- Capital investments
FAQ
Most common questions and answers
Because our rented condominiums are probably the safest form of investment that combines inflation protection, potential for growth in value, tax incentives incentives and possible additional benefits such as future owner-occupation , etc.
It is said that the most important thing when buying a property is the location – that is correct; we differentiate in “macro location” – for reasons of the positive demographic development of Berlin only within Berlin; Berlin is the German metropolis that is growing and is the focus of many international investors. In addition, the rents here are still comparatively cheap and have considerable growth potential.
We also assess the “micro-location” – what is the environment of the apartment? Are “infrastructure, public transport, shopping, schools” and, last but not least, the location of the apartment within the house to be assessed positively? If these parameters are right, we take the apartments into our sale.
There were prominent bad investors, especially during special depreciation periods, some of which only led to problems after years, when the immense tax advantages were exploited by the buyers and after the expiry of the tax advantages the problems of the buyers began, since these objects only deal with anticipated the high tax advantages or there is no corresponding demand for apartments at locations – thus there was a risk of vacancies.
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Real estate should therefore not be bought solely for “tax-saving motives“. On the subject of “scrap real estate” we can only say that we rely on sustainable customer relationships who should also buy further apartments from us in the following years if possible, and that’s why we only offer “tested quality real estate“.
On the subject of “notaries” it can be said that we always work with partners / notaries who are of impeccable repute – the buyer also has the right to choose the notary himself.
This is a very general question and the prices generally depend on the annual net rent of the apartment, the location, the year of construction, the equipment, etc. Many of the quality properties we have tested cost between approx. € 1,200 / m² and 2,200 / m².
Less than many think and, above all, less than is required for the purchase of an owner-occupied condominium / property; i. d. This usually depends on the valuation of the property by the financing bank.
At our banks, which know most of our properties, we assume the additional purchase costs that a buyer should have – as well as a further 10% – 20% of the actual purchase price of the apartment. The incidental purchase costs are primarily the real estate transfer tax, the notary and land registry costs and, if applicable, the brokerage costs.
For our buyers we offer the “rented condominiums” free of commission for the buyer, i.e. in this case we will be paid by the seller of the ETW.
Therefore, for example, with a purchase price of € 100,000, approx. € 16,500 to € 20,000 equity is sufficient (5% real estate transfer tax for Berlin, approx. 1.5% costs and 10% equity – corresponds to a total of 16.5% of € 100,000).
If other assets serving as collateral are available, less equity can also be presented.
The rented condominiums offered by us as capital investments are “underrented”, i. This means that it was rented out very cheaply for the tenant compared to the rental prices that can be achieved today.
In the event of a termination, which is to be assessed positively against this background, you as the owner have 3 alternatives: a) Own use of this apartment (you, parents, siblings, etc. use the apartment yourself) b) Sale of the empty apartment to accordingly higher purchase price c) Rent at today’s rental price (i.e., substantial Increase in Return / higher interest on capital employed)
As the owner of a rented condominium, you will receive the net rent as well as advance payments for operating costs and ancillary costs from the tenant.
You bear the costs for the administration of the common property (WEG administration) as well as the maintenance expenses – i. d. Usually a maintenance reserve has been saved by all owners within the WEG – which is used for any repairs to the common property.
In some cases, these are around € 30 to € 50 / month and apartment. The owner of the apartment can also claim these costs for tax purposes. get a corresponding part back from the tax office.
Capital-forming life insurance appears to be simpler at first glance – however, the “soft costs” such as fees and commissions are comparatively higher and you as an investor are externally controlled.
An investment banker in Frankfurt am Main or in London may decide on the investment strategy – your own ideas / interests are not taken into account. In addition, an expiry time or interest rate is guaranteed that will appear very low compared to our values for the apartment in 20 to 30 years.
What can you do for e.g. Buy € 100,000 in 20 to 30 years – maybe not even a small car anymore. In our opinion, this does not provide old-age security.
At times, the increases in value of selected securities are impressive – but whether you choose exactly these securities, buy them at the right time and then sell them again is a “game of chance”.
We are real estate agents and we don’t have the slightest interest in “gambling”. We traditionally invest our hard-earned money in safe, tested “quality real estate”. We don’t have the time to speculate on the stock market every day and to make sure that third parties do this job optimally for us.
Over a period of 10 years or more, we are of the opinion that our selected “quality properties” would win a comparison with the average return on securities – with less equity investment and without sleepless nights.
We love real estate and have certainly invested unilaterally in real estate ourselves. However, we have not yet been offered any more sensible investment opportunities.
Trustinour decades of experience and in our own investment decisions in the real estate sector – because we live our investment decisions ourselves. You too can ensure financial independence and financial security and freedom in retirement.