UG (limited liability company) – foundation, financing, liability & Co.

The UG was created in 2008 in the course of the Act to Modernise the Law on Private Limited Companies and Combat Abuses (MoMiG) and is thus one of the newer forms of corporations. With regard to the required start-up capital, the special character of an entrepreneurial company (haftungsbeschränkt) is reflected: The company can be founded with a cash contribution of as little as one euro, which is why this legal form variant is sometimes simply called a 1-euro GmbH.

By lowering the required share capital to a symbolic euro, the founding process has been considerably simplified for many start-ups: Instead of laboriously putting money aside and saving the 25,000 euros for the founding of a conventional GmbH, you can become self-employed as a corporation almost immediately. However, a UG (haftungsbeschränkt) is always founded with the prospect of later changing its legal form to a conventional GmbH. There are no time limits for this, but at some point an economically managed entrepreneurial company (haftungsbeschränkt) will inevitably become a limited liability company.

Other typical corporations:

• Limited liability company (GmbH)
• Stock corporation (AG)
• European Company (Societas Europaea, abbreviated to SE)
• Partnership limited by shares (KGaA)

Foundation & Company Name

You can found a UG (limited liability company) with just one person. This means that as a founder you also take on a managing position at the same time. To do this, you need a tax identification number – tax ID for short – from the tax office and must register your company with the trade office. In addition, you have to take care of the establishment of the partnership agreement aka articles of association and have it notarized. If you have a maximum of three founding members, you can also simply use a sample protocol, as it is available as an annex to the Law on Limited Liability Companies (GmbHG): In this way, you can complete the articles of association, appointment of managing directors and list of shareholders all in one!

In the next step you can register your company in the commercial register. Your company can consist of personal names, industry names, fantasy names or a mixture of these… It is important that the name contains either “Unternehmergesellschaft (haftungsbeschränkt)” or “UG (haftungsbeschränkt)” – in exactly one of these two variants: Brackets are a must and abbreviations are forbidden! Once you have reached the minimum share capital of 25,000 euros, you decide whether to change the name of your company to a GmbH or to continue it as a UG (haftungsbeschränkt).

Financing & profit distribution

Even if the contribution of only one euro may sound quite attractive at the beginning… Caution is required when determining the amount of the share capital for your company: If the capital is too low and the company’s specific needs cannot be met as a result, you can quickly slide into insolvency! Many UG founders therefore opt for a starting capital of around 500 to 1,000 euros. This way they can ensure that their entrepreneurial company (haftungsbeschränkt) does not go bankrupt after the first small purchases.

When founding a UG (limited liability company), you may only use cash contributions; contributions in kind are prohibited. If a share capital of more than 25,000 euros is set, you can no longer establish your company as an entrepreneurial company (haftungsbeschränkt) and will automatically be treated as a GmbH (limited liability company). Until your share capital reaches this limit, you are subject to the obligation to retain profits, which means that you are not allowed to distribute profits in full, and you must transfer 25 per cent of your profits to the statutory reserves.

Liability, accounting & taxes for UG shareholders

As an entrepreneurial company, you are limited by liability and – as with the GmbH – are usually liable for the amount of your capital contribution, i.e. at least one euro. As a UG shareholder, however, you are also subject to the obligation to file for insolvency: In the event of a breach of duty or other criminally relevant actions, you may also be held personally liable under certain circumstances.

The Unternehmergesellschaft (haftungsbeschränkt) is subject to the same taxes in Germany as its big sister, the Gesellschaft mit beschränkter Haftung. It is therefore subject to the obligation of double-entry bookkeeping – annual balance sheet plus profit and loss account – and, depending on the size of the company, may have to prepare regular management reports. Furthermore, it is fully burdened with corporation tax, trade tax and input tax or turnover tax as well as – with regard to the distribution of profits to shareholders – capital gains tax and other final withholding taxes. For all natural persons, income tax also applies as usual.

• Corporate income tax (KSt)
• Trade tax (GewSt)
• Value added tax (VAT)
• Income tax (ESt)
• Capital gains tax (KapESt)

Unternehmergesellschaft (haftungsbeschränkt) – For whom is it worthwhile?

A UG (limited liability company) is the perfect choice for solo founders who have few assets but still want to start their own business with limited liability. The mini-GmbH is particularly suitable for smaller companies in the service industry, as unlike the formation process of a GmbH, no large start-up capital is required for the company formation. Another major advantage is the limitation of liability, which protects the private assets of the UG shareholders.

So for whom is the formation of an entrepreneurial company (haftungsbeschränkt) worthwhile? The legal form always makes sense if the later change of form to a limited liability company is planned. In this way, the first profits can be made with the company at an early stage and business relationships can be established, even though the share capital of over 25,000 euros is not yet available. The UG (limited liability) forms a more favourable preliminary stage to the GmbH – the conversion from UG to GmbH itself is extremely simple, as it is basically only a change of name within the same legal form.

Comparison: Sole proprietorship, one-man GmbH, small AG or entrepreneurial company?

If you plan to set up your business on your own, you can choose between different legal forms of business: On the one hand, there is the classic sole proprietorship, in which you act as a freelancer or registered trader, or set up a small business. Alternatively, you can choose between the one-man limited liability company and the entrepreneurial company – often referred to as a “mini-GmbH” – or set up a small public limited company.

