No type of investment provides as much security, protection against inflation and appreciation as property, provided that the location is right. The effects of inflation, the ups and downs of the stock markets, the derailments of the financial markets and growing public debt had no effect on property. Property and landowners have all emerged strongest from wars and economic crises from an economic point of view. Since even government bonds no longer offer a safe haven, only precious metals and property remain for investors. However, since neither gold, silver nor platinum generate any current interest income, e.g. for an old-age income, only good old property remains in the end. This is exactly what our business model is based on. Material assets as a foundation – for more liquidity and the possibility of a sustainable retirement provision.
A property is in fact not suitable for everyone. As tempting as property ownership is particularly in times of crisis, in each individual case it should be examined critically, especially for “normal” private investors. The purchase is accompanied by loan charges, notary fees, land registry costs, taxes and estate agent fees, and these alone can make up about 10% of the purchase price. So that the property really becomes a secure pillar for your own retirement provision, basic requirements need to be met:
The monthly loan instalments should not exceed one quarter of the net current household income. There should be enough money left to live on.
Equity should be used for at least 30% of the purchase cost.
Consultation of an expert, e.g. an expert, who knows how to realistically assess the value, construction quality, location, infrastructure and sustainability when letting.
The management of the property and the payment of interest and principal should also be guaranteed in the event of illness, occupational disability, disability or unemployment.
If at least these conditions are met, some interesting concepts can be implemented.
From the construction of a new home, the purchase and renovation of a rented property, the lease purchase of an owner-occupied or investment property, the use of tax benefits for listed properties or properties in urban redevelopment areas.
An objective selection is what counts! We search and check all properties consistently according to a fixed profile with strict criteria. In addition to the property geography, the macro and micro-location, the existing and planned infrastructure as well as the economic environment, the property condition and building structure, the expected renovation cost, the fixtures and fittings, the minimum return, the possible growth potential, the letting aspects, etc., the possible uses and conversion options also play a key role. In addition to our own experience and expertise, we also use the expert advice of external specialists. We work for you according to the principle: Recommend only what you would buy yourself!
With the lease purchase one acquires a property normally “in instalments”. As a rule, the buyer makes a down payment and pays off the remaining amount in the form of instalments. Interest is charged on this remaining amount. The seller effectively “plays” the role of the bank for the buyer. The buyer does not become the owner of the property until full payment of the instalments. Until then, the buyer remains in Section II of the land register by means of a reservation of title, while the seller remains the owner in Section I of the land register until full payment has been made.
This is a very special lease purchase option for investors, e.g. if they are interested in a freehold apartment without bank financing being involved. In contrast to the conventional lease purchase, there are 3 essential differentiating and thus unique selling points, which means a 3-fold benefit:
First of all, you will become the owner IMMEDIATELY – this is completely new!
Secondly, you only have to pay a share that you have decided and DO NOT PAY ANY INSTALMENTS, because someone else will take care of that for you!
Third, we finance INTEREST FREE until the purchase price has been paid in full. So we “play” the role of the bank for you – but without interest or credit risk!
For this reason, this special lease purchase also works completely independently of income and personal creditworthiness, without debt and the Schufa credit agency! Therefore, it is particularly suitable for younger, older or self-employed people. Because you become the owner earlier with little cost, you can call a much higher equivalent your own from the outset. This offers further advantages.
When buying a property, the buyer has to pay not only the purchase price but also the incidental costs of acquisition. These are the property tax of approx. 3.5% to 5.5% (depending on the federal state), notary and court costs of approx. 1.5% as well as estate agent fees in the amount of approx. 3% to 8% (depending on the estate agent). This means that the incidental costs can be as high as 11%-13%.
When you purchase a property, you have to pay property transfer tax. In most federal states, this is usually 3.5% of the notarised purchase price. In some federal states this tax is as much as 5.5% of the assessment basis. This tax is charged on the basis of the Property Transfer Tax Act (Grunderwerbsteuergesetz) and is payable to the federal states. When concluding a notarial contract of sale, a notary regularly informs that both the buyer and the seller are jointly and severally liable for the payment of this tax, as well as for other costs of the contract of sale, irrespective of the provision in the notarial contract regarding the payment of taxes and costs.
