AllFinancialExclusiveInvestorLifestyleNews & Trends

10 Reasons to Invest in Residential Property

share

Now is the time to invest in real estate

As you read the current news or even talk with friends and acquaintances, it seems uncertainties are prevalent: from the Corona crisis to the strong fluctuations in the financial market, many are concerned with how the past and coming months will affect their lives. However, one important sector has remained dependably stable. Experts agree that right now is exactly the right time to invest in residential property. As a long-term investment, real estate’s stability makes it crisis-resistant, and with the current unbeatably low interest rates, now is the time to buy. Home ownership investment is attractive and unique—let us show you how:

1. Privacy

As early as the 16th century there was a saying in England that said, "My home is my castle." - and thus refers to the importance of the home as a private refuge and place of individual development. Behind your apartment door you feel safe and secure. Especially if it is not a temporary rental apartment, but your permanent and unshakable home. This kind of security and privacy is practically priceless, so whatever the state of the market, your investment in residential property will be invaluable.

2. Freedom of design

The design possibilities of common rental properties are extremely limited. A new fitted kitchen, different wallpaper or a more modern tiling must be agreed with the landlord and is often subject to his own taste and financial conditions. It is completely different when you furnish your own home. Here you can individually decide on the design of the rooms and let your creativity run free, tailoring your home exactly to your personal taste and needs.

Now is the time to invest in real estate.

3. Tangible investment

The stock market is subject to strong fluctuations, and many have already suffered heavy losses. The housing market, on the other hand, is proving to be far more crisis-resistant. While certain investments simply become obsolete in times of crisis and lose much of their value, home ownership is one of the most stable and reliable forms of investment. Depending on where you buy, property value is generally going to continue to increase through the years, with the decisive advantage that you can use the property in real terms - whether as your own home or as a lucrative capital investment.

4. Low interest rates

The current interest rate level is lower than ever and will probably go down in financial history. Since it is only vaguely foreseeable how the financial market and interest rates will develop in the coming decades, now is exactly the right time to benefit from the more than promising interest rate conditions.

Privacy and creative control over renovations are invaluable when you own your own property.

5. Value growth

The good old savings book has had its day and only makes a name for itself through negative interest rates. Far-sighted investors are therefore increasingly investing in real estate, which is proving to be far more lucrative due to the low interest rates. Because while unused savings lose value year after year, the value of real estate increases over time and can also be positively influenced by factors such as location or furnishings. You can also use the leverage effect to increase your projected yield over time when investing in residential property. Calculate how much you could earn by using our return calculator.

6. Moderate purchase prices compared to greater Europe

The exorbitant housing prices in cities such as Paris, Copenhagen, and London show that the cost of home ownership in Berlin is still moderate compared to other European trend cities. While you will pay up to 18,000 euros per square metre in cities like London, the average price per square metre in Berlin is only 5,000 euros. This means that purchasing real estate as an investment is still feasible for many, not just those with very high incomes.

Germany property prices are relatively affordable compared with the other big European cities.

7. Demand surplus

Cities such as Berlin and Leipzig are among the most popular in Germany and are also known far beyond the national borders. The diverse cultural and culinary offerings, the flourishing art scene and numerous inner-city lakes and green spaces make them sought-after places to live. In many cases, the supply of apartments cannot meet the great demand. Berlin in particular is seeing a shortage in available housing. This means that if you do invest in residential property, your investment is sure to pay off as deman outpaces supply. More than enough reasons to take advantage of this opportunity and secure a home in one of the up-and-coming cities.

8. Buying is cheaper than renting

More often than not, if you can afford to rent, you can also afford to buy. Additionally, the purchase of a property promises numerous advantages such as protection against rising rents and letting or an increase in value for trendy residential areas. Moreover, the credit is often as high as the rent - with the decisive difference that you are saving for yourself, not for third parties. Renting is more or less throwing your money down the drain, while investing in residential property can pay off big time down the line.

Germany has many incentives for real estate investors, including state subsidies and low interest rates.

9. State subsidies

Whether it's the "Wohn-Riester", the home ownership programme of the KfW-Bank, the building children's allowance (Baukindergeld) or regional subsidies: in Germany you can benefit from numerous promotional programmes that support you in the acquisition of residential property. This means that investing in real estate can be affordable for even those with lower incomes.

10. Secure retirement provision

The purchase of a residential property pays off - especially in old age. Once the home has been paid off, it can be used, rented out or resold and thus serves as rent-free living space or a profitable additional income. More than promising prospects for a carefree retirement.

If you have more questions about investing in real estate, or you are interested in finding a property to buy in Germany, don't hesitate to reach out to us.

Translated by Catherine Norris

Written by:

Ina Schulze

Ina’s heart beats for design, interior and the magic of the (written) word. She commutes between Leipzig and Berlin for love - and is always looking to discover new things about the cities for the EverEstate blog.

team-member
We are on hand to discuss any questions you may have about financing your property.
  • Personalised offer
  • Free and non-binding consultation
  • +49 (0) 30 220 130 508
Olaf Grumm
Head of Finance Consulting
Contact
+ _ _
Information about our privacy policy.
Immowelt-Partner EVERESTATE GmbH

Your privacy is important to us

Cookies are used on our website. Some of these cookies are necessary for the basic functioning of the website and therefore cannot be deactivated (“Necessary cookies”). In addition, we use statistical and marketing cookies to help us provide you with a better experience by improving the website based on statistical analysis and to display advertisements according to your interests. These cookies are only used if you give your consent.
You can learn more about the individual cookies under Manage preferences and in our Privacy Policy.