7139 hib brochure v10 (1)

OCT 2013

YOUR PLACE IN BERLINPROVIDING THE BEST PROJECTS IN BERLIN FOR LIVING OR INVESTMENT

WHAT YOU CAN EXPECT IN 2014 FROM RESIDENTIAL PROPERTY MARKET

PROPERTY PRICES AND RENTAL YIELDS ARE RISING

BERLIN’S INVESTMENT PROSPECTS

GERMAN BANKS ARE LENDING

WHY BERLIN IS EUROPE’S HOT SPOT

APARTMENTS | STUDENT INVESTMENTS | APARTMENT BLOCKS | SUPERMARKETS

Providing the best projects in Berlin for living or investment

2 www.homeinvestberlin.com

TABLE OF CONTENTS

Company Profile 4

HiB Services 5

Hot Properties 6

German Market News 8

Berlin – City Facts 10

Berlin’s Expanding Business Scene 13

Residential Property Market 14

Berlin’s Investment Prospects 15

Bank Financing in Germany 17

HiB Projects 19

Apartments 20

Carrée ALTE POST 21

Flottwellpromenade 22

The Garden 23

Student Accommodation 24

Apartment Blocks 26

Supermarkets 28

Buying Process 30

“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.” Theodor Rousvelt

4 www.homeinvestberlin.com 5


PROPERTY RENTALS

There’s a very strong culture to rent your house in Germany and contracts are usually long term. Over 80% of Berliners are tenants which create high demand for rental property but it is very important to get the right tenant from Day 1. The EURIX rental management team will advertise your vacant apartment, interview potential tenants and prepare all the lease contracts according to German law.

BANK FINANCING & INSURANCE

Our fully qualified German mortgage advisers provide inside knowledge on getting the best mortgage rates from all the leading German banks, whether for the purchase or re-mortgage of a commercial property, a buy-to-let investment property or your main home. We also offer a wide range of insurance services to make sure each of our clients has the right level of protection at the right price.

PROPERTY MANAGEMENT

EURIX has an experienced and dedicated Property Management Team to help you manage your property, collect rents, pay the monthly bills, and deal with tenant enquiries. We also take care of any maintenance tasks or refurbishment, if required.

LEGAL AND TAX ADVISE

We have a long term partnership with experienced Tax And legal advisers in Germany specializing on German Real estate market which have helped multiple clients from EU and other countries to buy or invest in Germany as private individual, company or through offshore.

HIB SERVICES

COMPANY PROFILE

Home Invest Berlin is part of the EURIX Group which was founded in 1996 and since then has emerged as one of the market leaders in Real estate sales and rentals and Asset management in Berlin, Germany.

Home Invest Berlin has an experienced multilingual team, with expertise in property sales, rentals and property management and finance. Over the last 17 years we’ve completed over one thousand property deals in Germany and currently have over 1000 properties under management for our private investors and investment funds. “EURIX is ideally positioned in the heart of Germany to take advantage of one of the most exciting property economies in the World!”

HiB team

Head office, Berlin

HiB is a division of the EURIX Group of companies

6

HOT PROPERTIES

Low purchase factor of 13.4, located in desirable residential area. Multifamily home consists of 56 apartments and 30 car spaces. Bank financing available.

Apartments in the heart of Berlin’s newly renovated business district, only 5 min walking distance from Potsdamer Platz, cinema, shopping and entertainment area. The development will consist of two residential buildings and is surrounded by park, giving access to huge green area in the middle of the city. Completion date: Spring 2013.

Good location on the busy shopping street with premium, long term tenant in place. Supermarket has good visibility from the street and is well known spot with commercial focus on local consumers.

PRICE: €4,800,0007.5% RENTAL YIELD

PRICES FROM: €152,000PRICE: €2,147,0007.7% RENTAL YIELD

RESIDENTIAL APARTMENT BLOCKBerlin-Köpenick

OFF-PLAN PROJECTFlottwellstrasse, Berlin-Mitte

BRAND NEW SUPERMARKETIsenbuttel, Germany

FOR MORE INFORMATION CONTACT OURINVESTMENT CONSULTANT TODAY ON:+49 (30) 499 05 09 50 or [email protected]


www.homeinvestberlin.com 98

The real estate industry in Germany is optimistic and, against the trend in other industries, plans to increase investment and add employees. These are the findings of a Deloitte survey in which 92% of the responding real estate CFOs expressed a positive outlook for Germany’s economy, while in other industries that number was only 56%.