You can find out more about the different legal forms for solo founders here:

• One-man limited liability company – see GmbH
• Sole proprietorship (EU)
• Small public limited company – see AG

Sole proprietorship & one-person GmbH

Basically, there is not much difference between the two legal forms of a sole proprietorship and a single-member company, because in both cases you are the sole shareholder with sole power of management and sole power of representation. However, the decisive difference arises in the form of the liability issue: As a registered businessman (e. Kfm.) or registered businesswoman (e. Kff.) you are liable without limitation, directly and jointly and severally – as the sole shareholder of a one-person GmbH, on the other hand, you are liable exclusively for the business up to the amount of the capital contribution you have made.

Are you a sole proprietor yourself and no longer want to bear the enormous liability risk? Then you should think about converting your sole proprietorship into a one-person limited liability company. The change of form is easily accomplished, but can make a huge difference in case of losses! In order to avoid personal liability, as part of the registered traders (e. K.) you only need a notarial certificate confirming a value of at least 25,000 euros for your business and submit this to the commercial register together with the opening balance sheet. The sole proprietorship is practically brought into the GmbH as a contribution in kind.

Entrepreneurial company & small public limited company

Alternatively, you can consider setting up an entrepreneurial company (UG). Often referred to as a “small GmbH” or “mini-GmbH”, this legal form of company is a sub-form of the conventional limited liability company, but unlike the “normal” GmbH, it only requires a single euro as share capital. It is therefore particularly attractive for solo founders who do not have 25,500 euros in their bank account. Without the share capital of a GmbH, however, your image with the banks could be lower and your chances of getting a good loan could decrease.

The so-called “small AG” is primarily intended for individual shareholders who wish to keep their public limited company within a small group of people. Apart from the individual shareholder, who also equally assumes the role of the management board, only three other persons are required to be appointed as supervisory board members. However, the formation of a public limited company, regardless of its size, is very complex and more cost-intensive than the other common forms of corporate law. Therefore, a one-person limited liability company or an entrepreneurial company may be more suitable if you intend to found your company on your own. Alternatively, you might also consider setting up a sole proprietorship.

Alternatives to the UG: Legal forms in Germany

Legal forms – What types of company are there? If you want to start your first company, then choosing the ideal legal form is one of the first steps in the process of setting up a company. Whether it’s a special real estate company or a start-up, I’ve summarized all the types of companies in Germany for you here.

• Legal forms: List

Company types in detail:

• Sole proprietorship
• Registered businessman / registered businesswoman (e. K.)
• Civil law partnership (GbR)
• General partnership (OHG)
• Limited partnership (KG)
• GmbH: Limited liability company
• Real estate GmbH / Asset management GmbH
• Stock corporation (AG)
• Real estate stock corporation (REIT-AG)
• Societas Europaea (SE)
• Foundation / Family Foundation

Der Beitrag Unternehmergesellschaft / UG (haftungsbeschränkt) – Foundation, Financing, Liability & Co. erschien zuerst auf ℄ Real Estates.

Please note, this article is written with a focus toward the German market, but very similar rules apply everywhere.

Real estate as capital investment: Special

1. Part: Classic or exotic investment – Which real estate is suitable as a capital investment?
2. Part: Real estate as capital investment – What do I have to pay attention to?

Question: The topic of care is increasingly moving people. There is a lack of personnel, but also the nursing homes that are to be built. On the market there are increasingly offers, which offer the building of such houses as single participation or even as real estate fund for several Pfelgeheie. How will this development continue and how do you evaluate this form of investment?

Anyone who is well acquainted with nursing homes and the whole subject of care can seriously consider such investments. But this really does require a great deal of specialist knowledge, because nursing homes have a very special risk: with these so-called management properties, the qualification of the operator is crucial. If he does not manage carefully, there is no income – neither for the home nor for the investor. In the worst case, insolvency threatens and the money is gone.

And this has nothing to do with the fact that nursing homes are usually very well utilized. This is what the developers of nursing homes advertise. It is rather about the high costs of a proper care. And these are only partially paid by state institutions. The rest has to be paid by the residents or their relatives. If this does not succeed, many things are saved in the home. This again has a negative effect on the reputation of the home, which in turn means fewer residents. This increases the deficit because of the loss of rent.

Clearly: there are also funds that consist exclusively of nursing home shares. The risk is, as with most fund constructions, already somewhat lower. But the return is also significantly lower. If you really want to invest in real estate, you should not buy management real estate.

Purchase of Real Estate: All-Round Carefree Package

Question: What are the general requirements for a developer to be successful? And what is particularly important in the planning and construction of care properties?

First of all, I can briefly explain what a property developer actually is. From the buyer’s point of view, a property developer is something like the “all-round carefree package” for everyone who wants to buy a property. After all, the property developer takes care of everything that has to do with the purchase of land, planning and construction of the property. Even the later purchase contract is very often made through the notary public, which the developer organizes. The buyer takes the key of his finished property, packs his furniture in and can enjoy his new home.

But for all this to work as smoothly as I just said, the developer needs many good connections to authorities, construction companies etc. In addition, he must have a “good nose” where free plots of land or even existing houses are sold. This means that a good property developer has to be very well networked regionally. So if you want to buy a property from a property developer, you can easily fall back on smaller local or regional companies.

And there is another thing a property developer must know and be able to do: he needs to have very good knowledge of land and property prices. This helps him to purchase the land and buildings and forms the basis for negotiations with the construction companies. After all, the developer wants and needs to earn money with his projects himself. Only then can the developer borrow money from banks at good conditions. Money with which he usually pre-finances the purchase and construction of his projects. You already suspect thereby that a builder usually moves very large sums of money.

