Real Estate in Northeast Florida and Around the World

Germany - The Land of Fairytale Castles and Big Business

Fast Facts:

· Germany has Europe’s largest economy the second most populous nation (after Russia), and the 5^th largest economy in the world

· Primary exports: Machinery, chemicals and household equipment, highly skilled labor force

· Area in size is comparable to Montana

· Currency is the Euro (€)

· Ranked 15 in total world population, compared to The United States at #3 and the United Kingdom at #22

· 74% of the population live in urban or urban-fringe areas

· Government information: Federal Republic form, containing 16 states and 6 major political parties

· Median age is 43.8 years

· 7% of international buyers of Florida real estate are German

Germany is a land of wonderful natural resources, rich traditions in beer, food and wine and industry. The urban areas are densely populated, but the rural areas provide a respite from the noise, crowds and pollution. With a public transportation network that sets a standard for other nations in the world, it is a land that can be navigated by rail, bus, car, boat and bicycle. While the people of Germany are very proud of their culture, they are also understanding of other cultures, and respectful of differing religious and political opinions. While WWII marked a dark time, it should be kept in mind that this period was brief when compared to Germany’s long history. Many great people of Germany have contributed great things to the world in music, mathematics, science, machinery and medicine.

The Germans are known for their solid work ethic, skilled work force and having order and routine in all that is done. However, the Germans while seemingly very formal and dry at first, are a warm and friendly people that are outgoing and witty, and will reveal this side to you once a relationship has been formed. The German people are keen on good health, sport and exercise, both as a spectator and participant. In Deutschland, the people take opportunity for hiking, biking and the relaxing at hot-spring spas a regular part of their daily life, so as a visitor, the opportunity to take part in these activities is probably located in your hotel or just around the corner!

Real estate in Germany can be purchased and title held by foreign nationals. It is expensive compared to United States real estate. Averaging a price per square foot of USD$500 for a residential home or flat in a urban setting is not unusual. Prices lower than this can be found in the very rural, less populated areas, especially in the former German Democratic Republic, where the infrastructure is still behind that of its western Germany areas, and where the finishes or refurbishments have not been done to reflect today’s lifestyles. U. S. Citizens who wish to large rooms in large houses should be prepared to have pockets deep enough to pay for the premium-priced space that they desire. On the other hand, budget-minded buyers looking for a nice apartment in the city where they can live while vacationing or on business are available for USD$350 - $400 square foot., nicely appointed and updated. With large downpayment requirements and restrictive financing options, demand to purchase real estate in Germany meets or is less than the supply.

Renting in Germany is popular, and apartments in the cities and suburbs are popular and more cost effective where there can be a shortage of housing. The majority of German houses have been built since the second world war, though you are still likely to find many lovely traditional village homes in rural areas. It is also not uncommon to find homes where someone in the family has been in title for several hundred years, with structural refurbishments done every hundred years or so. Many non-Germans investing in residential real estate would be looking for a dream fulfillment (owning a 200+ year old castle or farmhouse) or looking for a rate of return for rental or lease that would outweigh other investment opportunities. Appreciation of real estate values is slower than in the U.S., due to the lack of demand. Making a connection with an Immobilienmakler or a U.S. based Realtor who has Immobilienmakler contacts, who is familiar with investment rates and opportunities in the local market, is highly suggested in Germany.