german property prices looking at coming down
News Posted On: 04 August 2010
Though you never hear much about German property prices, because they very rarely move much in either direction, German property prices are coming down right now. People will wonder where this bold assertion is coming from, as again, there are no reports to find confirming or denying it. That is, anyone except those with a close knowledge of the market.
Those who know the market know that residential property prices in Germany are controlled by rental rates, which in turn are controlled by the government. This is because less than half of all Germans own their own home, and this leaves people reliant on affordable rental accommodation.
Because of the situation, rental rates only rise when wages are rising. One thing that is currently very unlikely in Germany is a mass of wage increases, and this will keep rents low. If it hasn't already this will lead to German property prices falling.
Germany is already one of the best buy to let destinations in the world. The rentals market is so established, and contrary to popular belief the people are really friendly.
Though it was unheard of a few years ago, you can even find guaranteed yields on German properties these days. It used to baffle many why there were no guaranteed yields, given the set-in-stone occupancy of many of the properties, and now they are here.
The yields aren't spectacular, but you can get a yield of up to 6% guaranteed. That used to sound low, but given the pathetic rates we are getting on our savings now it is rather brilliant.
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