What is important when planning and building nursing homes is, in my experience, especially the view of the need for such a house in the area where it is built! This sounds rather banal, but not everywhere where homes are built, they are needed. If you invest in such a house, you will not enjoy your investment. Therefore, the planner of a home, just like the investor, should coordinate very closely with the respective community to determine whether there is an exact demand planning for nursing homes and to what result it will come.

Everything else that has to do with planning and construction is laid down in the state building code and many other standards. Of course, a developer of nursing homes must take these into account, otherwise he will not get any residents.

A Special Path: Investing in a Student Residence

Question: Up to now, it has been rather exotic to invest in special real estate such as retirement and nursing homes. On the other hand, student residences are already more in the eye of investors. Which chances do you have with this form of the investment?

Quite clearly: the devil is again in many details. I’ll stick with the principle for now: there are “thick” and “thin” solutions for the construction of student housing. What is meant here is not the size of the rooms or apartments, but the proportion of common property in the house. A house that includes common rooms, a fitness center, a barbecue terrace, etc. – the “thick” solution – will generate higher rental income (because you are not bound by the rent brake), but the maintenance costs to be paid by the owner are also significantly higher. If the house is not fully rented, these costs eat up the rental income.

As with all real estate, the location of the student house is particularly important. The mere existence of a university does not mean that the apartment has to be rented permanently. If the study offer is not attractive enough, or if there are many affordable “normal” apartments in the area, there is nothing to be gained from the capital investment.

Therefore I rather advise to invest in objects that are not fixed to a single target group of tenants. So that in the apartment beside students also the normal tenant can live. If then the entire living environment is considered additionally as particularly attractive – for instance because of proximity to purchase possibilities, recreation areas etc. – the topic “loss of rent” hardly plays a role anymore.

Question: Quite classical is the investment by buying a condominium. What has to be considered and how is the best way to finance such an investment?

We are always talking about apartments that the investor does not live in himself, but rents out. Because then I have my regular rental income as a yield in addition to the proceeds from later sales.

But to ensure that this income flows as smoothly and uninterruptedly as possible, the apartment must be located in an attractive environment. That starts with the house itself. Is there a garden? Is there an elevator? What about parking facilities? Incidence of light, outdoor seating and much more also play a decisive role in ensuring good rentability. I don’t need to mention that the building condition of the house should be perfect. In the apartment itself, the tenant is responsible for maintaining the substance, but in the communal facilities it is always the owners who are responsible. Especially when buying an apartment in older houses, the condition of the cellar, roof, hallway, windows etc. shows whether the owners are investing or not.

When it comes to financing, it is best to ask your bank and tax consultant. With a capital investment it can be a matter of using existing capital for the purchase or borrowing money for the purchase. With the current favorable interest rate level everyone can create his investment also with little available own capital. But beware: many offers on the market are considered overpriced because the seller has included the low interest rate in his sales price.

Do not worry! Also middle apartment sizes can be rented well.

Question: The demand for living space is increasing. Especially in the large cities of Frankfurt, Berlin, Munich, etc. What does this development mean for the market? Should one rather buy a small or better a large apartment? Is the condominium suitable as a capital investment at all?

To the second question I expressly say “yes”! Not everyone wants to or can live in a single-family house. That is why condominiums are in high demand today and in the distant future. Whoever then still pays attention to the suitable basic conditions with location and equipment, does everything right!

Large or small apartments also depend on the consideration whether I want to live in my apartment myself at some point in time. The housing market is currently looking for small and very large units. If you want to live in your own capital investment later on and don’t want to have “dance halls” for it, you should rather go for the medium size, say 70 square meters. And don’t worry! You can also get them well rented.

Question: The new construction of apartment buildings with condominiums or rental apartments is politically desired. What are the differences in the demand for existing and new buildings in this sector?

Actually no differences! There are enough property developers and investors interested in multi-family houses and housing developments. I speak for myself in this respect. Our company buys both existing real estate and land for the construction of new housing estates. The offer is limited for both forms. At least if you are interested in attractive sites. We are therefore constantly looking for apartment buildings or plots of land, which we then develop further and sell again.

From small apartment to Real Estate Empire – the Leverage Effect!

Question: Who wants to earn his money with real estates, can trade with houses, build new or simply in the large scale dwellings letting. What are the biggest differences compared to managing a simple condominium or a single-family home?

This question is already quite extensive to answer here. To be a real estate agent and to want to earn big money means: to acquire a lot of knowledge in the real estate market and to invest even more work. Because most of the time the necessary work is done at the same time. For example new construction: whoever starts the construction of a plant must immediately start the next project to secure capital flows, to service credit lines, etc. He has to find and serve the buyers or tenants of his properties at the same time, in addition to the many discussions with authorities and banks. The management of the finished objects is usually included if you remain the owner of the plant.

On the other hand, the management and maintenance of his apartment or small home is absolutely manageable. Owners’ meeting, service charge accounts, checking investments in multi-family houses and occasionally holding a tenant meeting: that’s it.

And yet the small rented condominium can be the entry into a larger real estate empire. This is where the so-called leverage effect helps. In short, this is the effect I achieve when I borrow from the bank after a few years to buy a new apartment. The increase in value of the original apartment helps me to increase my equity capital arithmetically and thus to be able to take out a higher loan for a larger and more expensive apartment. This game can be repeated as often as you like, if you do it right.

Experts’ Advice: Plan the Digital Living World of Tomorrow Today

Question: What changes has digitization brought about for the real estate industry? How does this affect investors?

