Studio apartments in popular Leipzig available for buy to let opportunity.
Invest For Just £2,450.
Prices from €48,000
20% Instant Equity.
80% Loan to Value Mortgages.
Apartments fully managed and tenanted.
Current yields between 7-8%.
The key reason Germany continues to be so successful is due to the economy’s inherent strength in relation to all other developed economies, and the relative huge undervalue of the property market which did not participate in any meaningful way in the credit binge and property bubble of the decade 1997-2007. Germany stands alone in this regard, and we are seeing the fruits of prudent economics in the country during the decade of exuberance in all other markets. Industrial orders climbed significantly as announced on in December 2011 and confidence in exporting to markets outside the Eurozone is strong. The economy is set as fair as it can be, despite the woes of the fellow Eurozone members in Germany, a model which others would do well to emulate.
• Unemployment – Fell from 7.5% to 6.5%
• German 10 Year Bond – Fell from 3,2% to 2,2% - increased appetite for German government debt
• Mortgage Interest Rate – 10 year fixed rates fell from around 5% to around 4% by year end.
• Inflation – increased from 2% to 2.4%
• Stock Market – DAX dropped around 12% over the last year
• Budget Deficit – cut from 3.3% to estimated 1.5%
• Exports up 12%, to reach 1 Trillion Euro by year end
• Tax Revenue – 16 Billion Euro higher than forecast
• Industrial Orders – announced in December 11 that these increase 5.4%, double expectation
Leipzig is the 12th largest city in Germany, and the largest city in the state of Free Saxony. Current population is growing and stands at 520,000. Leipzig is situated about a hundred miles south of Berlin at the confluence of the Weisse Elster, Pleisse and Parthe rivers at the southerly end of the North German Plain. In 2010, Leipzig was ranked 68th in the world as a livable city, by consulting firm Mercer in their quality of life survey. Also in 2010, Leipzig was included in the top 10 of cities to visit by the New York Times.Whilst returns can be interesting in many cities across Germany, the cities in the former east with the strongest economies stand out as having the most potential for a range of investors. Leipzig’s emergence of a city of some standing in Germany come about as much from its geographical position as anything else. Situated between “old and new” Europe, the city became of strategic importance to traders from around Europe, an advantage that the city still enjoys today. Leipzig underwent a process of rapid industrialisation during the second half of the 19th century. It was mainly driven by the publishing, textile and metalworking industries. Most of the older housing stock in German cities was constructed during this period, in typically dense four-to-five storey apartment buildings of a fine period quality. Economically, the city is re-asserting its position in the region and in Europe as a whole. The city has an abundance of University faculties, some dating back to the 13th Century. The student population stands at 36,000 currently. The city is re-finding its past strengths and putting these into the current political and economic landscape, as the city’s major points out:
Public Sector Investment
Soon after the re-unification, Leipzig sought to re-assert its position in the area both politically and economically. Huge projects were planned with government backing including a new main railway station, a whole new exhibition centre and redevelopment of a regional airport. Most of these projects have now been delivered and the resulting infrastructure is first class. Ongoing projects include a new railway system beneath the city with new underground stations and a new university building off the Augustusplatz.
Private Sector Investments
Funding from the private sector was a little slower, awaiting the needed improvement in infrastructure before committing to projects. The story so far has been of a burgeoning logistics base, centred around the autobahn network, train line and heavy lift from the DHL European Hub in the city. Companies such as Amazon, BMW, Porsche and Dell have congregated to the north of the city to take advantage of the city transport system and relative lower wage rates compared to major cities in the west. Additionally, around 30,000 jobs in the city depend on the media sector, with national television and press having major presence in the city.
Prices from €48,000
20% Instant Equity from €7,800 to €19,658.
80% Loan To Value Mortgages.
All Purchase Costs Covered.
Low Purchase Commitment Fee of £2,450.
Strong, Robust German Rental Market.
Full Management Company In Place.
Units Pre Tenanted.
Yields Being Achieved Between 7-8%.
Low Capital Low Risk Robust Investment.
