Homeownership Enjoys Higher Standing than Ever Before
Never before have so many people in Germany held such a positive attitude vis-à-vis homeownership. Three out of four Germans consider real estate the best investment for their money. Well over 60 percent believe that detached homes and condominiums are the optimal way to prepare for old age. It stands to reason that the advantages of a home of one's own are magnified in retirement. The acquisition of a home is getting particularly popular among tenants. One in five Germans currently renting plans to buy or build a home over the next ten years. This is suggested by the “Trend Indicator 2016” that pollster TNS Infratest compiled on behalf of the LBS state-owned home-building and loan associations, among other clients.
Low-Level Interest Rates Entice Prospective Buyers
What encourages homeownership at present are the low interest rates. In the face of such favourable conditions, three out of four residential tenants would prefer to be homeowners, or so a poll conducted by the Interhyp mortgage broker shows. The desire for homeownership is particularly strong among young people below the age of 40. According to Interhyp, ninety percent of the tenants in this age groups plan to acquire residential property sooner or later. In order to benefit from the attractive interest rates long-term, home buyers are advised to negotiate the longest possible fixed-interest periods and high repayment rates. Doing so will protect them from the spectre of rising interest levels. At the same time, higher repayment rates shorten the term to maturity.
Condominiums in Berlin are Particularly Affordable
Low interest rates have made homeownership an increasingly attractive proposition for many tenants. In fact, prospective buyers have moved on to the question which cities in Germany are most affordable. Berlin, for one, has particularly low selling prices compared to other metropolises and conurbations, to say nothing of cities outside Germany. In the hit list of Germany's priciest cities of more than 25,000 residents, published quarterly by the F+B housing research institute and consultancy, Berlin ranked only 74th in the third quarter of 2016 with an average square metre price of 2,560 euros. In terms of purchase prices, this makes the German capital far more affordable than even the smaller suburbs in the gravy belts of Düsseldorf, Frankfurt, Stuttgart or Munich. That being said, prices have been going up for years, which means that investing in a home in Berlin promises a tidy appreciation in property value. In short, the city is a particularly rewarding place for buying a condominium.