How can you invest in cryptocurrency? Investment Strategies

For beginners and novices, I would summarize the stock market in general and digital currency in particular, like this:

1. Defensive – buy and hold portfolio of “well-known” brands
2. Defensive – buy and hold portfolio of “new” brands
3. Active trading with TP, SL and order placement

Reading tip: Which app do I use to buy and sell shares, cryptocurrency & Co. Here is the answer! My recommendation: trading app. Trading has never been so easy!

No investment advice or purchase recommendation!

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Strategy 1: Well-known brands, hold for the long term

Strategy 1 is simple and the “safest” form of investment on the stock market. Bet on known values. The easiest way to do this is through ETFs (index funds). These bundle several values from one area. For example, the DAX, it contains the largest, German, listed companies. If you invest your money here, you spread your capital on different companies from Germany. This minimizes your risk.

But you could also buy shares yourself that have been successful in the long term. Classics from the DAX, for example Daimler, Adidas, Bayer or Deutsche Wohnen.

In the field of cryptocurrencies comparable – Important: Much higher risk – with Bitcoin or Ethereum. You then hold these purchases in your portfolio for 1 year, 3 years or 5 years.

Strategy 1 summarized:

1. Buy known, solid (< 5 years) values
2. Hold your portfolio for a long time (> 1 year)

Strategy 2: New coins and broad investment portfolio

Why do I find coins under $5 so interesting?

My second strategy, which I want to present to you, deals with coin alternatives. By this I mean coins that have only appeared in the last 1-3 years. Another factor, they must be listed with large, reputable brokers. Because, the price of cryptocurrency is created by supply and demand. This means that only when sufficient demand is generated (range of brokers), the investment is profitable. The third central aspect is of course the price development itself, in the long term and in the short term.

1. Listing with major brokers
2. Relatively new (< 3 years)
3. Share price development

Bitcoin or alternatives? Here is a brief explanation of what makes the alternatives so attractive to me personally as an investment opportunity. As I said, economics is psychology. Coins are based purely on supply and demand.

Question 1: Short-term development +/- 6 months

• A) What is the probability that bitcoin will double in the next few months? So from currently ~ $45,000 to $90,000
• B) What is the probability that new coins, for under $5 will double in the same period?

Important for Beginners – It is not about whether a single stock makes $1.24 or $1.13 profit / loss. Ultimately, it is about relative changes (percent), just as with stocks. Which paper / currency / coin / etc. goes up 5%, 6%, 7%, etc. in 30 days. Ultimately, wealth building and profit maximization is not about specific values. You can easily compare the percentages of different investments.

Question 2: Long-term development +/- 12 months

• A) What is the probability that bitcoin will reach ten times its value? After 10 years on the market.
• B) What is the probability that a relatively new cryptocurrency such as XTZ (Tezos), TRX (TRON), EOS or XLM (Stellar) will increase its value tenfold, in the same time period?

Risk awareness: Price fluctuations

What you definitely have to be prepared for when investing in cryptocurrency is very high price fluctuations. While a stock might regularly lose 5 or 10%, cryptocurrency can go down up to 30, 40 or 50%.

If you have invested 10,000 euros and in the morning – 5,000 is in your account, stay calm!

Tip – Stock market always means strategy. Strategy means “a precise plan for a behavior”. That means for you simply said:

You sell at a profit. As a rule, you are not impressed by short-term price fluctuations.

Cryptocurrency Trading Tips: My top 3

For the reasons stated above (risk), it is so important (for individuals):

1. View cryptocurrency as a long-term investment strategy (3 months to 3 years).
2. Cryptocurrency is part of the investment portfolio (5 to 10%)
3. Diversify your crypto portfolio, just like you would with stocks in an ETF (spread a capital across multiple coins)

Investment portfolio: Shares, ETF, Commodities, Precious Metals & Co.

