Paul's real estate blog

If only making music is restricted in the house rules, but not other noisy activities, this is not permitted. This is how the district court of Frankfurt am Main ruled (Az. 2-13 S 131/16).

Many municipalities are overwhelmed by the influx of refugees to Germany. They must provide accommodation within a very short time. The initial reception centers are reaching their limits, many shelters have long been full - and in many places there are no longer any public spaces that would be suitable for accommodating refugees.

According to information from FOCUS Online, two federal states have now submitted test applications to the federal government. They want to know whether there is a legal basis for forcibly renting vacant privately owned properties. The information does not indicate which countries are involved.

What is the legal situation?

However, there are some indications that North Rhine-Westphalia and Rhineland-Palatinate in particular are under great pressure. Their heads of government emphasize in interviews that their municipalities are already at the limit. However, both countries did not want to comment on the current situation when asked.

"If there is no other option, the authorities may temporarily confiscate buildings," says Gerold Hape from the Haus & Grund owners' association. This is regulated in the Police and Regulatory Authorities Act. “It refers to homeless people who the municipalities have to provide housing for security reasons.”

In extreme cases, the federal states could also invoke it. "When all options have already been exhausted, that's an option," says Hape. Compensation would be paid to the landlords based on the usual market rents.

“Commitment must not be stifled”

The Haus & Grund owners' association nevertheless categorically rejects the measure. “Offering adequate housing to the many refugees seeking protection in Germany is a major challenge. We want to tackle this together with the municipalities and continue to rely on voluntariness," emphasized Kai Warnecke, Managing Director of Haus & Grund Germany. "This commitment must not be stifled by threatening coercive measures," says Warnecke.

It is unlikely that there will actually be forced rentals and expropriations, although some federal states are examining these possibilities, the press spokesman for the Federal Ministry of the Interior reassured FOCUS Online. The federal government can make more properties available and have set up “a kind of crisis management team”.

The first forced rentals have already taken place

"We are in close contact with the countries," the spokesman continued. At the same time, the federal government is discussing whether it should increase the financial aid of three billion euros promised by the coalition.

However, some cities have already made use of the legal option. In January 2015, a Kolping Society building in Arnsberg was temporarily confiscated to house refugees. In the city of Olpe, a former family hotel was hit. In Berlin, the Senate confiscated the former headquarters of the Berliner Sparkasse on Bundesallee in Wilmersdorf. It is to be used as an initial reception point. In Baden-Württemberg's Main-Tauber district, the district office also took over a barracks building by way of a statutory resolution.

Readers reject compulsory rental

The majority of FOCUS Online readers categorically reject forced rentals and expropriations. Evelyn Bornemann comments: "I don't agree with that. When there are no more shelters, you have to end it and not take in more people.”

Patrick Stöcker writes: “The property was taxed when it was purchased and I still pay real estate transfer tax today. But perhaps the state would like to buy my property from me in order to have the right to decide in the future who will use the property.”

However, there are also readers who view compulsory renting positively: "Actually, this can only be in the interest of the landlord: Your vacant property is brokered and the state pays the rent. Still better than having a tenant who delays paying the rent,” says Peter Müller.

Visit the home page:

http://www.focus.de/immobilien/mieten

The German real estate market is overheated. This is the result of the Immobilien Investment Club (IIC) based in Dresden. According to his evaluations, the purchase prices in many large cities have in some cases far exceeded the level of 20 annual rents. This not only applies to the top 7 cities of Berlin, Hamburg, Munich, Cologne, Leipzig, Frankfurt and Stuttgart, but also to some university cities such as Münster, Heidelberg and Freiburg.

"We don't have a real estate bubble, but we have reached a temporary high in real estate prices due to the economy and interest rates," says Olaf Wortmann, spokesman for the IIC. "The market will decide in the next few months whether this will result in a bubble or whether there is still a catch-up effect compared to other international real estate markets."

Top locations grazed

Because the supply in the top locations has largely been exhausted, investors in 2015 will have the best return prospects in the so-called B and C locations. "Despite the inferior location quality, interesting deals can certainly be concluded here in 2015," says Wortmann. For example, if sellers are under pressure, the properties are burdened with rental problems or minor refurbishment work is necessary, but the quality of the property is high, cutbacks in the location can certainly justify an investment. "But it is much more important to assess the individual location, to examine it intensively and to analyze it," advises Wortmann.

