Is Central Europe Investment Property A Good Buy or Goodbye?
The Central Europe investment property market is currently receiving a lot of interest and at the centre of this interest is Germany, in particular Berlin, the capital city.
You may have heard about this current hotspot for property investing and be considering a Central Europe investment property, but you need to know – is it a good buy?
I won't disagree that certainly the rewards look good on paper... Berlin has a thriving economy and for the past decade has been undergoing much improvement.
Since the Berlin Wall came down, the city has been doing all it can to attract both tourists and nationals back and has definitely succeeded in doing so – Berlin is now the 3rd most visited destination in the EU.
Property in Berlin is so ridiculously cheap for a capital city in the developed world that any investor would surely be laughing all the way to the bank. But how come property is this cheap, is there a catch?
The other option for a Central Europe investment property is to look at commercial properties rather than residential ones. If you've already read my article on Berlin residential investment properties (linked above) you will have discovered that this is a market which I'm not too comfortable with.
Like so many other opportunities there are good points and bad points, but if you want my opinion, residential properties in Berlin are not a great investment at this time, however, Germany's commercial property market looks more promising.
The key to investment in Central Europe is not to jump in too quickly. It may look great on paper, but once you work out the initial costs and returns, maybe Eastern Europe provides the safer option. Read my Overseas page to learn more about Eastern Europe and all your other overseas property investment options.