Briefly on diversifying your investment portfolio:

Cryptocurrencies are still very close to each other. With bitcoin as the perceived reserve currency, prices go up and down. If you spread a stock portfolio across several public companies, usually only a fraction of your stocks go in down, so a few papers, not all. With cryptocurrencies, market movements are closely linked.

General:

Diversify your portfolio!

Don’t just buy 1 coin, divide your equity among several. Crypto should only make up 5-10% of your portfolio. The rest is made up of investment alternatives like stocks, ETF, commodities, precious metals, possibly FIAT currencies, etc.

Strategy 3: Hochtief Trading

Wealth accumulation with less risk, prefer long-term investment strategies. If you want to maximize your profit, you have to trade daily and stick with it.

Here’s some insight on how you can act even more “professionally.”

Traders who are aware of high risk use all their capital to make trades that are risky but have high profit. One possibility is cryptocurrencies, precisely because the price fluctuations are so high.

The higher the price fluctuation, the faster the deal

So it’s about daily, hourly, buy and sell. Unlike stock trading, this requires full attention as the price is subject to constant fluctuations. Your goal:

Taking targeted profits from differences in highs and lows

Trading explained: profit taking, loss stop and margin

These 4 aspects are particularly important here:

1. Margin (profit margin of the broker)
2. Take profit (TP)
3. Stop Loss (SL)
4. Buy planned in advance

Simply explained, it works like this.

Margin: Broker fees on purchase

First of all, let’s talk about “margin”. As you have already learned, the margin is the profit margin of your broker (provider of the platform, website or app). Some brokers take an additional order fee of 5 to 10 €. With most “modern” apps, you no longer have to pay this, only the margin.

Tip! Trade without order fee and without Marin? If you have your residence outside of Germany, then you can trade with Robin Hood (no advertising link)! The highlight: Robinhood is free of margin trading. I would also like to, unfortunately I have my residence in Germany. Unfortunately we can’t do that in Germany. Not yet. I myself trade, after I really tested all apps, everything from stocks to ETF and Crypto with Etoro.

This fee for the purchase, is usually about 2% of the price. The selling price is the actual value. The purchase price is the actual value plus the broker’s margin.

• Sell: $100 (price)
• Buy: $102 (including margin of $2)

Take Profit: Take profits

As soon as you buy, you usually set 2 values as a trade. Your TP, i.e. “Take Profit” indicates when your order should be sold again.

A simple example is psychological values, like $10,000 price value, $10,200 price value, $11,000 price value, etc., when we talk about bitcoin. For a stock like Tesla, this would be just $880, $890, then $900 again.

When, which jump is how high, you can not predict, but you can guess. The biggest jumps are usually on

• X.5 – something like $9.50 or $15
• X,0 – even values like 10$ or 200$

The fluctuations are smaller for X.1 steps.

Once a stock or other tradable asset reaches these levels, many traders take the profit, why? Because many do. As a result, the price goes down. Reminder: supply and demand.

If this downward price jump is greater than the broker’s margin, the automatic sale through the take profit (TP) is worthwhile.

This way you can buy the coin again at a lower price directly after the price collapse. With this purchase, you then directly set a new TP and can use even small price fluctuations to maximize your assets.

Calculation example: profit taking

This is how the game of “Take Profit” and “Margin” works.

• You buy for $150, have $147 value
• Price goes to $200 (some sell through TP automatically, you do too).
• Profit: 53$, assets increase to 200$
• Price drops to $180
• You buy for 200$, have 196$ value
• All others now have $180 value

This way you try to take only price increases. In this way, your capital increases step by step without being reduced by falling prices.

Because of your increased capital, you now hold a higher value.

Portfolio increase: + $ 16

You repeat this step over and over again.

This way you protect your capital from falling prices (if your price targets, within the investment strategy, are reached).

Your assets have increased by +$16 (despite re-investment), i.e. a whole +10.6%.

