DHI - Deutsche Hauptstadt Immobilien GmbH is a Berlin-based Asset & Portfolio Manager specialized in residential real estate investments in Berlin.
Recently established as a new investment platform by 3 individuals with deep knowledge and long experience in the international real estate and finance fields DHI and its international multi-lingual team is ready to assist their investors right from the very beginning.
It’s all yours. You can help yourself to any of the job descriptions or letter templates in this guide. They’re available in PDF form or if you prefer there’s a link to a downloadable Word doc. Enjoy, customize and never face a blank page again!
Presentation Only: Case Study for Implementing Successful eBilling StrategiesJOSH CARROLL
This is the presentation of a live webinar held by Plymouth Rock Assurance, Striata, and Western Union Payments entitled, "A Case Study for Implementing Successful eBilling Strategies"
EU General Data Protection: Implications for Smart Meteringnuances
This presentation provides the reader with an insight into the politics of EU Data protection as well as an overview of the key stakeholders. We focus on the implication for the smart metering industry.
The Effortless Experience with Matt DixonTalkdeskInc
https://www.talkdesk.com/resources/webinars/
"Your customers are much more likely to punish you for a bad customer service experience than reward you for a good experience."
Watch the full webinar as Matthew Dixon, author of The Effortless Experience, explores how your brand can start making life easier for your customers.
Click the link below to learn:
1. How to identify where your customers are spending the most effort.
2. Concrete examples of brands offering a low effort journey.
3. Quick tips to reducing customer effort and implementing change.
http://www.talkdesk.com/resources/webinars/
The EU Data Protection Regulation - what you need to knowSophos Benelux
De komende EU Data Beschermingsregulering vraagt van organisaties wereldwijd dat zij de data beveiligen die zij beheren en bezitten van Europese burgers. Het is algemeen aanvaard dat encryptie de beste methode is om te voldoen aan deze nieuwe regulering. Wanneer een lek ontstaat en u kunt aantonen dat alle persoonlijke data was versleuteld, verkleint de kans aanzienlijk dat u vanuit de EU een boete ontvangt.
Veel organisaties hebben geen idee wat deze nieuwe regulering inhoudt of hoe zij zich moeten voorbereiden op deze nieuwe regels. Behoort uw organisatie ook tot deze groep?
Onboarding in Healthcare that Sticks: It's More Than Just the PaperworkCornerstone OnDemand
Unfortunately, staff turnover in the healthcare industry has now become a characteristic of the sector. Research reports that half of the nurses leave their current positions after two years. Care centers report significant turnover that equates to a $7 million a year problem. Adding to that is a two-headed dragon: the workforce that is retiring 10,000 people per day, yet the average adult lifespan is increasing.
That’s why Cornerstone OnDemand is proud to present a four-part series that addresses weaknesses in employee development to shine a light on a persistent, yet fixable problem.
The first of the series will address onboarding issues. We know that hospitals on board their employees in just one day. The rationale for this timeframe is that healthcare in America is a ubiquitous industry; however, many onboarding programs in hospitals disregard the fact that each institution holds different values, beliefs, and shared norms, many of which can’t be fully addressed in one day.
Join Tom Tonkin, Principal Consultant, Thought-Leadership and Advisory Services at Cornerstone OnDemand, for the first webinar in our series on staff burnout in healthcare and how to treat it across the entire employee life cycle! Topics covered in this webinar include:
-The importance of strong onboarding on day 1
-How to set clear goals and expectations from the beginning
-The importance of opening up job-roll-specific training early in the onboarding process
[SERIES 4/4] The Global Financial Crisis (2007 - 2009)
from the Frederic Mishkin's The Economics of Money, Banking, and Financial Markets
Financial Crises on Advanced Economies Chapter
Outline:
SERIES 1: Factors Causing Financial Crises
SERIES 2: Dynamics of Financial Crises in Advanced Economies
Series 3: The Great Depression
SERIES 4: The Global Financial Crisis of 2007 - 2009 (The Great Recession)
Other Sources:
The Causes and Effects of the 2008 Financial Crisis
https://www.youtube.com/watch?v=N9YLta5Tr2A
Introduction To Real Estate Investment
5 Simple Ways To Invest In Real Estate
6 Worst Types Of Real Estate Investment
Key Reasons To Invest In Real Estate
Huge Ticket Size To Enter Real Estate Market
Add Some Real Estate To Your Portfolio
Is Real Estate a Retirement Secrete Weapon?
Impact Of Real Estate In Global Market
Big Daddy’s Of Real Estate
Risk Involved In Real Estate
Current Scenario
It’s all yours. You can help yourself to any of the job descriptions or letter templates in this guide. They’re available in PDF form or if you prefer there’s a link to a downloadable Word doc. Enjoy, customize and never face a blank page again!
Presentation Only: Case Study for Implementing Successful eBilling StrategiesJOSH CARROLL
This is the presentation of a live webinar held by Plymouth Rock Assurance, Striata, and Western Union Payments entitled, "A Case Study for Implementing Successful eBilling Strategies"
EU General Data Protection: Implications for Smart Meteringnuances
This presentation provides the reader with an insight into the politics of EU Data protection as well as an overview of the key stakeholders. We focus on the implication for the smart metering industry.
The Effortless Experience with Matt DixonTalkdeskInc
https://www.talkdesk.com/resources/webinars/
"Your customers are much more likely to punish you for a bad customer service experience than reward you for a good experience."
Watch the full webinar as Matthew Dixon, author of The Effortless Experience, explores how your brand can start making life easier for your customers.
Click the link below to learn:
1. How to identify where your customers are spending the most effort.
2. Concrete examples of brands offering a low effort journey.
3. Quick tips to reducing customer effort and implementing change.
http://www.talkdesk.com/resources/webinars/
The EU Data Protection Regulation - what you need to knowSophos Benelux
De komende EU Data Beschermingsregulering vraagt van organisaties wereldwijd dat zij de data beveiligen die zij beheren en bezitten van Europese burgers. Het is algemeen aanvaard dat encryptie de beste methode is om te voldoen aan deze nieuwe regulering. Wanneer een lek ontstaat en u kunt aantonen dat alle persoonlijke data was versleuteld, verkleint de kans aanzienlijk dat u vanuit de EU een boete ontvangt.
Veel organisaties hebben geen idee wat deze nieuwe regulering inhoudt of hoe zij zich moeten voorbereiden op deze nieuwe regels. Behoort uw organisatie ook tot deze groep?