Let me start with a very simple example: Anyone who wants to sell or buy their real estate today no longer looks at the newspaper. Real estate portals with great photos or videos are inconceivable without digitization. For both sides, however, this also means that digitalization skills are needed to separate the wheat from the chaff when it comes to offers as buyers. The seller should know which portal is the right one for his buyer target group.

In real estate management, so-called facility management, digitization is only just beginning. The collection of consumption values for the creation of accurate utility bills is a very simple example. It gets exciting when, for example, access to real estate is to be controlled electronically. Since people’s need for security is growing, many things can be controlled remotely via digitization. An electronic consierge, so to speak. Or in property maintenance: how can robots be used there to save on personnel costs?

Anyone planning apartments and houses today must have the “smart-home” theme clearly on their screen! If it is to be the case that in the future, living, working and consuming will increasingly take place in one’s own home, then the infrastructures for digitizing the home must also be planned. And I’m not just talking about laying any cables or invisibly installing entertainment electronics. Rather, it must be possible to change apartment floor plans flexibly, the use of the rooms must be changeable and the use of electronics must ultimately be possible everywhere. Here, too, there are interesting perspectives for planners and investors alike.

And that means for the investor in the real estate world: checking whether the investment is also future-proof with regard to these developments. Anyone who wants to have solvent buyers and permanently living tenants in the future must invest in the digitalization of their property. Especially as we cannot yet imagine the possibilities of this development in its entirety today.

Secret tip: Where the Investment Really Pays Off

Question: Do you have an insider’s tip in store for me where I can invest in real estate in the Rhine-Main region well and inexpensively?

Of course: My hometown Bingen am Rhein with its immediate surroundings is at the forefront. And that for many reasons! Here, the ratio of the purchase price of the property to the amount of the expected rental income is very good. The prices are significantly lower than in Mainz, Wiesbaden or Frankfurt. The rent level, on the other hand, is not so much lower than in the centers. So I have a high return on investment.

And that’s for sure in the long term, because the location on the Rhine has a high recreational value, and the transport connections, even with public transport, are very good. In addition, the city has a decent commercial infrastructure, including the necessary schools and even a university of applied sciences. This means that no one actually has to move away and can stay here until they reach retirement age.

Interesting investment alternatives are also refugee accommodation.

Der Beitrag Invest Classically or Exotically: Which Real Estate is Suitable as a Capital Investment? Investment Interview erschien zuerst auf ℄ Real Estates.

You want to sell? Read more tips on taxes, procedure & Co. under Selling an apartment.

What influences the value of an apartment?

But let’s stick to the so-called “Pi times thumb value”, a very rough value determination. In order to determine the value of your apartment, a number of “soft” factors play a role.

Before we get deeper into the matter of evaluation of location, building fabric, market value & Co., we first ask 3 basic questions which reach us in consulting discussions with customers:

• How can I value a property?
• Who determines the market value of a property?
• How does the bank value a property?

Location, location, location: value enhancement and sales argument

This refers to all those things that you can see but cannot immediately translate into money or other value. First and foremost, this means, for example, the so-called micro and macro location of the apartment, i.e. the view of the immediate and regional surroundings. Whether your apartment is located on a busy street or in a quiet suburb, whether the surroundings of your apartment are rather middle-class or socially disadvantaged – all these “soft” conditions influence the value of your apartment.

Hard facts: Infrastructure and equipment

The “hard” factors of the micro-location include the proximity to doctors, public institutions or cultural sites. For here, the conditions can be measured at least in terms of distance and number of available facilities. Basically, the following applies here:

The closer you are to public life, the more value these factors add.

The proximity of your home to public transport is also – and certainly increasingly so – a plus point. After all, buses and trains are becoming increasingly important in urban and rural areas in the context of the climate debate. Certainly: the availability of your own parking spaces or even an underground car park also has a positive effect on the value of your apartment.

Do you know the crime rate in your residential environment? This is a real “mixed factor” of hard and soft in apartment valuation. On the one hand, this rate can be “hard” by means of figures, but on the other hand, the rate of a district does not necessarily apply to the immediate street situation of your property. Especially in this area there is a lot of “felt” security or insecurity.

Decrease in value or increase factor

These criteria have one thing in common: they cannot be converted into hard currency, or only with great difficulty. There is no exact value reduction or increase factor here. This also applies to the macro location of the apartment. In other words, the location of the apartment in a larger geographical region or a district in the case of larger cities. Even if apartments in southern Germany are generally considered more expensive than in the north, a chic apartment on Hamburg’s Alster is always worth more than in Göggingen near Augsburg, for example. An apartment – for example in Essen – is on average much more expensive in southern districts than in the north.

Checklist: Rate apartment for sale

Important when selling an apartment:

1. Take the time for the preparatory work
2. Present the apartment professionally
3. Use our service to achieve a good sales price.

Comparable values and square meter prices

In the apartment valuation we include the local square meter prices in the comparison. We determine comparable residential properties and their selling prices from nationwide and especially regional databases.

The square meter price which is usual in the industry and regionally obtained is apportioned to your free-hold apartment in the comparative value procedure. Thus you receive a realistic sales price estimate for your apartment. In addition to the comparative characteristics such as location and size of the apartment, individual furnishings and fittings are also included in the real estate value determination. Thus, conservatories or high energy efficiency can significantly increase the price. But also building damages, pending repairs or modernization measures are considered with the price determination.