The real estate CFOs (85%) said they are still expecting rising revenues, compared to 36% in the other branches. The top business strategy priority for the property industry is to increase operating cash flow. Following that is cutting costs and reducing debt. The largest risk factors are now seen to be rising energy costs and the instability of the financial system.

Source: TD International

GERMAN MARKET NEWS

With a culture of thrift and, now, a fast-ageing society, Germany naturally saves more than it spends. (Barring a few years after unification, it has run an almost uninterrupted surplus since 1952.) But its current-account surplus, at 7% of GDP, is now more than three times higher than it was a decade ago, largely thanks to an artificially cheap currency and squeezed wages. It is unhealthy, both for Germans (who forgo higher living standards to pile up savings that are poorly invested abroad) and for others in the euro zone and beyond.

German economists recognise that this has to change. Hans-Werner Sinn of Munich’s IFO economic research institute says the country is “too cheap”. But how best to rebalance the economy: through less saving or more investment? As a share of GDP German investment has fallen sharply, from 22% in 2000 to 17% in 2012. Public investment has been squeezed, firms have been cautious about capital spending and in the absence of a property boom there has been little investment in construction.

Property is now beginning to look up. Ultra-low interest rates are pushing up house prices and spurring building. After a decade of stagnation, German property prices rose by 5% (in nominal terms) in both 2011 and 2012. Cities like Berlin and Munich have seen much bigger jumps. Taxi drivers offer tips on the best place to buy a flat. But there is a long way to go. Relative to income, German property prices are still 20% undervalued.

Source: The Economist

THE INGREDIENTS OF GERMAN ECONOMIC SUCCESSJuly 26th, 2013

MORE CONFIDENCE IN REAL ESTATE THAN IN OTHER BUSINESS SECTORSJuly 10th, 2013

LBS FORECAST: PRICES FOR RESIDENTIAL PROPERTIES TO RISE BY 3% IN 2013May 7th, 2013

RESIDENTIAL PORTFOLIOS: 2013 SHOULD BE EVEN BETTER THAN 2012October 2, 2013

The price trend on the German residential market is upwards in almost all of the regions and segments. It is expected that the most dynamic sector will continue to be southern Germany. By the end of the year, the purchase prices for German residential properties are likely to rise by another 2-4%. All of these findings are presented in “Markt für Wohnimmobilien 2013,” an analysis compiled by LBS. In the past ten years, prices especially for new condominiums have increased almost everywhere. However, with the exclusion of Germany’s southern and southwestern cities, prices for preexisting houses and condominiums are barely higher than in the spring of 2003. The highest prices for both are in the southern areas. Prices for construction sites also show enormous differences: in medium to large cities in southern Germany, the going price of €380/sqm is three times higher than in the north (€120) and five times higher than in the east (€70).


CBRE reported a transaction volume of about €8.21bn for residential portfolios in Germany during the first three quarters. At a drop of 5%, this amounts to a slight decrease compared to last year. In contrast, Savills observed a 15% increase to almost €9bn, according to preliminary numbers.

Savills counts only portfolios with several buildings; CBRE takes all deals involving 50 or more units into consideration. The full year is likely to end even better than already very good 2012: according to the CBRE report, a well-supplied investment pipeline is ensuring a year-end rally. The broker said it

expects sales for the year to reach €11.5bn, after the €11.25bn of the previous year. Between January and September, CBRE counted 141 transactions in which more than 125,000 residential units with more than 7.5mn sqm of living space changed hands.




Berlin is a capital city of Federal Republic of Germany with a population of 3.5million. By international comparison, the German capital is the second largest city in the European Union in terms of its population and the fifth largest in terms of its area.

Berlin is home to renowned universities, research institutes, orchestras, museums, and celebrities, and hosts many sporting events. After the fall of the wall, Berlin has evolved into a cultural mecca and has become a centre for art, design, multimedia, electronic music, and fashion among other things. With 175 museums, Berlin has more museums than rainy days. It also boasts more than 50 theatres and around 300 cinemas. Particularly appealing is also Berlins green spots with over a third of the city’s

extensive surface covered by sweeping parks, forests, lakes, rivers and canals. Public transport in Berlin is thorough and efficient with the railway and bus network the fastest way of getting around the capital. The city is well known for its festivals, diverse architecture, nightlife, shopping, contemporary arts and a high quality of living.