Onboarding in Healthcare that Sticks: It's More Than Just the PaperworkCornerstone OnDemand
Unfortunately, staff turnover in the healthcare industry has now become a characteristic of the sector. Research reports that half of the nurses leave their current positions after two years. Care centers report significant turnover that equates to a $7 million a year problem. Adding to that is a two-headed dragon: the workforce that is retiring 10,000 people per day, yet the average adult lifespan is increasing.
That’s why Cornerstone OnDemand is proud to present a four-part series that addresses weaknesses in employee development to shine a light on a persistent, yet fixable problem.
The first of the series will address onboarding issues. We know that hospitals on board their employees in just one day. The rationale for this timeframe is that healthcare in America is a ubiquitous industry; however, many onboarding programs in hospitals disregard the fact that each institution holds different values, beliefs, and shared norms, many of which can’t be fully addressed in one day.
Join Tom Tonkin, Principal Consultant, Thought-Leadership and Advisory Services at Cornerstone OnDemand, for the first webinar in our series on staff burnout in healthcare and how to treat it across the entire employee life cycle! Topics covered in this webinar include:
-The importance of strong onboarding on day 1
-How to set clear goals and expectations from the beginning
-The importance of opening up job-roll-specific training early in the onboarding process
[SERIES 4/4] The Global Financial Crisis (2007 - 2009)
from the Frederic Mishkin's The Economics of Money, Banking, and Financial Markets
Financial Crises on Advanced Economies Chapter
Outline:
SERIES 1: Factors Causing Financial Crises
SERIES 2: Dynamics of Financial Crises in Advanced Economies
Series 3: The Great Depression
SERIES 4: The Global Financial Crisis of 2007 - 2009 (The Great Recession)
Other Sources:
The Causes and Effects of the 2008 Financial Crisis
https://www.youtube.com/watch?v=N9YLta5Tr2A
Introduction To Real Estate Investment
5 Simple Ways To Invest In Real Estate
6 Worst Types Of Real Estate Investment
Key Reasons To Invest In Real Estate
Huge Ticket Size To Enter Real Estate Market
Add Some Real Estate To Your Portfolio
Is Real Estate a Retirement Secrete Weapon?
Impact Of Real Estate In Global Market
Big Daddy’s Of Real Estate
Risk Involved In Real Estate
Current Scenario
Simpolo Tiles & Bathware
Tile ho,
toh Simpolo.
Since the first steps were taken in 1977, Simpolo Ceramics has carved its niche as a consistently growing organisation with unparalleled innovation and passion rooted in simplicity.
We endure gratification for every experience we offer, created to share something meaningful. It may not resonate with the majority, but that makes us a class apart. If only a handful were to understand the purpose of our existence, we would be proud to have found our believers. Rather, people with whom we can share our beliefs.
VISUALIZER
Design your space in your style with our very own Visualizer. Now, you can choose the tiles of your liking from our wide selection and see how they would look in a space. Select the tile from the multiple options and the visualiser will replace the surfaces in the image with the selected tiles. This way, instead of just your imagination, you can choose the tiles for your place by getting an actual picture of how they would look in a space. So, design your space the way you desire digitally and implement it in real life to get the best results!
You can also share this visualiser with others to help them design their space.
Committed to delighting customers with world-class ceramic products and services. Make Simpolo synonymous with the best quality and set new benchmarks of excellence for all stakeholders. Pursue best business practices with utmost integrity to make Simpolo an exciting organisation to work with, for vendors, channel partners, investors and employees alike.
Gain worldwide recognition in the field of ceramic building products through Research and Innovation and bring an enhanced lifestyle within reach for every household.
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Keep Your Home Naturally Cool and Warm Out Change in Seasons
Vinra Construction is a private limited company registered under the ROC. The management has an experience of over 15 years of understanding the needs and delivering apt solutions to the end users We are providing turnkey solutions in construction fields. like Construction, Interior Designing Facility Management, Plantation Management, etc..
Vinra Construction Tech Enabled Company for Eco-Friendly Home Construction
Contact With Vinra for a Greener Future >>> Call us @ 888 4898 765
Dynamics 365 Bid Management for Construction ProjectsDynamic Netsoft
This PDF provides a straightforward guide to using Dynamics 365 for efficient bid management in construction projects. Learn how to streamline processes, improve accuracy, and enhance productivity with practical tips and step-by-step instructions.
https://dnetsoft.com/dynamics-365-bid-management-software
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
Rams Garden Bahcelievler - Istanbul - ListingTurkeyListing Turkey
Implemented by Rams Global in Bahcelievler, the Rams Garden Bahcelievler Apartments includes 796 residences of different types from 2+1 to 5+1.
Next to the project, which will have 33 thousand square meters of green area, there will be 42 thousand 300 square meters of woodland. There will also be a 210-meter-long pond in the landscape of the project. There are 94.5 square meters of green space per flat.
Rams Garden Bahcelievler Apartments, which has 8 times more green space than the average of Istanbul with its 33 thousand square meters of green area located within a total of 75 thousand square meters, offers various housing options from 2+1 to 5+1.RAMS Garden has brought a lifeline to the construction industry.
Rams Global, which has signed projects in many places from Dubai to Phuket and delivered more than 20 thousand residences, is now starting new projects in Istanbul.
Rams Garden Bahcelievler is located 9 minutes from Metroport AVM, 5 minutes from Marmara Forum AVM, 12 minutes from Kazlıçeşme beach, 9 minutes from Yıldız Technical University, 7 minutes from Istinye University, 9 minutes from Ramada Hotel and Medicana Hospital.
https://listingturkey.com/property/rams-garden-bahcelievler-apartments/
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
It is worth seeing both inside and outside with heart-warming cafes, tasty restaurants and elegant stores… And it is ready to offer a vivacious social life with a warm and cozy space design.
A folding swimming pool and indoor swimming pools, playgrounds, Turkish bath, sauna… It has them all. Everything you need for your well-being and for having a pleasant time will be at your service. You simply need to align the rhythm of life with the rhythm of Referans Bahcesehir.
https://listingturkey.com/property/referans-bahcesehir/
Total Environment Tangled Up In The Green - Residential Plots Where Nature an...JagadishKR1
Embark on a journey where lush landscapes and contemporary living converge at Total Environment's Tangled Up In The Green Residential Plots in Devanahalli, Bangalore. Surrounded by verdant expanses, these plots offer an idyllic setting for your dream home. Immerse yourself in the serenity of nature while enjoying the finest amenities and design, where every moment is a harmonious blend of luxury and tranquility.
