Saturday, October 10, 2020

What's the Real Price Tag on a German House/Condo?

 So this is a pricing essay.

Once the property amount is figured up....there are four additional fees:

1.  Local transfer tax: 6-percent.

2. Brokerage commission: figure between 5 and 6 percent of the property amount.

3.  Notary fee: 1.5-percent.

4.  Property registration fee: .5-percent

So even if you found a property in the 200k Euro range....there's potentially 28k additional Euro on top of that.

Is brokerage commissions always involved?  No.  A guy with a 'hot' property might figure the ease of advertising, and not involve a real estate agent....so that five to six percent deal is avoided.

A problem property?  You often see a case where a property has been up on the market for six months, and the owners in a desperate mode.....willing to pay the notary and property registration fees for the new incoming folks.  

If you were looking for one of the ten reasons why private ownership is a minor problem....these extra fees add up.  With the transfer fee figured in....it also hinders people from buying x-property at age 25, selling it at age 32, then buying another upgrade property....then repeating this at age 45.  

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