Why now might be the perfect time to sell your Berlin apartment …
In case you own property in Berlin and are considering your options then there are a couple of matters that I would like to draw to your attention that might suggest that now is the perfect time to sell …
Firstly, as many of you will know, there is NO CAPITAL GAINS TAX when you sell a property in Germany after 10 years of ownership. The key dates are the two dates of signing at the notary. So, for example, if you signed to buy your property on 10th June 2007, you can sign to sell tax free on any date from 10th June 2017. Of course you can find a buyer and agree on the sale before that date. (Actually, there is never any capital gains tax if your property has been exclusively for your own private use, rather than rented out).
The above might be interesting because at this moment prices in Berlin are very high (compared to 10 years ago) and therefore the tax saving could be considerable.
So, yes, prices are very high at this moment and there seems to be a lack of supply of apartments. This supply could increase, however, in the coming couple of years because both private developers and the state are increasing construction. So around now could be the perfect time to sell before the supply (and competition) increases.
In addition there are several new laws affecting landlords negatively. For example the `Mietpreisbremse’, which is a rent cap on new lettings, came into force in Berlin during 2015. Also the ‘Zweckfremdes Verbot’, a ban on holiday lettings, came into force in Berlin last year.
The market is certainly a sellers’ market at the moment and so the combination of this, together with the rougher road ahead for landlords and potential tax free gains might make it the perfect time to sell up in Berlin.
By the way, there are no costs involved with selling your Berlin property! The buyer pays the whole of the estate agent’s commission and also the notary costs. There is also talk of this changing, as it already has done for the commission on rentals.
In case you want more information on any of the above, or indeed help selling your apartment, then please don’t hesitate to get in touch via jason@yourplaceberlin.com or 030-5306 4083