Are you searching for your dream home? Finding the perfect house involves more than just browsing listings; it’s about discovering a space that fits your lifestyle and needs. Whether you’re looking for a cozy suburban home, a chic urban apartment, or a spacious rural property, the right real estate can transform your life. Consider the location, amenities, and potential for future growth. Think about the community, nearby schools, and the convenience of shopping and transportation. A good real estate agent can guide you through the process, from identifying suitable properties to negotiating the best deal. Your dream home is out there, waiting to be found – let’s embark on this journey together!
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
3. A CUSTOM-TAILORED SOLUTION TO INVESTING IN RESIDENTIAL REAL ESTATE IN BERLIN
ENTS
03 BUY-AND-HOLD STRATEGIES 04 PARTITIONING APARTMENT BLOCKS INTO
CONDOMINIUMS FOR RESALE 05 THE BERLIN RESIDENTIAL REAL ESTATE
MARKET 06 GERMAN INCOME TAXATION
3
6. 01
THE SITUATION
REAL ASSETS
As a result of the financial crisis real assets are back in focus in particular diversified portfolios of residential
real estate
REAL ASSETS AS A WAY TO PRESERVE VALUE
• First a flight from capital markets as stock and corporate credit markets tumbled
• Then a flight from cash as fears of bank failures mounted
• Resulting in a flight to the safety of real assets such as gold and real estate
STABLE RETURNS FROM RESIDENTIAL REAL ESTATE
• In times of economic crisis, residential is safer than commercial real estate – provided it is a quality object in the right location bought at the right price
OPTIMISATION THROUGH DIVERSIFICATION
• An intelligently diversified portfolio of carefully chosen residential real estate assets spreads the risk and is thus safer than larger single assets
6
7. PERFORMANCE
Real assets have consistently outperformed other asset classes in times of crisis
YEAR CRISIS REAL ASSETS GLOBAL STOCKS US GOVERNMENT
BONDS
1987 STOCKMARKET CRASH 5.10% -15.5% +8.6%
1990 GULF WAR I 5.70% -11.3% +0.7%
1997 ASIAN CRISIS 6.02% -11.3% +4.6%
1998 RUSSIA AND LTCM CRISIS 5.97% -2.4% +5.1%
2001 SEPT 11TH 6.20% -14.2% +4.9%
2003 GULF WAR II 6.80% -3.7% +4.2%
Source: Infinanz Research 08/2002, Prof. Dr. Busse Infinanz GmbH in: Beteiligungsreport 04/2008
7
8. RISK VS. RETURN
Retail and office real estate moves with the economic cycle - residential real estate offers stable returns
at comparatively low risk
GOAL SPECIAL SITUATIONS REAL ESTATE
RETURN
COMMERCIAL REAL ESTATE
RESIDENTIAL REAL ESTATE GOAL
THE SITUATION
RISK
8
10. PROTECTION
Residential real estate offers good protection against inflation as demand is inelastic
Institut der deutschen Wirtschaft Köln: “…all in all, direct investments offer better protection from inflation than stocks. In particular
residential real estate offers good protection, followed by retail and office. The reason is that demand for living space is independent
of inflationary forces.”
160
% RETURN
RETAIL
140 RESIDENTIAL
OFFICE
120 INFLATION
100
1998 2000 2002 2004 2006 2008
YEAR
Source: Deutsche Bundesbank, Investment Property Databank, Institut der deutschen Wirtschaft Köln
10
11. IN SUMMARY
• REAL ASSETS ARE BACK, IN PARTICULAR DIVERSIFIED PORTFOLIOS OF RESIDENTIAL REAL ESTATE
• IN TIMES OF CRISIS, REAL ASSETS HAVE CONSISTENTLY OUTPERFORMED OTHER ASSET CLASSES
• RESIDENTIAL REAL ESTATE OFFERS STABLE RETURNS AT COMPARATIVELY LOW RISK & GOOD PROTECTION AGAINST INFLATION
• INTELLIGENTLY ASSEMBLING A PORTFOLIO OF RESIDENTIAL REAL ESTATE ASSETS DIMINISHES THE RISK OF SINGLE ACQUISITIONS
11
14. 02
OUR OFFER
WHY BERLIN?
Berlin is a highly attractive location to invest in real estate
RANKED IN TOP 10 OF EUROPEAN CITIES TO INVEST IN EMERGING TRENDS IN REAL ESTATE 2009 SURVEY
GROWING ATTRACTIVENESS OF THE CITY SINCE GERMAN REUNIFICATION RESULTING IN RISING POPULATION AND WEALTH
• Structural change from manufacturing to diversified modern service economy
• Seat of Government (since 1999) attracting wide array of businesses and institutions
• Large and diversified cultural offering attracting both tourists and new residents