Real estate prices in Germany

Here you will find a selection of the largest German cities with information on purchase prices, comparisons and development of economy and infrastructure at a glance.

Real estate prices:

• Berlin
• Düsseldorf
• Frankfurt
• Cologne
• Hamburg
• Hanover
• Munich
• Stuttgart

Criteria for the valuation

Other criteria for determining your real estate value include general information about the real estate object such as floor, room and equipment.

1. Year of construction of the object
2. Living floor
3. Number and size of rooms
4. Balcony, terrace, loggia and winter gardens
5. Community property
6. Rented apartments

Year of construction of the object

In the case of old buildings (built before 1945), renovation of old buildings increases the sales value. The price for apartments in well-preserved or renovated old buildings is often higher than the local average price. Newly built apartments are also generally valued higher. However, many apartments from the 1960s and 1970s often have to reckon with price discounts if a particularly poor building fabric is found.

• Purchase price reduction often for 60’s / 70’s buildings

Residential floor: first floor, penthouse & elevator

The higher the apartment is in the building, the higher its price. First floor apartments are less in demand and their price can be up to 30 percent below the average. If the higher-lying apartment is also accessible by elevator, the circle of potential buyers is also increased.

-30% for first floor apartments

From own experience real estate buyers are often “spontaneously in love” especially with penthouse and loft apartments. The purchase price here may definitely be slightly above the market value. With appropriate development of the attic with open space, additional, value-increasing factors are added.

Equally decisive, the higher the condominium, the sooner an elevator must be installed. Apartments without an elevator discourage many buyers nowadays, especially in the inner cities of metropolitan areas, which have many alternative real estate offers.

• Ground floor up to -30% of market value
• Loft / Penthouse increase the purchase price
• Important: elevator installation

Number and size of rooms

Rooms with at least ten square meters are counted. If it is less, the rooms are counted as half rooms. The kitchen and bathroom are not counted. In principle, apartments with many rooms are also valued at a higher price per square meter.

From experience, the number of bedrooms is what counts most. Especially for luxury properties, the number of bedrooms must be sufficient. Even singles attach importance here that sufficient capacities are available, whether they are needed after the purchase or not.

Number:

• Bedroom
• Living room
• Bath / baths
• Kitchen, walk-in kitchen
• Study office
• Walk-in closet
• Corridor / foyer

Balcony, terrace, loggia and winter gardens

Places to chill are sought after and so these additional features increase the possible selling price of the apartment. They enter with 25 per cent into the floor space calculation. In particularly favorable residential areas or with very complex organization they can be considered with up to 50 per cent as floor space.

Community property

Common property such as elevators, stairwells, roofs, doors, heating and utility lines can be very attractive special property. If the outdoor facilities are particularly well maintained or if meaningful common rooms are available, the market value of the apartment will also increase.

Rented apartments

If the future buyer cannot move directly into the new property, this often has an unfavorable effect on the purchase price. However, well-let properties are also sought after on the market. Investors take into account the expected yield of the property. Also in these cases we can help you decisively with an evaluation of your ETW.

Flat valuation online

Housing evaluation online? Many people use real estate portals for the evaluation of their apartment – but does that make sense? An algorithm can never assess the condition of your property as accurately as the human eye. Starting with the distribution of rooms with light exposure through south-north-north-east-west location, the possible further use for the buyer, the actual state of renovation, insights into the last modernization works, etc. If you generate your online evaluation online as PDF free of charge, you will receive a standard evaluation based on a few parameters.

This is not a sound evaluation! Because here never all conditions are asked in detail. This includes as described above, among others:

• Object data of the apartment
• Equipment of the interior
• Construction condition and facilities
• Modernization measures
• Individual object criteria of your apartment
• City district and local connection (school, supermarket, etc.)

If you carry out an online evaluation, you will also quickly notice that many portals also ask questions about the property, for example, when evaluating apartments: Does that make sense? No. That’s why such standardized queries usually don’t give you any relevant results that you can use to sell your apartment.

Sell? We will give you a clear assessment: Contact

Regional differences and real estate

As a real estate team with regional roots, we can only warmly recommend that you obtain your valuation from a trusted real estate agent. Here you will be asked really important questions, you will receive a free and well-founded assessment of your condominium based on truly market-relevant valuation criteria.

A simple online valuation, as it is offered on many real estate portals, can give you an insight, but not a sound analysis for the sale of your apartment.

Statistics Germany: Square meter prices

Here you can see the cities with the highest prices per square meter for condominiums in a comparison of 2010 and 2018* (in euros per square meter). More facts, figures and the development of real estate prices can be found at Real Estate Statistics.

1. Munich (Bavaria) with 8,342 euros per square meter; from 6,737 euros per square meter in 2014; increase of 1,695 euros per square meter in 4 years
2. Stuttgart (Baden-Württemberg) with 5,925 euros per square meter; from 4744 euros per square meter in 2014; increase 1,181 euros per square meter
3. Frankfurt am Main (Hesse) with 6,060 euros per square meter; from 4,373 euros per square meter in 2014; increase 1,687 euros per square meter
4. Freiburg im Breisgau (Bavaria) with 4,943 euros per square meter; from 4,740 euros per square meter in 2014; increase 203 euros per square meter
5. Ingolstadt (Bavaria) with 4,969 euros per square meter; from 4,287 euros per square meter in 2014; increase 682 euros per square meter

What are “hard” criteria for the valuation ?

