This article is part of our series on top Canadian real estate destinations. For a full overview, check Canadian Property – Real Estate Market Explained.

Calgary: Money in the Prairie

As a highly developed city in Canada’s West, Calgary finds the balance between modernity and tradition. While Calgary is still in the lowlands, the Rocky Mountains rise impressively only 1.5 hours to the west. That means skiing, awe-inspiring hikes, and mountain bike tours, are no problem for Saturday afternoon leisure. It is a multi-cultural city, with over 120 languages spoken here. It also has great shopping districts, great restaurants, nature with rivers and hiking trails in the center and enough sights. East Village and Inglewood have been developing rapidly in recent years. East Village is undergoing a complete transformation – once a dark corner, the whole town is now drawn there to eat at the Charbar and walk along the river. Soon the National Music Center and a new library will be added.

• Over 120 languages
• 1.5 hours from Rocky Mountains

Development in Cowtown

The largest city in the western Canadian province of Alberta, With its approximately 1.4 million inhabitants, Calgary is the 4th largest city in Canada. Calgary has the longest urban bike lanes in North America at 700 km. The most important economic sector in Calgary is the oil and gas trade. Additionally, Canadian immigration law imposes certain strict restrictions. Anyone wishing to work in Canada abroad must meet requirements that are recorded in a central points system and evaluated accordingly. Infrastructural improvements and social projects have clearly been transforming the district for a long time. The city had a population of 1,285,711 in 2019, with a massive GDP of USD$97.9 billion.

• No Provincial Sales Tax
• GDP: USD$97.9 bio.
• Pop. 1.29 mio.

Economic Slope… Upwards

Many large corporations have their headquarters for Canada in Calgary. Sales and organization of petroleum products and natural gas play the main role. Despite the diversification that has been pursued since the 1980s, Calgary’s economy is still heavily influenced by the gas and petroleum industries. This is reflected in the median income of CAD103.400. Companies such as BP, Canadian Natural Resources, EnCana, Imperial Oil, Pembina Pipeline, Petro-Canada, Shell, Suncor Energy, Precision Drilling and TC Energy are headquartered in Calgary. Scientific and research institutions and an increasingly differentiated service industry prepare an increasingly broad spectrum of economic sectors and professional fields.

• Median income CAD103.400

Property Investment: State of the Art

Of the total GDP growth experienced in Canada, over 50% were a result of real estate. In Calgary, the boom in the oil industry provoked a construction boom. When what is under construction is completed, office space in Calgary will grow by about 16 percent to 5.8 million square meters. This points to rapidly growing vacancies and declining rents. In the graph below, you can see the typical choice in real estate for Calgary home-owners. The most popular type of housing in Calgary is a single-detached home with 5084 dwelling starts. This is 241% more than apartments at 2106. The median house price in Calgary is CAD415.000.

• Single-Detached homes most popular
• Median house price CAD415.000.

Map: Prairie and Mountains

Drone: Cinematic Calgary

A view of downtown Calgary gives a peak into the beautiful inner city.

Districts: Mix and Match

Calgary, like most cities in Canada, has a wide span of cultures and communities. Much like Toronto, these thrive in a city which has its economic center in its downtown. The city is split by the elbow river, leaving many waterside parks and buildings. Few cities are as modern, while still remaining true to its culture and history.

Inglewood: Canada’s Brooklyn

Calgary’s oldest neighborhood, just east of downtown, is home to numerous antique and book stores, home furnishings stores, a popular record store, restaurants, bakeries and custom boutiques. Much like New York‘s Brooklyn, this is probably the hippest and most creative neighborhood in the city, there are cool stores beyond the mainstream and many restaurants & cafes. You won’t find many mansions or villas here, but new-age penthouses and lofts with high ceilings and modern atmosphere.

Altadore: Multi-Million Townhouses

Altadore is one of the trendiest quarters of the city. The eclectic character of the neighborhood is reflected in the streets themselves, with million-dollar fill-ups being built next to a variety of character houses. Marda Loop is a popular shopping destination, while the indie cafes and restaurants are popular with gourmets and hipsters alike. While there are a variety of nightlife options in and around the neighborhood, there are also inconspicuous options in Elbow River, River Park or Sandy Beach Park. Both excellent places for dog walks, picnic lunches and a leisurely weekend lunch.

