Learn key terms and concepts for German property investment
Fixed monthly payment combining interest and principal repayment
Net income from property after all expenses and debt payments
Capitalization rate - NOI divided by property value
Equity - own capital invested in a property purchase
Debt capital - borrowed money used to finance purchase
German property transfer tax paid when purchasing real estate
Land registry - official record of property ownership and encumbrances
Land charge - security interest registered against property for mortgage
Traditional mortgage directly tied to a specific loan amount
Monthly fee paid to building management for shared expenses
Maintenance and upkeep expenses for property preservation
Using borrowed money to amplify investment returns
Rental yield - annual rental income as percentage of property value
Real estate agent commission, typically 3-7% plus VAT
Closing costs including taxes, notary, registration, and agent fees
Notary fees for property purchase contract and registration
Property income after operating expenses but before debt service
Total return on invested capital including cashflow and appreciation
Principal repayment rate - percentage of loan repaid annually
Interest rate charged on mortgage loan