Newsletter April 2009

April Update from Leipzig Property Investors – ProVenture Property


April 2009 Update

Welcome once more
to the monthly update from ProVenture. We hope you are surviving the
economic storms and that your investment lives are getting stronger
as opportunities arise. We hope you find this short newsletter of
interest and that it keeps you up-to-date with the property
investment scene in Germany.

Kind Regards,


Please click on the following titles to read the content or scroll down to read the whole newsletter


Increased German demand bolsters economy
Rates come down…again


Germany in the
the Spring
What to do in Germany (other than look at investment opportunities!)

 2 new properties
Your Life in Property…have you seen it?

German Economic Outlook

The export-driven economy of Germany
continues to suffer from the slump in global demand for its quality
goods, according to the IMF and the German government. GDP is
forecast to decline by around 4.5% in 2009, according to the
government in Berlin. However, some positive signs are being seen.
The Mannheim-based ZEW research institute said its economic sentiment
index, which gauges financial market experts’ view on the outlook for
the next six months, had risen for a fifth consecutive month in
March. The survey indicated the bottom of the recession would be
reached this summer.

It is hoped the
German consumer can take some of this slack of export demand up and,
additional to the record car sales reported last month, retail
appears to be lending a hand. With only 400 retail centres in
Germany, the population is not well-served per capita in comparison
to other developed nations. Last year, 15 new centres nationwide
were added and this trend is set to continue in 2009 and 2010, with a
landmark centre just opening at Alexanderplatz, Berlin this month.
There are hopes that efforts in retail and new car sales will entice
Germans to spend their savings (the highest in Europe) to stimulate
domestic growth.

On the housing
front, Germany was one of the few countries to register price rises
in Europe according to the Financial Times on 6 April. Gains in
Germany as a whole were 4.5% year-on-year whilst almost all other
countries posted losses, some (UK, Ireland and Portugal) were heavy
losses. This was Germany’s best performance by this measure for over
10 years.




Finance Update

The ECB cut interest rates to 1.25% is the lowest since the currency
was launched in 1999 this month. The effect has been seen on the 5
and 10 year swap rates, the rates banks use to determine the rates
for the 5 & 10 year fix rates that most of our clients choose.
Pay rates are now around 3.9% (5 year fix) and 4.7% (10 year fix).
Favourable loan-to-value finance is still available for our clients
up to 80% of the property value or purchase price paid.
The swap rate is at:



Activity on the Ground

During March,
inspection trips to both Berlin and Leipzig were undertaken. The
weather is certainly helping making the trips more pleasurable and
some clients use the inspection trip as a chance to have a short
leisure break in the interesting cities of the area. Please see the
“Top Tips” section for more information on this. Two inspection
visits are planned in April with clients visiting from UK, Italy,
Russia and Switzerland. For those of you visiting, I hope you have
an enjoyable and worthwhile time.



Top Tip – What to do in your spare time in Germany

Hopefully you will
have some spare time whilst in Germany, apart for viewing property,
to explore the local area. Germany is not well-known as a travel
destination and provides some interesting options that may not be on
the usual tourist trail. Some ideas of what to do are below:
In and Around

It is not hard to
fill your tourist-day in Berlin. With around 170 museums, glorious
town parks, a multitude of shopping centres and a unique history this
city is an intrepid tourist’s dream. The city can be toured on foot,
bus, boat or tourist coach with many tours taking in the parts of the
city with stories of the Second World War and the following time when
the city was divided by the Berlin Wall. This year marks the 20th
year since the fall of the wall and a number of special exhibitions
and events are planned. Further afield, but just around 40 mins by
S-Bahn, is the district of Potsdam. This area is distinct from
Berlin and is the state capital of Brandenburg. Its parkland,
numerous castles, boating and museums are what bring millions of
visitors here each year.

More info: 


In and Around

Leipzig, Saxony,
is around 130km south of Berlin and is a major German city with
around 515,000 inhabitants. The city has a history going to the 7th
Century, with a tradition as a trading city for merchants and
latterly a significant participant in the industrial revolution in
mainland Europe. The fine architecture around the city provides
obvious clues as to the wealth of the city through the ages.
Leipzig is a city of culture and this is what brings the majority of
tourists. With a rich history of classical music and a fine opera
house, the city is a target for lovers of the music of Bach in
particular who was a resident of the city. Should the weather be
favourable on your trip, the parklands of the Clara Zetkin and the
adjoining woodlands to the south of the city are well-recommended for
a tour by foot or by bicycle. A destination for all weathers is the
City Zoo which is a very well-organised zoo over a large area.
Children especially appreciate the opportunity to come up close to
the monkeys, gorillas and giraffes and explore the aquatic centre.

More info:



For those of you
who missed it, a free ebook has been published on the website. The E
Book has been written to discuss the overall approaches to property
investment, approaches that will prove successful regardless of the
market conditions faced. A number of models are introduced to
describe successful investment and property management strategies
that we hope you will find useful. Also included are a number of
links to websites that professional investors use day-to-day in
determining areas to invest in.

To collect your FREE copy, please click here.




Latest Property Offer

property is located in the highly-desired district
of Gohlis which boasts easy access to parkland,
numerous transport links and good quality
commercial outlets. This area commands some
of the highest rents in the city and has very high
demand from incoming tenants.

over 5 floors, the 10 apartments are fully rented
at reasonable rates.
contact one of the ProVenture team for more details.


  Guide Price: 490,000 Euro
Yield: 9 to 11%

New Property in
Leipzig (Kleinzchocher) –
9 apartments, presented fully tenanted.
Apartments of size 57-67 sqm per apartment, Guide price of 195,000
Eur with a rental yield of 12% on purchase price at guide.
contact one of the ProVenture team for more details.


Guide Price:
195,000 Euro