East Village: Industrial Chic

“The East Village wasn’t always the kind of place that decent folk wanted to be seen,”

East Village is one of its up-and-coming areas. But hte now trendy hispter district owns it and not only owns it, wears it as a badge of honour. Old buildings in industrial style show that it is one of Calgary’s oldest neighbourhoods and provide a stunning contrast against modern condo complexes, hotels, and public art.

Brentwood: Warm and Friendly

This beautiful northwestern neighborhood wins many points for its strategic location, between Nose Hill Park, Shaganappi Trail, Crowchild Trail and the LRT line, which allows residents to get away from it all by car or on foot if they feel like it, and ensures that downtown is still just a quick drive away. A family-friendly neighborhood, this time in the northwest quadrant of the city, Brentwood, is very popular with students. It is known in the city as the recreational hub, is the perfect neighborhood for sporty families and active students. Brentwood has also frequently been on the list of top neighborhoods. There are good transportation links that make it easy to get around the city. At the same time, the neighborhood will make sure you never want to leave.

• 6,941 inhabitants

Kensington: In the Hustle-and-Bustle

Kensington is over 100 years old and remains a great downtown shopping area for tourists and a popular destination for locals to date and hang out. Calgary’s hip “village within the city” invites you to drink a latte, eat in one of the many ethnic restaurants or watch a movie in the historic Plaza Theater. Although it is a small business district, about four blocks by four blocks, shaped like two sides of a square, so it’s easy to walk around and see everything. This quarter has about 270 stores and services. There are some cool historical buildings combined with modern architecture. It has a cool and often bizarre impression of the variety of stores and public art.

Calgary: Large Scale Sights

Calgary is unique from its neighbours for its culture, high-end and prestigious offerings, and major money history. Most important parts of these are The Calgary Stampede, the Calgary Olympic Park, and The Calgary Tower.

The Stampede – Cowboys in the 21st Century

The Calgary Stampede is held every July, and is the largest rodeo event and agricultural exhibition in the world. For ten days, the city is transformed into a Mecca for Western fans. It attracts over one million visitors. International cowboys compete in the rodeo, covered wagon races are held and with many musical events, the Calgary Stampede is the annual highlight for locals and tourists alike. All this ensures that the festival lives up to its reputation as the “Greatest Outdoor Show in the World”.

Skiing, Bobsled, and Apres-Ski… in Downtown

The sports facilities of the 1988 Winter Olympics can still be visited today. For example Win Sport’s Calgary Olympic Park with the Olympic ski jump and the fastest rope slide in North America, which you can see on your left hand side when leaving the city towards Banff National Park. Located within the city, just a few minutes drive from pretty much anywehre in downtown. You can also go on a breakneck ride in the ice channel in a bobsled. For skiing and snowboarding there are 4 km of slopes available. 2 lifts transport the guests. The winter sports area lies at an altitude of 1,130 to 1,246 m.

Calgary Tower – Iconic Views

The Calgary Tower is 191 m high and thus West Canada’s highest observation platform (i.e. excluding buildings). Right in downtown Calgary, it rises above the rooftops of the city and offers a 360-degree panoramic view. The floor is made of glass so you can look straight down. For people with a fear of heights, a major challenge. Often confused for the similar (but smaller) CN Tower in Toronto, the entrance fee to this monument also includes a multimedia tour that uses state-of-the-art technology to tell you about Calgary’s history, landmarks and future design.

Calgary Short Trip

The most important infos for a short trip to Calgary.

Flight: The nearest airport is Calgary International Airport (YYC). Most flights from Europe arrive at Calgary International Airport around noon, as does ours. It takes a while to have your luggage and entry stamp. The drive to the city center takes only 20 minutes. The following routes will take you into the city:

• The Calgary Transit Bus 300 (Route 300 – BRT Airport / City Centre) will take you to the city center for $9.50
• From the airport to the city center you can take a cab for about 40$. Don’t forget: 10-15% tips are common in Canada.

Train: Traveling by train is unusual and expensive in Canada. The railroad is aimed more at tourists than at normal travelers with its offers. In spring and summer ‘The Canadian’ of VIA Rail Canada runs the Toronto-Winnipeg-Edmonton-Jasper-Vancouver route. All trains arrive at Pacific Central Station (intersection of Main St & Terminal St, Skytrain Station: Main Street).