You may find yourself wandering around one of the many central districts of Berlin, each of them being perfectly self-sufficient with plenty of small cafes, various restaurants and local designer boutiques allowing you to explore the diverse personality of this exciting city.

BERLIN – CITY FACTS

Providing best projects in Berlin for living or investment


13www.homeinvestberlin.com

BERLIN’S EXPANDING BUSINESS SCENE

Majority of Berlin’s economy is made up from small and medium sized companies. The strongest sectors include electrical engineering, food products, chemical, mechanical engineering and motor vehicle manufacturing. Berlin’s economy is mainly based on the service sector, encompassing a wide range of creative industries, convention venues and media corporations. It is the city of choice for tech entrepreneurs, fashion designers, and artists with a strong and diverse culture scene. According to the recent reviews Berlin is also one of the top five congress cities in the world and in 2011 the tourism sector numbered over 22 million overnight stays by 9.8 million tourists. It also serves as a continental hub for air and rail transport in Europe and is the third most visited country in EU.

Berlin is currently seeing a net increase of residents with many governmental and large corporations relocating staff there from other German cities; this influx is driving rental demand and rents upwards. Bringing Berlin more in line with the rest of Germany, this alignment in the market signifies a real buying opportunity with strong fundamentals supporting the rise in rental yields. The population of the city is rising at an increasingly robust rate, with more recent projections putting Berlin closer to 3.7 or 3.8 million residents by 2020. The flourishing startup and technology scene along with its traditional industries continuously expanding makes macroeconomic picture of city’s property market very solid.

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012(Half year)

3300

3350

3400

3450

3500

3550

POPULATION DEVLEOPMENT IN BERLIN (THOUSANDS)

Source: Berlin – Brandenberg Statistics Office



Residential property is the key growth area in Germany right now and its capital Berlin has the biggest potential for growth. Most of the 1.8 million apartments in Berlin are rentals, averaging 84% with long rental terms of typically 10-15 years, but in recent years the choice of reasonably priced and exclusive living space in Berlins extremely varied districts has increased. Rents are generally lower than in any other major German city but are widely expected to increase significantly over the next 10 years.

Berlin is often regarded as “Silicon Allee” where technology, media and creative industries total almost 37,000 companies with an annual turnover of €26 billion. Environmental technologies sector employs more in Berlin than anywhere else in Germany. Property market is responding to this growth and residential in particular as regarded as one of the most popular in Berlin.

One of the advantages of residential market that attracts investors is that tenants in Berlin pay for all the running costs of a building such as insurance, snow clearance, and other service charges. The only costs sustained by the owner are building maintenance and a property management fee.

Historically, Berlin’s attraction for young people has been helped by cheap rents. But this is changing as interest in inner-city luxury apartments grows. This is especially true in districts such as Mitte, which has seen significant rent increases. Pension funds, listed firms, and private equity players, as well as wealthy Germans, are now among the city’s residential landlords. Even if the property prices would double in Berlin, they would still be affordable in comparison to other European cities. The possibilities for the next decade are seemingly endless.

Berlin real estate is considered to be prime residential market in Europe, surpassing by far most other cities. The reasons are related to the low purchase prices in Berlin, in contrast to its first-class rental prices and its fast growing economy.

BEST SECTORS FOR ACQUISITIONS IN 2013, BY CITY

Office Retail Industrial Apartment Hotel

Amsterdam 8 9 5 9 2

Athens 4 6 0 3 10

Barcelona 10 13 4 8 12

Berlin 13 21 5 40 10

Brussels 15 13 4 9 3

Budapest 6 9 2 3 1

Copenhagen 2 12 0 9 1

Dublin 12 5 3 7 5

Edinburgh 8 4 3 6 5

Frankfurt 20 22 9 18 6

Hamburg 17 22 16 24 8

Helsinki 7 10 2 4 1

Istanbul 16 16 14 10 17

Lisbon 8 9 2 5 3

London 31 15 12 31 17

Lyon 11 11 12 7 2

Madrid 12 14 1 9 9

Milan 8 24 3 12 8

Moscow 8 10 7 5 4

Munich 28 26 7 25 11

Paris 33 28 6 10 8

Prague 10 11 3 3 0

Rome 3 18 2 10 8

Stockholm 10 15 4 11 4

Vienna 10 10 0 5 3

Warsaw 16 17 7 5 3

Zurich 11 12 3 11 3

Sector recommended by: 30 or more 15-29 14 or fewer respondents

Source: PWC – Emerging Trends in Real Estate Europe 2013 survey.

