# German Real Estate Glossary — Terms Explained for Investors

> Plain-language definitions of German property terms such as Grunderwerbsteuer, Mietrendite, Tilgung and Hausgeld, each with examples and investor tips.

Canonical: https://www.investbud.de/en/glossary

- [Grunderwerbsteuer](https://www.investbud.de/en/glossary/grunderwerbsteuer) - German property transfer tax paid when purchasing real estate
- [Mietrendite](https://www.investbud.de/en/glossary/mietrendite) - Rental yield - annual rental income as percentage of property value
- [Cashflow](https://www.investbud.de/en/glossary/cashflow) - Net income from property after all expenses and debt payments
- [ROI (Return on Investment)](https://www.investbud.de/en/glossary/roi) - Total return on invested capital including cashflow and appreciation
- [Cap Rate](https://www.investbud.de/en/glossary/cap-rate) - Capitalization rate - NOI divided by property value
- [Nebenkosten](https://www.investbud.de/en/glossary/nebenkosten) - Closing costs including taxes, notary, registration, and agent fees
- [Notarkosten](https://www.investbud.de/en/glossary/notarkosten) - Notary fees for property purchase contract and registration
- [Grundbuch](https://www.investbud.de/en/glossary/grundbuch) - Land registry - official record of property ownership and encumbrances
- [Grundschuld](https://www.investbud.de/en/glossary/grundschuld) - Land charge - security interest registered against property for mortgage
- [Hypothek](https://www.investbud.de/en/glossary/hypothek) - Traditional mortgage directly tied to a specific loan amount
- [Tilgung](https://www.investbud.de/en/glossary/tilgung) - Principal repayment rate - percentage of loan repaid annually
- [Zinssatz](https://www.investbud.de/en/glossary/zinssatz) - Interest rate charged on mortgage loan
- [Annuität](https://www.investbud.de/en/glossary/annuitaet) - Fixed monthly payment combining interest and principal repayment
- [Maklergebühr](https://www.investbud.de/en/glossary/maklergebuehr) - Real estate agent commission, usually 5.95% to 7.14% in total incl. VAT
- [Eigenkapital](https://www.investbud.de/en/glossary/eigenkapital) - Equity - own capital invested in a property purchase
- [Fremdkapital](https://www.investbud.de/en/glossary/fremdkapital) - Debt capital - borrowed money used to finance purchase
- [Leverage](https://www.investbud.de/en/glossary/leverage) - Using borrowed money to amplify investment returns
- [NOI (Net Operating Income)](https://www.investbud.de/en/glossary/noi) - Property income after operating expenses but before debt service
- [Hausgeld](https://www.investbud.de/en/glossary/hausgeld) - Monthly fee paid to building management for shared expenses
- [Instandhaltung](https://www.investbud.de/en/glossary/instandhaltung) - Maintenance and upkeep expenses for property preservation