Cities with high yields 'best for property investment'

Property moguls looking to transfer money online and purchase homes in Germany have been advised which cities offer the best return on investment.

James Kirkman, property consultant at ProVenture Property, explained that high yielding places are some of the wisest options.

He noted that Leipzig, Chemnitz and Bremerhaven are all good cities to consider at the present time.

"Those three cities are the cities that you are going to get the best return in investment, so the yields there are between nine and 13 per cent," the expert stated.

Mr Kirkman described how Berlin experienced a form of "property bubble" during the past few years, which led to yields falling to six per cent on return.

As a result, it was suggested that when finance levels appear to be at five per cent, it is unlikely investors will get a good deal.

However, individuals seeking capital growth and income on a property abroad were encouraged to consider Germany.

According to Mr Kirkman, there are three things investors should look out for when deciding where to plough their money.

"First I would suggest a strong yield, second thing is suitable finance conditions," he commented, adding that there is no point investing in a place where the return is the same as the yield.

Finally, "investor confidence" was noted as the third aspect to look out for.

"All those things will point towards future potential and future capital appreciation," Mr Kirkman remarked.

It was recently noted by the expert that purchase prices are currently very low in Germany as it has a predominantly rented market with a low-owner occupied rate.

For example, Berlin was described as having between 85 and 90 per cent of the population living in rented accommodation and only ten to 15 per cent of properties filled by the purchasers.

Posted by Jennifer Wilkinson

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