Let us therefore adhere to the strict criteria in the strict sense of the word when determining the value of an apartment. And in doing so, those which you as a citizen can usually easily reach. For example, the household income of a city or district. Although there is no direct correlation between the level of household income and the value of a home, a high income means you can expect a high standard of living, high purchasing power and also a certain attractiveness of the location.

If the residential environment – in this case also seen from a regional perspective – shows a high number of different attractive employers, this hard criterion also has a positive effect on the value of the housing. Finally, one can assume that the demand for living space in this environment is quite high and thus also the value of the supply (apartment).

Among the hard criteria, which are independent of the location of the apartment, is the basic economic stability in the country. The course of economic development – also known as the business cycle – has a noticeable influence on the demand for residential property and thus also on the price.

Valuation method

A property is worth as much as others are willing to pay for it – that is the basic principle of the real estate market. Of course, the purchase price of a house or apartment depends on how much it cost to build and extend. But if no buyer can be found for a luxury villa or luxury apartment at a price that would be reasonable in view of the construction costs, the value is unfortunately still lower. However, this also applies vice versa!

A “spoiled” apartment in an otherwise passable house, but located in a sought-after environment, generates a high demand and thus a high price. With this so-called “comparative value method” you can even determine an approximate value of your apartment yourself. Comparable in the sense of the comparative value procedure would be a similar apartment in the immediate vicinity.

For this purpose, however, the value-giving “example” of the neighboring apartment should also be reasonably up-to-date. A value that was achieved ten years ago – let’s say – also reflects the market situation ten years ago.

Note: Each of the three methods will usually come to a different result!

Calculation example comparison value

Simply explained: For the calculation real estate comparative value we set exemplarily two real estates in the relationship. Based on the information on purchase price and total living space, we can then calculate the proportional purchase price for your property.

Details of the property to be valued:

• Area of the property to be valued: 200 square meters
• Purchase price of the property to be valued: ?

Details of the comparative property:

• Area of the comparative property: 100 square meters
• Purchase price for comparative property: 300.000 Euro

Income value, comparative value and material value

In the case of rented real estate, the “capitalized earnings value method” is usually the focus of the valuation. In addition to the land value of the property, the rental income and the so-called property interest rate of the property are also used for valuation.

For owner-occupied apartments, the “real value method” is also often used in addition to the comparative value method, especially in the case of luxury properties. In the foreground here is the material value of the building structures, which is derived, among other things, from the cubic meter price of the building and a building price index.

Both of the latter two methods are in any case suitable for a very precise valuation of your apartment, but in the end can only be applied by an expert. In the end, only an experienced real estate agent has an overview of the market situation with the comparative value procedure.

This is quite normal, because the underlying parameters of the valuation are different. Your real estate agent as real estate expert will then explain to you which value is the right one for you or your goals.

Costs of an apartment valuation

For the calculation, a rough evaluation is first made. The price for the final valuation is therefore, in most cases, based on the estimated value of the property to be valued.

If the value of the property is below a limit of 150,000 Euros, you can expect approximate costs of 1,500 Euros. For luxury properties or apartment buildings with a property value of more than 1 million, the estimated fee is 3,000 euros.

• Below 150,000 Euro value, approx. 1,500 Euro
• Over 1.000.000 Euro value, ,about 3.000 Euro

Source: Federal Association of Experts

Conclusion on the apartment evaluation – Checklist

The comparison of the value of an apartment in your neighborhood offers you a very good first indication for the valuation of your own apartment. In principle, the following factors increase in value:

• The location of your apartment in an attractive residential area
• The location within a conurbation or the proximity to major centers
• A quiet inner-city location, also very central in the city
• Good connections to public transport
• Short distances to supermarkets, doctors, pharmacies, authorities
• A neat living environment
• The good condition of community facilities in the house
• A high level of care for your home
• An elevator system
• Parking spaces or underground car park

A thing for experts: the valuation of your apartment

Documents for valuation

The exact determination of the housing value includes thus a quantity of basic conditions with. Even if you do not have a sale of your apartment in mind at the moment, you should compile some basic documents for an exact valuation. These documents will help the real estate agent to make an exact appraisal and create a solid basis of trust for possible future buyers.

The important documents include:

1. Extract from the land register
2. Declaration of division
3. Floor plan
4. Ground plan
5. Minutes of the owners’ meeting
6. Housing allowance statement for the last three years
7. Overview of the maintenance reserve
8. Proof of insurance
9. Energy Performance Certificate
10. Copy of the rental contract, if your apartment is rented

Even though the energy pass is always issued for the entire house in which the apartment is located, this pass allows direct conclusions to be drawn about the energy status of the apartment. Therefore, the certificate should not be missing in any valuation.

For insurance companies, only the policies that secure the actual building fabric are important. Thus fire and/or building insurances. Since the apartment is usually part of a multiple dwelling, a copy of the policy must usually be requested from the insurance company via the administrator. The insurance of your household contents is not part of the valuation!

Avoid errors in the valuation

To mention one of the most important mistakes in the (own) valuation right away: Most condominium owners have strong emotional ties to their property. Usually they do not notice this bond themselves, but unconsciously set the value of their apartment too high.

The second mistake often occurs when the sale of the apartment takes place under (time) pressure. As a result, the price is usually too low, because owners hope that this will lead to a quicker sale. Exactly for this reason, it is also sensible to let the owner determine the value of the apartment even without any concrete intention to sell. This way I can be sure that I have a solid value basis “in the drawer” when selling and also gain insight into the value development of my apartment over the years.