Car: You can reach Calgary via the Trans-Canada Highway and Highway Two, also known as the Queen Elizabeth II Highway. The Trans-Canada Highway runs from coast to coast and connects Calgary with Banff National Park, for example. The Queen Elizabeth II Highway runs north to Edmonton and south to the border with the USA

Accommodation: Hotel Le Germain across from Calgary Tower is a classic and chic destination. For a more traditional taste, the regal Fairmont Palliser. If you have an early flight, check out the “in-terminal” hotel, Calgary Airport Marriott In-Terminal Hotel.

This article is part of our series on top Canadian real estate destinations. For a full overview, check Canadian Property – Real Estate Market Explained.

There’s None Like it

Vancouver is a big city, with luxurious ambitions. It is one of Canada’s educational and research strongholds with two renowned universities and numerous research institutions, such as the National Research County of Canada, which includes 20 research institutes. Around 2.3 million people live in the metropolitan region of Vancouver on the Pacific coast, and it ranked sixth place in the Economist Intelligence Unit’s liveability index and the third in Mercer’s list. The prosperity of the metropolis is based on the timber industry and the port of Vancouver, Canada’s largest seaport. Through the 2010 Winter Olympics, Vancouver presented itself to a global audience and, above all, invested heavily in its transportation infrastructure. The Vancouver Stock Exchange is a smaller regional exchange and cannot compete with the Toronto Stock Exchange. Important industrial sectors in Vancouver are forestry and mining. Canada is generally rich in many raw materials and a big player in the international raw materials export trade.

• 6th Most Livable City in the World

Packed Real Estate Market

Vancouver is an ideal place to live, visit and work. A very young city with many modern buildings, it is the third largest city in Canada and only 45 kilometers from the border with the USA. Together with Toronto and Montreal, the most important economic and financial metropolis of Canada. If you’re looking to invest in property, house prices are currently the number one topic of conversation in the city, and hardly a day goes by without them being mentioned in the press or on television. According to the “Housing Trends and Affordability” by the Royal Bank of Canada, the cost of buying a detached single-family home now amounts to 109% of median income. The national average is 51%. There are many reasons for this development: Demand has risen massively more strongly than supply. While the latter is limited not least by geographical factors, demand continues to rise steadily, as foreign investors and immigrants discovered after the 1986 Expo or the 2010 Winter Olympics in Whistler that Vancouver is a great place to live. The median house price in Vancouver is CAD942.000, much higher than e.g. Calgary‘s CAD415.000.

• Single-Family House costs 109% of Median Income
• Population: 2,3 mio.
• Median house price CAD942.000.

Map: Comfort by the Sea

Drone: Vancouver Views

Vancouver and its surrounding nature are better viewed than told.

Districts: Gastown, Yaletown + More

Vancouver has many faces, meaning there are different and unique districts. While most of the high-rise buildings are located in downtown, it gets more comfortable in neighborhoods like Gastown, West End or Granville Island. Also very cozy is the somewhat smaller district of Yaletown.

Gastown: The Epicenter

The historic Gastown is located in the center of Vancouver. Landmark of the former trade and financial center is the famous steam clock, Gastown’s great brick houses and lanterns, are reminiscent of London. It awakes especially in the evening hours when the many restaurants and pubs invite you to eat and drink in the dim light of the old street lamps. It was a Gastown Tavern that, founded in 1867, made Vancouver a growing city. Gastown is not big, but it has a very special effect. It is one of the oldest quarters of the city and exudes a certain charm. Simply wonderful. While the cobblestone streets and vintage style can still be seen, Gastown itself has become a top address for food, fashion and entertainment.

West End: Sunset Promenade

Right next to downtown Vancouver is the West End, which is known as the gateway to the famous Stanley Park. Historic buildings, parks, bars and restaurants are waiting for you and if you love ramen and Korean food you are in the right area. Also notable, the Inukshuk statue that inspired the logo for the 2010 Olympics on the promenade. And of course the beach where you can watch the magnificent sunset. Robson Street has some of the best shopping in town. The West End is also not far away from Stanley Park.