HIGHLY ATTRACTIVE FUNDAMENTALS FOR RESIDENTAL PROPERTY
• High rental yields in international comparison
• Comparatively low but rising rents
• Comparatively low per-square-meter prices
• Very low latent vacancy combined with growing population
BERLIN IS LESS AFFECTED BY THE CRISIS THAN OTHER CITIES
• Good mix of growing service industries with relatively low export orientation
• Did not participate in the bubble so little downside
14
15. WHY DHI ?
DHI provides investors a ‘no-worries’ custom-made vehicle to realise their investment strategy
• DHI IS INVESTING IN RENTED RESIDENTIAL BUILDINGS IN BERLIN
• BERLIN MARKET IS OFFERING ATTRACTIVE RISK-ADJUSTED RETURNS
• EACH INVESTOR’S PORTFOLIO TAILORED TO THEIR SPECIFIC INVESTMENT STRATEGY
• DHI PROVIDES FULL SERVICE COVERING THE WHOLE LIFE CYCLE OF THE PORTFOLIO
» Detailed analysis of the property market in each micro location by Engel&Völkers Commercial Research and other sources
» Prospection of target properties
» Due diligence
» Asset management as well as property management
» Eventual disposal
15
16. STRATEGIES
DHI offers tailor-made investment strategies ranging from buy-and-hold to condo conversion
BUY-AND-HOLD
• Buy for current income
• Buy for capital appreciation
• Opportunistic buy
• Buy for modernisation / development
CONDO CONVERSION
• Buy apartment building
• Refurbish if needed
• Split into individual condominiums
• Sell individual units
16
17. IN SUMMARY
• BERLIN RANKED IN TOP 10 EUROPEAN CITIES TO INVEST IN REAL ESTATE 2009 SURVEY
• DHI IS INVESTING IN RENTED RESIDENTIAL BUILDINGS IN BERLIN
• DHI PROVIDES INVESTORS A ‘NO-WORRIES’ CUSTOM-MADE VEHICLE TO REALISE THEIR INVESTMENT STRATEGY
• DHI FOCUSES ON BUY-AND-HOLD & CONDO CONVERSION STRATEGIES
17
20. 03
BUY-AND-HOLD STRATEGIES
PROPERTY PORTFOLIO
DHI will assemble a diversified Berlin residential property portfolio for each investor which will display some or all of the following
characteristics, their degree depending on the chosen overall strategy outlined before
• GENERALLY LOCATED IN GOOD AND UPCOMING NEIGHBOURHOODS
• BUILDINGS IN GOOD STRUCTURAL CONDITION
• MOSTLY TO FULLY RENTED WITH MID-RANGE RENTALS, OFFERING UPSIDE POTENTIAL THROUGH TENANT MANAGEMENT AND RENT INCREASES
• OFFERING ATTRACTIVE INITIAL YIELDS WITH STRONG OPERATING CASH-FLOW HISTORIES
• INCORPORATING RETAIL AND/OR COMMERCIAL SPACE (OF LESS THAN 20% OF INCOME) IN ADDITION TO THE RESIDENTIAL SPACE
20
21. CUSTOMIZED STRATEGY
DHI covers the full scope of services, offering the convenience of a fund combined with the customized strategy of an individual portfolio
ACQUISITION PHASE OWNERSHIP & DISPOSAL PHASE
CONCEPTION PROSPECTION ANALYSIS DUE DILIGENCE OWNERSHIP DISPOSAL
PORTFOLIO INDIVIDUALLY DHI THEN IDENTIFIES INVESTMENT THE REAL-TIME MARKET KNOWLEDGE ONCE THE ACQUISITION OBJECTS DURING THE OWNERSHIP PHASE, DURING THE DISPOSAL PHASE,
STRUCTURED BASED ON THE OPPORTUNITIES, USING ENGEL&VÖLKERS THAT E&V AND BATO GROUP GAIN IN ARE IDENTIFIED, DHI MANAGES THE SERVICES COMPRISE TENANT DHI IS AGAIN COVERING ALL ASPECTS,
INVESTOR’S DESIRED COMMERCIAL'S EXTENSIVE NETWORK BUYING, SELLING, FINANCING AND ALL (TECHNICAL, LEGAL ETC.) MANAGEMENT AND RENT OPTIMISATION, ENSURING VALUE OPTIMISATION
RISK/RETURN PROFILE, AS WELL AS OTHER SOURCES, VALUING PROPERTIES IN THE BERLIN ASPECTS OF THE DUE-DILIGENCE REFURBISHMENT AND MODERNISATION FOR THE INVESTOR ACCORDING TO
TIME HORIZON AND OTHER EVALUATING BOTH FINANCIAL AS MARKET IS GATHERED, ANALYZED, PROCESS IN CONCERT WITH INCLUDING FINANCIAL AND TECHNICAL THEIR INVESTMENT STRATEGY
INDIVIDUAL CHARACTERISTICS WELL AS PHYSICAL BUILDING CONDITIONS AND APPLIED FOR THE BENEFIT OF ESTABLISHED AND WELL-KNOWN PROJECT MANAGEMENT AS WELL AS
AS PART OF THE SELECTION PROCESS OUR INVESTORS STRATEGIC PARTNERS CONTROLLING AND INVESTOR REPORTING
DURING THE INVESTMENT PHASE,
OUR INVESTORS BENEFIT FROM THE
MARKET INSIGHT THAT RESULTS FROM
THE FULL RANGE OF ENGEL&VÖLKERS
COMMERCIAL'S AND BATO
GROUP‘S ACTIVITIES
21
22. SUMMARY
Summary of terms buy-and-hold strategies
STRATEGY CORE CORE PLUS OPPORTUNITY INCOME ORIENTATED
PURCHASE PRICE PER M *1,500-2.000 *900-1,000 *650-850 *500
7.9% - 6.7% / 12.7 -
INITIAL YIELD /FACTOR *5.7% - 4.5% / 17.5 - 22 6.9% - 6.8% / 14.5 - 14.75 x 9.6%/10.4 x
14.75 x
LEVERAGE RATIO 45% / 40% 60% / 55% 70% / 65% 75%
ACQUISITION PHASE 1 YEAR 1 YEAR 1 YEAR 1 YEAR
RENT INCREASE TARGET
3.7% / 4.0% 3.7% / 3.8% 3.7% / 3.8% 3.2%
(COMMERCIAL/RESIDENTIAL)
REFURBISHMENT BUDGET *10K / FLAT FOR 20% *10K / FLAT FOR 50% *10K / FLAT FOR 50% -
KREUZBERG, NEUKÖLLN,
KÜFURSTENDAMM, PRENZLAUER BERG, NEUKÖLLN, WEDDING, WEDDING, MOABIT,
EXAMPLE AREAS
MITTE PRENZLAUER BERG FRIEDRICHSHAIN, MOABIT, TIERGARTEN REINICKENDORF,
CHARLOTTENBURG HOHENSCHÖNHAUSEN
22
23. TARGET RETURN
Target return and expected performance for each strategy
CORE CORE PLUS OPPORTUNITY INCOME ORIENTATED
IRR ON EQUITY 9.5%-11% 13.5% 14.19% 21%
CASH-ON-CASH
2%-3.5% Ca. 4% 3.5-5.75% 8.25%
(BEFORE SALES)
ROE (BEFORE SALES) 12-22% Ca. 25% 21%-38%% 64%
DISTRIBUTION MINIMUM & 1.75%-3.0%, 2.5%, 2.5%-5.0%, 8.0%,
