Special: Real Estate & Corona – Updates

More articles and analysis on real estate in the Corona Crisis:

• Demand increases (Google Trends): Real estate sales
• Is the real estate bubble bursting? Price development
• Housing bubble, what does that mean?
• COVID-19: Coronavirus Meaning

Real estate market in Corona times

It is quite clear that the market for real estate is – from a business and economic perspective – a market like many others. It is driven by supply and demand and is also subject to numerous factors influencing the economy as a whole. It is therefore not surprising that the consequences of the Corona pandemic are being felt in the real estate market.

Short-time work, possible job loss, drop in oil prices, the uncertainties regarding the time after Corona: all these are factors where a majority thinks: “Buying or selling real estate is not the right time now”. Prices will fall, rental income will be lost for an indefinite period of time – no prospects for lucrative real estate deals. There are also very practical limitations. Due to the dramatically reduced contact possibilities, it is currently almost impossible to negotiate sales contracts and conclude them with a notary. Lucky who could make his sale before the crisis? From now on it’s all downhill? We at Lukinski have a differentiated opinion!

Corona Analysis 08/20 – now online

Now online – Real Estate Corona crisis: sale of house, apartment, apartment building, the demand is increasing, that show the trends. In these days many speak of the second wave, which comes now on Germany in addition, the whole world. Already at the beginning, at the beginning with the Corona Pandemie, in many economic in addition, financial messages before it warned that in the autumn a wave of the insolvencies will come on us. A logical consequence of insolvency is the loss of property, not only in the form of jewellery, cars or furnishings, of course real estate will also be affected if the rate of insolvencies in Germany increases.

The trend analysis in the field of real estate sales (08/20) deals with the increasing demand. Very directly visible, among others on the main keyword “sell property”. The charts and the review of the last 12 months can be found below. Moderately increased, on average only 2 to 3 points, are the sale of house and condominium. So there doesn’t seem to be much change in the amount of search queries here yet.

Very noticeable, on the other hand, is the trend on the topic of “selling multi-family houses”. As you will see in the individual analyses and charts, the trend is jumping upwards these days.

Now online: Real Estate Corona Analysis 08/20

Opinions are mixed

In mid-March 2020, when the pandemic had already reached the German market, no one in the real estate world saw any negative consequences for the property market. There was no talk of contact restrictions, business life was still largely normal. Only with the tightening of contact rules, the closing of public institutions such as schools, but also restaurants, etc., the tone changed. Here is a brief summary of the positions:

Corona: Property prices will fall

After prices for houses and apartments still rose by an average of 5% last year, and in some places by more than 10%, Corona will cool the market noticeably. Because:

1. Buyers fear for their jobs
2. Loss of rent for rented properties is now a real calculation factor
3. Every real estate cycle so far ends in a recession
4. A recession in the economy also affects the real estate industry
5. Share packages lose value, so there is no purchase capital for real estate
6. This particularly affects the private buyer/seller
7. Already in 2008, during the financial crisis of the Euro, the real estate market collapsed by 12%.

House price development in Germany:

You can find more statistics at Statista

Corona has no influence on property prices

Because the investment in real estate is also often referred to as “concrete gold”, the ownership of real estate proves to be valuable and unshakeable, especially in such a crisis. Regardless of whether it is owner-occupied property or a rental investment: the market for real estate will continue to boom. Because:

1. Lending rates remain at historically low levels
2. Interest rates are kept stable precisely in order to cope with crises
3. The shortage of housing in Germany persists
4. There is no real estate bubble because banks did not make loans lightly
5. Rental and owner-occupied apartments are still in high demand
6. Real estate is a long-term investment
7. Demanded residential locations continue to have stable prices

Sell house in Corona times

Despite contact restrictions and other restrictions on the movement of goods and merchandise: In Germany, some activities regarding the real estate market are still permitted! For example, owners of rentable properties are allowed to arrange viewing appointments on a limited basis. However, no mass viewings, but only individual appointments. This makes renting more difficult, but not impossible. Attention: The regulations depend on the federal state!

Read more about the current regulations when selling a house in Corona times here!

Overall, it is now for all who own a property and want to sell it: Keep calm! In addition, it is important to have the right estate agent as a partner for the sale at your side. Hiring the right real estate agent is the order of the day. Discretion in selling real estate is also very important at this time. Discreet brokers have significant advantages for the seller here!

Discreet brokers: particularly recommended in times of crisis

Discreet brokers always work “to the exclusion of the public” when selling real estate. They have access to an extensive customer file without having to advertise your property in the relevant ways. They are accustomed to carry out viewing appointments and all other activities around the house sale almost in all silence. Mass appointments, broad advertisements, etc. are not the business of the Diskret broker. Thus, he fulfils all the requirements for a sales management of real estate in times of Corona.

However, discreet real estate marketing – also referred to as “secret sale” – poses very special challenges for the real estate agent.

• The Diskret broker sells your house with absolute discretion
• The Diskret broker does without the usual Internet portals for real estate offers
• The Diskret-Makler has an extensive prospective customer file
• The discreet broker thus often ensures a faster sale of your property
• Especially when the normal distribution channel is closed.
• The discreet broker sells real estate of all types and sizes
• The Diskret broker also works when the seller lives abroad

Lukinski with its team of experts is a discreet broker in the Rhine-Main area. We also inspect properties under these special conditions and evaluate your property professionally and discreetly.

Real estate yields in Wiesbaden stable at a high level

Question: You are mainly active in Wiesbaden, the capital of Hesse, and the surrounding area as an investment advisor and investor. How do you think the real estate market in the region is developing?

I will first answer with two figures: Wiesbaden has about 290,000 inhabitants today. According to decent forecasts, this figure is set to rise to 300,000 within the next five years. These 10,000 people want and need to live somewhere. The necessary apartments have to be built and paid for by someone. So there are also numerous opportunities for investors in real estate.

