Our Company And Our Business In Berlin Properties And Real Estates |
Already since the early 1990's the proprietor, Frank Noack, operates on
the Berlin Property and Real Estate Market.
At the end of the 1990's the company NOACK Immobilienberatung (means NOACK Real Estate Consultancy) evolved
its todays shape. During this time we have realized several letting and sales transactions of residential and mainly commercial properties and real estates.
In 2001 our agency changed its field of activity mainly to be in charge with the preparation of
foreclosure auctions and to handle
insolvency sales, bank utilizations and other distressed properties
in Berlin, the Federal State of Brandenburg and from time to time in Mecklenburg-Western Pomerania. We work in written authorization of the creditors, mostly the
financing banks, the insolvency administrator respectively.
The relevant properties and real estates for sale might be let and vacant apartments,
single family homes, duplexes or multi family buildings, row houses, apartment blocks, tenements, residential and commercial buildings, offices, medical practices
as well as industrial halls, building sites etc. Sometimes even shopping malls, vacancy homes and many more. The most of these objects may come out as investment
as well.
As a second reference person, especially to you as an English speaking
client, Karsten works in assistance of the firm owner. His experience in the Berlin property and real estate market also goes back about 13 years now.
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Buy Properties Or Real Estates In Germany As A Non-Resident (Foreclosure or Open Market) |
Generally there are no
restrictions for foreigners to buy property or real estate in Berlin or Germany. Documents are written in German, of course, so an interpretor would be a good idea.
Buyers and sellers must be present at the foreclosure hearing in courthouse or for a reading of the contract by a notary. Another option would be to authorize somebody else,
but notarial certified at additional costs.
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Property And Real Estate Viewings |
According to German Laws a tenant or owner doesn't need to allow a viewing if it's an
foreclosure process. We will try to arrange, but we can't guarantee in each case. At open market property and real estate for sale this normally should not be
a problem.
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Procedure Of German (Judicial) Foreclosure Auctions |
The procedure in court may vary from country to country, so
if you want to get further information about the process in Germany you will be welcome to send your query.
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Minimum Selling Price (also Upset Price or Starting Price) |
Please allow to point out that mentioned property
and real estate prices on foreclosure auctions are NOT negotiable. They in fact represent the minimum selling price in court, which will get the acceptance
of the creditor (mostly a bank). Finally the creditor decides about this figure, neither the court nor we do.
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Pre Foreclosure Sales (also Prior to Auction or Short Sales) |
Sometimes it might become possible to run a sale
prior to auction. But that's not a general rule! In Germany the banks do not own the properties. If the owner is not willing to sell (signiture on sales contract
required) or is not present or sadly has died, this process will be impossible. It also depends on the entries in the land-registry (German property deed). Normally
we leave a note, whether it might be possible to buy before or not. If so, the minimum price to buy in court could be too low to run such a short sale. So it's always a
case-by-case situation!
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Provide Deposit To Become Able To Place (Acceptable) Bids |
It's required to pay deposit to place an acceptable
bid. Cash will not do! The deposit is always (minimum) 10% of the market value set by court. So it's not a percentage of the minimum price. Please consider that
your bank might charge a fee for the transfer. We advise to pay about EUR 25 to 30 more to be sure the deposit will fit the required amount. If you need support on
how and where to pay, please send your request. There are several options how to manage.
Most common, and most convenient for non-residents by the way, is the bank wire transfer. The money always has to be addressed to the court, the court cashier's office
respectively. Not to us! If one hasn't been the final bidder the deposit is refundable, of course. Please allow the court a few days to manage the transfer. Normally
it will be automatically re-transfered into the sender bank account. Registration fees or so will not have to be paid.
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Notary Public And Additional Fees |
Often we receive questions concerning notary fees on property auctions.
Well, if one buys property or real estate from open market of course one will have to engage a notary (at costs of up to around 1.5% normally, depends on the sale price).
BUT... if one buys property or real estate from auction in court no notary will be required because there will not be a normal sales contract. The final bidder
will receive a title instead of a contract. The court will charge a fee of 0.8 to 1% of the final bid on the purchaser for doing the paperwork. Subject to the bank's
acceptance of the highest bid.
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Day Of Falling Due Of The Purchase Price |
Should one be the final bidder the deposit will be deducted from
the purchase price, so it comes out to be a down payment. Within a time period of 6 to 12 weeks after the auction the amount-left will fall due. The
purchaser/highest bidder will get a letter for his information until when he will has to pay the money (incl. all bank account details). Furthermore there will be an
interest of annual 4% on the amount left, but only for the above mentioned period of course. You can save these extra interest by making a payment of the total price into
the court cashier's office within a few days. This is an individual arrangement and you will have to apply for this to the court after the auction.
