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buy a castle or manor house is not as impossible or expensive a dream as
it may appear if you are interested in such a property in the former East
German states of Thueringia, Saxony, Saxon-Anhalt and Brandenburg.
When the Berlin
Wall came down in 1989, these states found themselves in the possession
of hundreds of castles and country estates who had been confiscated from
its owners by the Communist government of East Germany. To own a castle
or manor house was then considered vanity, and was totally against the
ideals of the state. Other such historic properties had been left behind
by their owners who had fled to the west. An effort was made to return
these properties to their former owners, but many could no longer be found,
or they declined to take them back because of the condition these properties
were in. These castles then became the property of the state and were offered
for sale to private investors. 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. |
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In
the forty years of Communist rule such properties were often used as apartment
houses, some crudely divided into numerous unit by cheap new walls, others
were made into schools or factories, almost all were run down and
few if any repairs were ever made. Where once one family had lived,
twenty or thirty families were cramped into tight quarters. After
re-unification such occupants were re-located to newer and better living
quarters, and the states began to sell these properties.
As a rule the
castle or manor house itself sells for the most part for 1.-- Euro, about
one dollar, plus the value of the property which can run anywhere
from $15,000.-- to $100,000.00 depending on the size or location
of a property. Once the property is bought, renovation is almost always
necessary. The cost for this can run from perhaps $400,000.-- to a million
or more, or anywhere in-between, not taking in consideration the state
grants which bring the final cost down by about $250,00.
We, ourselves,
became interested in such properties when we traveled in Saxony some years
ago to search for the country manor house of my great uncle, of which we
unfortunately found nothing but the a few old foundations. |
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short distance from this place, however, we found the Castle Triestewitz
and met its owners Manfred and Monika Pawlik who had bought the castle
and had restored it. Manfred, who was a West German builder and land developer
became a restoration expert of historical properties after settling in
Triestewitz. The concept of taking interested clients to Germany
on inspection tours of castles and manor houses, and of having Manfred
Pawlik as our expert consultant, was irresistible to us and we began to
work with the Pawliks.
The problem,
however, is that if someone wants to acquire such a property, he or she
often runs into a brick wall. Realtors for the most part do not sell
these properties since the state or city who owns them does not pay a commission,
and the paper work required to make an offer for such a property, as well
as make the application for the state funds, all which are in German,
pretty much eliminates anyone from wanting to attempt to buy such a castle
or manor house no matter how good a deal it is. However, with the
assistance of Manfred Pawlik, and with our knowledge of the subject, acquiring
such a castle or manor house can be quite simple.
Here are some
questions and answers you might want to ask if a castle in the former eastern
states of Germany is of interest to you.
Q.
Can an American citizen own real estate outright in Germany?
A.
Yes, American citizens can own real estate without restrictions in Germany.
Q.
How can I find such a property?
A.
You can buy a directory from the Saxon, Thueringia, Brandenburg or Saxon
Anhalt Ministry of the Interior - addresses can be found on the web
under German Government, then go to Ministry of Interior. The cost
per such publication listing properties for sale is about $65 plus another
$30/40 for shipping. |
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There
is also a German realty firm, Brecht Immobilien, who has some castles that
are for sale, but they are for the most part already renovated, and the
costs are consequently much more expensive. Their e-mail is: rose@brecht-immo.de
- the contact person is Ralph von Hassel. Or, you can travel to Germany
on your own and start driving into the countryside where you will sooner
or later come across such castles and manor houses, start inquiring at
the local store or Gasthaus (village inn) if anything is for sale, or go
to the closest town hall and ask what is for sale. Speaking German helps.
There is also
an auction house that auction off state owned properties, among them often
castles and manor houses at very low costs.
Their web
site is:
http://www.immobilienauktionen-sachsen.de
the web site is in German, but you can look at the pictures. Click on the
first line on left side in blue box. You will get one pictures. Go down
to the third line and click on AUKITONSOBJEKTE. You will get picture of
various properties, not all are castles.
Q.
Are there sources in the United States? |
| A.
Yes, you can contact us at: contact@poshjourneys.com
We can't send you pictures of every property available, but we send you
a free list of sample properties. We advise that you tell us how much you
would like to invest so that we can send you properties within your financial
possibilities.
Q.
Is there a charge for your service, if we want to carry things further
than the list of sample properties?
A.
Yes, if you have a serious interest, but don't want to make a trip until
you locate one or more properties, and would like us to research suitable
properties for you, including the cost, approximate renovation costs, applicable
state funds, suitability for the your intended use, get pictures, maps
etc. there is a charge of $500 as a non-refundable deposit to cover phone
calls, faxes, research by Mr. Pawlik, and postage to send pictures and
other material.
Q.
What if I would like to make a trip to Germany myself to look at properties
being accompanied by a consultant from whom I can get detailed information
about the castles I am visiting?
A.
We can set up an eight night trip, including hotel accommodations in a
restored castle, breakfasts, private inspections tours, including a car
driver and gas, an interpreter, the services of Mr. Pawlik as your private
consultant to accompany you on your inspection trips to advise you in all
matter of costs to buy and restore a property. The costs is about $3000
per person based on two people traveling together. Airfare is separate.
Or, you can join one of our castle inspection tours which run between
$1,600.-- and $1,800.-- per person. Contact us by e-mail (contact@poshjourneys.com)
for our next scheduled tour. These
tours are
limited to 6 participants.
Q.
If I decide to buy a property, what does it cost to hire Mr. Pawlik as
my consultant to handle the sale, the government grants and all paperwork? |
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| A.
Mr. Pawlik's fee to handle everything from making an offer to the seller,
to closing a sale (you should be present for this) to arranging for, all
renovation, making the application for the grant, hiring the workmen
and oversee the project is about $55,000.-- which, however, is more than
off-set with the funds you will receive from the government. Mr. Pawlik
has good working relationships with the Historical Restoration Fund people
and can most likely get you much more than if you would try to make the
application yourself.
Q.
How much approximately will I have to invest in a property that, let's
say has 20,000 square feet of living space?
A.
This depends of the condition the property is in. If a castle or manor
house is in fairly good condition, meaning that there is no water damage
to the walls or damage to the roof, the cost is approximately $65 a square
foot for historical correct renovation. If the property is in poor condition
and needs major work done to foundations and roofs, the cost is about $95
a square foot. We have seen castles and country estates that ranged
from about $200,000,-- to $2,000,000.-- after renovation.
Q.
What are the yearly costs of upkeep, heat, water, etc.?
A.
The heating and electric costs for the Castle Triestewitz which has about
25,000 square feet of living space, including the owners apartment and
the 8 rental units, run about $4,500.-- a year.
Q.
What about hiring someone to oversee the property while I am not there?
A.
Since most of the castles and manor houses are located in rural areas it
is no problem to find a reliable person who will look after the property.
You can probably hire someone for about $8.-- an hour who will come
in for a few hours a day. You could also offer an apartment in exchange
for some one to take care of your property. To find and hire a reliable
care taker is
included in
Mr. Pawlik's fee if you hire him.
Q.
What about property taxes after purchase?
A.
Property taxes for a historic castle or manor house are extremely low since
tax breaks are given to anyone restoring a historic property. The tax on
the Castle Triestewitz is about $380 a year. In some cases property taxes
are waived all-together.
We hope to
have answered the most commonly asked questions, however, if you
want to ask something we have not covered, please feel free to contact
us and we are happy to give you an answer. |
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