The charm is often only revealed at second glance

"But if you use the right purchasing sources, you will find properties for less than ten times the annual rent in the next twelve months," believes the IIC spokesman. Sometimes worthwhile investments can also be found on the market, which only become a worthwhile product at “second or third glance” through active management by the individual investor.

Not only the purchase price is decisive, but also points such as the optimization potential.

According to the IIC, large investors are concentrating on “larger units with smaller apartments of one to two rooms” in larger cities, city locations and university locations. In smaller cities or in a more family-oriented environment, smaller units with six to a maximum of 20 apartments and larger are more likely Apartments with three to four rooms in demand.

First appeared on:

www.focus.de

The new regulation on the rental price brake is scheduled to come into force in spring 2015. The rental price brake will have an effect on the majority of newly rented apartments. However, what no one could really have considered is the fact that economical construction can only work under certain conditions. One of these prerequisites is still the amount of the achievable rent.

Marco Sauer, real estate expert and CFO of Berlin Immowert, has been looking after international investors for many years and sees a trend reversal here. He therefore urges caution: the extensive renovation of existing properties and the construction of new residential projects always require a high degree of financial foresight. Of course, due to the ongoing low interest rate policy of the ECB, real estate purchases are and will remain interesting as a form of investment , but anyone who is planning an ambitious real estate project today bears a large financial risk in which, apart from the equity to be provided, large parts usually have to be financed externally.

So far, you have largely had the entrepreneurial freedom to adjust the rent according to your needs. However, the rental price brake will distort the market to the detriment of investors. If you want to buy an apartment building in the future, for example, you have to make do with no significant options for adaptation and calculate from the outset. When purchasing such a “non-adaptable property”, any changes in the interest rate market leave behind incalculable risks.

Conclusion: In the medium term, the increasing pressure on investors will most likely mean that many properties that would normally be available for integration into the rental market will be withdrawn from the regional offer by being split up and sold to owner-occupiers. This is the only way for sellers to achieve an adequate purchase price. Interest in buying investment property has so far been unbroken. However, Berlin Immowert focuses on sustainable asset solutions and therefore also offers comprehensive advice and support on these special topics.

Berlin Immowert provides services for real estate funds and real estate investors. From looking after investors to acquiring and purchasing real estate and managing the corresponding shares and assets. It acts as a holistic real estate manager who provides acquisition, due diligence, asset and property management services from the project planning to the realization phase of a property. She has successfully overseen numerous well-known sales in recent years.

go to Article:

http://news.immobilienscout24.de/

Berlin is in the favor of investors! And a look at key figures shows that the interest of both national and international investors in the German capital is justified: •
In the last five years, the number of residents in Berlin has grown by almost 150,000 inhabitants and thus by the size of a large city.
• Economic output increased in Berlin and has been growing faster for years than in comparison to the entire federal territory. Today around 130,000 more people are employed than five years ago. This has lasting positive effects for the service metropolis, especially since a large part of the growth is attributable to future-oriented sectors.
• "That's why so many investors like Berlin," says Peter Starke, spokesman for the investment division of AENGEVELT and Berlin branch manager, and adds: "Investors are looking for growth regions with future prospects and therefore prefer Berlin. Compared to the previous year, when people were primarily looking for top central locations, demand is now also aimed at other (district) locations in Berlin.”

Office market: Young sectors provide impetus for growth

• In the first nine months of 2014, around 392,000 m² of office space was taken up in Berlin. This clearly exceeded the comparison period of 2013 (338,000 m²). "Since the end-of-year spurt has been exceptionally good so far, we expect take-up of around 570,000 m² by the end of the year," says Peter Starke.
• It is the ICT (information and communication technology) sectors, the media and the creative industries that shape market activity in Berlin. These sectors are expanding, but are also price-sensitive. Large companies (with a high willingness to pay) are acting cautiously.
• Due to the expansive demand, the vacancy rate has been falling for years. Around 1.35 million m² of office space or 7.4% of the total stock in Berlin is currently vacant. Despite the low vacancy rate, there is still a corresponding offer in almost every quality of space throughout the city. However, there are signs of shortages in central inner-city locations in the space segment between 250 m² and 500 m².
• This is one of the reasons why the top rent, which is currently around EUR 22.50/m² per month, is not rising significantly. Starke: “Price-sensitive buyers often switch to other, cheaper locations. This is leading to an increase in average rents because it is the locations that have been less in demand so far that are benefiting from this development.” On average, office rents across the entire city area are around EUR 12.85/m² per month.

