How to find an apartment in Munich

Viewing

This is when you can start your search. When you find an apartment in Munich that matches your search criteria and budget, arrange viewing appointments with the real estate agent or owner. Take your time: both in advance to think of critical questions and during the viewing itself to examine everything closely. Consider not only the apartment but also the condition of the building.

Due Diligence

Once you have found an apartment that meets your requirements, it is essential to conduct a due diligence examination. Review the legal and financial aspects, such as land registry extracts, ownership status, building permits, and any encumbrances on the property. This is especially important in real estate investments. It may be advisable to consult a lawyer or notary to assist you in this process.

Purchase Contract

If you are satisfied with the results of due diligence, you can review the purchase contract for the apartment. The purchase cpntract should include all relevant conditions, prices, payment terms, and legal provisions. Again, it is advisable to involve a lawyer or notary to review the contract and protect your interests.

Finalize Financing

Prior to signing the purchase agreement, you need to finalize the financing. If necessary, make sure you have the required financing documents and conclude the credit agreement with your bank.

Handover and Property Transfer

Once the notary appointment and property transfer are completed, a handover date is arranged. With the handover, where you receive the keys to the property, the purchase process is finalized. Make sure that all agreements in the handover process are fulfilled.

When financing an apartment in Munich, there are several aspects to consider:

Equity

It is advisable to have sufficient equity before financing an apartment in Munich. A higher equity ratio can help you secure better loan terms and reduce risk. Typically, it is recommended to contribute at least 20 percent of the purchase price as equity.

Budget Planning

Ensure that you plan your budget thoroughly, taking into account your financial capacity. Consider not only the monthly mortgage payment but also other associated costs such as interest, principal, ancillary costs, maintenance, and insurance.

Mortgage and Offer Comparison

Conduct a comparison of various mortgage interest rates and terms. Evaluate offers from different banks and financial institutions to secure the best possible conditions. Pay attention to the effective annual interest rate, the loan term, repayment options, and any fees or additional costs.

Financing Confirmation

Before purchasing an apartment, it is advisable to obtain financing confirmation from your bank or financial institution. This confirmation demonstrates to sellers that you have sufficient financial means to complete the purchase. It can strengthen your negotiation position and expedite the buying process.

Interest Rate Trends

Keep an eye on current interest rate trends and potential changes in the future. We are currently witnessing how interest rates can change over time. You can opt for a fixed interest rate that keeps interest rates constant throughout the loan's term or a variable interest rate that adjusts to the market. In the case of very high interest rates, choosing a variable rate can be a good way to save money when interest rates go down again. However, it's important to monitor interest rate developments. If it appears that rates are rising, it is advisable to switch to a fixed interest rate beforehand. In any case, seek advice from an independent financial expert regarding this decision.

Government Programs

Research potential government programs or support for property purchases in Munich. Various state programs promote homeownership, such as the KfW funding program. Determine if you qualify for such programs and explore the benefits they offer.

For those who cannot currently afford to buy a property in Munich due to the high financial burden, turning to the rental market is a common choice.

As a rule of thumb, if the monthly payment, excluding principal repayment, significantly exceeds the monthly rent, it is more sensible to rent an apartment in Munich than to buy one.

In a market with high dynamics coupled with high purchase prices, as is currently the case in Munich, many property seekers opt for renting an apartment until they have saved up enough equity or until the affordability of purchase properties has improved.

The temporary rental model then offers clear advantages to high earners, because furnished apartments with a fixed-term lease are available more quickly than unfurnished apartments with indefinite rental agreements.

Temporary rental offers are not tied to the Munich rent index. This is why square meter prices here are higher compared to indefinite rental agreements.

In addition, these apartments come fully furnished with everything you need to move in right away.

This is especially advantageous for people relocating to Munich who have limited time for an intensive apartment search. They can get to know the city and choose their preferred location at a later time.

With their housing needs taken care of, new residents can then take their time finding an apartment that suits their needs and expectations.

The city of Munich has a steady influx of new residents, Both internationally and within Germany, Munich is highly sought after as a place to live and work. As a result, the demand for real estate has been greater than the supply for years, especially in the rental market. That's why finding an apartment in Munich is truly challenging. Even if, objectively speaking, all the applicant's criteria are met, they often have to compete with almost 100 other candidates for the same property.

Many vacant apartments are passed on informally and never even make it to public real estate portals. Landlords who offer their property in this manner often withdraw the listing after a short time because the flood of interested parties is simply too overwhelming.

If the property seeker is also under time pressure to find a suitable property, perhaps even in a specific neighborhood, it is considered an almost insurmountable challenge in Munich.
 

Tips on how to succeed in apartment hunting in Munich:

• Create a search profile with major Munich real estate agencies like Mr. Lodge. This way, you'll be the first to learn about apartments tailored to your needs.
• Be proactive and post your apartment search request on bulletin boards in supermarkets, bakeries, butcher shops, or even on billboards throughout the city or your preferred neighborhood. Include contact information that people can tear off and take home.
• Advertise in local newspapers and place ads in magazines that align with your lifestyle.
• Real estate portals like IS 24 or eBay are important platforms for your search.
• Consider buying shares in housing cooperatives. While an initial investment may be required, the apartments are usually affordable and mostly in good condition. There are no eviction notices for personal use in this case.
• Get in touch with property management companies. Maybe you are in luck and an apartment has just become available?
• Utilize the opportunities of social media. Make your search public on Facebook, Instagram, Twitch, as well as Xing and LinkedIn.
• Have all necessary documents ready well in advance of the viewing appointment. The employment contract, the last three salary statements, your ID card, all in copies, a current SCHUFA credit report, and a form providing information about you, including your job title, home address, and hobbies.
• Have your application portfolio stand out and give you an advantage over the other applicants. How about a red application folder with a professional photo as an eye-catcher?
• Prepare logical arguments for why you are the ideal tenant for the property and make sure to have a conversation with the landlord.
• Offer to prepay several months of rent if you get the apartment. This signals your financial stability to the landlord.
• Do not try to negotiate the rent with the landlord. Demand determines the price, and it remains strong. There are plenty of candidates willing to pay the advertised price, often plus the agent's commission and the purchase of pre-installed furnishings.
• Expand the area where you are looking. Maybe it doesn't have to be the Glockenbachviertel; perhaps Ismaning can also meet your needs?!