Simply contact recohyp and instruct us to sell the property. It is necessary to discuss your ideas in detail, in particular with regard to the purchase price, and to hand over to us the most important documents, e.g. construction drawings, construction specification, cubage, living and useful area calculations, land map, site plan, extract from land register, tenancy and lease agreements, operating costs, energy pass, house insurance, extract from the list of building encumbrances, partition deed in the case of divided properties in accordance with § 8 of the Apartment Ownership Act (Wohnungseigentumsgesetz), etc. If you have an official folder of the building plans or a market value appraisal, all the better. Next an agreement will be concluded, either an instruction to sell or a sole agency agreement.
Because we know the market and deal with all processes on a daily basis. We know our customers and have contacts with other estate agents who are looking for similar properties. This significantly increases sales opportunities. We have access to authorities and knowledge of all official procedures, extensive experience in notarial contract drafting and also bear the full risk of costs for advertising and sales.
In addition, we offer you the AI concept – Alternative & Innovative -, i.e. both lucrative property bargains and an extensive, exclusive financing route with a range of special loans and financial solutions even without banks and the Schufa credit agency. Our team provides honest and comprehensive advice. But everybody says that. Particularly difficult cases only make the difference clear. Here our customers have access to all of the important specialists from property and finance experts, such as surveyors, architects, legal and tax experts.
On the one hand, we professionally prepare the sale by preparing all of the documents and producing a property details brochure. In addition, we use our existing clientele who may be considered to be potential buyers. We also use various networks for this purpose. On the other hand, the advertising measures using all conventional and modern media are very diverse and are actively used, but only after consultation with you. Inspections are actively organised and carried out. We advise you on the selection of the right buyer and make important recommendations.
For the sale and the presentation of your property to potential buyers, in particular for the production of a property details brochure for advertising purposes, meaningful documents are needed, e.g. construction drawings, construction specification, cubage, living and useful area calculations, land map, site plan, extract from land register, tenancy and lease agreements, operating costs, energy pass, house insurance, extract from the list of building encumbrances, partition deed in the case of divided properties in accordance with § 8 of the Apartment Ownership Act (Wohnungseigentumsgesetz), etc. If you have an official folder of the building plans or a market value appraisal, all the better.
A sole agency agreement is an agreement between the estate agent and the customer. It binds both parties for a fixed period (e.g. 3, 6 or 12 months) and gives everyone the necessary legal certainty. This agreement is in itself free of charge and only regulates a commission in the event of success, i.e. if we as recohyp have actually found a buyer who signs a notarial contract of sale. A further advantage for the seller is that he does not “spread” his property, which could have a negative effect on the purchase price, because often the impression is created that the seller has to sell his property quickly and under pressure. The seller would therefore not find more potential buyers if several estate agents were used. These might receive different offers and purchase prices from several estate agents, which would cause a lot of confusion, certainly not inspire confidence and therefore result in the decline in the value of your property.
Of course, but you should think about whether this really makes sense, because the agency commission for the potential buyer would still have to be paid. Especially with your own acquaintances or relatives, purchase negotiations are often particularly difficult. Here an independent estate agent could possibly serve better as a neutral third party with all his experience. The advantage would be that we would be able to conduct the purchase negotiations more professionally and quickly on the basis of comprehensive knowledge of the local conditions, the building fabric, existing demand, letting situation, etc., and use a variety of advertising options. After all, the highest possible purchase price should be achieved for you. We also prepare the meeting with the notary, check the creditworthiness of the buyer and accompany the entire contract execution.
A property transaction (purchase or sale) is a so-called form-related legal transaction because it is more demanding, usually larger and involves several risks. Usually considerable sums of money from the hard-earned assets are used here or loans are taken out or repaid by banks, which is often very complex. In order to advise the contracting parties neutrally and appropriately and to eliminate possible risks borne by a party from the outset, an official in the person of a notary is involved. As a rule, a preliminary discussion takes place in which all ideas and objectives are discussed, followed by a draft contract of sale, which private persons in particular must be able to inspect and examine at least 14 days before notarisation. This is regulated in the Notarisation Act (Beurkundungsgesetz), § 17. Before and during notarisation, all contracting parties have the right to discuss all legal uncertainties and to make amendments and additions. The notary explains the procedure of the execution of the contract and at the same time also informs about the costs and liability issues as well as the legal implications, especially with regard to the binding nature of the contract.