TIME FRAME DISTRIB. AFTER 2ND YEAR DISTRIB. AFTER 2ND YEAR DISTRIB. AFTER 2ND YEAR DISTRIB. AFTER 2ND YEAR
23
24. RISK FACTORS
Risk factors of the presented buy-and-hold strategies
CORE CORE PLUS OPPORTUNITY INCOME ORIENTATED
ADVERSE DEVELOPMENT
OF THE AREA
LOW LOW-MEDIUM MEDIUM MEDIUM-HIGH
CAPITAL GAIN MEDIUM MEDIUM HIGH LOW-MEDIUM
TENANT RISK LOW LOW-MEDIUM MEDIUM-HIGH MEDIUM-HIGH
24
25. IN SUMMARY
• DHI WILL ASSEMBLE A DIVERSIFIED & STRUCTURED BERLIN RESIDENTIAL PROPERTY PORTFOLIO TO SUIT INVESTORS’ NEEDS
• GENERALLY LOCATED IN GOOD AND UPCOMING NEIGHBOURHOODS, BUILDINGS ARE IN GOOD STRUCTURAL CONDITION
• DHI COVERS THE FULL SCOPE OF SERVICES WORKING WITH EACH INVESTOR THROUGH THE ACQUISTION TO DISPOSAL PHASE
• TARGET RETURNS ARE HIGH, RISK FACTORS ARE LOW
25
26. 04
PARTITIONING APARTMENT BLOCKS
INTO CONDOMINIUMS FOR RESALE
26
27. WE OFFER A CARE-FREE
PACKAGE COVERING
ALL ASPECTS
27
28. 04
PARTITIONING APARTMENT BLOCKS
INTO CONDOMINIUMS FOR RESALE
AUFTEILUNG
Another strategy is buying properties for immediate partitioning into condominiums and selling them to
investors or owner-occupiers
• BERLIN HAS A VERY LOW HOME-OWNERSHIP RATE OF ABOUT 13%
• DEMAND FOR CONDOMINIUMS („EIGENTUMSWOHNUNGEN“) IS RISING
» Small investors seeking safety of real assets in manageable volume
» As rents are rising and capital costs are low, buying becomes more attractive for tenants
• PER-SQUARE-METER PRICES OF CONDOS ARE SIGNIFICANTLY ABOVE THOSE OF APARTMENT BUILDINGS
EVEN AFTER ASSOCIATED COSTS, OFFERERING ATTRACTIVE PROFIT POTENTIAL
• TIME HORIZON FOR INVESTMENT IS SHORTER THAN THE BUY-AND-HOLD STRATEGY AT ABOUT 2-5 YEARS,
DEPENDING ON VOLUME
28
29. DHI PACKAGE
DHI is again offering a care-free package, covering all aspects of the process
DETAILED ANALYSIS AND VALUATION OF THE OBJECT
• Location, analysis of vicinity, assessment of marketability
• Condition of the building
• Opportunities to add value (e.g. building extension, roof conversion)
• Analysis of tenant structure
DEVELOPMENT OF THE MARKETING CONCEPT
• Total modernisation and redevelopment, e.g. with branding of the object
• Partial modernisation (e.g. only renovation of flats, not common space)
• Partitioning without extensive renovation
PROVISION OF DEBT FINANCING
• Introduction to banks offering debt financing
• Negociation of terms
• Presentation of detailed project planning
TENANT MANAGEMENT
• Negociation with current tenants to vacate flats
• Provision of temporary accomodation during renovation work for tenants turned owners
• Provision of alternative accomodation for tenants willing to move out
• Management of rent increases
29
30. DHI PACKAGE
DHI is again offering a care-free package, covering all aspects of the process
OPTIMISATION OF FLOORPLAN DESIGN (PARTITIONING, OPTIMISATION, MERGING FLATS)
FLAT-BY-FLAT ANALYSIS OF ANTICIPATED RE-SALE PRICES BASED ON FLAT CHARACTERISTICS (FLOOR, LOCATION, LIGHTING, CONDITION,
FURNISHINGS ETC.)
OBTAINING CERTIFICATE OF SELF-CONTAINED CONDITION („ABGESCHLOSSENHEITSBESCHEINIGUNG“)
PREPARATION OF DECLARATION OF PARTITION („TEILUNGSERKLÄRUNG“), DRAFT OF SALES CONTRACT AND CONSTRUCTION SPEC LIST
PREPARATION OF (FUTURE) FLAT OWNERS ASSOCIATION RULES (CREATION OF RESERVE FUND ETC.)
CALCULATION / PLANNING OF NECESSARY CONSTRUCTION WORK AND REQUEST FOR QUOTATIONS
AWARD OF CONTRACT
SUPERVISION OF CONSTRUCTION/RENOVATION WORK
MANAGEMENT OF SALE PROCESS
30
31. SUMMARY
Summary of terms condo conversion strategy
PURCHASE PRICE PER M2 *1,100
INITAL YIELD / FACTOR 6.5% / 15.4x
LEVERAGE RATIO 65 / 35
ACQUISITION PHASE 1 YEAR
SALES PERIOD 3-5 YEARS
REFURBISHMENT COST *10K / UNIT FOR 70% (RESIDENTIAL) & 50% (COMMERCIAL)
COST FOR BUYING OUT TENANTS *6,000 / UNIT FOR 70%
CONDO SALES PRICE PER M 2
*2,200
31
32. RISK FACTORS
Risk factors condo conversion strategy
• THE MAIN RISK IS PURCHASING PROPERTIES THAT HAVE CHARACTERISTICS HINDERING A SALE OF THE CONDOS AT
THE PROJECTED PRICES
» Wrong orientation of the property (lack of light)
» Wrong micro-location, e.g. too noisy
» Lack of elevator
» Lack of outside space / balcony
• WE INTEND TO COUNTER THIS RISK BY CAREFULLY SELECTING PROPERTIES THAT FULFIL THE NECESSARY CRITERIA
• IN ADDITION, PROBLEMATIC UNITS CAN BE SOLD TO INVESTORS (AS OPPOSED TO OWNER-OCCUPIERS) AS RENTING
TENDS TO BE LESS PROBLEMATIC
32
33. TARGET RETURN
Target return and expected performance for condo conversion strategy
CASH-ON-CASH 40%
ROE (BEFORE SALES) 80%
DISTRIBUTION MINIMUM & TIME FRAME 10% DISTRIB. 3RD YEAR
33
34. THE TEAM
The DHI Team, Expertise and Track Record
ANDREA BARBATO
• Founder and MD of BATO Group Real Estate Investments (total investment volume in Berlin 45mio euros, acquiring, financing,
managing of the assets)
• Previous assignments with Enstar Capital and Garbe Real Estate in London
RACKHAM F. SCHRÖDER
• Managing Director of Engel & Völkers Commercial Berlin (largest broker of residential buildings in Berlin), has accompanied about
2.5bn euros in residential and commercial real estate deals
MATTHIAS DUX
• 10 years banking experience with Deutsche Bank in London and Tokyo
• Previous assignments in Private Equity with Paribas bank in Paris and management consulting with Booz Allen & Hamilton in Chicago