Investment market above expectations

• “As recently as 2013, the Berlin market for commercial investments in Germany was in third place on investors' shopping lists. Berlin caught up in 2014 and is now in second place ahead of Munich,” Peter Starke summarizes the market situation and adds: “Since there is still a lot of capital in the market, the transaction volume in 2014 will probably exceed the previous year’s result at over EUR 4 billion ."
• Peter Starke sees reasons for this positive result on the demand side: “Interest in Berlin real estate is high and more and more vacant properties are being accepted.” Berlin's economic development has been above average in a national comparison for years. Because of this economic prosperity, investors are increasingly “daring” to move into secondary locations in Berlin because they expect significant potential for value growth here, for example through the reduction of vacancies. Opportunities are also seen in project development. The best example is the sale of the Tacheles area in Berlin-Mitte.
• Overall, an increasing willingness to take risks can be observed in Berlin – more clearly than in other German metropolises. For example, the not yet fully let UPPER WEST on Berlin's Kurfürstendamm was sold by STRABAG Real Estate to RFR Holding shortly after the foundation stone was laid (completion expected in early 2017).
• It is primarily private investors, family offices and pension funds who buy in top locations. Capital protection is the priority here. On the other hand, secondary or peripheral locations are the focus for value-add investors or capital investors with higher return requirements. This is also a result of the low initial yields in the core segment, which in Berlin are currently around 4.4% for fully let commercial buildings in prime locations and 4.8% for office properties.

Outlook 2015

office market
The prospects for the Berlin office market are good for 2015: “The demand for office space remains brisk. Due to the expansive demand for space combined with low new construction activity, net absorption continues to be positive. Accordingly, the vacancy rate will continue to fall. A drop of bitterness for landlords: the companies driving the take-up of space are often young and in the expansion phase. However, this means shorter contract periods. Accordingly, despite the reduction in vacancies, the demands on portfolio management are increasing,” Peter Starke describes the prospects for the Berlin office property market and adds: “In our view, rents in the top segment – ​​against the background of the restrained economic growth forecast for 2015 – will only increase moderately.

Investment market
In the investment area, Starke sees little scope for a further contraction in yields for top yields. According to his analysis, things will therefore be particularly exciting in 2015: “Away from the established locations, there is potential. Project developments will also gain in importance again in the coming years. Here, however, the financing side has a limiting effect," says Starke and continues: "It must be taken into account that few speculative commercial areas have been developed in recent years. According to our analyses, there is a foreseeable lack of inexpensive, modern space in central locations. Therefore, in 2015 we see an increased interest in projects in the outskirts of the city in the commercial segment. The price/performance ratio is better here than in central inner-city locations.”

Conclusion: For 2015, AENGEVELT expects market activity to continue to be dynamic with continued high demand for Berlin investment properties.

AENGEVELT IMMOBILIEN, founded in 1910, is one of the largest and most experienced real estate service providers in Germany with around 125 employees at locations in Düsseldorf (parent company), Berlin, Frankfurt/M., Leipzig, Magdeburg and Dresden and, together with its partner networks, offers its customers DIP – Deutsche Immobilien-Partner and IPP International Property Partners nationwide and internationally comprehensive customer-specific support in the office, retail, logistics, hotel and residential market segments.

The company accompanies and advises its customers on the basis of its extensive scientific real estate research along the entire value chain of their properties - from purchase to project initiation/support, letting etc. to exit/sale.

AENGEVELT regularly has its services checked by an independent market research institute. The results of the most recent survey are again top marks in terms of customer satisfaction: the rate of those who would definitely or possibly hire AENGEVELT again as a service provider reaches the top value of 99%.

In order to guarantee its customers completely independent, market-oriented specialist advice, AENGEVELT is and remains absolutely independent of banks, insurance companies and directives and is therefore free of bancassurance and group strategies and also maintains comprehensive value management.

