[Reindeer]

I take on board what you say and find your views of interest which are obviously based on research. I do think that location plays a part in choosing an investment however, it is not the only consideration as you rightly point out, running costs are are of greater importance. There is no point in having a great location if you pay out more than you get paid in. A investment is no good if it becomes a drain on the pocket. I give you an example of my experience. I have a 2 bed flat in England which was not bought as a buy to let but for me to live in. My circumstances changed and I moved into another property but decided to keep the flat in case I needed to move back in so I chose to let the flat. I have let the flat for approx 10yrs which has been very profitable for me however, the Freeholder recently carried out some major external fabric works and some minor internal works. The long and short of it is is that I now have a bill for £5K which is on top of my annual service charge, this hurts. This is my contribution based on my % of leasehold ownership. I suppose I am lucky as my Freeholder is the Council and not some unscrupulous Freeholder as can often be the case, therefore I know that these works were carried out with necessity and went out for tender and am able to discuss payment options with them. I would suggest that before investing in a property that the long term maintenance be considered as there can be hidden costs. Think what major repair works may be required in say 10yrs as part of a 10 yearly major maintenance works programme and what these costs could be. I would now consider a terraced flat instead of an end of terraced flat as this has less external building fabric to be maintained thus resulting in less costs. I would also suggest checking out the Freeholder as there are many unscrupulous Freeholders.

It's interesting to hear you say that the big boys are pulling out. The last I read was that the likes of Meryll Lynch were still keenly investing in Berlin property and that there was a particular interest in retail however, that does not mean to say that this has changed since. I will therefore take a step back and revisit what the larger investors are doing. I do agree that yes it is the Real Estate Agents that claim prices are on the up which is what you would expect to hear from them as that's their business, naturally they will give it hype. I have also noticed many properties that have been on the market for some time which would indicate that may be the market is not moving as fast as they would like you to think. Also be ware that many brokers charge over inflated prices, I would recommend researching brokers.

I do however think that provided you invest in the right property Berlin could prove to be a good investment, although I will review my research taking on board your comments. What I would suggest is that if investing in Berlin property you must forget the short term. If you want to invest it has to be long term. I would be looking at a minimum of 10yrs investment as that is how long I believe it will take for Berlin to turn into and become the major hub of Germany acting as a capital should, which at present by all accounts Berlin is no where near its potential as many would have hoped.

My intention would be very much long term as I intend to build a pension from Berlin property investment. I am not looking to sell to make a gain. There are no guarantees in life but sometimes you have to take a gamble and I would rather gamble in Berlin than Croatia, Bulgaria & Romania and the like. I would like to think that in the long term based on my opinions above the yield on any Berlin investment should I make one will increase proportionally as property value increases much like the UK market, where I have enjoyed a rental yield of 14% based on a 10yr investment. If entering the market it must be long term, this is only how I see it as I will be the first to confess that I am no expert.