• Insead MBA
34
35. IN SUMMARY
• CHOICE OF STRATEGY FROM MENU OF BUY-AND-HOLD OR CONDOMINIUM STRATEGIES
• FULL-SERVICE PACKAGE DURING ALL PHASES OF THE PORTFOLIO LIFE CYCLE
• COMBINATION OF BENEFITS OF CUSTOMISED STRATEGY WITH SCALE AND EXPERIENCE OF LARGER ORGANISATION
• EXPERIENCED TEAM WITH PROVEN TRACK RECORD
35
36. 05
THE BERLIN RESIDENTIAL
REAL ESTATE MARKET
36
38. 05
THE BERLIN RESIDENTIAL
REAL ESTATE MARKET
BERLIN AT A GLANCE
• CAPITAL OF GERMANY AND SINCE 1999 SEAT OF GOVERNMENT
• 3.4 MILLION INHABITANTS
• 128,000 RESIDENTIAL AND COMMERCIAL BUILDINGS
» Vacancy rate 2006: 5.1%
» Vacancy rate 2007: 4.6 %
• 1,882,000 RESIDENTIAL UNITS
• 18 MILLION SQUARE METRES OFFICE SPACE
• 4.3 MILLION SQUARE METRES RETAIL SPACE
38
39. ATTRACTIONS
Furthermore, Berlin provides a wide scientific and cultural offer
• 7 UNIVERSITIES
• 20 PUBLIC AND PRIVATE COLLEGES
• 80 RESEARCH INSTITUTIONS (E.G., MAX-PLANCK AND FRAUNHOFER INSTITUTES)
• LEADING EUROPEAN TRADE FAIR AND CONVENTION LOCATION
• 3 OPERA HOUSES
• 326 THEATRES AND CINEMAS
• 175 MUSEUMS AND 400 ART GALLERIES
• MORE THAN 3,400 RESTAURANTS
• MORE THAN 120 CLUBS
• HERTHA BSC FOOTBALL, ALBA BERLIN BASKETBALL, EISBÄREN ICE HOCKEY, BERLIN MARATHON
39
40. RADICAL CHANGE
Berlin has experienced a radical structural change from a production location to a well-diversified service
location since German reunification
1991 2008
TOTAL 57,428 MILLION EUROS TOTAL 75,523 MILLION EUROS
6% 7%
15%
7%
21% MANUFACTURING SECTOR
9%
5% CONSTRUCTION INDUSTRY
3%
TRADE, HOSPITALITY AND
7%
TRANSPORT
10%
6%
FINANCE, LETTING AND CORPORATE
SERVICE PROVIDERS
16%
PUBLIC ADMINISTRATION
9%
17% EDUCATIONAL SECTOR
28% HEALTH CARE
PUBLIC AND PRIVATE SERVICE
PROVIDERS
34%
Source: Office for Statistics Berlin Brandenburg, March 2009
40
41. NEW JOBS
New jobs are created in various innovative and growing sectors in Berlin
2%
13% HEALTHCARE
TOURISM
30%
MEDIA, INFORMATION AND COMMUNICATION
TRAFFIC ENGINEERING AND MOBILITY
CULTURE
22% ENVIRONMENTAL TECHNOLOGY
11% 22%
Source: Engel & Völkers Research & Consulting 2008
41
42. GROWTH POTENTIAL
Berlin has enormous potential for growth
Purchasing power per capita in euros (2009) - Berlin has enormous potential for growth
26,000
24,000
EUROS
22,000
20,000
18,000
16,000
MUNICH DUSSELDORF STUTTGART FRANKFURT MAIN COLOGNE HAMBURG HANOVER BERLIN
CITY
Source: Engel & Völkers Research according to MB Research 2009
42
43. PEAK RENTS
Peak rents for office space in international comparison
1400
1200 Q3 2007
1000
Q3 2008
EUROS
800
600
400
200
0
LONDON PARIS MADRID BERLIN FRANKFURT HAMBURG DUSSELDORF MUNICH
CITY
43
44. OFFICE MARKETS
Office markets in national comparison
18,000
HOUSING STOCK LET IN 1,000 M2
16,000
14,000
VACANCY RATE IN 1,000 M2
1,000 M2
12,000
10,000
8000
6000
4000
2000
0
BERLIN DUSSELDORF FRANKFURT HAMBURG COLOGNE MUNICH (CITY) STUTTGART
CITY
44
45. BERLIN VACANCY
Berlin has practically no latent vacancy
100%
ACTIVE SUPPLY SURPLUS
90%
STRUCTURAL VACANCY
80%
LATENT VACANCY
70%
FLUCTUATION RESERVE
1,000 M2
60%
50% ACTIVE SUPPLY SURPLUS
40% STRUCTURAL VACANCY
30% LATENT VACANCY
20% FLUCTUATION RESERVE
10%
0%
BERLIN DUSSELDORF FRANKFURT HAMBURG KOH MUNICH STUTTGART
CITY
45
46. GROWTH POTENTIAL
Berlin rents are increasing – but there is still potential for further increases compared to other German cities
12 MUNICH
STUTTGART
10 FRANKFURT
DUSSELDORF
EUROS
8 HAMBURG
KOLN
BERLIN-WEST
6 BELIN-EAST
4
2
0
1990 1994 1998 2002 2006 2010
YEAR
46
47. PROPERTY YIELDS
German property yields are among the highest in Europe
9 GERMANY
FRANCE
8 ITALY
YIELD %
ENGLAND
7 SPAIN
6
5
4
3
1992 1994 1996 1998 2000 2002 2004 2006 2008
YEAR
Source: Engel & Völkers Research according to Feri Research 2009
47
48. HOMEOWNERSHIP
Low homeownership rate in Berlin offers high potential for partitioning apartment block buildings into
individual flats
100
HOMEOWNERSHIP RATE %
90
80
70
60
50
40
30
20
HOMEOWNERSHIP RATE
OF 13% IN BERLIN
10
0
SPAIN
NORWAY
IRELAND
PORTUGAL
POLAND
ITALY
GREAT BRITAIN
BELGIUM
SWEDEN
FINLAND
FRANCE
AUSTRIA
THE NETHERLANDS
DENMARK
CZECH REPUBLIC
GERMANY
SWISS
Source: Engel & Völkers Research according to Feri Research 2009
48
49. PRICES
Favourable purchase price level for apartment block buildings
3,000
EUROS PER M2
2,500
2,000
1,500
1,000
500
0
BERLIN DUSSELDORF FRANKFURT AM MAIN HAMBURG COLOGNE MUNICH STUTTGART
CITY
Source: Engel & Völkers Research according to empirica rental and purchase price ranking in the 3rd quarter of 2008
49
50. MIGRATION
Promising economic sectors and an attractive cultural offer have led to a positive balance of migration in
Berlin in recent years
14,000
12,000
MIGRATION
10,000
8,000
6,000
4,000
2,000
0
2003 2004 2005 2006 2007
YEAR
Source: E&V Research according to GENESIS Online, Office for Statistics Berlin Brandenburg, 2009
50
51. HOUSEHOLDS
Berlin – increasing number of households predicted due to singularization and new residents
moving to Berlin
2,100
HOUSEHOLDS (1,000’S)
2,050
2,000
1,950
1,900
1,850
1,800
2006 2010 2015
YEAR
Source: E&V Research according to GENESIS Online, Office for Statistics Berlin Brandenburg, 2009