Kitsilano: Hippie Mecca Becomes Suburbia

What makes this district so special is its proximity to the beach. Kitsilano Beach with its tennis courts, a great green area just around the corner and the beautiful view of the English Bay. Kitsilano is located on West 4th Avenue. The main street – littered with stores, restaurants and bars – fills up quickly on weekends. Once a center for hippies, Kitsilano is now home to a colorful mix of working singles and families who enjoy an active lifestyle. The neighborhood is also known for some of the best new restaurants in Canada, including the AnnaLena and Mission.

Yaletown: True Downtown

Yaletown is characterized by several large glass towers that dominate the skyline of Vancouver. In addition to modern apartments, this hip district also offers parks, designer stores, high-end restaurants and bars. It is known for these pubs and bars. Along the Mainland and Hamilton Street, one follows the other. Yaletown was not always a meeting place for trendsetters, but then many of the red brick buildings were converted into special rooms, houses, restaurants and stores. So the luxury lounge where cocktails are sipped today may well have once been a textile factory. Like many other downtown districts of Vancouver, Yaletown is located on the famous waterfront. There you can jog, ride your bike or go for a walk and have a great view of the city skyline and False Creek.

Unique Nature

Vancouver is known for its striking location between the Pacific Ocean and the Rocky Mountains. This means you may find yourself walking along kilometer-long caribbean sand beaches with massive mountains behind you. Not to miss is also the rainforests. The 2009 movie Avatar was filmed in the rainforests around Vancouver. Some trees here are over 1000 years old, over 80 meters high and have trunks as thick as an elephant. Whistler, the legendary ski and mountain resort famous for its deep snow and steep runs is just 1.5 hours away, with countless others scattered across the region.

Vancouver Short Trip

The most important infos for a short trip to Vancouver.

Flight: The nearest airport is Vancouver International Airport (YVR), which is about 20 minutes from the city (only 12 km to the city center). The following routes will take you into the city:

• By train via Canada Line
• With one of the many shuttle services like the “Go Airport Shuttle”.

The airport is relatively small, so you cannot get lost as quickly as at many other large airports. Should this happen, the staff is always very friendly and helpful.

Train: Traveling by train is unusual and expensive in Canada. The railroad is aimed more at tourists than at normal travelers with its offers. In spring and summer ‘The Canadian’ of VIA Rail Canada runs the Toronto-Winnipeg-Edmonton-Jasper-Vancouver route. All trains arrive at Pacific Central Station (intersection of Main St & Terminal St, Skytrain Station: Main Street).

Accommodation: There are hotels of all kinds for pretty much any desires. For those looking for a traditional experience the St. Regis is a top destination. Otherwise the Burrard, right on Robson street is a popular desitnationf or its youthful atmosphere.

This article is part of our series on top Canadian real estate destinations. For a full overview, check Canadian Property – Real Estate Market Explained.

The Superstar City in Canada

Toronto is an economic powerhouse, but also a cultural center, found mostly around the old town, famous for its music scene and its particularly varied gastronomy. The Toronters are also very fond of sports. On game days, the whole city is feverish – in summer with basketball, in winter with ice hockey. 130 kilometers away are Niagara Falls and the city of Niagara Falls (Ontario), and from Toronto there are numerous offers for day trippers. About 320 kilometers down the St. Lawrence River are the Thousand Islands, a group of about 1,800 small islands that can be explored by excursion boats. Downtown Toronto has more than 100 skyscrapers higher than 100 meters, the second highest number of high-rise buildings in North America after New York City. In addition to its beautiful location on Lake Ontario, it is also home to one of the largest and most beautiful airports in the Toronto Pearson Airport YYZ.

Booming Economy

Toronto’s central location, along with a host of political policies favouring international trade, places this city with the greatest economic ties to, and influence from, the United States. Since the second half of the 20th century the city has grown phenomenally, from a rather sedate provincial town-“Toronto the Good”-to a lively, thriving, cosmopolitan metropolitan area. With the surrounding communities, Toronto makes up the Golden Horseshoe, the largest metropolitan area in Canada, with 8 million inhabitants. Moreover, the city is positioned on the edge of some of the best farmland in Canada, with a climate favorable to growing a wide range of crops, thereby making Toronto a transportation, distribution, and manufacturing center, as demonstrated by the fact that it is home to the TSX (Toronto Stock Exchange). Toronto’s population growth has increased by 1.2%, from 0.5% to 1,7%, between 2013 and 2020.