Your property should as far as possible make a neat and tidy impression.
Shortly before the inspection, it is advisable to ventilate the house or apartment if it is empty. If the property is let, it is very helpful if the tenant(s) know what is going on. You should be able to answer the questions asked by the potential buyer, e.g. when a renovation took place and how old e.g. the roof covering is. Answer only the questions that really interest the potential buyer, do not provide any private details. For any technical or location details of the property, you should refer to us. We have all the documents and can complete the good impression with our competence and confident manner.
The market value of a property “… is determined by the price that could be obtained in the ordinary course of business at the time to which the valuation refers, according to the legal circumstances and actual characteristics, the other attributes and location of the land or other object of the valuation without regard to unusual or personal circumstances” (extract: Building Code) The settlement procedure is very common. As estate agents, we can carry out a realistic valuation for you: in addition to information from the expert committee at the District Office, we draw on our experience in comparison with other properties. We include factors that reduce or increase value in the assessment. This requires comprehensive market knowledge and market observations.
The transfer of ownership, also referred to as the transfer of benefits and encumbrances, takes place in accordance with the provisions of the notarial contract of sale, but usually after the purchase price has been paid. Often the 1st of the month following the full payment of the purchase price is chosen as the date. A provision involving the transfer of ownership before payment of the purchase price can be associated with considerable risks for all parties. The transfer of benefits and burdens refers to the point in time from which the buyer has to pay for all running costs of the property, such as insurance, water, heating costs, property tax, etc. At the same time, in the case of a leased property, the buyer would also be entitled to all payments of rent.
The energy pass of a building indicates the energy efficiency, i.e. it reflects the energy condition of a property and therefore makes properties comparable. A distinction is made between demand and consumption certificates. The demand certificate identifies the expected energy demand of a building, the values of which are determined by technical analyses of the heating system and the building substance. The consumption certificate reflects the individual usage of the users of a property.
As the owner, I have to pay the so-called common charge to the property manager, who practically plays the role of the owner. This includes the property management costs (usually rent and special rent management), the costs of managing the unit or property. The level of operating costs is regulated precisely in the 2nd Calculation Regulation (Berechnungsverordnung). These include e.g. the costs for the caretaker, the cleaning of the building, the costs for heating and hot water, maintenance of the installations, street cleaning and waste collection, etc. Of these costs, a portion can be deducted from the tenant’s advance payment for operating costs in the case of third-party letting. Other items for the owner are the capital costs, depreciation and the allocation to the maintenance reserve, which should at least correspond to the amount of straight-line depreciation. If the property is vacant, the so-called loss of rental income risk, i.e. the vacancy costs, would be added. Before purchasing a freehold apartment, it is therefore advisable to look closely at the business plans to see what costs the buyer is obliged to pay.
All land and leasehold rights are recorded in so-called land registers (so-called land register obligation). The land register is kept at the land registry office of the local court in whose district the property in question is located. It is particularly important for buyers of a property to be able to inform themselves in advance about the legal situation of the property, e.g. about any registered value-reducing rights or encumbrances, claims of third parties, land charges of banks or mortgages. A land register page consists of a cover page with the name of the local court, the district and the page number. This is followed by the inventory with the details of the property itself, such as the serial number of the corridors and parcels, the district, the location designation and address as well as the size of the property. This is followed by Section I, which provides information on the ownership structure and its basis. Section II contains the so-called encumbrances (easements, real encumbrances, leasehold, pre-emption and usufruct rights) and restrictions (e.g. compulsory auction and insolvency notices). Section II of the land register is intended for mortgages, e.g. land charges due to a loan taken out, mortgages or also annuity debts.
We will be happy to answer all your further questions in a face-to-face meeting so that you can close your property transaction reliably and satisfactorily.
Disclaimer of liability:
All answers are very brief and selected. We do not guarantee the completeness of the information.