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Find your dream property now – despite or because of the market downturn?
Basically, it must be said that real estate markets are not uniform across the country. On the one hand, there are cities such as Munich and Frankfurt where prices remain very high. On the other hand, however, there are also regions where real estate is significantly cheaper. However, as the markets are constantly changing, it is advisable to consult a local, reputable real estate agent to find out where prices are currently affordable.
Supply and demand are converging
Real estate experts are also seeing a decline in demand for real estate. This means that it has become somewhat easier to find a property again. The decline in demand is also affecting prices. In some regions of Germany, price increases have slowed down, and in some cases even stopped. According to financing experts, buyers can now even negotiate the price with the seller again.
How does real estate financing work?
Thorough planning is essential when it comes to real estate financing. Seek advice from an experienced real estate professional. In addition to the price of the property, you should also factor in ancillary purchase costs such as notary fees and real estate transfer tax, as well as the cost of any modernization work.
Sufficient equity
It is very important to have sufficient equity. Since banks do not finance incidental purchase costs, these must be financed from equity. Real estate experts recommend that 20 percent of the purchase price plus incidental purchase costs be covered by equity.
Longer financing term
Even though interest rates have risen, they are still relatively low. Inflation could lead to further interest rate hikes. In the current situation, financing experts therefore recommend longer terms, with a fixed interest rate for 15 or, better still, 20 years. Extending the financing term may also be an option to reduce the monthly burden.
Buy with an expert
In any case, it is advisable to consult a real estate expert. They will help you find a suitable property and know who can advise you on favorable financing options.
Would you like assistance in finding your dream property? Contact us! We will be happy to advise you.
Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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