You have many advantages when you work with an independent bank advisor like us.
Currently, it is not easy to invest money profitably. Low interest rates, even negative interest rates, are responsible for this. But low interest rates are not always a disadvantage for investors. After all, interest rates are also currently very low for construction financing. In addition, money tied up in real estate is less exposed to price fluctuations or inflation. Investors can therefore currently invest their money very profitably in real estate: Houses and apartments are stable in value and can generate long-term returns. Important for success is good and forward-looking planning and the right partners.
Planning Real Estate as an Investment
What points should you pay attention to if you want to purchase a property as an investment?
- The prerequisite is the right real estate - we will be happy to advise you in this regard
- Do you want to buy an existing property or build your own?
- If you decide to buy an existing property, be sure to get an expert opinion on the condition of the building.
- How do you want to use the investment property?
- Several factors are responsible for the return on investment. Clarify in advance what these are and how you can influence them - we are happy to help you with this as well!
- A property as an investment has many advantages, but can also have disadvantages. Clarify in advance how you can work around these.
Why Real Estate is Currently Worthwhile as an Investment
Low interest rates are particularly favorable if you want to buy a property as an investment. If the expected return is higher than the interest rate on the loan, your real estate loan will increase your return. When interest rates are low, it is especially important to make sure that you lock in the interest rate for a long time. This way, you secure the current interest rate against future rising interest rates.
A good location as a hedge for the capital investment
The better the location, the higher the value of a property. But how do you actually define a "good location"? The demand for housing is increasing almost everywhere, but not to the same extent. In areas where there is a shortage of housing, however, prices tend to rise sharply. Basically, you should keep in mind that the more inhabitants a city has, the more chances you have of finding tenants for your property. Other criteria are infrastructure, local transport, shopping facilities for personal needs and, if possible, that the property can still be occupied in old age.
Which property is suitable as an investment?
If you want to buy a complete apartment building, you need a correspondingly higher construction loan. In return, however, the return is usually higher than for single-family houses or apartments. Another advantage is that you can make all decisions on your own, without having to ask other owners.
If you want to purchase a single-family house or townhouse, you should remember that the building costs and the land costs must be considered separately. You can deduct the costs for the purchase or construction of the building for tax purposes. You cannot deduct the purchase of the land from your taxes. As a result, the return on investment is lower. However, if the house has a popular location and a garden, it is very attractive for tenants and at the same time has a high resale value.
Other possible properties are vacation homes or apartments, care properties and foreign properties. We will be happy to advise you on this as well - just contact us!