RESIDENTIAL PROPERTY MARKET BERLIN’S INVESTMENT PROSPECTS

SPA 14.5%

IRL 17.7%

ITA 24.6%

UK 29.5%

FRA 37.5%

NL 45%

GER 57.4%

BERLIN 84%A POPULATION OF TENANTS

€3

€4

€5

€6

€4.56

€4.76

€5.00 €5.04

€5.32

€4.24

€4.00

€4.24

€4.49

€4.75€4.83

€5.21

€3.79

10/1999 03/2002 10/2004 10/2006 10/2008 09/2010

2000 2003 2005 2007 2009 2011

New Apartments All Apartments Old Apartments

€3.98

€4.22

€4.48€4.59

€5.08

TENANCY RATES IN EUROPE RISING RENTAL YIELDS & PROPERTY PRICES



Real estate still provides a “hard yield in a low-yielding world”. As with debt, investors are still seeking safety first, returns second. Fresh debt is increasingly expensive. As banks seek to meet higher funding costs and their required return on equity, margins have ticked up. But low interest rates are helping to keep the all-in cost of borrowing at affordable levels.

If we look in details in the graph displayed below, specifically about mortgage rates in Germany, it is remarkable to see how these interest rates slowly decreased during the last ten years.

As economy kept growing it became easier for developers to receive mortgages for real estate projects from German banks than ever before. In 2013 Germany once again affirmed AAA rating from Fitch Ratings giving clear indication that its government had beat its own budget targets and positioned Europe’s largest economy on the path to growth.

All these aspects are providing positive impact on overall German economy during times, when every other EU country is struggling to get back on track after global market crash down.

Furthermore, the European Central Bank in January 2013 issued interest rate of 0.5% which allows the low cost of financing to be maintained in Germany.

Existing Investment New Investment Development

Munich 3.73 3.56 3.29

Berlin 3.72 3.46 3.09

London 3.57 3.23 3.13

Istanbul 3.55 3.47 3.46

Hamburg 3.49 3.45 3.46

Paris 3.36 3.45 3.21

Zurich 3.33 3.28 3.25

Stockholm 3.31 3.13 2.90

Moscow 3.31 3.15 3.08

Increase Stay the same

BANK FINANCING IN GERMANY

Very Poor

Poor

Fair

Good

Excellent

0

2

4

6

-6

-4

-2

2006

Total return

20112010200920082007

Capital growth Income return

BERLIN’S INVESTMENT PROSPECTS

CITY INVESTMENT PROSPECTS

Source: Emerging Trends in Real Estate Europe 2013 survey.

Sources: Investment prospects: Emerging Trends in Real Estate Europe 2013 survey. All-property returns: Investment Property Databank.

Prospects Rating Ranking

Existing Property Performance Good 3.72 2nd

New Property Acquisitions Fair 3.46 3rd

Development Prospects Fair 3.09 7th

ALL PROPERTY RETURNS

MORTGAGE INTEREST RATES IN GERMANY

Source: VDP Verband Deutscher Pfandbriefbanken

2001 2003 2005 2007 2009 2011 20130%

1%

2%

3%

4%

5%

6%

7%



APARTMENTS:

Either you are looking for a place to live or buy-to-let property, we have a various offers on off-plan projects in central Berlin. We offer property management and bank financing for each of the projects.

STUDENT INVESTMENT:

Student accommodation is a low risk, high yielding and totally hands-off investment and can generate significant profits to investors. Our projects are situated in one of the biggest student cities in Berlin with high demand on accommodation.

APARTMENT BLOCKS:

If you are looking for a stable and profitable investment option in Germany, residential property investment opportunity would suit your needs. We have carefully selected property portfolios with high rental yields and growing rental income. Bank financing is also available.

SUPERMARKETS:

If you are looking to invest in commercial property in Germany, we have a selection of profitable supermarkets in different locations, already tenanted and generating high rental yields . Bank financing is also available.

HIB PROJECTS



APARTMENTS

Home Invest Berlin offers you various high quality off-plan projects in central Berlin and close surroundings. Our chosen developers has extensive references with similar project built in the past and are well known by high building standards and excellent quality.