AENGEVELT has also been DIN EN ISO9001:2008 certified since 2008 and was one of the first companies in the German real estate industry to receive the “Compliance Management” certificate from the “Initiative Corporate Governance der Deutschen Immobilienwirtschaft eV” (ICG) in 2010.

Article source:

news.immobilienscout24.de/aktuelle-marktdaten/aengevelt-expects-further-continuing-dynamics-am-berliner-immobilienmarkt,116417.html

The apartment is too small, the basement too full and there is already a lot stacked up in the attic: for many, the last resort is to rent a storage compartment. They can be found in large cities in particular, where living space is often particularly scarce.

market is confusing

In the USA there has been a trend towards "self-storage" for 60 years. In Germany, the market hasn't been booming for quite that long. And it is one thing above all: confusing. Because many providers do not publish their prices on their website. In the worst case, interested parties have to ask each provider personally. Even the prices for the same company vary from city to city.

The "Stiftung Warentest" has taken a closer look at the rental warehouse. The bottom line: Customers should think carefully about which items they want to outsource, because rental storage is not cheap. In Berlin, for example, up to 40 euros can be charged for one square meter.

Beware of cheap providers

It is also worth comparing the services that are included in the offer. Who would want to laboriously carry their boxes to the storage compartment because the warehouse doesn't have an elevator? Such nasty surprises are often experienced with providers who lure with particularly low prices.

In the warehouses of these companies, for example, there must be an anti-theft system and smoke detectors. Many entrances are therefore monitored by video and at night by security companies. Customers can also be sure that the storage rooms are dry and clean.

Additional insurance advisable

For special needs, there are even providers who can regulate the climatic conditions of their compartments. In this way, wine lovers can also store their bottles safely.

In the case of valuables in particular, it makes sense to take out additional insurance with the respective storage company. Because: Stored items are not automatically insured against theft or water damage, and your own household contents insurance often does not apply in this case either.

The "Stiftung Warentest" therefore recommends clarifying in advance with the household insurance company whether damage outside of your own home is also insured. You should also compare the different storage providers beforehand, for example at storagespot.de or lager-vergleich.com.

Rental warehouses often only in big cities

With around 25,000 customers and 35,000 storage compartments, the company Myplace is the largest provider of rental storage in the German-speaking region. The market leader already has 23 locations in Germany. About a new one is added every year, says the managing partner of MyPlace-Selfstorage, Martin Gehardus. The market is growing slowly but steadily.

Other major providers are Lagerbox with 14 locations, Shurgard with 11 branches, Secur and Pickens with nine and six warehouses respectively. The disadvantage for everyone who does not live in a metropolitan region: the warehouses are usually only in large cities.

European market is growing

But there should be many more locations soon, because the European market still has great potential. In Europe, the management density is only around 1.5 percent of the US market volume.

So if there is not enough space in your own apartment, it is definitely worth getting an offer from the rental storage providers.

Visit the home page:

http://www.focus.de/immobilien/mieten/

According to a Postbank study, real estate in Lower Saxony and Bremen should continue to increase in value. The bank sees the district of Vechta as the top growth region , which ranks 27th out of 402 German districts and cities surveyed. 

Households with a low net income (up to 1700 euros/month) could afford an average of 105 square meters of living space there, average earners (up to 2600 euros) 179 square meters, Postbank said on Monday when it presented the Prognos study “Housing Ownership 2014”. In general, in three out of four regions of Lower Saxony and Bremen, the purchase of a house of at least 100 square meters can also be financed for households with a lower income. 

The study examined the regions in which living space is “affordable”. For this it was assumed that the cold rent does not amount to more than 30 percent of the household net income. When buying, on the other hand, the financing burden – with an equity share of 20 percent – ​​should not account for more than 40 percent of the income.  

Postbank found out that only in the district of Lüneburg, the cities of Osnabrück, Oldenburg, Bremen, Braunschweig and Wolfsburg and the Hanover region do households with middle incomes reach their financial limits when buying a 130 square meter house. According to this, there is the most living space for the money in the district of Holzminden, where low-income earners can also afford houses. In the districts of Leer and Aurich, which also include four East Frisian islands, there is only a 53 or 61 square meter apartment for the same money.