The 9-point plan for your dream home

Beautiful homes in Munich are within reach — but turning that dream into reality takes more planning than the decision itself. Prospective buyers need lasting certainty over both planning and costs, so that the dream home never becomes a financial risk.

Real estate as a sustainable form of investment

With savings rates so low, real estate is an attractive alternative to traditional ways of saving. The right choice depends on your budget:

• Condominiums: the most affordable option
• Townhouses and semi-detached homes: the mid-range segment
• Detached single-family homes: the upper price bracket

Size, location and finish have a considerable influence on the price. Munich is defined by strong demand — even its more outlying districts remain expensive.

Take advantage of low rates, but don't act hastily

Favourable lending terms are tempting, yet acting in haste carries risks. A sound financing plan has to hold up over decades and account for unforeseen events such as unemployment or illness. The monthly instalment should be no higher than your previous rent including service charges.

Stay flexible

If living in the property yourself is no longer an option later on, renting it out is a natural alternative — apartments are in high demand in Munich. A home that has been financed correctly can then even generate a surplus.

Equity and incidental costs

You should contribute at least 20 percent of the purchase price as equity — the more, the better. On top of that come the incidental costs:

• Real estate transfer tax (Bavaria: 3.5 %)
• Notary and agent fees
• amounting in total to roughly 10–15 % of the overall cost

The key points at a glance

1. Equity: have at least 20 % of the purchase price available 2. Incidental costs: factor in agent, notary and real estate transfer tax 3. Understanding: never sign contracts you don't fully understand 4. Comparison: obtain financing offers from several banks 5. Fixed-rate period: lock in low rates for 20–30 years 6. Repayment: aim for an annual repayment rate of around three percent 7. Special repayments: agree on the corresponding rights 8. Additional income: plan for inheritances or bonuses 9. Notice periods: keep them in mind (after 10 years there is a statutory right of termination)

We would be glad to discuss with you how your own home can be financed on a sound footing.