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Buying instead of renting in Frankfurt

Are you one of those people who dreams of no longer paying rent and instead investing the money in your own property? With property prices at over € 6,000 per sq m, as a newcomer to Frankfurt, you’ll have to dig deeper into your pockets than in other cities to get your dream home. In addition, there is the relatively high land transfer tax of 6.0 % compared to the rest of Germany.

Here we list some prominent new construction projects.

An advantage is that when you buy a property directly from the developer, you can often save yourself the brokerage commission (in Hesse 2.98 %.).

And the financing? The more equity the better! As a minimum, you should be able to cover the so-called sundry purchase costs of 8,0 percent (the rate for real estate in Hessen), plus, if necessary, 2.98 percent for the broker. The remaining amount must be financed with a loan. You can choose a bank yourself or hire an independent financial advisor who knows the German financial landscape with its over 400 banks. The advisor can create with you a tailor-made plan for your loan. This includes, for example, the choice of the repayment amount, fixed interest period or special repayment options. If you have never heard of these terms, then it’s high time for a financial advice!

Finanzierungs-Checkliste für Frankfurt

1. household costs
The bank checks that the finance can be paid back taking into account living, ancillary and other costs. For the costs, the banks usually work with flat rates. Regardless of the bank’s check, you should also determine for yourself what you can afford.

2. Own capital
A contribution from your own capital and other assets (life insurance, other real estate, etc.) and grants can significantly improve financing terms.

3. Extra costs
In addition to the purchase price, there are other costs, such as 2 % notary fees and in Hesse a 6.0 % land transfer tax. If a broker is also involved, there will be brokerage fees of up to 2.98 percent.

4. Your budget
Everything covered? It’s time to calculate your budget. Your capital must cover at least the purchase costs. If you still have capital, you can use it to reduce interest rates on your overall loan. The better the ratio of loan amount to the purchase price, the cheaper the interest. You can estimate your maximum possible loan as follows: (desired monthly rate x 12) / (interest rate + repayment rate).

budget calculation example: 

Own capital: 50 000 €
Desired monthly rate for interest and repayment: 1 500 €


- Interest rate: 2,5 %
- Repayment rate: 2 %

- Sundry costs: 10,98 %

From that follows...

Max. loan
1 500 € x 12 / (2 % + 2,5 %)
= 400 000 €

Max. purchase price
(50 000 € + 400 000 €) / 1,1098 
= 405 478 €

5. Getting finance  
Germany’s high number of banks – some 400 in all – works in favor of customers. Besides the actual loan amount many other things are relevant when you create a finance plan. These can quickly add up to several thousand euros plus or minus. Independent financial advisers will create an individual financing plan and compare the conditions offered by the many banks.

Frankfurt’s new housing developments

About 4,000 new homes for around 8,000 residents are being built between Bornheim and Seckbach. The development is scheduled to be completed in 2028.
›› Completion: 2028.
›› Between Bornheim and Seckbach

When the Frankfurter Allgemeine Zeitung moves into the new FAZ Tower in the Europaviertel in 2023, the site will be redeveloped by 2027 with about 650 apartments, as well as offices, daycare centers, restaurants and an elementary school.
›› Completion: 2027 
›› Gallus, area of the Frankfurter Allgemeinen Zeitung between Mainzer Landstraße & Frankenallee

Lyoner Quartier Niederrad   
The former office town of Niederrad near the Main river bank and Stadtwald (city forest) will be transformed in the coming years into a mixed, lively quarter with about 4,000 modern apartments for around 10,000 people.
›› Completion: still open
›› Bürostadt Niederrad,

The former Siemens works in the popular Bockenheim district has been making way since 2019 for the innovative Schönhof district with 2,000 new apartments, a primary school, several daycare centers, shops and lots of greenery. Planned completion is 2024.
›› Completion: 2024 
›› Bockenheim, Siemensgelände, www.schö

Where to get good advice – financial service provider for your property financing in Frankfurt

Independent company that compares offers from more than 450 banks to enable faster loan approvals with less red tape. Also supports property searches as well as house and apartment valuations.
›› Beratung: Tel. 0 800 808-4000,

Dr. Klein  
One of Germany’s largest financial service providers for construction, insurance and installment credit for over 60 years with consultants at 200 locations.
›› 23558 Lübeck, Hansestr. 14, Beratung/advice line: 0 800/88 33 880,

Mortgage lending specialists with consultants at over100 locations. Winner of many awards, publishes lots of specialist articles on financing.
›› Beratung/advice line: 0 800/-200 15 15 15,

Independent, English-speaking financial consultants based in Berlin. Specializes in advice for non-Germans on real estate purchases in Germany. Also arranges loans from over 400 partner banks. The web page has a free real estate calculator.
›› Prenzlauer Berg, Schönhauser Allee 149, Beratung/advice line: 030/56 83-75 35,

Independent consultants for all finance issues from finance and insurance to retirement planning and wealth management. 100 consultants in 90 locations.
›› 69168 Wiesloch, Alte Heerstr. 40, Tel. 06 222/-308 6000,


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