However, we have a fundamental problem in Wiesbaden: there are relatively few opportunities for new residential construction. The old city villas only come on the market very rarely anyway. Here and there there is worthless old building fabric that is torn down and made available for new buildings. There are some new building projects on the outskirts of Wiesbaden. The greatest potential lies in unused military sites, some of which have already been developed and some of which are being over-planned.

Real estate returns better than many other investments

You can find more statistics at Statista

In terms of yields, I do not expect any increase for Wiesbaden and the surrounding area, but I do expect a sustained sideways movement at a high level. Values of 5 % and more are realistic. An upward movement is therefore rather unlikely, because purchase prices and rents develop to the same extent upward and one needs already a really very long investment horizon, in order to be rewarded the high purchase price by a clear rent increase with a growing yield. On the other hand, there is of course also the profit from the later sale of the property. There, increased purchase prices would have a corresponding effect again.

Yield calculator online: The right instrument to start with

Question: Which of the various online calculators for loans, investments or returns do you find particularly helpful and why?

I’ll start with the loan calculators: I can’t see anything being done wrong there. That’s why I won’t recommend any computer in particular. The calculators of Stiftung Warentest or a reputable online newspaper are certainly not suspicious with regard to a hidden forwarding of the user’s data. Basically, such an online calculator can only be an initial source of information. For example, for my question, what I have to pay monthly for my real estate loan with regard to the interest and repayment rate. I can also go about it the other way round and ask: if I have a sum x available each month, what loan amount can I afford to buy a flat?

On the other hand, I don’t know of any loan calculator – not even that of a financial institution – that calculates the interest rate I have to pay for my loan in view of my equity and other collateral. That is always a matter of personal discussion with the bank. That’s why calling up and using various loan calculators on the internet doesn’t help. The best loan calculator with the most accurate information and the safest result for me is still the conversation with the financier himself. You should be quiet from different banks give an offer. There are sometimes really spraybare differences in the interest rate offered.

Anyone thinking about real estate as an investment naturally wants to know what return their property will yield. In other words: how much money will I earn with my investment? For this purpose, there are of course many tools on the Internet. The yield calculators for real estate are usually linked to a real estate agency or financial institution. This is not a disadvantage, you should just know it. Because the vast majority of online calculators for property yields can not take into account every detail of the property. That is why it is always much better to get an overview via the online calculator in order to then seek a personal discussion on the basis of a real property.

Overall, there is a pretty good overview including deposited calculators on the portal finanzrechner.org. As I said, these calculators offer really good guidance. Everyone should definitely make an individual calculation with their personal financial advisor or tax expert.

Not every square meter counts as living space!

Question: How do you calculate the price per square meter as a landlord of an apartment?

Actually a simple question, but with some small “devils in the details”. Because normally everyone knows the square footage of their apartment and what they pay monthly (not including utilities based on consumption). The rest is a simple division calculation of rent (or purchase price) divided by the total square meters.

The question remains: what can I include in the living space? For example, cellar rooms do not count as living space. The same applies to storage rooms outside the apartment. Balcony, terrace or a loggia are only calculated with half of their square meters as living space. You should also use a tape measure for the ceiling height. Everything below a height of one meter does not count as living space and rooms with a ceiling height of less than two meters only half. This is especially important for attic apartments. Very special rules also apply to pillars and stairs in the apartment. A proper real estate expert knows these regulations very well. Here too, simply ask for advice.

Investing your money successfuly: Alternatives to real estate

Question: In Wiesbaden, there is no doubt that not only real estate is traded, but due to the proximity to the headquarters of various banks in Frankfurt, other financial products are certainly also in the focus of your customers. Please explain to our readers which three capital investments you would recommend besides real estate. Do these investments have any disadvantages?

You can find more statistics at Statista

First of all, I recommend that anyone who wants to invest their money profitably should ask themselves. And indeed questioned about their own willingness to take risks in terms of profit and loss. Because the capital investment must always fit the respective person and his goals. The one investor looks for a maximum of security, the other again has with risk and Verkust no problem. Then there are people who literally want to see what they have invested their money in, which again other investors do not care about at all.

Those who are not afraid of the big risk can invest their money in commodities or rare earths, for example. This is a form of investment that is not yet very widespread, but is becoming increasingly popular. There are people at some major banks and also on the consultancy market who are quite knowledgeable about this. As I said, it’s not for the faint-hearted and, by the way, it’s also a form of investment that should run for several years in order to compensate for price fluctuations.

For pure security fanatics – to mention the completely other side – there are funds whose profit is capped, but which are also protected against loss. Such funds are offered by banks and insurance companies. However, many find them very boring.

If you are looking for a more unusual form of investment, you should take a look at luxury watches. Watches are more difficult to assess as an investment object because, unlike shares or gold, there is no market that clearly and universally sets a price. The value of a luxury watch does not depend solely on its horological value and condition, but crucially on the demand for precisely this particular model. This demand is subject to fluctuations and cannot be objectively predicted. However, since the prices of luxury models have clearly developed positively in recent years, this investment can be very rewarding. Those who manage to buy a model that is in demand at a low price should take advantage of the opportunity.

Is it worth it to be a stock trader on your own account?

Question: In the meantime, shares have a long and partly successful investment history behind them. There are also many people who believe they can act as stock traders, tipsters and day traders themselves. But how does the reality of stock trading look like? Can quick profits really be made and what is the difference to real estate as an investment?

Of course, I was not active as a stock trader myself and – as far as I can tell today – I do not intend to do so. However, I have so much own experience with the share topic that I can say: who would like to care completely himself about his share package and the investments, needs a lot of knowledge and time. Especially if you really want to make quick profits. Because that means that I have to keep a constant eye on the company stocks and their bonds that I am interested in. In addition, always the phone handy, so that I can ask my proxy in a flash to buy or sell the shares.

