What level of deposit will I need

… when buying a property in Berlin?

How much money will you have to invest yourself in terms of a deposit and how much mortgage finance could you expect to get?

If you are thinking of → buying a property in Berlin, you may be wondering how much deposit you have to pay as a non-German tax payer to secure yourself your own property.

Deposits vary widely depending on a number of factors

but generally a buyer in Berlin must pay between 30-50% of the total purchase and this is largely based on how they raise the finance. If a buyer is from the UK they will generally find post-Brexit that it is becoming increasingly harder to raise finance unless they are carrying out a buy-to-let investment purchase.

 

The level of deposit you pay here means you have to be very serious about the purchase you are making because you are putting, even with mortgage finance, a substantial amount of your own capital into it. The approximately 15% purchase transaction costs also make up a rather substantial – yet often forgot about –  addition to the property purchase price and the buyer must also fund all these themselves. This means you will ultimately end up investing between 40-60% of the total costs of purchasing upfront yourself.

 

It’s therefore very important that you approach the property market here in Berlin with these realities and ability to fund these costs so that you can complete the purchase in the available timeframe.