Investment Property: Worthwhile or Risky?
For some years, a veritable real estate boom has been observed in Germany. It is rumored again and again that the economy is no longer safe. Consumers are responding to the rumors by trying to secure themselves financially using a variety of resources. Those who can afford it invest in a property.
Fearing a renewed debt crisis and the associated loss of value of the euro currency, more and more people are investing in real estate . They hit almost everywhere: in small cities, in metropolises, in bad and good neighborhoods. In addition, record-low interest rates and rising incomes boost demand.
As a investment , apartments are particularly in demand. They are usually cheaper than houses and require less maintenance. The result: In many cities, the prices for real estate, but also the rents rise. And this is precisely the reason why the current boom may not develop into a real estate bubble : As long as rents rise in line with the selling prices of apartments and houses, the situation is stable.
5 questions Those interested should ask
Granted, investing in a property is a great way to safely invest the savings. But it is not the best solution for all target groups.
- How much equity do I own?
- Am I willing to leave my current city?
- Do I own one? Do you want to have children?
- Can I maintain the property over a long period of time?
- Particularly important when buying a property is the
Financing and Maintenance. Each house or apartment needs sooner or later a renovation or even repair. It should be noted that a salary loss from one of the earners is always possible. Also this risk must be factored in, so that the capital investment does not lead to the financial ruin. Purchase criteria for real estate
Rash purchases are always a problem. The purchase of a property should by no means precipitate, after all, the new home is a
investment for life and not a car that you sell again after a few years. On portals such as //kapitalanlageimmobilien.net real estate buyers find high-return capital investments, the purchase of which is certainly worthwhile. Interested parties should look into this when buying a property: Location
- : While it is good to live in your own home at a late age, you should still not buy the first house just because it is cheap. Should the house be sold later for a variety of reasons, a good location would be a great advantage. Living Trends
- : No, it's not about interior design or architectural design, it's about living space. Statistics show that more and more Germans live alone (now well over 40 percent). Contrary to this trend, the demand for living space is currently growing to 60 to 70 square meters, and the number is increasing. Infrastructure
- : A quiet location in a small town is nice and good, but what about the connection to public transport? Do the children have to walk three kilometers on foot to the school? Renovation effort
- : If you are afraid to buy the cat in a poke, you decide to build a new one if possible. The renovation effort can not always be easily calculated. Defects often hide where they are not visible at first glance. Artikelbild: © zhekoss / Shutterstock