Dream destination condominium: insider knowledge from FORTIS and PSD Bank
Condominiums are in high demand in Berlin. More and more Berliners are dreaming of buying a property. In this BERLINboxx interview, Oliver Koch, CEO of project developer FORTIS Real Estate AG, and Daniel Mohaupt, member of the Executive Board of PSD Bank Berlin, answer the most important questions about buying a condominium. The purchase of a condominium is always a financing issue. What needs to be considered?
Mohaupt: Very few people plan for the future when they sign a financing agreement, which limits their flexibility. Common problems after a few years are divorces between the financing partners or annoying neighbors who make you move. People then move out, but the loan to be paid off remains. We therefore recommend that our customers choose a flexible plan in which they vary the fixed-interest period between long-term and short-term and set the loan term with retirement age in mind. As a rule of thumb: as soon as income falls, the main part of the financing should cease. What do you recommend for an equity ratio?Mohaupt: Realistically, at least 20 percent. Nowadays, however, we also see many young families who want to buy a property and who usually only have 12 percent equity. In these cases, this is diluted by the costs of notaries and estate agents. Depending on professional prospects and job security, however, we at PSD Bank can find other ways and tailor a financing plan. What percentage of buyers finance the property they purchase and how does Fortis support them in this? Koch: Almost all of our buyers finance their own homes. Although we don’t provide financing advice, we are on hand to advise our customers every step of the way. This ranges from mentoring on the necessary documents to recommending a suitable bank. What makes an existing apartment so charming? What is special about Fortis and what can prospective buyers expect in 2023?
Koch: We see the charm in the atmosphere of an old building: the high ceilings, large windows and stucco details are just a few of the characteristics that make the old buildings special. However, many of these buildings are in urgent need of refurbishment. Fortis refurbishes the apartments in a highly professional manner and hands them over to customers in very good condition. We attach great importance to using environmentally friendly materials that meet ESG standards. For example, we finish facades with mineral materials. We have a large portfolio in the pipeline for 2023, including apartments in Charlottenburg, Kreuzberg, Steglitz and Pankow. Our properties are located both inside and outside the S-Bahn ring. What do you say to critics of the conversion of rental apartments into condominiums? Koch: It’s not about turning the tenant city of Berlin into an oasis of condominiums, but about a sensible coexistence of both forms of housing. You also have to look at the issue proportionately, because the situation is actually not that dramatic: last year, around 18,000 apartments were converted into condominiums out of a total of two million apartments in Berlin. Many people also don’t know that tenant protection and property ownership are on an equal footing in the constitution. Mohaupt: I find it shameful that the issue is so demonized. Germany has the lowest home ownership rate in Europe. The state should encourage people to be able to live independently within their own four walls. In this way, owners are also protected from rent increases. The political goal should be to bring more people into home ownership. (bk)