• Size: 632 square km
• Metropolitan area 5,905 km2
• Population: 2,73 mio. (2016)

Investing in Torontonian Property

Over 50% of Canada’s GDP growth were a result of real estate. Toronto makes up a significant proportion of this growth. The good location on the northwest shore of Lake Ontario has led to continuous population growth in recent decades. Compared to the typical temperatures in Canada, the climate in Toronto is still considered moderate, which is due to its southern location on the outer edge of the country. With a GDP of 276.313 mio. Dollars, Toronto is the forty-first economically strongest city in the world. In Canada, along with Montreal and Vancouver, it is the hottest real estate market. The median house price in Toronto is CAD686.000.

• GDP of $276.313 Mio.
• One of Canada’s hottest real estate markets
• Median house price CAD686.000.

Map: Lake Metropolis

Drone: Flying through Toronto

Toronto’s unforgettable skyline is beautiful from almost everywhere, but rarely seen from up above.

Districts: Markets and Drake Hotel

Toronto is home to many growing, diverse cultures. From all around the world, all walks of life, and all aspirations. There is youthful atmosphere, cozy streets and big city flair.

Leslieville: Rising Residential

Leslieville in East Toronto is one of the neighborhoods where a lot has already happened and is constantly changing. The many small cafés and restaurants in the neighborhood are always full of people of all ages. Many creative people and young families move into the new apartments that are being built everywhere or are being built in old factory buildings. The older ones have been living for years mainly in the side streets of Queen Street East, where there are whole rows of pretty brick houses from times gone by. And they have a garden in the middle of the city.

Queen West: Second Coolest in the World

In Queen West you can find practically everything that is cool. Super shopping, numerous art and design studios and a variety of music events and good restaurants – and all this against the backdrop of historic buildings. Walking through the streets you’ll find hidden galeries, and boutique hotels like ‘The Drake. No wonder Vogue has called West Queen West the second coolest neighborhood in the world!

Kensington Market: Downtown Bohemia

Kensington Market is like a small Toronto in the middle of Toronto. This quarter is between Spadina Avenue and Dundas, Bathurst and College Street, which is characterized by many small, colorfully painted houses. In Kensington everything is very workmanlike. Few big department stores, and no white tablecloths in the restaurants. There is also much cultural diversity. You meet pensioners as well as their grandchildren. Over the years, immigrants from the Caribbean, Latin America, Europe and Vietnam have made their home here and left their own mark on the neighborhood.

Liberty Village: Industrial Chic

Liberty Village is located on the west side of the city just behind the tracks of the stadium. The young creative and often career oriented people, live here in high-rise housing estates, most of which are surrounded by large green spaces. Former factories in old buildings have been transformed into apartments, cafes and restaurants. The industrial soul lives on through the new residents: start-ups, digital agencies and advertising agencies. Liberty Village looks completely different.

A look at the high rises around the Bay Street area.

Toronto: Uniquely Situated

Toronto is not just another North American metropolis. It is uniquely situated in its surround nature, with the legendary Canadian Shield, and extremely fertile farmland. This surely fed its rapid economic rise, but nowadays it is home to startups, tech-companies, as well as established big names such as Bell Canada and the Alderwoods Group.

Unique Geography

The melting of ice from the last Ice Age shaped the landscape of the Toronto region. About 11,000 years ago, in place of today’s Lake Ontario, there was the Lake Iroquois, much larger and deeper. The shores of which are still found about 12 kilometers inland from the shores of Lake Ontario. With the opening of the St. Lawrence River, the water of the lake receded. Over time, the water levels rose to their present level, leaving a marshy shoreline but a beautiful natural harbor. Another physical feature is Toronto’s location at the mouth of the Humber River. Apart from this, the city’s terrain is almost uniformly flat, formerly being the lake floor. The resources of the surrounding land have also been important to Toronto’s development. The rich sedimentary soils of southern Ontario offered excellent farmland, and the ancient rocks of the Canadian Shield in the north were not only a source of valuable mineral resources, but also covered with spruce and pine forests.

