Investing In Concrete – You Have To Pay Attention To That. Real estate is still a trendy investment all around the world. These investment type is also becoming more and more important as a capital investment and can be an exciting addition to your line-up. What questions should future investors ask themselves?
For many people, having their house is at the top of their wish list. In times of low-interest rates, however, real estate is also an excellent way to diversify private assets. Usually, investors buy property for retirement or asset accumulation as a current study. After all, houses and apartments are not only considered to be of a stable value but also promise higher returns than savings accounts and Co. In suitable locations, the owners benefit from regularly flowing rental income. Besides, landlords can pass on their so-called apportionable ancillary costs such as property tax, garbage disposal as well as property and liability insurance for the building to their tenants and thus reduce their tax burden. A few critical questions should, therefore, be clarified before purchasing.
Sound Out The Market Well
Completely refurbished old building apartment, centrally located student apartment, practical commuter apartment, modern row house for a family: a large number of different houses and apartments are available as investment properties. When making a selection, the buyers must first clarify for themselves what plans they have with the property. Do you want to rent it out indelibly or maybe move in there yourself later? It also depends on what and where to look.
If the focus is on leasing, the following questions arise:
How should the macro and micro-location of the property be assessed? They include factors such as vacancy rate, business location or economic strength, housing supply, infrastructure, migration behaviour and commuter statistics.
What is the long-term development potential of the property?
Can the rental income be achieved in the forecast amount in the long term and is the rental return secured?
If later own use is planned, the buyer should also ask the following questions:
- In which region or city would I like to live later myself?
- What living needs – size, equipment, comfort – will I have later?
- Is the property also suitable for living in old age or can it be converted in an age-appropriate manner if necessary?
The location and quality of the property play a significant role in both types of buyers. It depends on whether sufficiently high rents, which are essential for returns and financing, can be achieved in the long term. However, laypeople often find this difficult to assess. For this purpose, cooperates with various carefully selected real estate providers as well as with sizeable unconnected analysis companies in the real estate industry who, as experts, provide valuable analyzes of the location, market and property.
Who will take over the administration?
That too needs to be considered: if you rent a house or apartment, you suddenly have any additional obligations. Repairs are required, the utility bill is due, tenants move out, and new ones have to be found. Will and can the buyer take on these tasks himself or would he like to hire an external property management company to get interested everything on-site?
When deciding for or against a service provider, factors such as how far away you live from the property, how much interest you have in property management yourself and how much free space your calendar allows for this. Anyone who ultimately decides on an administrator must, in a second step, carefully compare the candidates’ expertise and their prices. Often the new owner does not have to ask these questions at all, for example, if a property manager has already been appointed by the real estate provider or other owners.
Necessary Insurance For Landlords
After all, those interested in real estate have to price the necessary insurance protection into their considerations. Residential building insurance is an absolute basis. It protects the property itself and compensates for damage after a fire or storm, among other things; The natural hazard insurance protects against the consequences of extreme weather phenomena. If there are several apartments in a house, the community of owners must decide on the appropriate protection. House and landowner liability insurance are also suitable for landlords and owner associations. It takes effect, for example, when a house visitor or passer-by is injured during repair or gardening work. TIP: High-quality personal liability insurance already includes this protection. We also recommend a landlord’s legal protection insurance and life insurance, which also covers the financing