Welcome to my “Business real estate financing.”.
Germany enjoys high demand among German and foreign investors in the commercial real estate. Often, in order to acquire a certain object, investors, in addition to their own capital, require additional financing. The solution of this task is the attraction of bank financing in the German credit institute. Mortgage banks of Germany provide loans to both German and foreign citizens.
The main conditions for issuing a loan include:
High solvency of the tenant
Terms of the lease from 12 years and more
Location of the object
The amount of equity is not less than 20% of the purchase amount
As a rule, the loan is issued for 5-15 years, while it is important to check whether the contract provides for the possibility of repaying the loan before the end of the contract. In Germany, for the provision of capital, as a rule, a fixed interest rate is assigned. In this case, the term of the obligation to pay interest corresponds to the term of the loan agreement itself. If the loan amount to be repaid is not used by the borrower within the agreed period, the bank accrues interest on the unused loan amount. In practice, repayment occurs in most cases according to the rules of so-called. annuity loans.
An annuity loan is a loan with a fixed amount of loan servicing (annuity). As the loan is serviced by equal, fixed shares, the share that is directed at repayment of the loan body is growing, and the share directed at paying interest is reduced. The amount of loan servicing is unchanged during the whole credit period.
High solvency of the tenant
Terms of the lease from 12 years and more
Location of the object
The amount of equity is not less than 20% of the purchase amount
As a rule, the loan is issued for 5-15 years, while it is important to check whether the contract provides for the possibility of repaying the loan before the end of the contract. In Germany, for the provision of capital, as a rule, a fixed interest rate is assigned. In this case, the term of the obligation to pay interest corresponds to the term of the loan agreement itself. If the loan amount to be repaid is not used by the borrower within the agreed period, the bank accrues interest on the unused loan amount. In practice, repayment occurs in most cases according to the rules of so-called. annuity loans.
An annuity loan is a loan with a fixed amount of loan servicing (annuity). As the loan is serviced by equal, fixed shares, the share that is directed at repayment of the loan body is growing, and the share directed at paying interest is reduced. The amount of loan servicing is unchanged during the whole credit period.
Currently, the nominal interest rate, fixed for up to 10 years, is from 1.70% to 2.50%. The size of the interest rate depends on the object being financed, the guarantees of the client, the solvency of tenants and the amount of equity.
BiG Property Objectives
Analyzing the characteristics of your chosen commercial real estate object, the specialists of BiG Property will select and coordinate the individual model of the transaction crediting.
We attract bank financing from the minimum cost of the commercial real estate - 3 million €.
After a thorough inspection of the facility, we fully coordinate the process of attracting a loan:
detailed analysis of the economic indicators of the object
drawing up of individual calculations on the object
bank search; Negotiations with banks on conditions and possibilities for attracting financing
collection of necessary documentation
analysis and evaluation of proposals received from banks
if necessary - the coordination of additional conditions (for example, early repayment of the loan, fixing the interest rate for an individual period
verification and approval of the loan agreement before signing
An additional plus: the possession of the commercial real estate in Germany is the basis for obtaining an indefinite residence permit.
Analyzing the characteristics of your chosen commercial real estate object, the specialists of BiG Property will select and coordinate the individual model of the transaction crediting.
We attract bank financing from the minimum cost of the commercial real estate - 3 million €.
After a thorough inspection of the facility, we fully coordinate the process of attracting a loan:
detailed analysis of the economic indicators of the object
drawing up of individual calculations on the object
bank search; Negotiations with banks on conditions and possibilities for attracting financing
collection of necessary documentation
analysis and evaluation of proposals received from banks
if necessary - the coordination of additional conditions (for example, early repayment of the loan, fixing the interest rate for an individual period
verification and approval of the loan agreement before signing
An additional plus: the possession of the commercial real estate in Germany is the basis for obtaining an indefinite residence permit.
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