Tax makes the difference: watch out for investments!

In any case, I warn against the countless guides that can be found on the Internet – like the yield calculators. If tipsters followed their own recommendations, Germany would have to be a nation of millionaires. The reality of the share business, as it is convertible for most of us, looks completely different. One should plan for a long period of investment so that price fluctuations are of little consequence. It is always advisable to spread the risk widely – i.e. over several company stocks, perhaps also government bonds, currencies etc.. With a little skill and good advice, you can put together a package with good performance yourself, or you can leave it to your money adviser.

The disadvantages of these and other investments do not always show themselves quite so clearly. This starts with the much-vaunted risk. After all, this is a less tangible factor that many investors like to ignore. According to the motto: what I can’t see doesn’t exist. Fluctuations in the value of shares, works of art, watches and government bonds depend on many external factors that only experts can keep track of. And even the experts can be wrong – as we have seen very often in the past.

Quite real and to be quantified are the running costs for financial investments – no matter if securities or other. Issue surcharges, custody account fees, ongoing capital gains tax, etc. reduce the return. On the other hand, the profit on the sale of rented property is tax-free after ten years. This amount must be added to the total return in any case.

Wiesbaden: Living with high recreational value

Question: What is Wiesbaden and its surroundings like to live in? What do your customers say? What places worth seeing, events etc. are there? What makes this region so interesting for investors?

The people of Wiesbaden themselves may forgive me if I now first point out the surrounding area. Immediately before the gates of the city begins the Rheingau with its nice small half-timbered and wine-growing villages Eltville, Oestrich-Winkel, Hattenheim up to Rüdesheim. There you will find the Eberbach Monastery and the Hildegard Monastery in Eibingen. In addition, the Rheinsteig begins as a hiking trail and of course the Rhine bike path. Wiesbaden is located at the foothills of the Taunus, so that beautiful hiking and in winter also cross-country skiing trails are quickly accessible.

Wiesbaden itself as the so-called “Nice of the North” offers a beautiful city center, a beautiful spa park with casino, the Nerobergbahn and the very famous Russian Orthodox Church from the Tsarist era. Very famous, not least because of its organ, is the classicist Marktkirche. Across the Rhine are Mainz and Germany’s largest wine-growing region, Rheinhessen. I think it takes more than a lifetime to have discovered this region completely. The leisure value is indeed very high, even if there are no Alps or the Mediterranean here.

I certainly don’t have to mention the proximity to Frankfurt. I would even include Darmstadt with its future-oriented companies from the IT sector. Because the good transport infrastructure of the Rhine-Main region means that even residents of Wiesbaden and the surrounding area can get to the region at the foot of the Odenwald quickly. No one in Wiesbaden and the surrounding area has to worry seriously about a lack of interest in renting, i.e. also about rental downtimes.

Good yield opportunities also in the surrounding area of Wiesbaden

Question: Do you have an insider tip for profitable real estate in Wiesbaden and the surrounding area?

With the insider tips in metropolitan areas it is such a thing. But for Wiesbaden, too, if you’re willing to drive a little further, you’ll get by quite well in the surrounding rural regions in terms of the purchase price and the amount on offer. Up to Bad Schwalbach or Taunusstein, for example, the roads are also well developed. But it is also not everyone’s cup of tea to join the commuter car queue every morning and evening. Potential tenants also think about that.

The opposite side of the Rhine also offers attractive real estate opportunities. This extends to Bingen, Bad Kreuznach or the gates of Worms. Basically, one must also look here, in how far the lower purchase prices are also accompanied by lower rents, so that the yield in these areas can be lower. In fact, the surroundings of Bingen, Ingelheim etc. offer quite good properties as capital investment. The purchase prices are somewhat lower than in Wiesbaden, but the rents are not to the same extent. In individual cases, one can therefore expect better returns than in the core area.

How do I get my own investment property quickly and safely?

Question: How can I tell which broker is the right one?

At least not on the brightly polished brass plate on the office door. Admittedly, that was a bit flippant. But actually it is with the right broker like with the right doctor. It is only during the consultation that I notice whether the person, with his qualifications and his manner, suits me. Of course, there are professional associations of brokers, as well as appropriate training and further education. All this is also very important.

But even more important is whether the broker knows his market. Can he show comparative prices? Does he have a larger number of reference properties in the region? Is his name not only known in the region, but does he have a good reputation? If it is important to you that the estate agent proceeds rather cautiously, you should attach particular importance to discretion.

Discretion when buying and selling a house?

Question: A broker works in public and needs many contacts to make the business work. How can you be discreet?

In fact: there are also real “discreet brokers”! Especially with customers who do not like to appear in public with their sales or purchase intentions, this kind of broker is in demand. A luxury villa in Wiesbaden or a great penthouse apartment can be sold much better if there are no screaming billboards in front of the house. Mostly, the owners and their property do not want to be identified either by photos of the house or location descriptions.

For the buyer this means: he can only get hold of such properties via one of these discreet brokers. They often appear only in the files of the broker. In the relevant real estate portals, you will find these objects rather not. If you go to a real estate agent, you can openly address the issue of discretion. I consider the discreet working method of a good real estate agent to be very important and still completely underestimated.

Focus Frankfurt: Investing in the Rhine-Main Region

• Investment Frankfurt
• Prices in Frankfurt
• Capital investment Darmstadt
• Capital investment Mainz

Real estate prices: Mainz ahead of Wiesbaden

Question: You are mainly active in Mainz and the surrounding area as an investor and financial advisor in real estate. In your opinion, what is the development of the real estate market in the region around Mainz?