One historic building which once served as Post office will be completely renovated with preserved architectural style from mid 1920, and two new buildings located at Lichtenberg, near Frankfurter Allee, one of the major traffic arteries in Berlin . The Carrée is also adjacent to a park and appears like a quiet oasis providing an escape from hectic city life.

Located in the heart of Berlins newly renovated business district, only 5min walking distance away from Potsdamer Platz. The project will consist of two residential buildings and a hotel with underground parking. Residential building is off the main street but keeps an easy access to various transport options and are surrounded by huge green park with nice walkways around.

Just a few minutes away from the city centre hustle will lay this beautifully designed property complex with carefully planted garden around allowing to enjoy the maximum of daylight and highest level of comfort for it’s inhabitants.

Area: Berlin: Lichtenberg Area: Berlin: Mitte Area: Berlin: Mitte

PRICES FROM:€159,000



CARRÉE OLD POST OFFICE

FLOTTWELLPROMENADE THE GARDEN

The project will consist of renewed historical building of an old post office and one new built development. As one of the few remaining grand public structures in Lichtenberg this old post office building is now listed as a historic memorial to the expressionistic architectural style of the mid 1920s. Located in Lichtenberg, which is near Frankfurter Allee, one of the major traffic arteries in Berlin the project with the adjacent park appears like a quiet oasis providing an escape from hectic city life.

Living VarietiesCarefully reconstructed the building is going to house 48 apartments with sizes from 50 to 200 m² designed to create a symbiosis between historic substance and modern live style. These apartments are tax incentive. Designed to create a smooth optical transition from the historic building the 4 new structures will house 90 attractive and spacious apartments with sizes varying from 50 to 160 m².

LocationJust a quick jaunt from Friedrichshain, one of Berlins hottest districts, The Carrée Old Post Office is located in a quiet neighbourhood, close to Frankfurter Allee, one of Berlins main arteries providing easy access to the city centre as well as out of the city. It has an easy access to various means of transportation such as tram, metro and city rail. For those who enjoy the flexibility of a car parking/garage spaces are available. The property has also several spacious parks in the neighbourhood allowing you to enjoy the nature without going away from your home area.

An overview of the benefits you can enjoy:• Historic building with 48 units

• New construction with 90 units flats from 50 – 200 m²

• 3 M ceiling height

• Underfloor heating

• Elevators

• Wheelchair accessible apartments

• Rooftop apartments with additional ateliers

• Real wood parquet

• Underground parking available

• Park directly adjacent, the city park and town hall park lichtenberg within a five minute walk

• 2–6 Rooms, spacious and designed to meet every desire

• Central heating

• Walking distance to a large shopping centre, parks, public transportation, healthcare, schools and more

CARRÉE OLD POST OFFICE QUIET OASIS IN A BUSTLING CITY

PRICES FROME159,000 – E695,000

Completion date: Spring 2015


The property is located in between Berlin’s most central districts: Mitte, Kreuzberg and Schöneberg, which is only short walking distance to Potsdamer Platz and has an excellent connection to a public transport. The development will consist of two residential buildings and is surrounded by newly renowned Gleisdreieck park, giving access to huge green area surrounding one of the central business districts in Berlin.

Living VarietiesThe lay outs of the living spaces can be flexible. 2,80 m high ceilings and French windows give the 1st floor rooms a bright and spacious atmosphere. Flexible floor plans and exclusive furnishings inspire creativity and imagination. Available with balconies or terraces apartments sizes range from 73 m² – 152 m². Units can also be combined. All units stretch from one side of the building to the other allowing for plenty of light.

• 46 Apartments . 72 m² – 136 m²

• 30 Studios 52m²

• 8 Penthouse Apartments 93 m² – 132 m²

• 3 Penthouse Studios 51 m² – 52 m²

• 5 Townhouses 151 m² – 154 m²

LocationPotsdamer Platz is an important public square and traffic intersection in the centre of Berlin, Germany, lying about 1 km south of the Brandenburg Gate and the Reichstag (German ParliamentBuilding), and close to the southeast corner of the Tiergarten park. Since German reunification, Potsdamer Platz has been the site of major redevelopment projects.