Profit + $16
Relative + 10.6 %

This profit is not taken by the majority of investors. This is where you get the extra profits.

Stop Loss (SL): Stop losses

The principle is quickly explained. Stop Loss(SL) protects you from too high losses.

Stop Loss is the counterpart. If the cryptocurrency falls below a certain value, the position is automatically sold. In regular stock trading, you might set your stop loss at 60%, 80%. That is, if the paper is at 60 or 80% of the purchase value, it is sold.

You can define the values at any time. Either as a concrete contribution, or as a percentage value.

Plan ahead for purchases: Buy cheap at lows

Do you know the saying: In the purchase lies the profit?

You can buy financial products directly, i.e. execute a “Direct Order” or place an order.

• Direct order (immediate)
• Placed order (pre-planned)

You can buy cryptocurrency directly or plan your purchase in advance. So, if you expect the cryptocurrency to fall below a certain price, you can schedule the purchase in advance to drive your profit further up.

Let’s say bitcoin is currently at $45,300 and stagnating. You have time to trade, but you think that the price will go below 45,000 today, maybe even 44,800, because there is hardly any momentum in the market. Instead of buying directly at the price of $45,300, you place an order at the price of $44,950. Should the case occur, you will have made 0.77% extra profit.

With the high-low strategy, you can generate even more profit in combination. If this pre-order works 5x, your fortune increases additionally by itself by the fortune increase in each individual trade. So to speak, compound interest, only as profit.

1. Trade – 0.77 %
2. Trade – 1.55 %
3. Trade – 2.33 %
4. Trade – 3.12 %
5. Trade – 3.91 % (+0.06%)

Sell + Buy: Trading Tip

With my articles and guides, I want to help you save money! In my first trade, I made -5,500 euros in 1 hour. Why? I wanted to practice quickly. Because besides my companies, I only have the morning and the night for trading.

What is the Quint Essence?

“Quantum interest” explained: take short-term profits

I came up with the term “quantum interest” to clarify the concept. We do not wait for the big end, we also use small jumps (price movements) to take interest (profits).

A quantum leap is often perceived as something big. In fact, however, a quantum leap is the smallest possible unit in physics, simply put. Smaller than any virus, smaller than any atom, smaller than a proton, even smaller than an electron.

As you have already learned in the article on trading strategies, taking profit from small movements, is a good strategy to build your wealth further. Because that’s how you take:

1. Gains from long-term increase in share prices and
2. Gains from short-term price fluctuations

Time sale and schedule new purchases

I have built this table myself to calculate when I re-enter after a TP (Take Profit; selling the stock/currency/etc.). For this I subtract the margin x2 (i.e. the trading fee of the trader). At eToro, for example, you pay round about the following fees (margin) per trade:

• Cryptocurrency: 3%
• Shares: 0.2 %

Download: Sell / Buy Table

In my table, the whole thing looks like this. In the line “Sell” you enter the rate at which you have set your TP. Of course, the table is also available for you and the community as a free download:

• Sell / Buy – Table, Download

The table contains:

• Calculation margin sale / purchase for cryptocurrency (% at eToro)
• Calculation margin sale / purchase for shares
• Calculation leverage (spreadsheet 2)

Price Alert for Realtime Trading

In addition, I set up a price alert. This is then always slightly below the price, usually 0.5 – 1% before my TP. So I can reorder directly after the sale.

Tip! You can also “buy” automatically! To do this, you do not place your order directly, but buy at a certain price value. You can do this easily when buying the cryptos, stock, etc..

Leverage effect explained (Leverage)

What does leverage mean for financial products?

Leverage means increased capital / risk.

For pretty much all products you can use leverage in trading apps and with brokers. Simply put, a short-term loan from the broker. This increases the profits and (!) the risk. You give $1,000, take a leverage of 10, and you have $10,000 of capital tied up.

X10 = from 1.000 you make 10.000

Examples of levers:

Also, some mapped index funds automatically have leverage, such as the China 50.