Meanwhile, rents per square metre and also purchase prices for the residential square metre in Mainz are higher than in Wiesbaden or Cologne, for example. I think that says it all. In terms of rents, the €10 mark was cracked as the average rent per square meter at the beginning of 2019. When it comes to buying a condominium, Mainz is currently averaging just under €3,600 per square meter, about €10 more than its neighboring city. Everyone knows that the situation between Mainz and Wiesbaden is about the same as between Cologne and Düsseldorf. A mostly loving competition.

From the perspective of real estate buyers, especially those who want to use their property as an investment, this is a great development. There are serious statistics that predict a six-figure profit after 25 years, especially for the purchase of a non-owner-occupied condominium. Of course, you have to ask yourself what that’s due to.

Wiesbaden in comparison

In Wiesbaden, I think it can be said without envy, the premium sector is still in the foreground when it comes to real estate. So more or less luxurious houses and apartments at the corresponding prices. As a rule, these are also lived in by the residents themselves. In Mainz, on the other hand, there are numerous new large-scale housing projects. Most of the time it is also about upscale living, but certainly only rarely about luxury. I would mention the new residential area at the harbour, or the “Heilig-Kreuz-Areal”. Especially on the waterfront, living is very attractive. There are many people who compare this new quarter directly with a location in Nice – no joke!

These apartments are being built mainly because word has got around for workers from the Frankfurt area that it is good and – compared to Frankfurt – cheap to live in Mainz. This increases the demand for living space and also the price. If I now begin to speculate a little as to why this is better for Mainz than for Wiesbaden, I will say: Mainz is larger, more modern, perhaps also a little more lively and dynamic than Wiesbaden. But as I said, this is real speculation. It is based on what my customers tell me when they give reasons for buying in Mainz in particular.

• Read more: Investment Wiesbaden

Everyone can count on it: online tools for the real estate market

Question: Which Internet sites and offers are there for real estate investors, which are also useful and usable from the point of view of an expert? What do you think about the online loan calculators?

I’ll start with the loan calculators: I can’t see anything being done wrong there. That’s why I won’t recommend any computer in particular. The calculators of Stiftung Warentest or a reputable online newspaper are certainly not suspicious with regard to hidden forwarding of the user’s data. Basically, such an online calculator can only be an initial source of information. For example, for my question, what I have to pay monthly for my real estate loan with regard to the interest and repayment rate. I can also go about it the other way round and ask: if I have a sum x available each month, what loan amount can I afford to buy a flat?

On the other hand, I don’t know of any loan calculator – not even that of a financial institution – that calculates the interest rate I have to pay for my loan in view of my equity and other collateral. That is always a matter of personal discussion with the bank. That’s why calling up and using various loan calculators on the internet doesn’t help. The best loan calculator with the most accurate information and the safest result for me is still the conversation with the financier himself. You should be quiet from different banks give an offer. There are sometimes really spraybare differences in the interest rate offered.

Among the otherwise best-known websites for real estate investors are the well-known real estate portals. Here, too, I can neither recommend nor discourage. Who is seriously interested in buying a property, should always register at the same time on several portals. Because not only private people as salesmen of real estates, also brokers often have preferential portals. That leads to the fact that I find on different Internet sides also different real estate offers. I recommend besides to announce itself on the homepages of respectable real estate agents. About newsletter one always learns very promptly what is happening in the desired real estate market.

Anyone thinking about real estate as an investment naturally wants to know what return their property will yield. In other words: how much money will I earn with my investment? For this purpose, there are of course many tools on the Internet. The yield calculators for real estate are usually linked to a real estate agency or financial institution. This is not a disadvantage, you should just know it. Because the vast majority of online calculators for property yields can not take into account every detail of the property. That is why it is always much better to get an overview via the online calculator in order to then seek a personal discussion on the basis of a real property.

Not all returns are the same! What you should pay attention to when buying real estate.

Question: How do you calculate the rental yield of a property?

There are different methods. But first of all: why should a real estate investor even think about a yield calculation? The answer is quite simple, because only by a yield calculation I can compare a real estate investment with another investment in its value. In addition, different properties also have different yields. Just because I like an apartment or a house, it is not necessarily a good investment. With a yield calculation, properties in different locations and regions can be compared with each other. An example: if you absolutely want to buy a property in Mainz for investment purposes, you may quickly notice that it may be better to move to the surrounding area. For the same money you often get “more” property and a higher return.

But now to the different calculation methods. Let’s start with a basic decision as to which yield is meant at all when a real estate agent claims that the property has a yield of xy%. For example, in the case of the gross yield, only the purchase costs and incidental acquisition costs of the property are calculated against the rental income. In the case of the net yield, the running costs for maintenance, administration and taxes are also included in the consideration.

Yield calculator: An example

Return on equity – also a frequently used term: here the interest that I may have to pay for a real estate loan is included in the current expense of the net return and put into relation with the amount of equity used for the real estate purchase. If interest rates are low – as they have been for years – the interest item in the calculation is very small, and the return on equity is then naturally correspondingly high. By the way, repayment amounts or increases in the value of the property are not taken into account here. This is especially important with regard to the repayment, because by repaying the loan I increase step by step – like in a piggy bank – my equity. With regard to the income from the apartment, if the rent does not increase, my income and my return on equity would decrease. Conversely, the increase in value of the property also means an increase in equity. This would show up as an increase in yield if I can sell the property at a profit or – for example when buying another property – give myself an interest rate advantage when financing by mortgaging the first and now more valuable property.

I admit that these are already very detailed calculations. For the beginning, the pure property yield is sufficient. Here it is pretended that the property is paid completely from equity. All incomes and expenditures to the object are seized and with the purchase price in the relationship gestzt. So I can easily calculate the pure return of the object.

