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Second Home in Germany is gaining popularity

Germany is not only popular as a holiday destination, but it also attracts buyers of a second home.  Here, the past few years the house prices have been continuously on the rise and the Deutsche Bank has predicted that the prices in Germany will further increase in 2014 by 4%. Cheap mortgages and low interest rates of 2% – 2.5% (loan of 10 years, fixed rate) make it easy to acquire a house. Famous German regions include The Black Forest, The Eifel and The Sauerland. The latter, with its tourist towns such as Willingen and Winterberg, might be the most interesting region for Dutch people who want to buy a holiday home from our eastern neighbours. It is close to home – a 3-hour drive from Utrecht – thanks to which a short holiday or a weekend away is within reach.

Government supports tourist developments

Because of the enormous economic importance the German government supports investments in tourist projects on a large scale, an example of which is the Master Plan Wintersport Arena Sauerland. Ten years ago, a very distinct vision followed by a convincing concept started up this Master Plan and since then almost 100 million euros have been invested in snow installations, state-of-the art ski lifts, fun parks, toboggan runs and a bobsleigh run of world championship level. With 1.1 million overnight stays per year this region has in the meantime turned into the most important area for winter sports north of the Alps.

Large holiday parks

These developments have not escaped the attention of the big rental organisations such as Landal and Centerparcs either. A number of large bungalow parks have therefore been developed recently. A central reception area, an indoor pool and a restaurant all form part of the standard facilities of suchlike projects. Because there is a lot to do in these kinds of parks, it goes without saying that they mainly attract families with young children. The houses are also often sold in combination with a guaranteed rental profit. This financial aspect is something that private investors are often looking for.

Integrating smaller projects in local communities

Not every house buyer is charmed by the large-scale and sometimes impersonal character of the large holiday parks. Some people prefer projects that form part of and are really integrated in the resident community, especially if the local infrastructure is made use of and if the tradespeople can benefit as well. Restaurants see their turnover increase, bakers sell more breads and new shops are opened on a regular basis. Everybody is happy and the house owner is quickly integrated in the local community and really feels at home. Important in case of smaller projects however is that the rental process and the exploitation are well organised and that the own use is arranged with the necessary flexibility.

A large offer

There are plenty of holiday homes available, in all price classes. It has appeared that holiday homes of the higher segment, offering a few extras with regard to comfort and appeal, are very much appreciated by the current holidaymakers. The rental income is exactly the same as in the big holiday parks.

Source: Jeroen van der Werff  |  NextHome B.V.

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