Spacious bright penthouse with large roof terrace

When purchasing a newly built property, a building description is attached to the certified purchase contract as an essential part.

This depends on the income situation as well as the use. In other words, whether the property is acquired for own use or as an investment.

This depends, among other things, on the value of the property in conjunction with the tax allowances. Consultation with a tax advisor or accountant with corresponding costs is advisable.

There are three standardised methods for determining the value of real estate in Germany: the comparative value method, the capitalised earnings value method and the asset value method. The aim of the valuation is to determine the market value of the property.

The risk profile of the property should be comprehensively assessed as part of a "due diligence", i.e. a simple consideration of the gross yield (annual rent : sales price x 100) is certainly not sufficient. This involves a large number of assessment steps, which are only presented as examples in the context of this blog.