Castles
For Sale In Eastern Germany
by Helga
van Horn
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You may have read my articles in
the past about castles for sale in the eastern states of Germany which
have been run down during the Communist era of East Germany. Well,
it's some time since my last article appeared and since things change over
time, an up-date is in order.
Yes, these castles and manor houses
are for the most part still a good buy if you compare them to prices charged
for similar properties in other parts of Europe. Even if prices have gone
up, and the low dollar too contributes further to a price increase, they
still represent a good investment. If you always wanted to own a castle,
then by all means you will be paying less if you buy a castle in this region
of Germany. |
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Castle Voigtsheim - this
is a well priced resale with the outside fully restored
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Such castles are not as abundant
anymore as they once were, but there are still hundreds awaiting a buyer
and renovation, including some which have been renovated in part where
the owner has run out of funds and now has to sell at a reasonable cost
to get rid of them. These are often a good buy because of the amount of
money that has been already invested, but to resell quickly, the
owner has to sell at less than the current market price. Such properties
are particularly good for those investors who want to take their time renovating.
It is always the outside of a castle or manor house which has to be renovated
within a certain amount of time, a requirement that is usually stipulated
in the purchase contract. What happens on the inside is usually up to the
buyer, thus he/she can take as long as they want, or even do the work themselves.
Subsidies too
are not as generous anymore as they used to be. The Denkmalschutz the German
state historical preservation department, has, for the most part, run out
of money and subsidies from this source are extremely rare. A castle would
have to be of tremendous historic importance to obtain subsidies from this
department. Subsidies that are still available are those offered
by the municipality where the castle is located. But these grants are usually
much smaller, 20% perhaps. However, an investor can apply for a VAT tax
refund, the 16.5% which he pays for all services and materials. This amount
can be considerable, for instance if an investor pays 500,000 euros for
renovation of a castle, he is refunded 82,500 euros.
In many cases
where municipal subsidies are low, it may be more advantageous to simply
forget about them since then, he can hire low cost labor. For instance
a buyer can hire renovation companies who bid low because they are using
Polish labor which is considerably cheaper than German labor. If subsidies
are awarded, the job has to be published in local newspapers for open bidding
and German labor has to be used. Thus it often turns out that more is saved
by foregoing the subsidies.
I often have
inquiries who think that they can buy a castle with awarded grants. That
is not so. The castle has to be bought with ones own money first. Subsidies
are paid out against renovation bills.
An exception
to all the above are properties which are located along the German-Czech
border. The area is in a region dedicated as an EU (European Union) joint
development region called "Euro Region Erzgebirge". The purpose for this
is to further and develop business between the two countries. The only
requirement is that a castle or manor house must be a business, a hotel,
seminar center or B&B etc., so that tourism can be jointly promoted.
The subsidies are 50% of all costs excepting the purchase price, but including
the furnishings.
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Baroque Castle Grossdeuben
The castle the author bought
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Readers may be interested
that I myself together with my husband and 3 other partners have bought
a beautiful Baroque castle dating to 1730. This has given me an even greater
knowledge of what is involved when one gets involved with such a venture.
It is, to put it bluntly, a big job, nearly impossible if one wants to
tackle it by him or herself, particularly if there is a language barrier.
Fortunately we had and have our associate Mr. Manfred Pawlik to see us
through. The ten to fifteen thousand euros we are paying to have all paperwork
and red tape taken care of for us, is worth every cent. We would have paid
far more had we have to travel back and forth and spend time in hotels
to handle something like this ourselves. With Mr. Pawlik handling everything
for us, it was and still is smooth sailing. |
It is also important to hire an accountant
or tax adviser after beginning renovation who can handle all tax matters
including the VAT refunds. Don't try to do it yourself, as anywhere, the
tax collectors make their forms and rules and regulations as complicated
as possible.
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Something to keep in
mind for those who receive subsidies is that renovation has to be historically
correct. For instance the regulation for the Torhaus Manor which is a property
we bought along with the castle, the stipulations for the roof read:
"The roof has to be done in natural red ceramic beaver tail tiles in the
Saxon format of 15.5 cm x 36.5 cm." A sample tile has to be shown
to the historic preservation department before installation. The list goes
on, everything has to be historically correct. We can not use stone that
has been artificially tinted, but must use stone in its natural occurrence.
Floors have to be original tiles or so-called "Dielen" wooden boards fitted
so tightly together that the seams are nearly invisible. Of course, after
renovation we could install carpeting if we would chose so, but who would
want to with floors that are this beautiful. Area rugs will look far more
attractive exposing the wooden floors which add warmth and beauty to a
room. These are just a few of the many things we have to observe,
however, the end result will be a magnificent castle.
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| The Torhaus Manor (1710) adjacent
to our own castle, as it will look after renovation. The manor is for sale
an has 130,000 euros in subsidies in the bank which will go to the buyer.
VAT tax for labor and materials is refundable as well. |
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As always I am happy to answer anyone's
questions regarding buying and restoring a historic castle or manor house.
To see what is presently available go to our web site www.poshjourneys.com
and click on "Castles as an Investment." There are more, of course, but
we can't show all of them. In order to suggest the right property it is
helpful that any inquiry contains the budget you have in mind, the size
you are looking for and your proposed use, either as a private residence
or as a business. It is a great adventure to acquire a historic castle,
and I am positive that anyone who does will eventually end up with an investment
that is unlike most others.
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Links to related sites and other
resources:
| Buying A Castle ~ Castles As
An Investment - Buying
A Castle ~ Castles As An Investment - A unique investment is offered
in a historic thatch roofed farm house in the resort village of Krummin
on the Ostsee (East Sea, the sea that connects the North Sea with the Baltic
Sea). Krummin is a popular holiday resort with a yacht harbor, bathing
beaches and a sea front promenade, about three hours by car from Berlin.
8 units are available on a frac ownership ranging in price from Euro 95,000
to Euro 175,000 By Helga van Horn |
| How To Buy A Castle In The Former
East German States - How
To Buy A Castle In The Former East German States - There are, however,
incentives to restore such castles and manor houses. The states have funds
which pay subsidies toward renovation. This can be as much as 30% to 40%
of the cost of renovation. Grants are allowed and agreed to before renovation
begins, but are paid after renovation is finished. Thus, an investor will
have to invest his own capital before receiving the subsidies. An investor
is also entitled to receive the 16% VAT tax (value-added tax) back he has
paid for building supplies. This too has to be applied for, and is paid
after renovation is finished. |
Buy a Castle In The Former East
German States - Buy
a Castle In The Former East German States
As an incentive to buyers to rebuilt
and renovate these historic castles and manor houses in their original
form the governments of the various states are offering grants which are
available to investors, not as loans, but as incentives which never have
to be paid back. The average amount of such a grant is about $250,000 |
| International Real Estate - Castles
for Sale - International
Real Estate - Castles for Sale |
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