Lucrative business rental !? Banks, financial services and real estate brokers advertise with the historically low interest rates to more or less affluent customers. It never seemed to be a homeowner now easier, housing or. Since it is obvious that even those who have never thought about the purchase of a property, all of a sudden get a taste. A dream - Renovated old building with sanded floorboards, stucco and doors. Who can but a square meter price of 3000, - Euro and already longer afford yet? But this caution. The first step will probably be wondering whether they acquire a property for self-use or as an investment for rental.
An investment only makes sense if you have equity available
The real estate expert advises to take a critical view of their own financial situation in both cases. Otherwise you'll find yourself more quickly than expected in the personal bankruptcy again. Even if the banks eject the 100-percent financing as bait, we must not forget that you have to repay in a timely manner to the lender of this loan again.
If it is an owner-occupied property and corresponds to the monthly interest in some of the rent previously paid, the risk is relatively low. If, however, the rent to own rent payments or the repayment of a loan which will situation is already far more tense.
Therefore you should only decide on an investment if you actually capital - ideally at least 25 percent - and it has more or less left and so it can do without for a certain time. In principle, the share of real estate owned one third of its total assets should not exceed, as this investment opportunity under certain conditions in fact not be as lucrative as it is generally believed.
Concrete Gold does not always bring high returns
The German Institute for Economic Research has conducted a study, how high is the return on the rental of residential property. The results are sobering. A quarter of the owner shall remove a no return - it is close to zero percent - so this effort to expose themselves around the Rental for nothing. 8.5 percent have even losing money when renting more because their gross return is negative.
While achieving a 21 percent yield of zero to two percent, net of inflation, but it can also generate a profit. Only surprising 18 percent rubbing their hands, because they can speak with a return of more than five per cent of them, reap gains.
A dream - Renovated old building with sanded floorboards, stucco and doors. Who can but a square meter price of 3000, - Euro and already longer afford yet? Source: Expert Realty
The fact that only a small part proposes financial benefit from its real estate holdings, is primarily due to the type of property. Who already has a lot of money, has the opportunity to not only invest in a house or apartment, but in multi-family and / or apartment houses - and that pays off.
Who, in contrast, can only rent a single apartment, has ultimately lose out, as it has to pay more in the worst case, if his investment business to become negative. This often are the high costs that come with the rental, maintenance and a vacancy on the owner, disregarded.
Who wants to rent, must not expend financially
Chances sure to multiply his money with real estate holdings, so are very low. Who still wants to try his luck and take advantage of this investment opportunity, should pay attention to a few things that determine a successful letting. Benefiting those who consider themselves to purchase a property for rent, the purchase prices of inhabited objects are well below those reference-free property. The acquisition price is already a key role.
Here, you should not financially expend, but not solely for bargains. With them you have to go out may assume that they are in unattractive locations, which in future may make it difficult to find tenants. Under these circumstances, the total time spent would be relatively low, but at the same time to achieve the opportunities it a lucrative return. Therefore, one should draw from the outset its attention to such situations, which are, at best, still in great demand in 20 years, so that the rental income is long term.
Who here miscalculated, due to lack of income and possibly occurring repairs must reckon with the worst foreclosure. So it does not come that far, you should focus on the growth regions. This is the moment to cities such as Hamburg, Munich and Berlin. The problem with this is that prices continuously climb up here. Who wants to spend no exorbitant sums for an apartment that peripheral areas should be envisaged.
Ultimately, we must not forget that approximately 15 percent to the actual purchase price will be pitched for utilities. Does not matter the price and predict the situation is extremely positive that big purchase sum, however, could have a negative impact on the positive interest effect.
Council of Realty Experts
Those who are thinking about buying a property have to consider whether they can afford a property as an investment at all. Even if the object does not yield the expected return. If this is not so, you're better off with the property for owner-occupation, but even here one must not underestimate the acquisition and renovations resulting from follow-up costs.