BEFORE BUYING: ASK FOR INDEPENDENT ADVICE!
You may ask for an independent advice in the very beginning of your search and your negotiations.
This might save quite a lot of work and disappointments.
How deep and thoroughly researches have to be done, might differ from case to case.
It will be useful , if you cooperate regularly with one consultant.
At the latest you should ask for an independent advice, when you already have chosen some "candidates" and want to make sure, that the meant quality really is offered.
Expenses for the consultancy and the value estimation are usually born by the party
buying the Real Estate.
Depending on the size of the investment a thorough research should be undertaken for
- first of all the location, the area, the "address"
- the condition and structure of the house
- the annual costs, especially for energy
- If buying single flats it is useful is to study the reports of the annual meetings of all apartment owners in the house.
All problems relating to the house community and the house itself will be mentioned in the annual meeting report. This report needs to be done by the management company responsible for holding these meetings. Of course sometimes you need to read between the lines of such reports.
- If you buy just a single flat, nevertheless the conditions of the whole house have to be checked.
- If buying rental homes, you and your consultant should visit the house and it should be possible, to see not all, but many of the flats from inside.
- Also rental contracts and the actual rental situation have to be examined carefully.
Are there non-paying- residents ? In some areas non-payment rates can be 20% or more.
Your consultant should give to you personal advice.
Make sure, that your consultant is insured and is liable for his advice.
A good, independent consultancy should cover these aspects:
- The content of current planning legislation (Bebauungsplan, the equivalent to the UDP on a more detailed level)
- The possibility of diverting from current planning legislation
- The growth potential of the area in question
- The quality of building fabric & structure
- Costs of necessary repairs
- The time and cost implication for a change of use or for the conversion / refurbishment
of the building in question
- Risks associated with running rent or lease agreements or land charges
If questions concerning town planning, building law or costs of renovating have to be answered, make sure, that your adviser is experienced in these fields.
Your consultant has to be chosen carefully, of course.
"Öffentlich bestellt und vereidigt" (ö.b.u.v), is not bad, experienced in housing and planning is necessary, practical knowledge of about refurbishing and its costs is certainly a plus.
Be sure, that he or she is not just nitpicking but has a general idea concerning the market
and your needs.