Interview to a BRICKBeRLIN’s customer

A. N. tells us the reasons why he invested in real estate in Berlin and his experience after the purchase.

- Do you think people are aware of the good opportunities that the real state market offers in Berlin? Unfortunately, not yet.

- What are the reasons that led you to buy a property in Berlin? Well there are several reasons. First of all, I saw a high probability of revaluation in Berlin: while almost all European capital cities increased their prices and tend to come to a standstill, in Berlin the prices are still low and they are actually increasing. For instance:
1. The average price in Berlin is around €1,894 per square metre, while in Barcelona the average price is €3,200 per square metre and in Madrid €2,800 per square metre approximately.
Secondly, in 2011 the prices raised more than 8% and in 2012 more than 6% in Berlin.

Furthermore, in Berlin you can find a high and stable yield: The acquisition of properties in Berlin is producing rental yields by around 4.5% and 6%. In Berlin, 80% of the population live in rented flats and there is legislation that effectively regulates the relationship between landlords and tenants.

- Do you think that this is a safe investment? I mean, weren’t you afraid of investing in real estate market in other country, in which you probably would never live?
Not at all, that is a completely safe investment. On the one hand, because of the political and legal security: I don’t need to explain that Germany, which issues the bonds with the paradigm of a risk-free investment, is a serious country in which laws are stable and contracts are accomplished. On the other hand, the guarantee that my investment will not lose value: The price level and dynamic in Berlin makes hard us think that at some point may go down. Several studies suggest that in countries like Spain, France or the UK, prices are overvalued, while in Germany are undervalued, particularly in -17% in early 2013.

- Is it necessary to invest large amounts of capital? No, the truth is that in Berlin you can invest from fairly modest amounts. If you want to buy an apartment in Spain you have to start thinking about high capital inversions. In Berlin, you can own a flat for not much money: For instance, you can buy a rented apartment for €60,000 - €70,000 with 40-50 m2 and with a rental yield from the first day onwards.

- Was the purchase process difficult, especially for a person like you, who does not speak German? No, It wasn't. From my experience, the process was comfortable and easy. Actually, it was not necessary to speak German, since the BRICKBeRLIN team helpt me and informed me in Spanish, the purchase contract was bilingual in German and Spanish, and other managements were also made by Spanish speaking people. Finally, the result is that I receive a monthly net income in my account and I haven’t got any concern about my property.