An overview of the benefits you can enjoy:• Development: 2 residential buildings

• Location: flottwellstr. Berlin-kreuzberg/ mitte

• Right next to the new gleisdreieck park

• 92 Living units

• 2–7 Rooms, modern variable floor plans

• High-quality fittings in two design series

• 64 Underground parking places

• Location next to the potsdamer platz

• Cinema and entertainment complex in walking distance

• Easy access to underground line stations

• Representable and safe area

FLOTTWELLPROMENADE WITH A HEART IN THE CITY CENTRE…

PRICES FROME152,000 – E725,000

A secret garden – as diverse as the city, as alluring as nature. Architecture that creates space and allows for spacious living. A place that combines Berlin’s most exciting facets and offers retreat at the same time. A private paradise, where you can leave the hustle and bustle of Berlin far behind, without leaving the city centre. A place where well-considered forms, axes and proportions cater to the needs for community and playgrounds and for rest and retreat.

Living VarietiesThe Garden leaves almost all other details up to you. From apartment to penthouse, there are a total of approximately 280 living units, 114 of which are available for you as owner-occupied flats. Each of them is distinguished by its smart floor plan, which can be customized to meet very individual wishes

• Apartments• Family homes • Garden homes• Townhouses • Penthouses

LocationThe Garden is located in a growing and prosperous part of Mitte. Location is very well connected with different part of city by underground, buses and tram lines. The art and entertainment scene is just around the corner. Here, in the middle of Chausseestrasse, the district is very relaxed and family friendly with its swimming pools, spacious parks, renowned private schools and kindergartens.

An overview of the benefits you can enjoy:• City garden, approx. 12,000 M²

• 7 Buildings

• 114 Living units

• Flats ca. 61 M² – 217 m²

• 2–7 Rooms, modern floor plans

• High-quality fittings in two design series

• Energy-efficient buildings, class 55 in accordance with enev 2009

• 121 Underground parking places

• 24/7 Concierge service

• 128,400 flowering plants in summer

THE GARDEN FOR THOSE WHO WANT TO HAVE IT ALL...

PRICES FROME159,000 – .1,084,000

Completion date: Spring 2015Completion date: Spring 2015

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Premium student accommodation investmentOpportunity to invest in fully furnished student apartments based on the campus of Free University Berlin. Every apartment is already rented and due to the high demand for student accommodation and growing student rates in University apartments are expected to be fully occupied over the investment term. Studio apartment prices starts from €80,000.

Studios for student livingInnovative services and sophisticated furnishing provide the comfort and care free environment a students needs to be able to concentrate on his/her studies. From ultra-compact 17 m² to spacious 37 m² the floor plans of these studios are well thought through. Intelligently designed floor plans with space efficient yet stylish furnishings transfer rooms into living spaces. Large windows balconies and terraces provide the necessary light and oxygen access for hard study days and long cramming nights. The elegant design stylish furniture with clean lines.

LocationPremus Campus is located on the Free Univerity territory. Known for its particularly green and lush environment Dahlem lies in the Berlins south western district Steglitz-Zehlendorf, where city villas, grand townhouses and parks shape the image of the area. It has easy connection to public transportation and short distances to all campus buildings.

Key investment features:• 209 living units

• Flats from 17 m² – 48 m²

• Studios with optimised floor plans

• Mostly with Balconies or terraces

• Park-like setting

• High-quality functional furnishings

• Energy-efficient buildings, class 70 in accordance with KfW standards

• 5 0 garage parking spaces as well as outside parking spaces

• SmartConcierge service

• Connection to public transportation

INVEST IN STUDENT ACCOMMODATION THE CAMPUS STUDENT LIVING...

INVESTMENT FROM €80,0005% RENTAL YIELD

RENTS AVERAGE 17.80 €/SQM

Available for investment now



LIEBENSWALDER STR. BERLIN

6.75% Rental yield- Excellent location in Berlin Mitte. Opportunity to acquire 5 residential apartment buildings in Berlin Mitte, consisting of 77 apartments and 2 commercial units. Due to the excellent location there is a constant demand for property in this area. Direct access to the city centre is less than 15 minutes. Price of 1,126€/sqm with a purchase factor of 14,79 with no required refurbishment in the centre of Berlin is a clear indication of the excellent price we have managed to secure with the existing vendor.

