„Kiwis“ should invest in German Residential Properties

Topic: Structural differences between the residential housing market in New Zealand and Germany

Share Residential Property

Residential Property Index Source: BulwienGesa Source: REINZ Germany New Zealand

Reasons for different price changes Award of loan Mentality Protection of tenancy/inherit of properties/investment diversifications Since December 1981, house construction costs have increased by 260% high levels of turnover/investment diversifications influx of immigrants ERES-conference 2009; Tonio Stübing GermanyNew Zealand

The role of an estate agent in New Zealand In New Zealand estate agents commonly negotiate a binding contract between the vendor and purchaser which is different to many other countries. Agents may also provide advices Various methods of selling a property The commission fee of estate agents is different from company to company As example $500+BaseFee+3.95%On the First %Thereafter+GST

The role of an estate agent in Germany The term estate agent is not protected and there is no certificate relating to the profession of estate agents The profile of an estate agent does not really have a good reputation Information an guidance from agents are very low Only around 50% use a sells agent to purchase properties

The role of an estate agent in Germany There are two main types of contracts who will be offered in Germany ( normal contract; contract alone) The commission fee for residential properties in Germany is between 3-6% of the purchase price without tax

Buying a house in NZ Purchaser make their offer through estate agents The offer contains specific conditions Agents present all offers to the vendor

Buying a house in NZ Negotiations continue until a price is agreed upon and both parties have signed the contract. Standard forms of contract are the norm The agent receives his fee from the vendor

Buying a house in Germany In the last decade there have been more and more agents who work as a company or franchise institutions or financial institutions. In Germany the sales act of residential property is complex to protect the purchaser. Many people use the internet or other private sales offers. Normally the sellers went to the agent and supply the object to sell with detailed information’s

Buying a house in Germany Within these information the agent creates an Expose Agent search a relevant purchaser If there is a sells interest the agent has not the legitimating to make the contract. The Vendor and the Purchaser have to go to the solicitor and write down a certificate of purchase. The commission fee is normally paid from the purchaser.

Tendency New Zealand Residential Property prices will decrease But demand will still exist Germany Best time to buy Rents grow Demand will grow

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