Strategies for trade: risk assessment

You are probably already aware of the risk of the 3 forms of trading.

1. Defensive – buy and hold portfolio of “well-known” brands
2. Defensive – buy and hold portfolio of “new” brands
3. Active trading with TP, SL and order placement

Strategy 1 is defensive, you bet on “known brands” and hold the individual stocks for a long time, i.e. at least 6 months, maybe even 3 or 5 years. The risk is lower in relation to strategy 2 & 3.

Strategy 2 focuses on new values. No matter if cryptocurrency or stocks. For cryptocurrencies, this means that you buy Bitcoin (BTC), Ethereum, Litecoin (LTC), Dash, but also XTZ (Tezos), TRX (TRON), EOS or XLM (Stellar) in the portfolio. By diversifying across different assets, you try to minimize the risk for individual failures. The principle of an index fund. As an example and comparison to stock trading, here you would bet on new brands like Nio or Niu in addition to Tesla as an electric car manufacturer.

Strategy 3 requires your constant attention. You have to keep an eye on the prices, their origin, course and current values. Only then you can estimate how individual values will develop. The risk for mistakes is accordingly large if you want to trade “on the side”.

Now for the big question:

Can you make a lot of money with trading?

My trading strategies currently look like this, that I have 2 portfolios. My return in the investment account 1) is about 3.41% and in 2) currently about 8.56% per month.

1. Investment account (Strategy 1)
2. Trading Training Account (Strategy 2/3)

My current trading strategy: 50 / 50

50 / 50 means – One “serious” with stocks and ETFs and a second with stocks, ETFs, cryptocurrency and sometimes commodities / precious metals. So to say: 1) my investment account and 2) my trading training account. In both are about 50% of my capital.

As described, my return in the investment account 1) is about 3.41% and in 2) currently round about 8.56% per month. Your first important learning of the trading strategies above is also back: %-values are more important than Euro or US Dollar.

Accordingly, you can express the question, can you make a lot of money with trading? but also in numbers.

Development: Long-term trading

Thus, an investment of $10,000 grows in one year, with a monthly return of 3.41%.

• Investment: $10,000
• Capital after 1 year: $13,983.81
• Increase: + $ 3,983.81
• Yield / month: 3.41
• Yield / year: 39.84

Development: Daily Trading

Thus, a $10,000 investment grows in one year, with a monthly return of 8.56%.

• Investment: $10,000
• Capital after 1 year: $22,735.18
• Increase: + $12,735.18
• Yield / month: 8.56
• Yield / year: 127.35

Warning: You can only achieve such returns with 1) practice 2) significantly higher risk and 3) constant “readiness” in trading.

Cryptocurrency: reading tips

1. Trading App: Recommendation
2. Cryptocurrencies: List
3. Cryptocurrency future? History

Trading App: Recommendation

eToro App – Trade stocks, ETF, cryptocurrency, in my blog you have already learned a lot about trading. Lots of questions of course: which app do you trade with, what do I recommend? So today I want to share with you my favorite trading app, eToro. 29.88% asset growth in 12 months, with low risk through “Copy People” and “Copy Portfolios” or up to 127.35% through active trading and trading strategies. Learn about the app, fees and more here step by step.

• Trading App

Cryptocurrencies: List

BitCoin, BitCoin Cash, Ethereum, Litecoin, Dash, Ripple, Zcash or Binarcy Coin: They are considered the answer to traditional means of payment. Through the digitalization and decentralization of money, banks become superfluous. Only buyers and sellers are responsible for the control and security of their digital money. You want to invest in Bitcoin & Co. too? We have an overview of the most popular cryptocurrencies here.