CHARLOTTENBURG, BERLIN

7.4% Rental Yield – Low purchase factor of 13.5, popular location in Berlin. Multifamily home consisting of 49 apartments and 6 commercial units. Charlottenburg is regarded as one of the wealthiest and most popular locations in Berlin. Our secured purchase price of factor 13,5 is a clear indication of the low purchase price we have agreed with the existing vendor. The portfolio is being sold off market by an existing property fund. At the moment tenants are paying an average of 6,71 €/sqm.

APARTMENT BLOCKS

Home Invest Berlin offers you various high apartment blocks in central Berlin and close surroundings. Our chosen developers has extensive references with similar project built in the past and are well known by high building standards and excellent quality.

BERLINER ALLEE, BERLIN

6.94% Rental Yield – Low purchase factor of 14, located on the shopping street. Multifamily home consisting of 14 apartments and 12 commercial units in a popular area in Berlin Weißensee. Residential block is situated on the main street, next to the tram line and other public transportation options. The property was completely refurbished in 2000 and all apartments are in a very good condition. Average rent for sqm is €4,67, which can be increased over the years.

€3,050,000

€5,400,000

FREIBERGSTRASSE, BERLIN

7.26 Rental yield- Purchase price 699€/sq.m, Government subsidies available. Opportunity to acquire a property in Berlin Mariendorf, consisting of 112 apartments. We have the opportunity to receive €1,2 mil. subsidies from the government to refurbish the building with an interest rate of 0,4%! With this fantastic offer it is possible to refurbish the property and later increase rent to 5,50 €/sqm.

€7,100,000

€4,100,000

GRUNAUER STRASSE, BERLIN

7.5% Rental yield- Low purchase factor of 13.4, desirable residential area. Multifamily home consisting of 56 apartments and 30 parking spaces. Units are located in renovated, four-story apartment building in a quiet area of Berlin-Köpenick. The buildings are located on a residential street next to the park and riverside. The apartments are in a good condition, each of the have a balcony and are fully rented except one. The property is heated with a modern gas central heating.

€4,800,000

TWO RESIDENTIAL PROJECTS IN BERLIN

7.14% Rental Yield – Low purchase factor of 14, no vacancies over the years. Multifamily home consisting of 2 residential apartment blocks with 22 apartments in popular residential areas in Berlin Reinickendorf and Lankwitz. Both buildings are in good technical condition with a new heating system, and apartments are fully rented. At the moment tenants are paying an average of 5,86 €/m². For these properties we have a rental contracts with a special regulation that we can increase the rent every year for €0,14. That means that rent will increase every year for 2,4%.

€1,400,000

CHEMNITZ, GERMANY

7.92% Rental Yield- Central location, 12.4 purchase factorResidential apartment block in Chemnitz city, east Germany, consisting of 59 apartments and 58 car spaces. Property is located in central residential area in city. The property is in a very good condition and was completely refurbished in the 1996 and apartments are of high standard. We have secured low purchase price by factor of 12,4 which is 817 €/sqm for a refurbished apartment block.

€2,640,000

€1,700,000 RESIDENZSTRASSE, BERLIN

6.94% Rental Yield- Low purchase factor of 14.4 located on the shopping street. Multifamily home consisting of 15 apartments and 3 commercial units in a popular area in Berlin- Reinickendorf. Residential block is situated on the main street, next to various public transportation options. The property was completely refurbished in 2011 and all apartments are in a very good condition. We’ve secured a purchase price for factor of 14,4 which is low for completely refurbished block in Berlin. Average rent for sqm is €5,80 which can be increased over the years.



BERLIN – BUCH

7.7% Rental Yield –Excellent location on the busy shopping street. The Supermarket is located in the very city centre on the main shopping street Wiltbergstraße. The average rent/sqm per month is €10.09 The total rent area of 1,689 sqm generates a total net annual rental income of €221,063 pa.

ELDENAERSTRASSE, BERLIN CITY

86.66% Rental Yield – Excellent location in popular tourist area of Berlin The Supermarket is located in the very city centre on the main shopping street Wiltbergstraße. The average rent/sqm per month is €10.09 The total rent area of 1,689 sqm generates a total net annual rental income of €221,063 pa.

SUPERMARKETS

Home Invest Berlin offers you various high supermarkets in central Berlin and close surroundings. Our chosen developers has extensive references with similar project built in the past and are well known by high building standards and excellent quality.

LADIUSSTRASSE, BERLIN CITY

6.66% Rental Yield – Great location, long term tenant Excellent opportunity to acquire supermarket in Berlin. The average rent/sqm per month is €17.09 The total rent area of 1.565 sqm generates a total net annual rental income of €321,000 pa.