Economic Juggernaut

Toronto is the headquarters of the five largest banks in Canada, including the Toronto-Dominion Bank and the Royal Bank of Canada. The Royal Bank of Canada is the largest bank in the country with over 60,000 employees. The leading Canadian financial institution has the largest branch network in Canada with around 1,300 branches. Since 1997, only electronic PC trading via the Computer Assisted Trading System (CATS) have been available at the TSX.The financial metropolis Toronto has the oldest bank in Canada, the Bank of Montreal, which was founded in 1817. Since the mid-1990s, Toronto has had a higher unemployment rate than the average in Ontario. The average household in the metropolis generates around 80,000 Canadian dollars a year. The economy of the Canadian metropolis in eastern Canada is now very broadly based with numerous corporations.

Global Culture

Toronto is also the ideal place to practice globalization. With five and a half million inhabitants, the Greater Toronto Area is one of the largest North American megacities. But it is much safer, and the social differences are less pronounced. The region (and perhaps all of Canada) has found a way to offer people a new home without taking away their old one. The immigrants are young, come from all over the world and shape the entire city life.

Toronto Short Trip

The most important infos for a short trip to Toronto.

Flight: Toronto Pearson is one of the biggest airports in the world. It is located in the suburb of Mississauga and is well connected to the city by train, bus, cab and via ferry. It takes 17 minutes from the airport to the Union Station in downtown by Car, or 25 minutes by bus. But there’s another airport in town. For North American jetsetters, the Billy Bishop Airport is optimal. Renowned for its beautiful location and the view of the city and lake Ontario when arriving, it has destinations such as Boston, Montreal, Chicago, or New York.

Accommodation: There are hotels of all kinds in the city. Many accommodations are located in the skyscrapers in downtown Toronto. There are also established luxury hotels such as the Ritz-Carlton and the legendary Drake Hotel. Additionally, in some districts there are chic, small boutique hotels.

Toronto Stock Exchange: Canada’s Money Headquarters

Bay Street is the hub for all financial exchanges and the hub for the Toronto Stock Exchange.

One Year

The one year graph of the Toronto Stock Exchange.

Three Years

The three year graph of the Toronto Stock Exchange.

Build an Apartment House: Building Interest and Construction Financing

Construction interest rates have been at rock bottom for several years. A building interest comparison is worthwhile, because: How long will it remain like this? Many of our customers approach us with the question whether it is worth waiting or whether the interest rates will rise again in the future. Building interest rates do not just stand on their own, but also have a significant influence on mortgage interest rates. In our consultation you will find out quickly and reliably when and how you can best finance and secure the favourable building interest rates.

The current building interest rates form the foundation of every real estate financing, including the development of building interest rates. This is because the building interest rates are responsible for the additional costs of your building loan as a net amount. The more expensive the building interest is at the time of your financing, the more money you have to pay back to the bank. Conversely, you can save money by choosing the right time and financing when the interest rates are at a low point. Mortgage interest is not a static figure. The interest rate can change at any time and either rise or fall.

Time for financing

You choose the right time for a mortgage loan primarily based on your personal preferences and focus on when you want to buy a home. However, your personal circumstances are not the only factor that should underpin your decision. It is just as important that you keep an eye on the external conditions and finance at the moment when building interest rates follow a downward trend. As a potential owner, you do not need to know the market or delve deeper into the interest rate policy.

Factors that influence the building interest rates

One of the main factors influencing building interest rates is the economic situation of a country. Germany’s economy is booming, which is naturally reflected in the building interest rates. The better the economic situation, the cheaper you can finance construction. Since construction financing is largely handled via mortgage bond transactions, low interest rates for government bonds are the best basis for your real estate financing. If you finance now, you will benefit from amazingly low construction and mortgage interest rates. The performance of government bonds in combination with low interest rates for mortgage bonds results in a chain reaction that results in the most favorable construction interest rates. Many of our customers assume that the construction interest rates are related to the key interest rate of the ECB. Although this is currently also more favorable than ever, the key interest rate does not directly influence the construction interest rates. On the other hand, your personal requirements such as the equity capital you bring with you, the term and the repayment amount have a great influence on the individually calculated building interest.