Even though we have mentioned the comparative value procedure as the most common method of determining the value above and referred to the price level of comparable apartments in the immediate vicinity, this is precisely where errors can occur if you use the value statements of neighbors, friends or acquaintances, or even advertisements in relevant real estate listings. Because who knows already whether the statements made represent the later reality with the sales happening.

What can a real estate agent do in the investigation?

Who is the right person for the valuation of your apartment? An estate agent or an appraiser? The answer to this basic question depends on the goal that you are pursuing with him.

You will always need an appraiser or expert if the valuation has to stand up in court – for example in the event of a divorce. An even higher level is to have the appraisal valued by a “state-approved real estate appraiser”. Then the appraisal is accepted by all authorities. No matter which of these two ways you choose: these appraisals cost money. An actual difference in quality or even the achievement of different values does not exist with either appraiser.

Also the value of the apartment determined by the real estate agent will not differ from the values of the appraisers, if both work seriously and according to the same guidelines. However, the “expert opinion” of the real estate agent will not stand up in court or other authorities. This has nothing to do with a lack of education or qualification of the real estate agent.

If you would like to appear confident and competent in front of potential buyers with a valuation report, the (usually also free of charge) opinion of an independent real estate expert or real estate agent is absolutely sufficient.

Because there is one thing that all experts should bear in mind: not everyone who calls himself an appraiser or expert is one. Pay attention with appraisers, for example, to certificates and training on the part of the Chamber of Industry and Commerce, and with estate agent appraisers to appropriate expert opinions in valuations and sales processes of apartments.

Conclusion: Apartment valuation

The value of a property, including your apartment, can be determined using various valuation methods. The results are as numerous as the possibilities, because you will always get a different result. This is quite normal and correct, as each valuation procedure is based on a different approach.

Online valuation only appearance: Simplest parameters

Why? Portals want to fill in your contact details, “free of charge” and off you go…

An online evaluation is mainly based on the location of the property and usually does not sufficiently capture the actual condition of a property. Therefore, an online valuation tends to yield only an overly optimistic property value.

The result should not be viewed too euphorically.

If you then commission a broker or other expert – including a state surveyor – to carry out a valuation, he will determine a lower market value for you.

The appraiser always determines the value on a valuation date and works with data from the recent past. While an online valuation is a free tool, you will incur costs with a certified appraiser. However, there will never be any unpleasant surprises, because the success fee is already fixed in advance.

Data from the recent past as well as forecasts for the coming months are incorporated into his evaluation. In addition, the real estate agent will discuss the value with you and recommend an advertisement price.

The valuation is the linchpin of a real estate marketing. Here you as the owner should leave nothing to chance or dare to experiment. After all, your financial future is at stake and it should be rosy.

You want to sell? Read more tips on taxes, procedure & Co. under selling an apartment.

Der Beitrag Valuate apartment: calculate purchase price and sell condominium erschien zuerst auf ℄ Real Estates.

TV contribution to the “Business Model Influencer” in the Mediathek

• Now at the DW media library: Influencer Marketing [1:15 – 3:15 minutes]
• More about singer & songwriter Luna Farina

Thanks to the whole team!

Many thanks to my team:

• Social Media One / Luna Farina
• CM Models / Natascha Windgaße

Luna Farina – TikTok Channel

Source: DW TV / Mediathek

Natascha Windgaße – Artist Management / CM Models x Social Media One

Stephan M. Czaja – media expert and speaker

Source: DW TV / Mediathek

TikTok?

Source: DW TV / Mediathek

Have you ever heard of Tik Tok? Tik Tok is one of the latest social networks and perhaps the successor to Instagram and Facebook. Tik Tok is the trend, especially among young people between the ages of 8 and 18, they are mainly present on TikTok. Already today, the app for Android and iOS is number 1 in the download charts in over 30 countries. There is now also a strong investment in Europe.

Thus, TikTok is establishing itself as a brand and is accordingly becoming more relevant for brands from other areas. This is understandable, since today’s youth is tomorrow’s affluent target group. The platform’s target group is very, very young. A target group that becomes increasingly relevant with age, however, for us as advertisers. That is why we also arrange contacts with influencers from the next generation network.

• Read on socialmediaagency.one: TikTok
• More about singer & songwriter Luna Farina

Der Beitrag “Made in Germany” Influencer Marketing – Interview Deutsche Welle DW TV erschien zuerst auf ℄ Real Estates.

• The Social Book German – Amazon (Print)

Important social media tips you should know

There are many questions about social media marketing. As a rule, this is not even about the really complex subject areas, but often only about very central questions such as:

• What are social networks and what makes them?
• What is the purpose of social media in everyday life?
• What is User Generated Content?
• Why do companies use Social Media Marketing?
• How does Social Media Marketing actually work?
• How to measure the success of your social media marketing?
• For which companies is Social Media Marketing?
• What skills and knowledge does a Social Media Marketing Manager need?
• What are the goals of Social Media Marketing?

Who does the Social Book help?

For all social media managers, whether beginners or advanced, for young entrepreneurs and startups, but also for self-employed, such as designers, hairdressers, online shops, “The Social Book is the perfect foundation to understand the world around social media marketing. “The Social Book” is less a concrete recommendation for action than an intellectual guideline. It is a guide that will help you understand social media. More than two billion people are registered in the social networks, an excellent source for new customers, but also prospective customers for projects and campaigns. Those who know how to manage the leap between the different social networks and use the individual advantages of the social networks around Facebook, Instagram, YouTube and TikTok can achieve great success.