Finally, a very important aspect must be taken into account when calculating the return: namely the investment period! Real estate returns should also be calculated over a period of at least 10 years. Here, the development of rental income, but also an increase in value are included in the calculation. Maintenance costs over the years must also be included. Here, at the latest, you need either very good market knowledge of your own or the advice and knowledge of a good expert.

As a rule of thumb, I’ll conclude with this calculation: If you paid about 25 times the net annual cold rent for the property when you bought it, you can multiply the corresponding rental income by 25 again after an imaginary period of 10 years and an average rent increase of about 1% to calculate the value of your property in ten years. If I also include about 20% of the rental income for maintenance etc., I can again apply my yield calculation from above for the scenario ten years later.

Not everything shines here: gold as an investment

Question: Gold has long been a popular investment. Please explain to our readers three reasons for and against gold as an investment.

I can do that – I think – very briefly: If you are afraid of a total currency crash, you should buy gold for your money. Because gold will always have a certain value due to its limited occurrence.

But that is all that speaks for gold as an investment from my point of view. In the long term, gold is exposed to much higher fluctuations in value on the capital market than many shares or equity funds. The second reason against gold as an investment is that gold is traded in dollars. So with gold I not only have to assess the performance as such, the exchange rate between the dollar and the euro is also important. For example, if gold has appreciated in value, a weak exchange rate can have a much smaller impact. Thirdly, I need to store gold either in a bank deposit, or very securely at home. Both of these incur costs. After all, only about 16% of the population say gold is a good investment to build wealth. A property to rent out is trusted by 27% to be good for wealth planning. I can only agree with that.

My conclusion: If you want to avoid short-term capital market weaknesses, you are welcome to invest in gold for a limited period of time. In the longer and long term, there are much more valuable forms of investment. By the way, this is also what consumer protectionists say.

You can find more statistics at Statista

Question: In your experience, which three investments are the best?

There is certainly no such thing as “the” best investments. Because the investment must always fit the individual and his goals. One investor is looking for maximum security, while another has no problem with risk and loss. Then there are people who literally want to see what they have invested their money in, which again other investors do not care at all.

At least for all people who want to see where their money has gone, real estate is the best form of investment. If you do it right with real estate, you also have a stable and decent performance. And finally, I can also live in my investment myself later on.

On the other hand, if you are not afraid of the big risk, you can invest your money in commodities or rare earths, for example. At some major banks and also on the consultancy market, there are people who know their stuff quite well. As I said, it’s not for the faint-hearted and, by the way, it’s also an investment that should run for a little longer.

For pure security fanatics who would rather do without spectacular profits, there are funds whose profit is capped, but which are also protected against loss. But there we are actually quite close to good real estate again.

Mainz offers big city life with small town charm

Question: In your experience or that of your clients, what is the quality of life like in Mainz? Which sights and events make the city attractive for tenants and investors?

Mainz is a big city with the charm of a lovely small town – at least that’s what everyone who loves living in this city says. By the way, I also think that you don’t notice the city’s 220,000 inhabitants. This is certainly also due to the fact that the individual districts of today, such as Mombach, Gonsenheim, Hechtsheim, etc., have retained their own character. After all, they were all once independent communities. But even in the inner city, you’re not beaten to death by high-rise buildings, wide street aisles or anything like that. There is a cosy old part of town with a lot of half-timbered houses and other old, well-proportioned buildings around the cathedral. The cathedral itself is of course not a museum, but a lively inner city church.

That the location of the city is something special, knew already the Romans. Until today, the Roman theatre has remained as a witness of this time. Somehow, everything in Mainz has remained quite moderate. Although Mainz has been playing in the first Bundesliga for years, the new stadium at the gates of the city near the university is not a giant arena. Mainz is a university town. And that includes – in addition to a thriving and loving pub scene – a correspondingly large cultural offering. The municipal theatre is a well-functioning three-part house that is known beyond the city limits.

Sure: and then there is the carnival, pardon: Fastnacht – as the Mainzers say. Without “Weck,Woi, Wurscht” – i.e. bread rolls, wine and sausage – one survives neither the “Fassenacht” nor city life in Mainz at all. Whether this culinary triad already existed at the time of Johannes Gutenberg – who lived and worked in Mainz – I don’t know.

Demand exceeds supply: Real estate in Mainz

Question: Which real estate is currently the most popular investment in Mainz?

Actually, all types of real estate that the market offers. From single-family homes on the outskirts of the city to old or new condominiums and apartment buildings, and even office properties in the city centre or one of the many business parks – Mainz offers something for every anal desire. As everywhere, it’s a question of price and that depends not only on location, condition and age but also on the overall offer. No matter what it is: I advise every prospective buyer to have clarified all questions about financing etc.. Because there are currently many more interested parties than offers. You have to act fast.

Bingen is a real alternative

Question: Let’s assume a reader is a real estate investor in the Rhine-Main region and is looking for new worthwhile properties. What is your insider tip for profitable properties in Mainz and the surrounding area?

Quite clearly: Bingen on the Rhine or the one or the other municipality bordering there. This has something to do with the fact that on the one hand the real estate prices here are significantly cheaper than in Mainz or the neighboring cities such as Ingelheim, Nierstein or so. Rents in the Bingen area are also lower than in the immediate metropolitan area, but again not that much lower relative to the purchase price. Thus the yield, about which we spoke above, is often clearly better with real estates more in the country. So it is well worth looking a little further afield.

• Capital investment Bingen

How a Diskret broker works

Question: You yourself describe the Lukinski brokerage office as a discreet broker. What does that mean exactly?

This means that we offer the properties offered to us without the classic – let me call it – “market writing”. For the seller this means: he can be sure that no one in the immediate vicinity will notice his intention to sell. The usual advertising signs in the windows or in the front garden are not necessary. Our vehicles are kept inconspicuous and are completely neutral in colour.

