rural areas. Although rents have been rising in recent years, Germany remains an attractive place for property owners due to the rent control laws. In general, rental prices tend to be higher than in many other countries in Europe," said one person in Germany.
"Housing costs are the same in the cities. In the smaller towns you can find places a lot cheaper than at home. Now a 2 bedroom apartment in CO is between $800 to 900 a month. A house in CO with 6 bedrooms would cost around $2400. However what you save on rent or house payments you spend in utilities and water!!!!!! here," remarked one foreigner who made the move to Hillerse.
Should I buy or rent a home in Germany?
If you have not spent a lot of time in Germany, you should rent before even thinking about buying. We asked expats there about the buy vs. rent decision:
"It all depends on your individual needs and budget, as both buying and renting a home in Germany have pros and cons for different situations. If you plan on staying in Germany for an extended period of time, have the means to purchase a home, and want to build equity, then buying a home may be the best route for you. On the other hand, if you have more temporary plans, need more mobility and flexibility, and have a limited budget, renting may be the best option. Ultimately, the decision is yours, but it is important to carefully consider all the factors before making a decision," said one person in Germany.
"I purchased an apartment over 20 years ago. It is not much different that the process involved in purchasing in the U.S," remarked one foreigner who made the move to Friedrichsdorf.
What do I need to know when buying property in Germany?
When we asked expats what advice they would give a foreigner before buying a property in Germany, they said:
"1. Make sure you have a basic understanding of German law and regulations related to the real estate market. 2. Obtain legal advice from an experienced lawyer in Germany who is familiar with real estate transactions. 3. Consider the location and nature of the property; considering the environment, accessibility and current value of the property. 4. It may be necessary to provide a down payment (Kaution) of up to three months’ rent when leasing a property in Germany. 5. Make sure that you review the terms and conditions of your German contract (Mietvertrag) carefully before signing. 6. Be aware of the cost of taxes and other fees associated with purchasing property in Germany. 7. Research mortgage options, as German mortgages are different from those in many other countries. 8. Ensure that you the complete the necessary steps for acquiring the required permits to construct any additional amenities you may require for the property," explained one person living in Germany.
Are foreigners allowed to own property in Germany?
When we asked expats what advice they would give a foreigner before buying a property in Germany, they said...
"Yes, foreigners are allowed to own property in Germany. Non-EU citizens must obtain a residence permit in order to purchase property in Germany, while EU citizens are allowed to purchase property without a residence permit. However, non-EU citizens may only purchase one property in Germany, and it must be used as their primary residence. Additionally, non-EU citizens must prove that they have sufficient financial resources to purchase the property and to cover their living expenses in Germany," said one foreigner living in Germany.
What appliances are typically included in a rental?
We asked foreigners in Germany what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included:
"Generally, rental properties in Germany come equipped with basic appliances such as a fridge and a dishwasher, as well as a cooker and an oven. A washing machine is also typically provided, though it is not always the case. Furniture is often included as well, such as a dining table and chairs. In some cases, air conditioning may be provided," said one foreigner living in Germany.
Additional Information about Searching for a Home in Germany:
We asked foreigners in Germany what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included...
"Expats can search for homes in Germany by using online real estate portals, such as ImmobilienScout24, to browse listings of available properties. They can also contact local real estate agents to help them find a suitable home. Additionally, expats can search for rental properties on websites such as WG-Gesucht.de, which specializes in shared accommodation. Finally, expats can also look for homes in newspapers and magazines, or by attending open house viewings," explained one person living in Germany.
About the Author
Joshua Wood, LPC is one of the Founders of Digital Nomad Exchange and serves as Co-President of Expat Exchange. Prior to Expat Exchange and Digital Nomad Exchange, Joshua worked for NBC Cable (MSNBC and CNBC Primetime). Joshua has a BA from Syracuse and a Master's in Clinical and Counseling Psychology from Fairleigh Dickinson University. Mr. Wood is also a licensed counselor and psychotherapist.
Some of Joshua's articles include Pros and Cons of Living in Portugal, 10 Best Places to Live in Ireland and Pros and Cons of Living in Uruguay. Connect with Joshua on LinkedIn.
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