Germany, not just a place for great beer and sausage? Turns out it’s also on the rise to be one of the hottest investment locations to date. Germany is home to the largest national economy in Europe and the third largest in the world. Nearly five percent of international direct investment flows into Germany and in just 2006 alone, that number totaled 30 billion Euros. Germany also happens to be home to the world’s largest wind farm and solar power plant. In fact, in 2007 it generated an impressive 14% of the country’s total electricity consumption. As if all of this wasn’t impressive enough, Germany once again retained its position as the world’s number one exporter in 2007.
#1 in the world for Exportation!? The country is also the only G7 state which has increased its share of world trade in the last 10 years. They offer incentives to many potential investors, ranging from cash support to reimbursement for labor and R&D. Germany has made great strides to significantly reduce its corporate tax levels, which is helping companies invest, and secure new business. Their goal is to improve the general tax framework and keep indirect labor costs down all in an effort to open its doors to more investors. Add to this their superior health and education provisions, beautiful landscapes, and their vibrant cultural scene; and it’s no wonder why more than seven million foreigners have made their homes in Germany. So now that I’ve started to convince you to consider Germany as your next place of residency, what’s next?
No restrictions on foreign ownership. You’ll be happy to know that there are no legal restrictions on non-Germans owning property. The only bar to foreign ownership of property might lie in the financial institutions that offer mortgages. They might require a higher down payment because of the lack of a long-term financial track record. So what’s it going to cost? Interest rates for mortgages are presently below the long time average, ranging between 4.90 percent and 6.15 percent, depending to some degree on the duration of the financing plan. Most mortgages are for 10 or 20 years.
Real Estate in Germany. Before going into the typical cost of German homes, it must be taken into consideration that homes in Germany, and all other European countries, tend to be smaller than American or Canadian ones. Bear in mind that the more than 80 million people in Germany live on a land surface only 1/35th that of the U.S., which has a population of about 300 million. That means that the Germans have only 1/9th as much living space. As a result much of that land happens to be heavily developed, so home prices tend to be slightly higher. But if a bargain is what you are looking for the city-state of Bremen is one of the least expensive of the larger cities. At the other end of the scale the Bavarian capital of Munich is by far the most expensive. The price per square meter for privately owned property was only €975 in Bremen compared to around €2,050 in Munich. Keeping in mind the booming economy and ever increasing vocational opportunities even if you choose the higher initial investment the long term return promises to still be very rewarding. So Germany- more than a great place to find a pub? I would say so.
