Location of the Rhine-Main region

Among the most famous cities in the region are Frankfurt am Main, Wiesbaden and Mainz. But also small towns like Eltville, Ingelheim, Bingen am Rhein and are internationally known, especially through tourism.

More and more investors are taking notice of the region.

Why, actually?

On the one hand, many companies from the financial sector are moving to Paris and Frankfurt am Main since Brexit. Frankfurt can be reached from most cities in half an hour. In addition, the popularity with Asian investors is increasing when they are looking for investment properties in Germany. The increased interest has many factors, tourism is creating awareness, including through new media, as is the increased interest in fine wines. The Rhine-Main area is one of the wine growing regions in Germany.

The Rhine-Main region is located in the south-west of Germany and runs mostly through the states of Hesse and Rhineland-Palatinate. As seen here on the map:

Germany as an investor imagines it

For visiting investors, I would like to recommend the following, if circumstances permit: A short drive, along the Rhine. By car or even via train. Very few people take the regional train on a daily basis. But if you, as a real estate investor, take the time to take the regional train, for example from Koblenz to Bingen, you will pass picturesque places that you would otherwise not see.

Vineyards, castles, real estate in prime locations

The entire route leads along the Rhine. You drive along the river, between the mountains, from town to town. On the mountain tops there is a castle every 5 minutes. It was hard for me to take my eyes off the panorama on the first, and also on the second ride.

Between the small towns, villages appear every two minutes in the mountain slopes, with real estate in the slopes, down to the course of the river Moselle. And again, on the mountain top is a magnificent castle. On the Rhine, exactly the same picture. An absolutely picturesque region. Rugged cliffs, viticulture, welcome to the Rhine-Main area.

On the mountain slopes are houses, apartment buildings and the one or the other more magnificent estate. Equally much represented is the hotel industry, through international tourism.

Strong demand: location, economy and advantages

In this area, it is difficult for investors to get properties in need of renovation. Because, not only Germans and Europeans invest here anymore. Chinese investors are also looking for special objects and properties. In particular, the growing preference for wine in China and Asia in general, provides for the increasing attention of the region, beyond the borders of Europe.

Picturesque countryside, healthy nature, many small towns and large metropolises such as Frankfurt, barely 30 minutes away. In addition, the always strong tourism, the proximity to economically strong regions (NRW, France) and Chinese players. In addition to these advantages, there is also the shipping, which is an attraction for locals, for tourists, but shipping also flushes money into the coffers of the municipalities.

Advantages at a glance

Of course, I can only give you a very small glimpse of the region in this article. But if you were to ask me how I would sum up the region, it would be like this.

Advantages: Real estate in the Rhine-Main region

• Picturesque region, healthy nature
• Small towns and close to Frankfurt am Main
• Proximity to economic areas such as NRW, France
• Thriving international tourism (stable for decades)
• Shipping

Real estate portfolio: little space, efficient construction

If we talk specifically about the closer location on the two rivers Rhine and Main, then the majority of the real estate stock consists of semi-detached houses and smaller apartment buildings. Space is very scarce here, due to the rugged mountains that stretch upwards, especially in the Moselle and Rhine valleys. On the edges, the very long, shoreline cities, are isolated single-family homes.

In fact, the space between the bank and the rocky outcrops is often very tight. Sometimes there are only a few meters between the river and the steep rock face. The rock faces reach 50 to 80 meters high, partly vertical.

This is what makes the region so unique.

Large cities nearby: Culture and economy

Besides the many small towns and villages, right on the riverbanks, there are a few interesting cities in the region, each with its own charm.

Frankfurt am Main

Important and the first to mention is Frankfurt. The banking metropolis has always been one of the strongest regions in Germany and even Europe. To the banks comes one of the largest airports in the world. Frankfurt Airport is an international hub, with hundreds of take-offs and landings every day. Add to that the many cargo planes arriving from all over the world. Frankfurt is also a trade fair city and holds some of the largest trade fairs in Germany, such as the IAA (International Motor Show), XY and XY.

Advantages of Frankfurt am Main:

• Banking city, financial company and industry
• International airport, one of the largest in the world
• International trade fair city with flagship trade fairs in Germany

Buy and sell real estate in Frankfurt. Here we have a deeper insight into the real estate market of Frankfurt. From condominiums in the banking district to villas in more upscale neighborhoods like Frankfurt Altstadt, Westend-Süd or the Gutleutviertel.

