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Real Estate FAQ

In which part of Germany is Leipzig located?

Leipzig is located in the eastern part of Germany, in the federal state of Saxony, approximately one hour by ICE high-speed train from Berlin.

Which additional costs do I have to face when buying a flat / house?

Concabral charges a commission of €2,500.00 for properties with a purchase price of up to €50,000.00. The commission will be 5% of the purchase price if the property sells for more than €50,000.00 (in each case plus statutory VAT). Furthermore, you must add a property transfer tax of 3.5% (for Leipzig) of the purchase price and other fees totalling 1.5% of the purchase price. You can find the exact breakdown of the additional purchase costs in Real Estate Financing.

Do you offer a letting service?

Concabral partners with several agencies specialising in leasing. They will gladly find renters for your flats, commercial space or single-family homes. This includes professional inspection services and lease activities.

Do you offer a reconditioning service?

Concabral maintains contacts with companies that do high-quality renovations and restorations of your flats or buildings at very reasonable rates. We would be happy to arrange, organise and supervise their work for you.

Why is an investment in Leipzig real estate more advantageous than an investment in Berlin property?

The real estate market in Leipzig is known for the high-value renovation of its housing stock. Furthermore, purchase prices for flats and buildings are generally lower than in Berlin. Therefore, the returns are highly attractive.

I would like to exchange GBP into EUR for my property purchase!

We advise our customers to use the services of the private foreign exchange company GLOBEX. They offer very competitive exchange rates and free transfer of funds to any account. If you would like to know the current exchange rate from EUR to GBP as of today, just consult the GLOBEX currency converter.

How do you calculate the returns of sales objects?

Concabral typically calculates as follows:

Annual rental income (unheated) / purchase price * 100 = Return in %
Operating costs (risk of unpaid rents etc.) usually make up approx. 10–20% of the return.

Why have the price declines for some objects been as dramatic over the last years?

The Leipzig real estate market experienced many ups and downs. We had a huge run-up through the end of the 90s/early 2000s until markets overheated and prices fell. But for the last three years, prices of real estate in Leipzig are again slowly rising.

Which districts of Leipzig enjoy a high demand?

Gohlis (especially its southern end), but also the Waldstraßenviertel (Waldstraße neighbourhood), the Musikviertel (with streets named after famous musicians like Beethoven, Mozart or Haydn) and Schleußig (in Leipzig’s western part) are very popular.

Gohlis is possibly the best residential area in Leipzig. Reasons for it are the abundant greenery, quiet ambience, a well-preserved, desirable building stock, and a citizenry adhering to traditional social values. Many buildings stemming from the time around the turn of the 19th to 20th century can be found in Gohlis. The impressive Art Nouveau and Wilhelminian style houses had been extensively renovated after German reunification and make this part of Leipzig particularly appealing.

To a lesser degree, the somewhat student-dominated districts of Südvorstadt and Schleußig have to be mentioned. Reasons for it are the proximity to parks, a variety of restaurants, bars and cultural amenities (Südvorstadt), as well as a pleasant residential environment, good image and social surroundings (Schleußig).

Plagwitz and the adjacent district of Lindenau feature a broad cultural diversity. Like no other part of Leipzig, Water is the overriding factor here. The canal banks are lushly covered with vegetation, bridges and little paths can be found all along the canals. Walking through Plagwitz is interesting as it is neither a plain residential quarter nor a pure industrial site, even though Plagwitz had once been the most important industrial area of Germany. The indigent artist colonies, galleries and the attractive architecture of old, together with industrial buildings of yore appeal to a broad range of people. Students, young families, artists and craftsmen are living side by side. Meanwhile, Lindenau and Plagwitz have become an insider’s tip. The district willingly adapts in confidence to the new era, without denying its industrial past.

As a matter of fact, all locations near the water or a park are in high demand. Unoccupied mansions and landmark-protected buildings also represent very good investment opportunities. If the building is in excellent condition, underwent restoration and the flats are rented to solvent tenants – no matter what part of Leipzig the flat is located in – its purchase will turn out to be a profitable investment.

Who can provide management services?

In Germany, multiple-family dwellings are commonly managed by a property management company. You can find all information concerning the topic in Property Management.

Can you arrange for a lawyer's services to ensure all the legal work is done prior to purchase?

One of our notaries is qualified to draw up sales contracts. We could certainly assist you in finding an appropriate (English-speaking) lawyer/solicitor in Leipzig to act on your behalf and examine the sales contract.

Can you arrange for a loan?

Concabral can assist you when buying through a German bank/mortgage provider. We have several reliable sources and been working with them on a mutually satisfactory basis for a long time. You can find all information concerning this topic in Real Estate Banking.

What are operating expenses and housing allowance?

The tenant pays the net rent plus operating expenses. The operating expenses (utilities; in German: Betriebskosten or Nebenkosten) have to be paid by the tenant. They include heating, water, garbage collection, etc. The housing allowance (in German: Hausgeld) has to be paid by you, the flat’s owner. The housing allowance includes maintenance costs, bank charges and reserves for the building (for repairs, etc.) Note: If the flat is vacant, you will be responsible for the housing allowance AND the operating expenses. The operating expenses and the housing allowance constitute the accommodation allowance.

What is the average lease price per square meter for flats in Leipzig?

The rent for flats in Leipzig has increased in the last two years. Compared to lease prices in other German cities, those in Leipzig are still competitive with the market being relatively homogenous. Flats in older buildings will rent from €4.40–5.50 per m². Dwellings in new housing developments command between €5.20–6.60 per m². These prices apply to about 90% of the flats available on the market. Exceptions are possible, e.g., buildings in need of refurbishment or buildings in a prime location. They will vary according to the part of town, overall condition and type of amenities and appointments inside the flat in addition to the number of parties expressing interest in it.

Can you provide further details on the double tax agreement between Germany and the United Kingdom and Northern Ireland?

English investors who receive income from real property will be taxed in the area where the property is located (in the case of a property in Leipzig, this would be Germany). English investors are contingent taxpayers and have to file a tax return once a year concerning the rental income from property in Germany. If English investors do not maintain a residence in Germany, their incomes are subject to the contingent income tax. The investor has to file a tax return with the Inland Revenue in the district where the property is located. Deadline date is May 31st of the following year. The income tax rate is no less than 25% of income plus a 5.5% solidarity tax. English investors have to fill out a taxpayer identification form for fiscal registration (an English translation of the questionnaire will be provided). They are subsequently assigned a tax number.

Example for calculation purposes:
Rental income subject to income tax: EUR 8,000.00
Income tax (25%): EUR 2,000.00
Solidarity tax (5,5%): EUR 110.00
Amount of tax due: EUR 2,110.00

It is possible to deduct income-related expenses. Details are best worked out in consultation with a tax advisor.