Every year, thousands of families move to Germany from the US, the Middle East, Russia, or Asia – for a new job, family reasons, or simply because they want to stay for good. Sooner or later, many of them face the same question: should they rent, or buy property in Germany straight away? Those planning to stay long-term often find buying more sensible than years of rent payments. Yet the German property market isn't always easy for newcomers to navigate. There are a few particularities worth knowing before you fall in love with a property.
Buying Property in Germany as an International Family: The Biggest Pitfalls
Unlike in some countries, buying property in Germany is not a quick process. Between the offer, the financing commitment, and signing before a notary (Notar – the neutral legal professional who certifies German property contracts), several weeks usually pass, sometimes months. If you're used to countries where deals close within days, you'll need to adjust to this rhythm. That's not a disadvantage – quite the opposite: having a notary certify the contract protects both parties very reliably. But patience is part of the deal.
A second point: in Germany, you don't just buy from your couch. Without local market knowledge, without access to off-market listings, and without someone to review the paperwork, it's easy to fall into traps – overpriced properties, hidden renovation backlogs, unclear entries in the Grundbuch (the German land register recording ownership and encumbrances). This is exactly where experienced guidance pays off – someone who knows the market and can put together suitable properties across Germany, rather than just scrolling through the usual portals.
Choosing a Location: It's Not Just the City, the Neighborhood Matters Too
Berlin, Munich, Frankfurt – everyone knows the big names. But within a single city, the rules can change completely just two streets over. Families with children usually focus on three things: commute to work, proximity to schools and daycare centers, and a neighborhood where they can settle in quickly.
Newcomers to Germany often move first into neighborhoods with a larger international community – this makes the start much easier, since you'll find people who've had similar experiences. Later, once the language and daily routines feel more familiar, some families move again, closer to school or work. That's entirely normal and doesn't argue against buying early – it just means that with your first property, you should focus more on resale value and locational flexibility than on finding the perfect dream home.
Keep an Eye on Rental Yield and Resale Value
Even if the plan is to stay long-term, plans change. An employer might relocate you to another city, or the family may decide on another move after all. That's why it pays to choose locations, even at the time of purchase, that will remain in demand in five or ten years – good infrastructure, a stable neighborhood, not an isolated spot on the edge of an industrial area.
Schools and Daycare: Get Informed Early, Not After the Purchase
In Germany, school assignment is often tied to your address – if you live within a certain catchment area, you're entitled to a place at the corresponding primary school (Grundschule). International schools, on the other hand, offering an English-language or IB curriculum, are usually not tied to location, but are often fully booked with long waiting lists. If you're planning on an international school, you should secure a place before searching for a home – not after.
Daycare places (Kita) are also scarce in many major German cities. The same rule applies here: the earlier you register, the better your chances. Some families sign their child up at several facilities simultaneously while still pregnant. That might sound unusual, but it's common practice in Germany.
Financing Without a German Schufa Credit History
The biggest obstacle for international buyers is usually financing. German banks rely heavily on Schufa – a credit bureau that assesses creditworthiness based on your payment history in Germany. If you've only just moved here, you naturally have little or no Schufa history. That doesn't mean financing is impossible – but the path there looks different than for a buyer who has lived and worked in Germany for years.
In such cases, banks often require a higher down payment, frequently well above the usual 20 percent. A permanent employment contract, proof of regular income, and sometimes additional collateral can also help offset the missing credit history. Some international buyers bring proof of assets from their home country, which some banks accept and others don't – it's worth comparing different lenders, ideally with the help of a financing advisor experienced with international clients.
Alternative: Use an Existing Banking Relationship
If you're already a customer of an internationally active bank, you may be in luck – some institutions take your credit history from abroad into account if they have a branch in Germany. That's no guarantee, but it's worth trying before focusing exclusively on German regional banks.
Don't Underestimate the Notary, Land Register, and Closing Costs
One thing that surprises many international buyers: in Germany, notarial certification is legally required for every property purchase, regardless of the price. The notary (Notar) reviews the contract, informs both parties of their rights and obligations, and arranges the entry in the Grundbuch (land register). On top of that comes Grunderwerbsteuer (real estate transfer tax), which ranges from 3.5 to 6.5 percent of the purchase price depending on the federal state, plus notary and land registry fees. These closing costs should be factored into your budget from the start – they're often overlooked.
Buying Remotely: If You're Not in Germany Yet
Some families want to secure a property before they've actually moved – for instance, to be able to move in in time for the start of the school year. Buying from abroad is generally possible, via power of attorney or video-based notarial certification, but it requires trustworthy support on the ground to handle viewings and review documents. This is exactly what our remote-purchase support is for, so buyers still based in Dubai, New York, or Moscow can close the deal with confidence.
If you're unsure which steps make sense in which order, you'll find an overview of our services at Services – from a free valuation to full purchase support all the way to the notary appointment.
L&B Immobiliya has been supporting international families buying property in Germany since 2009 – in German, English, and Russian. If you have questions about location, financing, or finding the right property, feel free to reach out via our contact page.