51
52. DEMAND
Demand for living space per capita is increasing
50
HOUSEHOLDS
GERMANY WEST
GERMANY EAST
45 GERMANY
40
35
30
25
20
2000 2010 2020 2030 2040 2050
YEAR
52
53. POOR OFFERING
The increasing demand for living space meets a stagnating offer
COMPLETED APARTMENTS
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
YEAR
Source: E&V Research according to State Office for Statistics Berlin Brandenburg 2009
53
55. Reasons for Berlin:
• GERMANY’S INFRASTRUCTURE IS EXCELLENT
• BERLIN IS SITUATED IN A UNIQUE GEOSTRATEGIC LOCATION IN THE EU
• BERLIN IS GROWING BECAUSE IT IS ATTRACTIVE
• INDUSTRIES OF THE FUTURE ARE GROWING DESPITE DIFFICULT OVERALL ECONOMIC SITUATION
• NUMBER OF HOUSEHOLDS AND DEMAND FOR LIVING SPACE WILL EXCEED THE OFFER IN THE MEDIUM TERM
• RENTS AND PURCHASE PRICES ARE STILL LOW; THEY WILL, HOWEVER, INCREASE
• HOMEOWNERSHIP RATE OF MERELY 13%
55
58. 06
GERMAN INCOME TAXATION
TAX FACTS
Special Real Estate Based Tax Non-recurring Tax
REAL ESTATE TRANSFER TAX
• Triggered primarily by conclusion of a sales contract
• Tax Basis: purchase price
• Tax Rate: 3.5 % (except Berlin: 4.5 %)
Special Real Estate Based Tax Current Tax
LAND TAX
• Levied on any German real estate held for private or business purposes
• Tax Basis: special value assessed (only) for tax purposes
• Tax Rate: municipal rate fixed by the municipality amount depends on type and age of the
building (as part of the service charge regularly borne by the tenants)
58
59. GERMAN INCOME TAX
Calculation of Income
• FINANCIAL ACCOUNTING OR CASH BASED ACCOUNTING DEPENDING ON LEGAL STRUCTURE AND STRATEGY
• TAX DEPRECIATION
• 2.0 – 3.0 % p.a. on buildings
• no depreciation on land
• DEDUCTIBLE EXPENSES
• Finance Costs
» fully deductible in case of private investment
» in case of business investment (with trading income) fully deductible if not exceeding 1 mill. EUR p.a.
• Costs for Maintenance and Repair
» in general fully deductible if no extension or material improvement
» except for costs following closely upon the acquisition (3 years period) if the expenditure exceeds 15 % of the acquisition costs of the building
59
60. BUY-AND-HOLD
Direct Investment (no German SPV)
INCOME TAX
LEGAL FORM INDIVIDUAL PERSON LIMITED COMPANY
INCOME TAX
INCOME TAX CORPORATE INCOME TAX
(EINKOMMEN / KÖRPERSCHAFTSTEUE)
TAX LIABILITY / TAX BASIS 1) LIMITED TO GERMAN-SOURCED INCOME LIMITED TO GERMAN-SOURCED INCOME
26.25% - 44.31%
TAX RATE FOR CURRENT INCOME 15.83%
47.48% FOR INCOME EXCEEDING TEUR 250
ASSET DEAL:
STANDARD TAX RATE (SEE ABOVE)
STANDARD TAX RATE (SEE ABOVE) NO TAX EXEMPTION AVAILABLE
TAX RATE FOR GAIN REALISED BY SALE
TAX EXEMPTION IF HOLDING PERIOD > 10YRS
SHARE DEAL: 2)
NOT SUBJECT TO GERMAN INCOME TAX
TRADE TAX
LEGAL FORM INDIVIDUAL PERSON LIMITED COMPANY
TRADE TAX ONLY IN CASE OF PERMANENT
NOT APPLICABLE 3)
(GEWERBESTEUER) ESTABLISHMENT IN GERMANY
TRADING INCOME
TAX BASIS NOT APPLICABLE (INCOME PLUS SEVERAL SPECIFIC
ADDITIONS & REDUCTIONS)
MUNICIPAL RATE FIXED BY THE MUNICIPALITY
(E.G. IN BERLIN: EFFECTIVE TAX RATE APPROX.
TAX RATE NOT APPLICABLE 14.35%) ENHANCED REDUCTION OF RENTAL INCOME
AVAILABLE ON REQUEST SO THAT EFFECTIVE TRADE
TAX MAY BE REDUCED TO ZERO
1) Tax rate includes 5.5% solidarity surcharge.
2) Information for a shareholder having no German residence.
3) Provided that no commercial trade exists. A commercial trade is generally assumed if more than 3 objects are sold within a 5 year period (so-called “3-object-limit).
Special Note:
Taxation in the state of residence subject to the terms of the relevant double tax treaty.
60
61. Indirect Investment (with German SPV)
INCOME TAX
LEGAL FORM GMBH LIMITED COMPANY GMBH & CO. KG LIMITED PARTNERSHIP 1)
INCOME TAX TRANSPARENT FOR GERMAN
CORPORATE INCOME TAX
(EINKOMMEN / KÖRPERSCHAFTSTEUE) INCOME TAX PURPOSES
TAX LIABILITY / TAX BASIS PRINCIPALLY TOTAL INCOME 2) PRINCIPALLY TOTAL INCOME 2)
INCOME PROPORTIONATELY ATTRIBUTED TO THE
PARTNERS ACCORDING TO THEIR RESPECTIVE
INTEREST
TAX RATE FOR CURRENT INCOME 3) 15.83%
TAX RATE FOR PARTNERS:
-INDIVIDUAL PARTNERS: 26.25% - 44.31%
(47.48% FOR INCOME > TEUR 250)
-LIMITED COMPANY PARTNERS: 15.83%
ASSET DEAL:
STANDARD TAX RATE (SEE ABOVE) STANDARD TAX RATE (SEE ABOVE) 4)
NO TAX EXEMPTION AVAILABLE
TAX RATE FOR GAIN REALISED BY SALE TAX EXEMPTION:
SHARE DEAL: 5) -FOR INDIVIDUALS IF HOLDING PERIOD >10 YRS
GENERALLY NOT SUBJECT TO GERMAN INCOME TAX, - NOT AVAILABLE FOR LIMITED COMPANIES
BUT DEPENDING ON DOUBLE TAX TREATY
TRADE TAX
LEGAL FORM GMBH LIMITED COMPANY GMBH & CO. KG LIMITED PARTNERSHIP 1)
TRADE TAX
ALWAYS SUBJECT TO TRADE TAX NOT APPLICABLE (6) (7)
(GEWERBESTEUER)
TRADING INCOME (INCOME PLUS SEVERAL SPECIFIC
TAX BASIS ADDITIONS & REDUCTIONS)
NOT APPLICABLE
MUNICIPAL RATE FIXED BY THE MUNICIPALITY
(E.G. IN BERLIN: EFFECTIVE TAX RATE APPROX. 14.35%)
TAX RATE ENHANCED REDUCTION OF RENTAL INCOME AVAILABLE NOT APPLICABLE
ON REQUEST SO THAT EFFECTIVE TRADE TAX MAY BE
REDUCED TO ZERO
1) Since, generally, the GmbH as general partner of the partnership does not have any business activity, it will not be contemplated in the following.