• Real Estate Frankfurt
• Real estate for sale Frankfurt
• Living in Frankfurt

Frankfurt Map: City and Location

Wiesbaden

• Wiesbaden

Wiesbaden Map: City and Location

Mainz

• Mainz

Mainz Map: City and Location

Bingen am Rhein: Investing “in the countryside” (Tip for Frankfurt residents)

Capital investment new building Bingen – You are looking for an attractive capital investment near Frankfurt, Mainz & Wiesbaden. Welcome to Bingen on the Rhine! Take advantage of the current interest rate situation and invest now in the Rhine-Main region. In a central location with a fantastic view of the Rhine and the Rheingau, 25 modern and bright condominiums will be built in the usual high quality. From the cosy two-room apartment with approx. 66 m² of living space to the spacious four-room apartment with approx. 152 m² of living space, this exclusive residence offers the right property for every situation in life. The immediate proximity to the river as well as to several parks and local recreation areas combined with excellent transport links make the Rheintal Terraces so unique.

• Bingen on the Rhine

Private sale or real estate agent?

When it comes to selling your property, the buyer bears the commission costs for the brokerage. This is fixed by contract, as is the amount of the commission. Selling successfuly means being deliberate and deciding in your favor as soon as you hire your realtor. Buyers for real estate are primarily looking online for their dream home. This alone is a reason to focus on online real estate agents with high reach.

Hiring a broker from A-Z

Tasks

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent. All about the tasks.

Checklist

Should you offer your property privately or rather hire an estate agent? Every owner who wants to sell or rent is faced with this question. Those who have experience and plenty of time can carry out the numerous tasks themselves and let their property privately. But without sufficient know-how, the sale becomes a big challenge and can “quickly go over your head”. A professional real estate agent brings you some advantages and ensures that you do not have any stress in the entire process up to the handing over of the property. You can find out how to recognise a good estate agent and what to look out for in the checklist. Learn all about the checklist.

Business

You have decided to sell your commercial property and are looking for a partner to carry out the sale for you? Commercial property sales involve large sums of money and the greatest expertise in vetting the potential buyer. All about commercial.

Property

Building plots and open spaces for commercial use are currently enjoying immense demand. Due to the shortage of offers and the growing interest in land, prices have risen noticeably. Therefore, you cannot base your sale on what you paid for the land and at what price you purchased it. If you do so, you will automatically make a loss and offer the land far below its regular value. More about land.

Sell hotel

If you want to sell a hotel, the professional approach from the beginning is of immense importance. Unlike with privately used properties, the comprehensive valuation and marketing strategy play a concise role. Which group of buyers should be adressed by your offer? Which conditions are relevant in the current lease and which reputation does the hotel have? All these aspects have an effect on the offer price and decide how much interest experienced hoteliers have in your property. More information on the topic of hotel sales.

Costs for real estate agents

As an owner, you do not have to forego professional brokerage of your property for cost reasons. While the buyer principle applies to renting, you will not incur any costs when selling a house through a real estate agent. The broker’s commission is a component of the ancillary purchase costs, which are to be paid by the buyer. The costs for a real estate agent include all assigned tasks and thus the entire organizational effort and the handling of the house sale. If, on the other hand, you sell privately, numerous costs are incurred and must be paid by you. Learn more about the costs.

Luxury properties

The fact is that buyers of luxury real estate have very high expectations of the property they favour and its presentation. Here, larger sums of money change hands than with classic homes in the “normal price segment”. Accordingly, you should pay a great deal of attention to the offer and the sales process and trust an estate agent who knows his way around the sale of luxury houses and apartments. More on the subject of luxury.

Sell condominium

The sale of a condominium requires a whole host of other documents than are necessary for a house sale. Since the apartment is a unit in a multi-family building, potential buyers need, in addition to the information about the apartment, all details relevant to the owners’ association and meeting minutes, the common facilities and the overview of maintenance reserves. We recommend that you have the apartment sale carried out by experienced estate agents and avoid mistakes in the presentation or sales process. Everything you need to know about selling an apartment.

Apartment house

In the traditional sense, an apartment building is a multi-family house that generates returns through rental payments and is therefore interesting for investors. If you want to address the target group of investors, you need a large contingent of documents and must provide your documents completely. Important economic statements, a forecast of the rent increase and facts about the market value of the property are the basis for the decision in capital investments. Learn everything about the apartment building.

Real estate agent tips

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

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