• Cryptocurrencies: List

Cryptocurrency future? History

The world is increasingly sent into lockdown by the new Covid-19 virus. March 2020 was the month in which stock market prices also plummeted. Papers like those of Lufthansa fell to ~ 1/5 of their pre-value. Minus 80% losses in a few weeks. This happened to almost all sectors, except e-commerce and online trading. In contrast, the price of Bitcoin and other cryptocurrencies is holding up. What makes cryptocurrency stand out? Why im wanting to buy more cryptocurrency? Since March, BitCoin (BTC) has reached 453.9%. Ethereum (ETH) 376.2% and Binary Coin (BNB) at 428.5%. Currency trading is attracting more and more investors, including individuals. The phenomenon is strong in forex, but more investors are also getting involved in the stock market, as seen recently at GameStop. A look at the development, 12 months after the start of the pandemic, in mid-February; with the consequences of the lock down in March.

• Cryptocurrency future?

Share, ETF, Crypto: My experiences / mistakes

Stocks, ETF, Forex, Cryptocurrency, Social Trading – Here’s a little list of a few learnings that cost me money but are so simple you should know them! You want to buy stocks, index funds, cryptocurrency like Bitcoin or Ethereum, foreign exchange (currencies)? You’re thinking whether house bank, direct bank, online broker or app? Trading all on your own at risk or new options like social trading via app? My experiences and mistakes!

• Share, ETF, Crypto: My Experience

Equity bottleneck? Advantages of interim financing

There can be various reasons for interim financing. You already own a property, but would like to move for professional or private reasons and cannot sell your house so quickly? As can be inferred from the name of this financing solution, this option gives you a chance to have fixed capital or funds available in the future at the current time.

You can apply for a form of financing for a maximum of 24 months in the amount of the equivalent value

The most common questions about bridge financing in advisory meetings are:

• How long does bridging finance last?
• What is a bridging loan?
• How does interim financing work?
• What is bridging finance house?

House and apartment purchase: definition of interim financing

Interim financing, also known as pre-financing, does not come alone. Rather, it is usually applied for together with an annuity loan and counted as an equity component. You can apply for this form of financing for a maximum of 24 months in the amount of the equivalent value.

Repayment of this additional financing is possible at any time without an early repayment penalty to the bank. If you sell a property you own, for example, before the interim financing period expires, you can redeem the loan at any time and from then on only pay the agreed instalments for your property financing.

Pre-financing and interim financing: Experience

Pre-financing and interim financing give you maximum flexibility and ensure that you do not have to postpone a planned house purchase or apartment purchase due to fixed finances, for example those invested in tangible assets.

Another advantage is the fact that the interim financing is counted as equity in the interest calculation of the annuity loan and secures you the best interest rate. The value is there, so you can ensure a relaxed ratio of loan-to-value and loan-to-value through bridging finance.

Thus, pre-financing and interim financing are considered as equity capital

You can use interim financing as equity capital if you own two properties as a bridging loan or if you want to use capital from an insurance policy that is due to expire in the foreseeable future as part of follow-up financing . In these cases, your capital cushion or the existing tangible asset flow into the equity valuation of the real estate financing and have a positive effect on your conditions.

Temperatures in Frankfurt

Current

The weather in Frankfurt on 11. May 2026.

Forecast: Today / 3 days

Current in Germany

Forecast for Frankfurt: 12 hours

Wind in Frankfurt

Wind gusts, humidity or storms, weather factors have a great influence on the completion of real estate in Frankfurt. Building materials are as much at the heart of all builders’ plans as glass such as glass block and pressed glass or thermoplastics such as ethylene tetrafluoroethylene, polyvinyl chloride and polyamide (PA). Your first, own home construction will always be tangentially affected by the occurrence of exceptional precipitation, wind gusts and temperatures, force majeure.

Not only in the soon-to-be loan approval, the question arises: at what time of year do I start building the site? Mostly, people are looking for good answers to questions such as “Are clouds gaseous?” but also questions like “Why is there lightning?” For construction companies, this involves extensive construction details: construction costs, building physics to real estate construction.