2) Except foreign-sourced income if applicable, the taxation of which depends on the respective double tax treaty.
3) Tax rate includes 5.5% solidarity surcharge.
4) Since the partnership is transparent for German income purposes, the gain realised by the sale of the interests in the partnership is taxed like the gain resulting from an
asset deal.
5) Information for a shareholder having no German residence.
6) Provided that no commercial trade exists. A commercial trade is generally assumed if more than 3 objects are sold within a 5 year period (so-called “3-object-limit).
7) Provided that partnership is structured as pure holding company.
Special Note:
Taxation in the state of residence subject to the terms of the relevant double tax treaty.
61
62. CONDO CONVERSION
Direct Investment (no German SPV)
INCOME TAX
LEGAL FORM LIMITED COMPANY
INCOME TAX
CORPORATE INCOME TAX
(EINKOMMEN / KORPERSCHAFTSTEUE)
TAX LIABILITY / TAX BASIS 1) LIMITED TO GERMAN-SOURCED INCOME
TAX RATE FOR CURRENT INCOME 15.83%
ASSET DEAL:
STANDARD TAX RATE (SEE ABOVE)
NO TAX EXEMPTION AVAILABLE
TAX RATE FOR GAIN REALISED BY SALE
SHARE DEAL: 2)
NOT SUBJECT TO GERMAN INCOME TAX
TRADE TAX
LEGAL FORM LIMITED COMPANY
TRADE TAX ONLY IN CASE OF PERMANENT
(GEWERBESTEUER) ESTABLISHMENT IN GERMANY
TRADING INCOME
TAX BASIS (INCOME PLUS SEVERAL SPECIFIC
ADDITIONS & REDUCTIONS)
MUNICIPAL RATE FIXED BY THE MUNICIPALITY
TAX RATE (E.G. IN BERLIN: EFFECTIVE TAX RATE APPROX. 14.35%)
NO TAX EXEMPTION AVAILABLE
1) Tax rate includes 5.5% solidarity surcharge.
2) Information for a shareholder having no German residence.
Special Note:
Taxation in the state of residence subject to the terms of the relevant double tax treaty.
62
63. Indirect Investment (with German SPV)
INCOME TAX
LEGAL FORM GMBH LIMITED COMPANY GMBH & CO. KG LIMITED PARTNERSHIP 1)
INCOME TAX TRANSPARENT FOR GERMAN
CORPORATE INCOME TAX
(EINKOMMEN / KÖRPERSCHAFTSTEUE) INCOME TAX PURPOSES
TAX LIABILITY / TAX BASIS PRINCIPALLY TOTAL INCOME 2) PRINCIPALLY TOTAL INCOME 2)
INCOME PROPORTIONATELY ATTRIBUTED TO THE
PARTNERS ACCORDING TO THEIR RESPECTIVE INTEREST
TAX RATE FOR CURRENT INCOME 3) 15.83% TAX RATE FOR PARTNERS:
-INDIVIDUAL PARTNERS: 26.25% - 44.31%
(47.48% FOR INCOME > TEUR 250)
-LIMITED COMPANY PARTNERS: 15.83%
ASSET DEAL:
STANDARD TAX RATE (SEE ABOVE)
NO TAX EXEMPTION AVAILABLE STANDARD TAX RATE (SEE ABOVE) 4)
TAX RATE FOR GAIN REALISED BY SALE
SHARE DEAL: 5) NO TAX EXEMPTION AVAILABLE
GENERALLY NOT SUBJECT TO GERMAN INCOME TAX,
BUT DEPENDING ON DOUBLE TAX TREATY
TRADE TAX
LEGAL FORM GMBH LIMITED COMPANY GMBH & CO. KG LIMITED PARTNERSHIP 1)
TRADE TAX
ALWAYS SUBJECT TO TRADE TAX
(GEWERBESTEUER)
TAX BASIS TRADING INCOME (INCOME PLUS SEVERAL SPECIFIC ADDITIONS & REDUCTIONS)
MUNICIPAL RATE FIXED BY THE MUNICIPALITY MUNICIPAL RATE FIXED BY THE MUNICIPALITY
TAX RATE (E.G. IN BERLIN: EFFECTIVE TAX RATE APPROX. 14.35%) (E.G. IN BERLIN: EFFECTIVE TAX RATE APPROX. 14.35%)
NO TAX EXEMPTION AVAILABLE TAX EXEMPT AMOUNT: EUR 24,500
1) Since, generally, the GmbH as general partner of the partnership does not have any business activity, it will not be contemplated in the following.
2) Except foreign-sourced income if applicable, the taxation of which depends on the respective double tax treaty.
3) Tax rate includes 5.5% solidarity surcharge.
4) Since the partnership is transparent for German income purposes, the gain realised by the sale of the interests in the partnership is taxed like the gain resulting from an asset deal.
5) Information for a shareholder having no German residence.
Special Note:
Taxation in the state of residence subject to the terms of the relevant double tax treaty.
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64. DISCLAIMER
Any description at this point may only be a rough outline about possible tax consequences, illustrated in consideration of main possible investment structures. The
information contained herein is not exhaustive and can only be of general nature, not being intended to address the circumstances of any particular individual or
entity. German tax law is furthermore subject to constant changes so that there can be no guarantee that such information is accurate as of the date it is received
or that it will continue to be accurate in the future. No one should therefore act on such information without appropriate professional advice after a thorough
examination of the particular situation.
It is therefore strictly recommended to enlist personal tax adviser‘s assistance in the run-up to any potential property investment!
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