You should pay the greatest attention to the debit interest when calculating your construction financing. Because the debit interest influences the entire interest commitment for your building loan and is therefore a fundamental factor if you want to finance cheaply and advantageously. We will be happy to advise you on your individual options and support you in finding the optimum repayment for you and calculating your monthly installments based on your own ideas. The lower the debit interest rate, the cheaper your construction financing will be.

Development of the interest rate

For some years now, building interest rates have been stable and low. But which trend will the building interest development follow and is it worthwhile to fix a long debit interest commitment now and to protect against a possible rise in interest rates? Or will the building interest rates continue to fall and you are financing too expensively if you decide now for a fixed interest rate with a term of 10 or even 20 years? If you understand the type of interest rate and apply the interest barometer correctly, you will get a transparent overview of the current and future development of building interest rates.

Mortgage interest rates: effects & possibilities of influence

The term mortgage interest is now replaced by the term construction interest. The building interest, or mortgage interest, determines whether a construction loan is cheap or expensive. Due to the current historically low building interest rates, you can finance your real estate at a very favourable rate and secure an advantage that has a lasting effect on the overall financing costs.

Effective interest rate for mortgage loans

From 1994 to 2018 (last survey), the effective interest rate for mortgage loans (construction interest) fell by -6.4% to just 1.4%. Effective interest rate for mortgage loans in Germany over time:

• 1994: 8.8%
• 1998: 5.3%
• 2004: 4.4%
• 2008: 4.8%
• 2014: 2.2%
• 2018: 1.4%

Heating System: Energy & Saving Money

The topic of heating is not only interesting for building owners, but also for property owners. Heaters are not only necessary in a real estate, but also legally required. What types of heating are there, how do they have to be maintained and are there legal subsidies for the construction of certain types of heating or do the costs have to be paid completely by the owner?

• The whole guide: Heating system

Solar heat: solar energy

Solar thermal is the process by which solar energy is converted into usable heat. In residential properties, the heat produced is usually used to heat water or for heating. Depending on the location and conditions of the property, this system can completely replace the previously used heating system.

State subsidy of 2,000 euros

Gas heating: heating with natural gas, liquid gas or biogas

Gas heating is probably the most widespread type of heating in Germany and rightly so, because the system offers many advantages. Modern technology, efficiency and inexpensive offers characterize the gas heating. In addition, they are easy to combine with renewable energies, save space and can be easily installed during modernization and renovation.

Oil heating: heating with fuel oil or bio fuel oil

Oil heatings are after gas heatings the probably most frequently occurring systems in Germany. The function mode is simple and works for decades in the same way. The fuel fuel oil is pumped over an oil pipe to the heating system where it is sprayed and burned. The heat generated during this process is used to warm up the heating water and thus to heat the house. Most of these components can be found in the boiler, which now takes up little more than one square meter of space and can even be hung on the wall, depending on the model.

Pellet heating: ovens with pressed wood residues

A modern pellet heating system is known for low fuel costs as well as for environmentally friendly heating and is therefore one step ahead of conventional gas and oil heating systems. Also the function mode is relatively simple. The wood pellets are periodically delivered to the combustion chamber by means of a feeder, so the correct filling is fully automatic. The heat generated by burning the pellets is used in a separate boiler to heat the water. Thus, both the heating can be operated and the hot water can be produced.

Heat pump: heating with the heat of the environment

Technically speaking, a heat pump is a system that can extract thermal energy from a medium with low temperatures through technical work and supplied working energy. That sounds first once quite complicated, the principle of the heat pump is however actually quite simple. The heat pump extracts heat from the different energy sources air, earth and water and uses it to heat water for heating purposes. For this purpose external electricity must be supplied, but not as much as would be necessary for a normal heating system.

• The whole guide: Heating system

Extra: infrared heating

Even if the conventional heating systems have proven themselves, infrared heating is definitely an alternative that should be considered. Although heating with electricity is generally considered expensive, there are other factors that make heating with electricity economical. Our detailed guide will tell you which points are important and when heating with electricity is worthwhile.

• Infrared heating

Extra: fireplace & stove

A fireplace provides relaxation, well-being and warmth. Therefore it is also not surprising that fire-places and other furnaces stand right at the top of the desire list of owners. Particularly on cold days there is nothing more beautiful, than to kuscheln itself before a cozy fire-place brimming with warmth and to enjoy the time. There are many different types of fireplaces. From open and closed up to tiled or pellet stoves which all have advantages and disadvantages.