The exposés are only sent to customers who we have contacted beforehand and included in our database. Of course we also use real estate marketing portals, but our appearance or the appearance of the property is designed so that hardly anyone can draw conclusions about the location of the property. So if you want to offer your property on the market with maximum discretion, for example because you want to avoid annoying discussions with neighbours or friends, a discreet estate agent like Lukinski is the right choice for you.

For the buyer, this also means maximum discretion. This is particularly important if you value serious negotiations without the often usual “price gouging” by a rush of interested parties. The buyer can be sure that his person remains behind the scenes. Only after moving into the new home will his identity become public with the new neighbours.

Focus Frankfurt: Investing in the Rhine-Main Region

• Investment Frankfurt
• Prices in Frankfurt
• Capital investment Darmstadt
• Capital investment Wiesbaden

Berlin-Wilmersdorf: Green district near the centre

The German capital Berlin is not only a metropolis of art and culture, but also the hub of European business. As one of the most international locations in Europe, both German and global companies are at home here. Thus, not only many entrepreneurs and investors are drawn here, but also families, young professionals and students. The growing job market, the diverse cityscape and the colorful life of the city make Berlin an attractive place to live. Whether a luxurious villa in Berlin-Wannsee or an exclusive apartment in Wilmersdorf – everyone is at home in Berlin.

District: map and location

The green district of Wilmersdorf is located southwest in the city between Charlottenburg and Schöneberg. Both the legendary Kurfürstendamm and the upscale Grunewald are nearby, which is why this residential area is not only one of the most well-kept in the city, but also one of the most historic.

Sell real estate: Apartment, house, apartment building

A property sale always involves a lot of planning and time. After all, professionally presented properties are not only the quickest to sell, but also the most efficient. From the appointment with the real estate agent to the coordination of the viewing appointments to the purchase contract – to sell your property successfuly you need a lot of know-how, sales talent and negotiating skills. Here you will find all the guides and tips at a glance:

• Sell apartment
• Sell house
• Sell apartment house
• Sell land
• Overview: Sell real estate

Before the sale, however, the valuation of the property must first be carried out:

Real estate valuation: Valuation for the sale of real estate

During the real estate valuation, the purchase price of the property is determined. Determining the purchase price is one of the most important steps in selling real estate. If the price is too low, you are giving away money. If the price is too high, it alienates the real prospective buyers. But how can you value your property correctly? Here it depends not only on the different types of apartments or houses, but especially on one thing:

Location, location, location

The year of construction and the equipment of the property, as well as the infrastructure of the residential area are also important factors in the property valuation. Learn more here:

• Rate apartment
• Rate house
• Rate apartment house
• Valuing property
• Overview: Valuing real estate

First class & well maintained residential area: Popular residential areas

Wilmersdorf is probably one of the greenest districts in Berlin – the Grunewald forest covers almost half of the district’s total area. Another superlative is the high property prices. With a few exceptions, Wilmersdorf is a prime, well-kept residential area. Wilmersdorf includes Schmargendorf and Grunewald with very divergent residential structures. The chic Grunewald with its spacious villas, the small-town-like Schmargendorf and the more densely built-up Wilmersdorf are unequal siblings. In addition to well-preserved Wilhelminian style buildings, the quarters are now interspersed with numerous new buildings, which does not detract in the least from Wilmersdorf’s popularity.

Exclusive quarters can be found in the districts of Grunewald, urban neighbourhoods in turn in the city locations of the district.

High quality of life, Grunewald and sustainability

You would like to sell a property in Berlin? Wilmersdorf has a high purchasing power compared to other districts in Berlin. The district offers exclusively good to very good residential locations. Civic-minded neighbourhoods and the high quality of life resulting from the proximity to Kurfürstendamm and the Grunewald forest characterise a sustainable investment climate. Rental prices and purchase prices are showing constant increases, with a slight decline in the volume of supply.

• Investors can still take advantage of catch-up effects in the existing and new construction segments.
• The average purchasing power in Wilmersdorf’s A locations is higher than in urban A locations.
• Moderate but constant increase in asking rents.
• Constant increase in purchase prices despite growing competition from new construction (high quality of old buildings)
• Very good quality of life and high local recreation factor. Low environmental impact.

Flair of the quarter: Most beautiful streets in Europe

A worldwide unique residential project, “the snake”, was realized with a motorway superstructure in the district of Schmargendorf in the 1970s. Not far away are Rüdesheimer Platz and the surrounding Rheingauviertel, which was planned and laid out in the English country house style. In 2015, the “New York Times” chose Rüdesheimer Straße in Wilmersdorf as one of the twelve most beautiful streets in Europe. The most expensive streets in Berlin are also not far away from here.

The residential area along Uhlandstrasse is also very popular, with many high-quality new construction projects having been built in recent years. The apartments in the core areas around Ludwigkirchplatz and Olivaer Platz are mostly very large and luxuriously designed. The Wilhelminian style houses captivate with beautiful facades and well-kept front gardens.

Other popular neighborhoods in Wilmersdorf include:

• Schmargendorf
• Rheingauviertel
• Uhlandstraße
• Ludwigkirchplatz
• Oliva Square

Real estate sale in Wilmersdorf: Villa, apartment house & Co.

Wilmersdorf is very conveniently located in the centre of Berlin and therefore properties in Wilmersdorf are first class connected to all important things of daily life. Schools for children of all ages can be found in Wilmersdorf, as well as shops and doctors. In Wilmersdorf you will find everything that residents could wish for. Thanks to the excellent public transport connections, Wilmersdorf residents can also reach other districts in no time.

In Wilmersdorf you will find everything that residents could wish for.

