The low interest rates set in conjunction with the expected inflation actually an ideal environment for an investment in a rented property. For one, the property value property offers good protection against inflation, would provide for others the onset of inflation on a steady rise in rental income. So there are good reasons to invest with a long-running mortgage in real estate.
However, there are in this area a lot of pitfalls: For those who rent the location of the property plays an even greater role than for owner-occupiers. Before supposed bargains in structurally weak regions is strongly discouraged. Because once threatened the vacancy, then developed the supposedly safe investment - especially if it is financed by a loan - quickly turned into a fiasco. The landlord must also do everything we can to be able to rent property long term.
These include a very careful selection of tenants. Reduces the financial strength of the state, so does the number of tenants who can not pay their rent. At the State may not count the landlord in this case. For his first priority will be to protect the citizens against homelessness. If in doubt, he is strong on the rights of tenants and further restrict the rights of the lessor continues.
The so-called Mietnomadentum likely continue to increase in importance. You can reduce the risk through the rental of quality real estate to companies that provide these in turn help their staff members. Particularly suitable for large international corporations with foreign employees. These so-called expatriates are usually for two to three years after Germany and received by her company for a budget accommodation provided. They are therefore usually not very price sensitive, as long as the offered property meets their expectations and fit within their budget.
Experience has shown can be achieved in this way above average rental income. In addition, the Company shall as tenants, rental income which excludes almost Mietnomadentum or if it is a reputable company.
However, you should note that this clientele is very picky about the situation and also the equipment of the house. Has proven to be reasonable, dictated by the location of international schools on the lookout. Because expatriates usually get funded the schooling of their children by the company, they often send them to one of these private schools. Therefore, they are mostly interested in an apartment or a house in the vicinity of such a school.
The downside is that it is a very cyclical business. In an economic downturn, the companies move their employees even from early times from Germany. In addition, the expense for the landlord is usually higher than "normal" tenants because the rental period is usually shorter.
Even more than for owner-occupier applies to the landlord referred to in the first part of our risk, to come to the attention of government greed. Fear will be paid to a tax on the assets and a well above-average taxation on income from renting and leasing. In addition, the state could come up with the idea to cap rents in order to provide an increasingly impoverished population least-cost housing.
Total is: the self-occupied property in a good and healthy long-term position is a sensible investment. Note, however, the sustainability against the background of demographic change: An old apartment on the fifth floor without a lift is attractive in the future for an increasingly smaller buyer or tenant layer. Purchases at bargain prices in perceived structurally weak or vulnerable locations should prove an own goal. Real estate is not a panacea for the crisis. It threatens higher taxes, loss of rent or vacancy and vandalism. Rental properties are therefore only at selected locations and at a very selective tenant selection.
However, there are in this area a lot of pitfalls: For those who rent the location of the property plays an even greater role than for owner-occupiers. Before supposed bargains in structurally weak regions is strongly discouraged. Because once threatened the vacancy, then developed the supposedly safe investment - especially if it is financed by a loan - quickly turned into a fiasco. The landlord must also do everything we can to be able to rent property long term.
These include a very careful selection of tenants. Reduces the financial strength of the state, so does the number of tenants who can not pay their rent. At the State may not count the landlord in this case. For his first priority will be to protect the citizens against homelessness. If in doubt, he is strong on the rights of tenants and further restrict the rights of the lessor continues.
The so-called Mietnomadentum likely continue to increase in importance. You can reduce the risk through the rental of quality real estate to companies that provide these in turn help their staff members. Particularly suitable for large international corporations with foreign employees. These so-called expatriates are usually for two to three years after Germany and received by her company for a budget accommodation provided. They are therefore usually not very price sensitive, as long as the offered property meets their expectations and fit within their budget.
Experience has shown can be achieved in this way above average rental income. In addition, the Company shall as tenants, rental income which excludes almost Mietnomadentum or if it is a reputable company.
However, you should note that this clientele is very picky about the situation and also the equipment of the house. Has proven to be reasonable, dictated by the location of international schools on the lookout. Because expatriates usually get funded the schooling of their children by the company, they often send them to one of these private schools. Therefore, they are mostly interested in an apartment or a house in the vicinity of such a school.
The downside is that it is a very cyclical business. In an economic downturn, the companies move their employees even from early times from Germany. In addition, the expense for the landlord is usually higher than "normal" tenants because the rental period is usually shorter.
Even more than for owner-occupier applies to the landlord referred to in the first part of our risk, to come to the attention of government greed. Fear will be paid to a tax on the assets and a well above-average taxation on income from renting and leasing. In addition, the state could come up with the idea to cap rents in order to provide an increasingly impoverished population least-cost housing.
Total is: the self-occupied property in a good and healthy long-term position is a sensible investment. Note, however, the sustainability against the background of demographic change: An old apartment on the fifth floor without a lift is attractive in the future for an increasingly smaller buyer or tenant layer. Purchases at bargain prices in perceived structurally weak or vulnerable locations should prove an own goal. Real estate is not a panacea for the crisis. It threatens higher taxes, loss of rent or vacancy and vandalism. Rental properties are therefore only at selected locations and at a very selective tenant selection.
