The investment property is as safe investment. Whether the investment pays really, however, depends on many factors.

Prices for condominiums and townhouses have increased in Germany in 2010 by 3.8 percent and 2, respectively. The apartment rents rose by an average of 2.4 percent, calculated the market-research firm Bulwien Gesa. Given those numbers, residential properties appear to be a good investment. Added to bring the rents, regular income . they give a lot of objects for the real rate of return.

Real estate as a safe investment: the myth of concrete Gold

2011, should continue to increase in value in German residential real estate, wrote analysts at German Bank in late 2010. Speak for the good economic development. The financing options due to low interest rates are still good. Conversely, however, the safe havens, such as day and time deposits at low interest rates are not as attractive, which is why most private investors to invest in real estate as a safe investment. Finally, residential construction activity in Germany with around 160,000 dwellings per year is relatively low, so a little over-supply can be caused by construction activity. These factors have led to that property are often referred to as concrete gold. According Bulwien-Gesa, the value of residential property has increased in recent years, however, by no means always. It is often the annual inflation rate was higher than inflation.


This is contradicted by the Real Estate Association of Germany (IVD). At least in the top seven locations (the cities of Munich, Hamburg, Berlin, Cologne, Dusseldorf, Stuttgart and Frankfurt) was 1977-2010, the value lies above the inflation rate, the result of the association study commissioned by 2011. The show itself both in the average rental prices as well as in the development of prices for condos and single family homes. But also recognize the IVD must ensure that this development does not apply to all owners. Thus, the performance was for detached houses in Berlin, on average, less than inflation.

If the system has not so much in value At length, the rental income play a greater role to ensure that the capital investment expected at all. Not for nothing are apartment buildings as a desirable investment properties . Larger and longer vacancy rates reduce the returns especially created yet costs. Therefore, choosing the right property is especially important. In addition to the condition of the building (renovated or not renovated, the heating efficiency) is capable of great importance. Objects with good transport links, schools, supermarkets and medical offices can close is usually easier to rent a secluded villas and apartments.

Investment property – buy in what city?

Large investors and foreign investors like to buy real estate in the cities. This is due to the fact that here the selection is greater, on the other hand are sometimes even whole apartment packages on the market. In addition, it is easier in cities like Berlin, Hamburg, Munich and Cologne, sell real estate again, as demand is high. For individual investors who do not want to compete with mutual funds and insurance companies, it is worth looking at something smaller cities, where rents and purchase prices are usually lower than those in the metropolises. According to Patrizia Immobilien AG, especially university cities are among the most interesting markets. Good prospects have thus about Wiesbaden, Nuremberg, Dresden and Karlsruhe. In these cities increased in recent years, the prices, but also ensures a stable population growth for a high demand for housing, new construction activity is also low. Also rose strongly in 2010, rents in these cities than in most cities. This is especially true for new buildings and new leases, the rents were up only slightly inventory.

The market researchers at Empirica are in their index of Germany to the conclusion that with the prices also moved away from the cities a lot. For example, in the university town of Bamberg, the prices of condominiums in 2010 strong. Compared to the fourth quarter of 2009, the advertised purchase prices rose for homes in urban districts on average by five percent, in the districts have at least 2.1 percent.Whether a property counted as capital investment depends on how many investments also depends on when investors sell. The exit time plays an important role. In addition, the invested money is not available and the same real estate sale can take a few weeks or months.