Wilmersdorf is home to high-priced traditional West Berlin locations. Investments show a high potential in terms of target groups in the different building typologies:

• Compact apartments in complexes built in the 1920s and 1930s: Small Silver Ager Households
• Classic apartment buildings from the Wilhelminian period: High-income households
• High-quality, also smaller city villas, both as new buildings and from the Gründerzeit: Households with above-average incomes
• Single-family homes and villas: Households with above-average income
• Individual marketing

Berlin in Focus: The Perfect Neighborhood – Statistics

Quick access to doctors, a variety of shopping, sports and fitness facilities, as well as safety and infrastructure – there are many reasons to move to Wilmersdorf. Especially in old age, the district offers everything you need for your later retirement.

You can find a detailed overview here:

• Quick accessibility of doctors & Co: 52%
• Shopping facilities: 49
• Safety from crime: 56%
• Good transport connections: 51
• Accessibility: 38%

Private sale or real estate agent?

What can the real estate agent do more than the private house seller? – Properties in Berlin-Wilmersdorf only remain on the hotly contested real estate market for about a month. The level of purchase prices for houses and apartments in the district is correspondingly high. So the question arises: why work with an estate agent at all when selling? Placing an ad on the real estate portal, taking phone calls from interested parties and inviting them to view the property: given the demand situation, there’s no need for an estate agent. Or do you?

The most common mistakes when selling a private house

Incidental costs, lack of time and poor organisation – There are a lot of sources of error when selling property that you should avoid at all costs. You want to buy a property and are in a hurry to sell your current property? Or are you planning to buy an apartment building and then rent it out lucratively?

Whatever the reasons, it is essential to avoid the following mistakes if you want to sell your current property quickly and efficiently:

1. Poor preparation (e.g. lack of knowledge of the local real estate market)
2. The selling price of the property is incorrect (such as “purchase price at that time + x%)
3. Indiscriminately “plaster” marketing portals and advertising pages
4. Only be available to the interested party at selected times
5. Conceal possible defects
6. Underestimate additional costs (such as for an appraisal, renovations, etc.)
7. Leave the purchase contract only to the notary

In addition, most homeowners lack emotional distance from their own property. That is why the selling price is often rated higher by the owner than it actually is.

With the broker to success: Advantages

If you have no or little experience with the sale of houses or land, you should definitely consult with a reputable real estate agent. A good estate agent will not only support you with the property valuation, the organisation of the sale and the transaction, but will also advise you on the topics of financing, tax-free property sales & Co! Here we show you what services you can expect from a professional real estate agent:

• Customer file with liquid prospective buyers
• Interested parties from all over Germany
• Profound knowledge of the local real estate market
• Professional and objective determination of market value
• Non-binding and free initial assessment and initial consultation
• Complete cost transparency for all stages of the sales process
• Costs only arise with a successful sale
• All services of a qualified and certified brokerage office
• From the exposé to the negotiated purchase contract
• Accompaniment of the conclusion of the contract at the notary

Off Market: Security through discretion

Many private property sellers are reluctant to trust an estate agent to handle the sale, and not just because of the cost. They fear that the broker’s work will make the sale too public. For whatever reason neither neighbours, nor friends and acquaintances should find out about the intention to sell: Discreet brokers organize their work so that the privacy of the seller is protected to the maximum.

Off market enables discrete processing

Real estate agents who specialize in off market can be found in all districts of Berlin: From the elegant villa suburb Wannsee to Charlottenburg and Kreuzberg to Wilmersdorf.

What are the advantages of an off market sale?

• No sales signs on the house and in the garden
• Discussions between seller and broker only possible on a scheduled basis and on neutral ground
• Placement of the property in exclusive portals without any reference to the exact location and the seller
• Sale of the property only to selected and previously intensively tested customers

Increasing value through renovation: Is it worth it?

For many home sellers, the question arises: should the property be renovated before it is sold? This question is difficult to answer without having seen the house beforehand. In the context of an initial inspection, there is in any case a qualified answer. One thing is certain: a property in good overall visual and technical condition increases the sales price and the chances. Mostly the costs for a renovation are overestimated by the buyer and underestimated by the seller in order to adjust the selling price to the respective interests.

A property in good overall visual and technical condition increases the sales price and the chances.

Tip: All common facilities of the house (heating system, hallway, basement, facade, roof, etc.) should be in perfect and well-maintained condition. By the way, this also includes the garden! Whether, on the other hand, a major energy refurbishment is worthwhile before the sale, because it would noticeably increase the sales price, for example, must be decided on site in each individual case. If you decide to renovate or even completely rebuild your property, we advise you to get the expertise of a craftsman, architect, etc. for this. Only in this way will your modernisation measures be a complete success and lead to an increase in value.

Conclusion: Brokerage pays off in the “hot” market

Berlin-Wilmersdorf is one of the most sought-after residential locations in the capital. This has a very beneficial effect on sales prices, but for the seller it means a whole lot of expertise for a successful transaction. Because just as well as you as the seller want to achieve the highest possible price for your property, the buyer wants to push the price down in favour of later returns. This is where the knowledge and experience of professional real estate experts are in demand.

Berlin: Real estate in the capital

Capital, university city, historical stronghold and as an international location an attractive place to live for families, couples, singles and students. Accordingly, Berlin faces a continuously growing population due to immigration.

Berlin property market: Overview

Berlin offers everything from fashion, art, finance, start-ups, and the list goes on. There is hardly a person who would not find their passion in this city of 3.75 million. This is also evident in the sprawl of the city and the different districts. For this reason it is often described as’ many cities in one’. A walk through Berlin-Mitte is very different from Kreuzberg and Prenzlauer Berg is not often confused with Zehlendorf.

Buy, rent and sell real estate in Berlin – Berlin is not only in Germany the “place to be” when it comes to real estate, in all of Europe and worldwide Berlin is known. Next to London and Paris, Berlin is the hotspot in Europe for Europeans themselves, tourists and real estate investors. Here you will find the big overview, on the subject of buying, selling, renting, investment and everything else you need to know about the Berlin real estate market.

