Hardly any industry is exposed to such high speculation as the real estate industry. It has been traded, speculated, won and lost for a long time. Mostly, the prices only one direction: Steep up! Particularly in large cities and agglomerations the living space becomes scarce. This leads to quite classic that demand regulates the price. Providers find buyers for almost any object at almost any price.
Particularly because investments in other areas currently offer little return, the real estate objective of many investors. What do you have to pay attention to and what returns are realistic?
While investing in shares or funds usually entails low maintenance costs, investment in real estate involves more work. Once you have found the desired property, you have to be rented, the maintenance has to be done, the cleaning is organized, starting from one A certain point, renovations have to be made and the tenants can not be easy.
Important for real estate is the situation. With the location the attractiveness of a property stands and falls. What my home is, does not necessarily have to please others. In principle, cities offer higher yields, central locations, new buildings and solidly renovated objects. Should you buy a house at the ideal location in the center of a German city? No, because we want our investment to develop. One should therefore pay attention to subordinated districts, districts, which have great potential. If you start on the approaching train, this is certainly the best for the investment. Because once a district has gained momentum, there is usually no holding.
Also one should not be blinded by the optics of an object, because often is newly renovated but nice for some time, but after three, four years, it is no longer a Neumieter catch. One should therefore pay attention to the basic condition, that the substance is solidly built, because well-functioning domestic technology will hold also another ten years. It may not look so smart, but it is more sustainable from an investment perspective.
It is also important to note that leased objects are underestimated, because a tenant is always a potential source of problems. However, this can be taken safely because an already rented apartment guarantees an income, even if one could have increased the rents with a new rented, it is attractive to look for already (rented) objects.
One should therefore look less at the actual state than at the perspectives: How does a district develop, what are the perspectives, the plans of the policy? Likewise, a successful investor should not be blinded by the current beauty of an object, because the same as with a car, the value loss with time is considerable.
The real estate market offers very interesting opportunities under the current circumstances. However, one has to deal with the situation, acquire knowledge and clash with a relatively high workload.