Current

Forecast: 12 hours

Forecast: Tomorrow

Wind in Germany: Current

Wind in Germany: Tomorrow

Wind gusts

Summation of all winds

Rain for Frankfurt

Cloud formation: Today

Cloud formation: Tomorrow

Rainfall: Today

Rainfall: Tomorrow

Rainfall in Germany: Today

Rainfall in Germany: Tomorrow

Humidity: Today

Weather alerts

Thunderstorms: Today

Fine dust and CO2

CO content in Frankfurt

CO content (fine dust) in Germany

Statistics & Average

Temperature (°C)

Comparison of mean maximum and minimum temperatures (°C)

Rain

Mean monthly precipitation (mm)

Days with precipitation > 1mm (days)

Data basis: German Weather Service

Darmstadt real estate market: Demand clearly exceeds supply

Question: You are mainly active as a real estate consultant and investor in Darmstadt and the Rhine-Main region. In your experience, what is the development of the real estate market in this region in Germany?

Darmstadt occupies a truly special position in the Rhine-Main region, if Darmstadt is to be included in this region at all. As a university city, Darmstadt already has a stronger influx than other cities of its size. On the other hand, the city has very successfuly tinkered with its image as a “science city” in recent years. Numerous companies with a technology focus have their headquarters there, or at least large branch offices. This means a corresponding number of mostly very well-paid jobs and the desire of these people to also live in or around the city.

How supply and demand regulate prices in the housing market

You can find more infographics at Statista

This development will continue, especially because the technologies developed in Darmstadt in terms of “artificial intelligence”, climate research, etc. are real technologies of the future with increasing demand for employees. Of course, this is also reflected in the prices of houses and apartments. Within just a few years, the rates of increase have reached double digits. The number of building permits applied for for residential buildings in Darmstadt is still well below demand.

On the other hand, Darmstadt already has a visible number of vacant apartments with a dramatic refurbishment backlog. Bessungen, Martins- and Johannes-Viertel are just a few examples. It is really incomprehensible that the owners of these houses do not take capital into their hands, bring the flats up to scratch and thus ease the situation on the market. I am very sure that nobody has to calculate with sinking rent incomes and purchase prices. The rent level is already absolutely comparable with Frankfurt, Wiesbaden or even Munich.

Yield calculator online: Just the right tool to get you started

Question: Which of the countless online calculators do you find helpful for real estate investors or those on their way to becoming such?

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.

Become a real estate professional – but how?

Question: How do professional real estate investors finance the purchase or new construction of a property?

Anyone who invests in real estate professionally has usually been in the business for a very long time. This means that such a person firstly has very good bank connections and secondly has a fair amount of experience in the business. He or she then always has the right “nose” for well realizable projects or real estate offers and enjoys the confidence of the banks to get smooth financing.

Because basically, however, it is the same whether you enter the market as a professional or a beginner. The principle remains the same: One buys the first property, should have a certain amount of equity for this and rents it out. With the rental income can be raised in the best case the entire debt service, but at least it should be a large part of the annuity from interest and repayment. If you have paid attention to the right location, equipment and condition of your property, you will soon profit from the increase in value. Since the saying “a property is not a property” also applies to real estate, the becoming real estate investment professional can now use this increase in value to purchase and finance his second property. This is called the “leverage effect”, and it can be continued almost indefinitely.

In Darmstadt, for example, you could start with a small student apartment. After a few years, you could then add a rentable multi-room apartment, until you perhaps even add one or two complete apartment buildings to your portfolio. What I strongly advise against as a real estate investor is the purchase and rental of single-family homes. Certainly the renting in Darmstadt and surroundings would be no problem, also nobody must fear there rent failure times. But tenants of single-family houses are usually very demanding tenants. In order to maintain the desired condition of the house, the owner usually has to invest significantly more and more frequently than in the case of an apartment or a multi-family house.