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Property Transfer Tax (also Property Purchase Tax or Stamp Duty) |
The Property Transfer Tax in
Berlin is 4.5% of the sales price (final bid respectively). In the rest of Germany 3.5% of the sales price will be charged. Of course a buyer will has to pay
the tax either in case of a free or a forced sale.
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Property Tax |
The Property Tax in Berlin is a bit more difficult to explain.
It depends
on the so called "Einheitswert", what could be translated with "rateable value". It varies from the location. If it's the former Eastern part, the value has been
determinated in 1935. As the basic year for the Western parts 1964 has been specified. Please note: the rateable value has nothing to do with the current
market value! It's more the "defined value" of a real estate in that (past) time.
Then there is the "Steuermesszahl". Best translation should be "basic federal
rate". It is meassured in "Promille / ‰", which is equal to 1/10th of a percent (US = mill). The basic federal rate depends on the kind of the property. As an
example we take an apartment in the Western part of Berlin, which has a basic federal rate of 3.5 ‰. So you have to count 3.5 ‰ / 100 = 0.35 % / 10 = 0.0035 as the multiplier.
Or more simply: 3.5 / 1,000! Please also see the table below.
The result of the last calculation (rateable value x basic federal rate) gets the "Steuermessbetrag", so the "basic federal amount". Now multipicate this by the "Hebesatz", which is the "rate of assessment".
In the beginning of 2007 this amount raised from 660% to 810% (Exception: undertakings in agricultur and forestry 150 %), so the factor is 8.1 because 810% means 8.1-times of 100%!
At the end you will have the Property Tax.
Non-binding example, apartment in the former West-Berlin:
Suppose the rateable value is EUR 30,000. So you count EUR 30,000 x 0.0035 basic federal rate = EUR 105 basic federal amount x 8.1 rate of assessment. At the end this
amounts to EUR 850.50 annual taxing of this property. It has to be paid per quarter (EUR 850.50 / 4 = EUR 212.63), starting February 15th .
This is a simplified overview of the rates of assessments in Berlin according to the Land Tax Law (GrStG = Grundsteuergesetz):
Former Western Part:
| Single Family Homes (depending on the rateable value) | 2.6 to 3.5 ‰ |
| Single Family Homes (in meaning of home ownerships, e.g. apartments) | 3.5 ‰ |
| Two Family Homes | 3.1 ‰ |
| Other Estates (esp. operating realties) | 3.5 ‰ |
Former Eastern Part:
| Single Family Homes (depending on the rateable value & the year of construction) | 5 to 10 ‰ |
| Most other Properties (depending on the year of construction; incl. home ownerships [e.g. apartments], rental housing, commercial estates a.s.o.) | 6 to 10 ‰ |
No Differentiation:
| Undertakings in Agriculture and Forestry | 6 ‰ |
| Vacant Lots | 10 ‰ |
Non-binding statements without a title on completeness. More details you can find here (German). The calculation of the property tax in the Federal State of Brandenburg may vary.
Nevertheless you are welcome to send your queries.
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Stories - Measurements - Rooms |
Stories - should only be interesting for people from North America/Asia/Russia, we guess?! If we say "Ground Floor" in Germany
you probably would say "1st Floor", wouldn't you?! "2nd Floor" would be "3rd"? This might be a bit confusing on the first view. We will normally add both figures on the pages
to make you feel more familiar.
Certainly you are used to specify an apartment by the number of bedrooms, as it is common use e.g. in the UK or USA. In Germany
the number of rooms is always announced by the total of all residential rooms. If we say 3-Room-Apartment this comes out to be an apartment with e.g. a Living
Room, Bedroom and Children's Room.
The stated floor spaces of a home are different, too! On the English item pages you can find a rough conversion
from square meters into square feet into give you a more familiar feeling.
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How To Contact Us |
Most effecient is to send an e-mail, at best by using our
contact-form. It's a generally one. Please always fill-in the subject matter
and leave a message so that we know how we can be of help. If you are going to request an offer please don't miss to tell the address or kind of property or real estate
since we actually don't use property ID's. If you want to give us a call, please ask for Karsten (due to the language).
Office Number: +49 (0)30 24727700 or Cell: +49 (0)172 3108460
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How To Find Us |
If you prefer to meet up with us personally you can find a short guidance
on this page. Please make sure you have
contacted us before to make an appointment. As you certainly can imagine... because of our
business in property and real estate we are not always available at the office.
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