Buy an apartment: What you should pay attention to! – With our 11-point checklist, you are perfectly prepared for your real estate search. Find out here what considerations you should definitely make before starting your apartment search. Always in focus: The big difference between own use and investment. After all, this has a huge impact on the remaining goals and factors. What is the difference between A-, B- and C-location? How does this affect the maximum purchase price and the minimum gross rental return and what are the respective advantages between existing and new construction? How you can calculate the real estate return and which formula helps you, we explain in detail. How the income value method works, we explain in detail with an example calculation. We help you determine your search criteria!
Buy an apartment, buy a house, own use or investment, return or investment property? On my new project Immobilien-Erfahrung.de you will now find everything you need to know for a successful real estate purchase! Learn everything about objectives in real estate purchasing, location types (A-, B- and C-locations), types of real estate, their returns and more! All online and free! What you must definitely pay attention to before your apartment search. Now on Immobilien-Erfahrung.de:
Checklist: Criteria for Your Real Estate Investment
With our 11-point checklist, you are well prepared for your real estate purchase:
Real Estate as an Investment vs. Personal Use
At the beginning, the question is clear: Do you want to live in your property yourself? Or do you want to rent out your apartment as a rental property after the purchase? You should think about this at the beginning. After all, this affects not only the financing. As an owner-occupier, you are still responsible for the operating costs after acquiring the property. However, if it is a Real Estate as an Investment, these costs are mainly covered by the tenant and the tax office.
Equally important is that you set a maximum purchase price for yourself. Here you should take several factors into account. These include your creditworthiness, available equity, as well as your loan-to-value ratio.
Find out more about the important factors including tips and tricks here:
How high must the rental yield be at a minimum for the investment to be profitable and paid off by the tenant? For this, we recommend the following formula:
Formula: Annual rent / purchase price * 100
Investors pursue a primary goal, efficient wealth building. Accordingly, the gross rental yield of a yield property must be high. Learn more here:
Of course, you can buy an already rented property just as easily as an unrented one. However, if you are purchasing the property for personal use, an unrented property would definitely be more advantageous. If there are already tenants in the apartment, you can terminate the lease for personal use after purchasing the property. Something similar applies to investors. On the one hand, you save time by not having to search for new tenants, but you are simultaneously bound to the rent. So, should you buy a rented or unrented property? Find out all the advantages and disadvantages here:
Not only the city is important, but also the neighborhood. Where is the nearest hospital? How is the connectivity? Are there a lot of vacant properties in the surrounding area? And how safe is the residential area? All of this affects not only your local living experience, but also the value of the property and the purchase price. What exactly does A-, B-, and C-location mean? How is it determined and how does it affect the purchase price? Find out more here!
A-, B-, C-location
The perfect location
Depending on whether you are looking for a property as an investment or for personal use, the requirements for the location also differ. What are good locations for your personal investment goals?
Find a location
New construction or existing property?
Both new construction and existing properties have their respective advantages and disadvantages. Here, the question is particularly important: Are you using your real estate for personal use? Or as an investment? After all, the use of your real estate also influences your decision. The differences between existing properties and new construction, as well as the respective advantages and disadvantages, can be found here:
Age of the real estate: Advantages & disadvantages
Over 2.650.000 real estates currently located in Germany were built before 1919. Alone 5.000.000 of them before 1949. Some of these properties are real bargains on the market, whose later selling price can be significantly increased through value-enhancing measures. But what advantages and disadvantages does the purchase of an older property bring with it? Here is a direct comparison:
Defects according to construction years
Size of House and Apartment
How big should the property be? In addition to the location and age of a property, its size also plays an important role. One-room apartment or villa with several bedrooms? Bungalow with basement or rather a duplex apartment? Here, both living area for personal use and for investment are compared. Especially for investors who plan to rent out their acquired property, the room layout and number of square meters are crucial.
Optimal size of a property
Heritage lease? Yes or no
In some real estate properties, an inheritance lease is in place. But what exactly is an inheritance lease? Can the costs be deducted for tax purposes or even passed on to the tenant? Learn everything about the inheritance lease here, how it works and its advantages and disadvantages:
In addition to the inheritance lease, you may also come across the topic of social binding. Everything about your obligations regarding subsidized loans up to the binding period – is it worth it for you to buy a property with social and binding conditions?
