Osman Nyei – Baufinanzierung Bonn International

Egal, ob Sie Expat in Deutschland sind oder einen ständigen Wohnsitz im Ausland haben, wir sind die Matchmaker, die Ihre Kaufkraft auf den Immobilienbesitz ausrichten. Als Bonner Finanzberater kombiniere ich komplexe Hypothekenberechnungen mit der effizientesten Finanzproduktberatung, die Ihnen unser reiches Ökosystem aus Banken bietet.

Whether you are an expat in Germany or a permanent resident abroad, we are the matchmakers who align your purchasing power with the right-fit in owning a property. Founded by Bonn-based financial advisor Osman Nyei, we combine complex mortgage calculations with the most efficient financial product advice given to you by our rich ecosystem of banks.

The past week I had the chance to visit some upcoming and other established Real estate agencies in Berlin & Frankfurt. All discussions included the following question.

QUESTION Estate Agent: What LTV (Loan To Value) can clients expect given the current real estate prices?

ANSWER OBN: The wrong answer is to generalize and say 60% to 70% LTV. This could backlash. The right answer is, that it heavily depends on the price, the size (m²) and the rent per m².
The prices today are a step ahead or increasing relatively faster than the rent per m². This results into a lower LTV and clients from abroad would have to consider a higher down payment.
To offer the right answer one will have to evaluate each unit within a project and offer a unit specific LTV.

QUESTION CLIENT: Good Morning, I am writing because I’m interested in purchasing an investment property in Germany, and would like to know whether I would be likely to qualify for a mortgage given my non-EU income and other factors. What is the maximum expected LTV (Lone To Value). Property specifics: New developement in Berlin, 124sqm & €769.000 purchase price.

ANSWER OBN: Here are two steps you need to follow to roughly determine the expected LTV or amount loan that can be granted.

STEP 1: Net rent must cover a mortgage yearly annuity of 5%. We assume a rent of €17 per sqm. According to your example (124sqm) you can expect a rent of €2.108 per month.
Devide the result by 0.05 (5%) then multiply by 12 (12 months). – Expected Loan = €505.920 – LTV = €505.920 ÷ €769.000 = 65.79%

STEP 2: Do you have further investments in Germany? If NO, then STEP 1 is your result. If YES, then all results in STEP 1 will have to be reduced should the loan repayment on the existing investment be higher than the rental income.

QUESTION CLIENT: I would like to get a mortgage, but have a set of unique (I believe) circumstances.
1. Would love to buy a property in Munich.
2. I have a bank account with DKB with 20% of the property value on it. More funds in Autralia.
3. I am a non-residents, living in a non-EU country and a single earner.
4. I have worked two years in the same company with a contract extension.
5. I’m able to offer a down-payment of 50% of the total costs

What do you recon?

ANSWER OBN: There is an increasing majority of non-resident buyers who become property owners in Germany. What is important in your case:
1. The income from the property (rent) MUST be able to cover at least 5% of the annual annuity.
2. You are able to pay at least 40% of the total cost out of your own pockets.
3. You are willing to provide personal documents and if these are not in German or English, have them translated by a sworn interpreter.