• Real Estate Berlin

Selling real estate in Berlin: house, apartment and land

As an international location, Berlin is an attractive place to live for people from all over the world. While the district of Wilmersdorf in Charlottenburg convinces with its well-kept green spaces, the residential areas of Prenzlauer Berg and Weißensee in Berlin-Pankow inspire with their unbeatable prices and central location. You want to sell your apartment, your apartment building or your property in the world metropolis Berlin? With our free guides and tips on the topics of real estate sales and property valuation, you are well prepared. Back to overview: Selling real estate in Berlin.

• Pankow
• Charlottenburg
• Wilmersdorf
• Friedrichshain-Kreuzberg
• Prenzlauer Berg
• Kreuzberg
• Wannsee
• Steglitz
• Schöneberg

Living in Berlin: Popular residential areas

We present the most beautiful districts of the German capital and tell you where you can buy the best, highest quality and most exclusive properties to set up your new home, or which districts are best suited to invest in a property as an investment. Here we present the most popular residential areas – from upscale Grunewald to charming Schmargendorf and quiet Dahlem to historic Charlottenburg. Back to overview: Living in Berlin.

• Grunewald
• Charlottenburg
• Zoo
• Dahlem
• Schmargendorf
• Prenzlauer Berg
• Kreuzberg
• Kurfürstendamm

Selling an apartment building in Mainz-Gonsenheim? “No problem”, you will probably think immediately! A sought-after district of Mainz, a fundamentally desirable residential area – what could go wrong? “Quite a lot,” says Sebasstina Matthias, real estate expert at Lukinski. As a specialist for valuations and sales of multi-family properties in the Rhine-Main area and knows the Lukinski broker many small and large things that are crucial to the sales success of your property.

Lukinski and Matthias offer a very rare specialty in the real estate business: As a so-called deiskret broker, the protection of privacy and even the anonymity of the seller are his top priority. This means that the seller’s environment only finds out about the marketing once the process has long since been completed and the new owner has moved in.

Highlights in Mainz-Gonsenheim

One thing is clear: Mainz-Gonsenheim is one of the most sought-after residential areas in and around Mainz. This statement applies both to the “historic” town centre around St. Stephen’s Church, as well as to the Wilhelminian quarter with its villas in the area around “Breite Straße” and ultimately also to the so-called “high-rise quarter”. The connection by public transport to the city centre, a good own retail infrastructure, the connection to the motorways: These are basically good prerequisites for the sale of a property at top prices.

High demand – high price? The most important influences on the selling price

The greater the demand, the easier the sale and the higher the price: according to this rule of thumb, numerous property owners also try to sell their property. But even the question of the right selling price depends on many important details. Especially if you are “under pressure” with regard to a sale (for example, in the case of divorce or liquidity problems), a well-considered, professionally planned sales process is particularly important.

The experts at Lukinski will be happy to tell you what the keyword “maximum price” can mean for your property in individual cases. Because in addition to the location in Gonsenheim, many other criteria are important for determining the price.

Criteria for real estate valuation (selection)

• Age of the property
• Building condition
• Condition of the property
• Occupancy rate (mostly for apartment buildings)
• Energy certificate
• Connection to public transport
• Proximity to public facilities
• Accessibility

Our many years of expertise extend preferably to multi-family houses and properties that permit such development. That is why Lukinski is also the right contact if you are selling a property in need of more renovation. Here, expertise in renovation and modernization is important in order to determine a realistic sales price. If construction work is absolutely necessary in the run-up to a renovation, we will also provide you with objective information here.

Services from experts: Selling your house quickly and easily

If, during the initial discussion, you are convinced of our expertise in the sale of real estate, we will be happy to provide you with the following services.

Lukinski provides for you

• The valuation of your property
• The professional sifting and ordering of all documents necessary for the sale
• The professional and sales-promoting staging of your object (photos/videos)
• The proper preparation of a sales exposé
• The placement of your property in all relevant media
• The analysis of our extensive customer file for potential buyers
• The organisation and execution of viewing appointments
• Conducting negotiations with prospective buyers (if desired, without your presence)
• Finalization of the purchase contract in cooperation with notaries

By the way: A reputable real estate agent and property seller is only paid upon successful completion and discusses his fee rate right at the beginning of the sales process. Openness and transparency are therefore fundamental criteria by which the house seller recognises the good estate agent.

Security through discretion – the work of the Diskret broker

Many private property sellers hesitate to entrust an estate agent with the handling of the sale not only because of the costs. They fear that the work of the agent will make the sale too public. Whatever the reason, neither neighbours, nor friends and acquaintances should find out about the intention to sell: the discreet estate agent Sebastina Matthias and Lukinski have organised their work in such a way that the privacy of the seller is protected to the maximum.

A few examples make this clear:

1. No sales signs on the house and in the garden
2. Discussions between seller and broker only possible on a scheduled basis and on neutral ground
3. Customer visits by Lukinski employees only in a neutral car
4. Placement of the property in the portals without any reference to the exact location and the seller
5. Sale of the property only to selected and previously intensively tested customers

And there is something else that distinguishes a good estate agent: he approaches the valuation of your property with sobriety and distance. This way you can be sure that the valuation will result in an offer for sale that is optimal for you.

Current study on the development of the real estate market:

You can find more infographics at Statista

Conclusion: Achieve the best property prices for Mainz-Gonsenheim with estate agents

Mainz-Gonsenheim offers the best starting conditions for the successful and lucrative sale of your property. The “right” time for your sale is always exactly when you have decided to sell. In order to avoid mistakes in the sales process, and thus to avoid losing money, you should approach Lukinski’s team of experts. Professionally and quickly, we will guide you to the successful sale of your property in Mainz-Gonsenheim.