A special case among real estate investors is the property developer. They buy land or old buildings with the aim of building new or modernising them on a large scale. The apartments that are then built are usually sold as “turnkey” properties. In addition to a great deal of experience, the property developer also needs the unconditional trust of his banks, as he sometimes has to pre-finance the costs of purchase, construction and renovation over a long period of time. Furthermore, he needs a pool of good craftsmen for all trades that are necessary for the exterior and interior of the building. Buying and renting is absolutely the easier way.

Investing where spring starts early

Question: What is the quality of life like in Southern Hesse and Darmstadt? What attractions and events make the city and region interesting to live in, to live in and to invest in?

Darmstadt is the northern end of the Bergstrasse in southern Hesse. This is one of the regions in Germany where spring comes particularly early. In addition, there is the winegrowing and the location at the foot of the Odenwald. This means that local recreation is well catered for. Art lovers get their money’s worth in Darmstadt. With the Mathildenhöhe, Darmstadt is home to one of the most important centres for Art Nouveau art. In summer, the “Heiner-Fest”, the largest folk festival in Hesse, starts. The whole city centre is one big festival mile. For friends of high culture there is even a state theatre with a varied programme of opera and theatre – rather unusual for a city of this size.

The good supply of highly qualified jobs together with the truly diverse range of leisure activities makes Darmstadt really very attractive to live in – and for all those who provide the necessary living space with their investments.

Investment alternatives to concrete gold

Question: In Darmstadt, people don’t just think about real estate when they invest. Interesting companies are located there – especially due to the proximity to Frankfurt. Which three investment opportunities make the most sense in your opinion and what are the disadvantages?

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.

You can find more statistics at Statista

If you are looking for a more unusual form of investment, you should take a look at art objects. In the art nouveau city of Darmstadt, this is certainly a conceivable alternative, especially as there is a market for it locally as well as a lot of expertise. However, I am not an expert in this field and cannot say much about the value of the different art forms. But if you look at serious and official statistics on this, you will quickly see that there is a lot going on in the art market. You certainly don’t have to be an art historian to invest your capital in this market correctly – i.e. profitably. But knowledge and experience are necessary. And even then you are not safe from fakes!

What can funds do better than owning your own property?

Question: Many investors are particularly attracted to funds as an investment option because they are considered to be less risky than other forms. You have just mentioned them yourself. What are your arguments for and against investing in funds?

First of all, we need to clarify which funds we want to talk about. Let’s start with the classic investment funds consisting of equities and/or government bonds. These have been real classics on the market for years and are intended for all those who would like to participate in the development of corporate and government investments, but who shy away from their own “equity management”. Whether as a savings plan or as a one-off investment, these funds are more or less risky depending on the composition of their securities. Regardless of the risk of loss, which you can usually offset by investing for a long time, these investments cost money. They cost money through the issue premium, which is levied with each capital contribution, in addition, the generated investment income is taxed and in addition, one has ongoing custody fees. All this has to be deducted from the profit made or achievable.

As a real estate person, you naturally immediately think of real estate funds.

Buying real estate in the Darmstadt area

Question: If someone of our readers is now as a real estate investor in the Rhine-Main region on the search near houses, apartments, etc.: What is your insider tip for them for a worthwhile real estate investment?

First and foremost, I would mention the Odenwald. In addition to inexpensive building land, there are also correspondingly low rents and purchase prices for houses. Depending on how far away from the major city of Darmstadt, the risk of loss of rent increases. Because the connections from the Odenwaldorten into the Rhine level is – all the same whether road or rail – usually not bsonders well. Those who are not afraid of driving and prefer to live in nature will always prefer a living space in the Odenwald. This is then the potential for real estate investors. Not quite as inexpensive, but still favorable are some communities in the surrounding area of Darmstadt. Büttelborn, for example, or other places in the Ried are my tips.

Focus Frankfurt: Investing in the Rhine-Main Region

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

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