Buying A Castle
~ Castles As An Investment
FRACTIONAL
OWNERSHIP IN A CASTLE OR MANOR HOUSE
by Helga
van Horn
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| Helga van Horn has written two
other articles on castles for our magazine. Her articles solicit a
great deal of reader response. Evidently the idea of buying a castle
appeals to many of our Escape Artists; including me. Her other articles
are listed here: |
| 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. |
| How
To 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 |
| Note: EscapeArtist.com also has
listings for castles and mansions. Castles
for Sale - Castles
for Sale - Mansions - Mansions
For Sale Worldwide - |
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the past many readers who read my article about castles for sale in eastern
Germany asked if there were castles that could be bought and restored for
between 100,000 euros and perhaps 500,000 euros. Although we sometimes
find properties that fit this range of investment, particularly at the
higher end, in most cases the castles and manor houses that are for sale
are large and consequently they are more costly to restore. Fractional
ownership may be the answer. It is new concept which makes it possible
for those with smaller budgets who would like to own a castle or manor
house to be a part owner of a castle. Fractional ownership (frac)
is the latest trend in real estate world wide. Many upscale resorts in
the United States, Canada and the Caribbean are marketed on a frac ownership
basis.
If you invest in a castle property
on a fractional ownership basis you actually own part of the castle or
manor house, ground and all. It is not like buying a condominium where
you only own your unit, nor is it a time share system. With fractional
ownership you are an owner in the whole project.
FRACTIONAL OWNERSHIPS FOR CASTLES
IN SAXONY
CASTLE AND GATE HOUSE GROSSDEUBEN/LEIPZIG
AREA
If you prefer to live near a city
you might want to consider the Castle and Gate House at Grossdeuben located
in the small village of Grossdeuben some 25 minutes by car or train from
down-town Leipzig. Leipzig is Germany's new boom town which is often referred
to as Little Paris for its flair, and which has once more become one of
Germany's most dynamic cities. Fractional ownership in the Grossdeuben
project is a particularly lucrative investment because of its location.
The project is set in a large country park and consists of a small castle
built in 1730 and the historic Gate House built between 1700 and 1710.
Fractional ownerships range from Euro 100,000 to Euro 375,000 for a unit
in the Castle or the in the Gate House, the latter witch features
a vaulted entrance hall and glass enclosed arched terraces.
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Castle Ruhetal - 12th century
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CASTLE LAUTERBACH/ MEISSEN/DRESDEN
AREA
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Castle Lauterbach with Lake
- 17th century
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A prestigious project
is the Castle Lauterbach, a historic country castle whose history dates
to the middle of 14th century. Today's castle is mostly from the 1700's
and has been renovated in the late 1800's. The castle is located in the
small village of Lauterbach in a romantic park with a lake fronting the
castle. Much of the castle is still original which will add to its future
value.The project will feature a spa when it is finished. Frac prices range
from Euro 120,000 to Euro 320,000.
HISTORIC TOWN HOUSES IN LEIPZIG
A different type of frac ownership
is in historic town houses in Leipzig. Several ownerships are available
in three different projects, all located within the city limits of Leipzig,
thus they represent an excellent investment value since they can easily
be rented. All are in historic properties from built in the 19th century
or around the turn of the century. Prices range from Euro 52,000 to Euro
130,000. |
| HISTORIC FARM HOUSE
BY THE SEA
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.
CASTLE RUHETAL SOUTHEASTERN SAXONY
An business type ownership is offered
in the Castle Ruhetal project in Muegeln in southeastern Saxony. The Castle
Ruhetal is a massive castle that dates to the 11th century. Surrounding
the castle is one of the most complete castle estates in Europe consisting
of historic former barns, granaries, staff houses, gate houses, even a
jail, all of it set on about 100 acres of land. The castle itself will
house a small hotel and a museum, the estate buildings will be made into
a theme park recreating the original estate. Frac owners will each have
a unit in one of the staff houses for their own use or to rent. The medieval
town center of the Muegeln is but a short ten minute walk from the castle.
Frac ownership is available to 20 owners. Investment per owner is Euro
500,000. |
Castle Ruhetal sculped entrance
with seat niches
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QUESTIONS ABOUT LONG TERM RESIDENCY
IN GERMANY
Q If I buy a castle in Germany
and would like to live there more than three month, what do I have to do
to obtain residency?
A You will have to get a residency
permit. To obtain it you have to go to the town hall or police station
to apply for it. To obtain a residence
permit you need to show proof that
you can support yourself (if you own real estate this clause is usually
waived), furthermore you need to show proof of health insurance. If
you don't have health insurance you need to apply for it through a German
insurance company, or join the Krankenkasse (socialized medicine). The
procedure is not complicated nor expensive. If you are the owner of a castle,
by the time the project is finished you will already be a respected resident
of the local community where the castle or manor house is located. You
will know the mayor and other city officials in person which will making
applying for a residency permit very easy.
Q For how long is a residence
permit in effect?
A It depends on how long you
would like to apply for, 6 months, a year or for permanent residency. The
choice is yours.
Q What about a drivers license?
A You can drive with your
US license for up to six month. After this go to the motor vehicle department
and apply for a German drivers license. You can get a German license without
taking tests if you apply for it before the initial 6 month are over. You
need a translation of your license which you can get at the German Automobile
Club (ADAC) for a small fee. You also need to show your passport
and give your German address...
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For more detailed
information read my eBook - All
You Ever Wanted To Know About Buying A Castle answers all the
questions that arise once you decide you want to pursue this most ultimate
of dreams. This guide is the only publication in print or eBook form that
advises the reader step-by-step on how to become the owner of a castle.
This eBook instructs the reader how and where to start looking for the
castle of his dreams, how to set up a viewing trip to see castles that
are for sale, how to make arrangements to negotiate a sale, and how to
proceed once the castle is purchased. Then it´s time to start shopping,
in France, Spain, Germany, Poland, Romania, or ten other countries
that are explored in detail in this guide.
For information on the projects
described in this article contact Posh Journeys.
E-mail: contact@poshjourneys.com
or call 775-852-5105 (West Coast USA). You can also find more information
by going to http://www.poshjourneys.com\castles_as_an_investment.htm
and scroll down to below the castle pictures and click on "Fractional Ownership." |
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