Holiday Property in Bavaria.
Bavaria & ndash; The largest land (federal unit) of Germany, located in the south and south-east of the country. Bavaria shares borders with Austria, the Czech Republic and other lands of Germany & ndash; Baden-Wurttemberg, Hesse, Thuringia and Saxony. With Switzerland, Bavaria shares Lake Constance, as well as Basel. The capital of the land of Munich is located in the administrative district of Upper Bavaria. On the territory of more than 70,000 square meters. more than 12 million people live. By area, Bavaria is larger than Switzerland, and surpasses Sweden in population.
Difference from other regions of Germany.
From the end of 1918, Bavaria has the status of the Free State, the German counterpart of the republic. This status & ndash; not just the official name of the land, it emphasizes Bavaria’s own statehood in relation to the Federation and the rest of the federal states. Local people, as a rule, do not identify themselves with the FRG, their favorite saying is & ndash; & laquo; Here you are not Germany & raquo ;. As in other lands of the country, the Bavarians speak their dialect.
Bavaria is ahead of the northern regions of Germany in terms of the level of infrastructure development in the industrial sector, while its landscape is predominantly hamlet, there are few large cities here. And in general, there are not many cities with a population of about a million.
Unlike other European countries, where the most expensive real estate is traditionally located in the country’s capital, in Germany, price leadership is shifted to the regions. Thus, over the past few years, the capital of Bavaria Munich has held the palm of value and rental of residential property among all cities and lands of Germany.
Every fourth tourist of Germany comes to Bavaria: annually this region of Germany with developed balneological and ski resorts is visited by about 25 million people. The main tourist flow goes to Munich and Nuremberg, to the region of the Bavarian Lakes and the Alps. Bavaria is famous for its balneological resorts, which are in the south & ndash; in the Alpine foothills, the so-called Five Lakes region.
The most popular of them are & ndash; Bad Kissingen (one of the oldest in Germany), Bad Reichenhall (the beloved resort of the Bavarian king Maximilian II), Bad Boclet (famous for its waters with a high content of minerals and iron). Bad Fussing attracts guests with its legendary thermal springs, Bad Verischofen & ndash; Kneipp water system, and Bad Tolz & ndash; infrastructure of a climatic health resort. In Bad Wiessee you can swim in the most concentrated sulfur iodide source in the country, and visit Bad Feilnbach is only because this place is considered the birthplace of naturopathy. Bad Aibling is the oldest mud and balneological center in Bavaria.
In Bavaria there are also large ski resorts: Ruhpolding with amusement park, aqua center and the largest biathlon complex in Germany, Berchtesgaden with a combination of mountain, forest and lake climate, Oberaudorf, located near the Austrian border and Garmisch-Partenkirchen & ndash; the most prestigious in the Bavarian Alps.
The main objectives when buying real estate in resort towns are their own short-term use and obtaining a profit from renting. The first option provides the maximum range of offers and is limited only by the budget and preferences of the buyer. The second option involves the purchase of housing in a mini-hotel or apart-hotel, and you can buy both separate apartments and a fully-fledged apartment house. In the second case, it is worth choosing a property in a tourist complex with a management company and signing an agreement with it, according to which the housing will be rented for most of the year, and the owner will have the right to stay in his own apartment for several weeks a year. This form of investment can hardly be considered profitable & ndash; often it barely covers communal payments and housing maintenance costs.
Mini-Hotel & ndash; this is, in fact, a residential complex with apartments, which has one owner, where apartments are rented for short-term rent. All costs for housing maintenance (cleaning of the adjacent territory, maintenance of the sauna and the pool, if any) fully lie on the shoulders of the sole owner. So, when buying a functioning family hotel between the resorts of Bad Kissingen and Bad Brueckenau for � 270,000, the annual cost of its maintenance will be & euro; 1000, and the income from the deposit after tax, insurance and utility payments will be about 3% per annum.
In the apart-hotel, as a rule, the apartments belong to different owners, and the management company is engaged in the issue of renting a house. When buying property in the apart-hotel, it is also worth considering the further costs of housing maintenance, which will be proportionally divided between the owners of all apartments in the complex. When purchasing a dwelling in an apart-hotel in the secondary market, it is worthwhile to ask the previous owners about the amount of associated costs, since the attractive cost of the apartments (� 10,000- � 15,000) can be offset by high annual costs (about 10% of the cost).
According to the specialists of the German real estate market, buying a holiday home and further renting it though is reliable, but not always commercially profitable. Remotely engage in the selection of short-term tenants and monitor the technical condition of the apartment & ndash; the case is almost impossible, and the services of the management company will cost the owner of the house about 20% of the rent. The yield of this type of investment will barely reach 2% per annum.