SCHONOW, BERLIN

12.4% Rental Yield – €800,000 below market value – bank repossession. Excellent opportunity to acquire an entire residential property portfolio consisting of 77 apartments and 2 small commercial units.12.4% Rental Yield – €800,000 below market value – bank repossession. Excellent opportunity to acquire an entire residential property portfolio consisting of 77 apartments and 2 small commercial units.

€1,990,000

€6,505,290

€2,870,000

€3,449,340

FURTH, GERMANY

6.75% Rental Yield – Great location, 9 long term tenants. The Supermarket is located east of the city Fürth in the district of Poppenreuth, which borders city of Nürnberg. The average rent/sqm per month is €15.07 The total rent area of 2.022 sqm generates a total net annual rental income of €381,111 pa.

€5,640,000

ISENBUTEL, GERMANY

7.4% Rental Yield –Located on busy shopping street. Supermarket has a very good visibility and is well-known spot from existing markets because area has commercial focus for consumers The average rent/sqm per month is €9.4 The total rent area of 1.410 sqm generates a total net annual rental income of €159,048 pa.

€2,147,000

FREDERSDORF, GERMANY

7.9% Rental Yield –Long term tenant, low purchase price. The Supermarket is located in the middle of busy residential district, next to the main road and 5min walking distance from the train station. The average rent/sqm per month is €8,83. The total rent area of 2.606 sqm generates a total net annual rental income of €276,399 pa

€3,490,000

FURSTENWALDE, GERMANY

6.6% Rental yield–Located next to highway into Berlin. The supermarket is located in the city centre, on the busy shopping street, next to the banks and other public institutions. The average rent/sqm per month is €9.7 The total rent area of 1.280 sqm generates a total net annual rental income of €150,000 pa.

€1,875,000



TYPICAL BUYING PROCESS

TRANSACTION COSTS

Transaction costs typically amount to 10-12% of the purchase price:

• Transfer tax (stamp duty) 3.5% – 5% (depending on state; since 1 April 2012 it’s 5% in Berlin)

• Agent fee 6% + VAT (agent fee structure varies state by state, in Berlin the fee is payable by the buyer, in some states it is split between buyer and seller)

• Notary and land registry 1.5 – 2%

• Other associated cost – translations, mortgage (if required; approx. 1% arrangement fees)

PURCHASE PROCESS

Purchasing a Germany property is a straightforward process. After the purchase is agreed a contract is drawn up by the notary. A notary is impartial to the buyer and seller and is responsible for the tasks that, in the UK, are performed by a solicitor (title/land registry checks, preparing purchase contracts and ensuring fair contract conditions, etc). Both parties need to be present at the notary at contract signing or, alternatively, can be represented by another party with a power-of-attorney. Upon payment settlement the notary requests ownership changes at the land registry.

MORTGAGES

Mortgages are available for German property depending on the applicant’s financial status as well as the property. Depending on property and applicant’s status, loans of up to 60-70% LTV are possible (in very rare cases up to 80%). German nationals can, in some cases, obtain a higher LTV. All applicants must provide last three years of tax returns, employment contract and pay slips, bank statements, proof of assets/liabilities, etc. While German banks tend to view self-employed applicants less favourably, mortgages are typically available provided all required documents are supplied.

RUNNING COSTS

This will depend on the provisions of the rental contract agreed with the tenant. For residential properties, all costs except property management, maintenance and repairs can generally be passed onto the tenant. Costs for property management are typically 25-35 euro per unit per month. Rental management is a separate service from property (house) management and can be provided by the same or another company (as house management). The fee for rental management is generally 25-30 euro per apartment per month. (In case of entire blocks only one management fee applies and

usually covers both house and rental management services.)

GERMAN TAX

German tax law is among the most complex in the world. It is therefore a must for any investor to consult a German tax advisor and/or accountant, in order to determine the most tax efficient structure. In general, foreigners with no other German income but rental income on property will usually be subject to the lower tax rates (though this will depend on the size of investments – income is subject to a progressive tax). mortgages are typically available provided all required documents are supplied.


EURIX Group

Friedrichstraße 82,

10117 Berlin-Mitte,Germany

Call us Now: +49 30 499 05 09 50

Email: [email protected]

www.homeinvestberlin.com