In addition to social media marketing, it is also about the basics, social connections and, of course, the emergence of social networks. Because in order to plan the actions in today’s social networks, it is worth taking a look at the history behind it. Although the chapter is only very short, it gives a good insight into the current expansion, but also into future developments. In addition, it deals with social connections and group dynamics.

However, the book not only provides a detailed basis on the subject of social media management, community management and social media marketing, a large chapter also deals with the subject of social advertising in the best-practice example, Facebook. Facebook also includes Instagram and WhatsApp, two of the largest networks we use on a daily basis. That’s exactly why it’s worth taking a look at the Facebook Advertisement Manager, because here you can learn a lot and later put the theory into practice for your own company.

Help the book also in your studies?

The answer is definitely yes! The book can also be used for your bachelor’s or master’s degree. This is because there are absolutely practical tips here, most of which are only derived from expert interviews. Those who adhere to the existing guidelines will definitely be convinced in the paper, the term paper, the Bachelor or Master Thesis.

• The Social Book German – Amazon (Print)

Recommended book value

More books? Here you can find all publications (Stephan M. Czaja): Books.

The Business Book

Becoming an entrepreneur is not difficult, but being an entrepreneur is very difficult. Already knew 9 of 10 startups failed in the first 5 years. When I am on the road during my lectures, this is often the first step to make it clear to the young entrepreneurs that every person around them has to fail if they want to survive as entrepreneurs themselves. The reality check for entrepreneurs is pretty brutal. Nobody remembers the pyramids that fell. Everything talks about those who are still standing. It’s the same with entrepreneurs. Failure knocks on the door faster than you’d expect. This book is the result of my experience as an entrepreneur, the lectures and the reflection of the audience. More about: The Business Book.

The Content Book

Writing good SEO texts needs to be learned. Therefore there is now the new book from my SEO Collection, The Content Book. Search engine optimization has changed many marketing processes. Today, people can be reached globally within a few seconds and with just a few tricks. Knowing the right tips and tricks, especially from everyday agency life, is worth its weight in gold for young companies as well as for online shops of all shapes and sizes. The Content Book shows how it works: practical and direct. More about: The Content Book.

The Model Book

You want to be a model? THE MODEL BOOK gives you a comprehensive overview of what you as a model need to know about the industry and your model agency. In order to prepare models perfectly for the job, good agencies coach their models very intensively. In points such as cooperation with the agency and with customers, your own public image, your personality, but also with practical posing and catwalk training. What do you need to watch out for? What do you need to prepare for? What’s coming your way? How do you write modeling agencies? How do you get good shoots with photographers? How does the agency work behind the scenes? How are castings decided? In the book you will learn everything + insider tips! More about: The Model Book.

Content: The Social Book

1. Development of social media in Germany
2. Web 2.0
3. Affect
4. Revolution
5. Differentiation
6. SMM: Communication and Interaction
7. Transmitter-receiver model
8. “Broadcast Yourself”
9. Always Online
10. Success factors
11. SMM in companies: Analysis
12. Worldwide relevance
13. Modern Information Society
14. User Generated Content and Company
15. Trend conscious. Fashion companies are pioneers
16. Best Practice Asos
17. Trends and social groups
18. Social Media Stars
19. Advertising psychology
20. Adapting principles of the Social Web
21. Media usage
22. Use of media in transition
23. Development of online use
24. Age groups
25. Use
26. Mobile activities in Germany
27. E-Commerce
28. Purchases by commodity group
29. A products and priority
30. Channel structure
31. Brand, identity and first fans
32. What social network?
33. Social Media Mix recommendation
34. Content with added value
35. Times: Studies and Live
36. Guiding rules in SMM
37. Create inspiring content
38. Ease sharing your content
39. Reward users
40. Share contents active
41. Encourage you to embed your content
42. Opportunities and Risks
43. Long Term Optimization
44. Measurement, goals, target group and reach
45. Societing – improvement through customer feedback
46. Metering – Results and analysis
47. Multipliers and brand ambassadors
48. Multi-Channel-Management
49. Synergie: Online / Offline
50. Conclusion: Core elements
51. Regular content and added value
52. Interaction and Communication
53. Network expansion
54. Optimization
55. Social Advertising
56. Facebook
57. Success through fanpage, design and ads
58. Fanpage
59. B2B Marketing
60. Create page
61. What does the perfect posting look like?
62. Posting times
63. 1K Generate Facebook Fans
64. Increase organic reach
65. Create Attractive Lead Magnets
66. Youtube
67. Youtube SEO
68. Instagram
69. Product Placement
70. Alternatives
71. TikTok
72. Twitter
73. Google Plus
74. Pinterest
75. Vimeo
76. Tumblr
77. LinkedIn
78. Xing
79. Influencer Marketing
80. How do you benefit from the hype?
81. Lifestyle Meets Media
82. Effect on buyer
83. Social Advertising: Facebook
84. Targeting
85. Age
86. Residence
87. Interests
88. Retargeting
89. Audience Insights
90. Select target group
91. Interaction rate as a success indicator
92. Retargeting Pixel
93. Create Advertisements
94. Display and display groups
95. Leads
96. A/B Test
97. CPC: Cost per click
98. Costs
99. Youtube Advertising
100. Further development
101. Localization
102. Social Commerce
103. Swarm intelligence
104. Social networks have a great future

Der Beitrag The Social Book – Social Media Networks, Management and Marketing erschien zuerst auf ℄ Real Estates.