When buying holiday apartments priced from & euro; 40 000 & ndash; and their subsequent delivery in management of management of a tourist complex profitableness will make on the average 5% -6%. As for objects in the economy segment, the possible profit is offset by the cost of utility payments.
By purchasing a mini-hotel or apartment in the apart-hotel you can independently manage the object & ndash; and thereby increase the profitability of investments, but such activities require a constant presence in the country, that is, business immigration. The receipt of such a residence permit is directly related to the income, that is, the amount of the necessary family for living: it must be at least � 25,000 per year.
Munich is the locomotive of prices in the residential property market not only in Bavaria, but also throughout the country. So, the average price of 1 square. m of housing in Munich is � 6150, and for a compact apartment (32 sq. m.) in the capital of free land will have to pay from � 100 000.
The cost of housing in the resorts of Bavaria is justified by the development of infrastructure and the distance from airports and transport highways. Although the balneological resorts cost per square meter & ndash; in two, and sometimes three times lower than in the capital. For example, the average price for a property in Bad Aibling is � 3581, in Bad Kissingen � 2170, in Bad Reichenhal � 3178, in Bad Fussing � 2628, in Bad Werishofen � 3296 for 1 & laquo; ; square & lt; / RTI & gt;
In the center of the spa town of Bad Kissingen completely renovated house with an area of 260 square meters. m with a spacious plot of land and a view of the park costs about � 450 000. It is possible to reduce the amount of initial investment by purchasing real estate at the construction stage, when payments are made in stages & ndash; according to the executed work volumes. So, the cost of a three-room apartment of 83 square meters. m with a garage in Bad Verisofen with a willingness in 2016 now � 274,000, but the first payment will be only 30% of the total cost of the apartment.
Prices for ski resorts, with the exception of Garmisch-Partenkirchen, are also significantly lower than Munich’s. So, the average cost of 1 square. m of real estate in Berchtesgaden is � 2628, in Oberaudorf & euro; 2884, and in Garmisch-Partenkirchen for 1 square meter you will have to pay about � 4276.
In Garmisch-Partenkirchen in the primary market, a spacious two-bedroom apartment (area 86 sq. M.) With a view of the mountains can be purchased for less than � 300,000. The cost of two-story houses here starts from � 1 million.
The Germans & ndash; a very mobile nation. They do not like to “sit still” & raquo; and often spend their entire lives in rented housing. The main motive for changing places of residence is often the availability of jobs and higher salaries in another region. Due to significant population growth & ndash; Only over the past 25 years, the number of Bavaria’s residents has increased by 1 million people – ndash; and the demand for rental housing is always great. Especially it is high in Munich, where the average rental rate for 1 square. m is � 15.61.
In the balneological resorts, the rental rates fluctuate around & euro; 6-9 for “square”. In particular, in Bad Aibling rent 1 square. m. of housing will cost � 8.52 in Bad Kissingen � 5,93 in Bad Reichenhal � 8.53 in Bad Fussing � 6,00 in Bad Tolz � 9,06, in Bad Verisofen & euro; 9.86. Rent of real estate in the fashionable ski resort of Garmisch-Partenkirchen is characterized by democratic prices & ndash; & euro; 8.72 per 1 square. m. In Oberaudorf rent will be slightly cheaper & ndash; & euro; 7,30 / 1 square. m.
In general, Bavaria is characterized by an inverse proportionality between the liquidity and profitability of the residential property: in Munich, because of the high cost of housing and large-scale initial investment, the yield may be more than modest & ndash; at the level of 3% -4%, while the object itself will be highly liquid.
Undoubtedly, buying a home for one’s own use in one of the most interesting regions of Europe, famous for its wide range of opportunities for recreation, cultural life, historical monuments and excellent conditions for living and rest. & Ndash; is in itself a worthy investment. And, in particular, it concerns the elite real estate, detached houses and villas in the resort areas of Germany, which are always popular and are one of the most reliable investments of capital & ndash; mainly due to the high cost of land.
Experts note that the resort property in Bavaria, like Germany as a whole, is mainly purchased not for earnings & ndash; The possibility of increasing profits from resale or obtaining a significant income from leasing here is rather modest. However, the profitability of investments, which is not very high by Russian standards, is compensated by reliability and stability. So, according to the latest data, the index of growth in prices for residential real estate in Germany was 5.2%.
Holiday Property in Bavaria.