• Chimney & stove

Rental: Laws, taxes & tenants

Renting a property can be a great extra income, but it can also become your main job. Landlords have many duties towards the tenant and have to take care of the property. However, if this is successful, a lot of profit can result. We will explain how you can best let your property and how to find the right tenant for you.

There is so much to learn!

The right tenants, suitable lease & Co.

How do I set the rental price correctly? How does my advertisement appear attractive? And how do I draw up a suitable and fair rental contract? A future landlord asks himself all these questions, because in order to successfuly rent out a property, a lot of knowledge and experience is required. But if you follow a few simple steps, you will make the leap to a successful landlord and profit from the earnings.

In addition come: Landlords have many duties and tasks, among these are for example the organization when changing tenants or the annual preparation of a service charge statement for the tenant. The rent can be set with the help of the local rent index, but it must always be considered whether the region concerned has a rent brake or not. The rental agreement should be fair for both tenant and landlord and should regulate all important points. When choosing the right tenant, it is not only the sympathy effect that counts, but also other important factors, such as creditworthiness – learn everything you need to know about renting your property in our article.

The correct tenants, suitable lease & Co. read on here:

• Renting out a house or apartment

Let an Apartment or House – the Right Tenants and Rental Contract

How do I set the rental price correctly? How does my advertisement appear attractive? And how do I draw up a suitable and fair rental contract? A future landlord asks himself all these questions, because in order to successfuly rent out a property, a lot of knowledge and experience is required. But if you follow a few simple steps, you will make the leap to a successful landlord and profit from the earnings.

The most important things:

• Landlords have many duties and tasks, including, for example, organizing the change of tenant or the annual preparation of a service charge statement for the tenant
• The rental price can be set with the help of the local rent index, but it must always be taken into account whether or not the affected region has a rent brake
• The rental contract should be fair for both tenant and landlord and regulate all important points
• When choosing the right tenant, it is not only the sympathy effect that counts, but also other important factors, such as creditworthiness
• The expose should contain all important facts about the property and convince with professional pictures
• The visit is possible both as open and closed date and depends mainly on the number of interested parties
• The apartment will only be handed over after payment of the rent deposit and the first month’s rent. At this time a protocol is made, which documents meter readings and existing damages.

The daily rental business – tasks of a landlord

If you want to be a landlord, it must be clear that a property does not maintain itself. Also the landlord has tasks and duties to maintain the tenancy. These tasks include, for example, the annual preparation of an ancillary cost statement for the tenant, the annual presentation of the economic efficiency for the tax office, the organization of a change of tenant, renovations or repairs to the property and, of course, participation in the owners’ meeting. Depending on the initial situation, a large part of the tasks can be taken over by an administrator, but the task as a landlord always involves a time consuming effort. If you want to keep it as low as possible, you should try to sign an unlimited rental contract in order to achieve a long-term commitment.

• Landlords have many duties and tasks
• These include, for example, the organization of tenant changeover or the annual preparation of a service charge settlement for the tenant

The right rental price – the rent index

The right rental price is not only crucial for success, but also enormously important for the rental. When determining a suitable rent, you should always orientate yourself on the local rent index of the respective city. This offers criteria such as location, size, year of construction or equipment of the apartment, according to which the own property can be categorized. If this has been done successfuly, the so-called “local comparative rent” can be read. This provides an orientation value for landlords. If there is a rent brake in the region concerned, the rent for the property may be 10% above the “local comparative rent”. If there is none, the rent may be 20% above the “local comparative rent”.

Exceptions will only be made if it can be proven that otherwise losses would be made. However, if the rent exceeds 50%, the law assumes “usury”, so there are limits here too. The rent must always be determined in the individual case. Depending on the region and the property, it is advisable to adhere to the “local comparative rent” or to exceed it up to a reasonable percentage.

• It must always be considered whether the affected region has a rent brake or not

The rental contract – fair for both parties

The preparation of the rental agreement is very important and it is usually not easy to rely on the first best form from the Internet. Depending on the regulations, the contract is either landlord or tenant friendly. Ideally, it should be both and cover all important points. For example the regulations over the keeping of domestic animals, the cleaning obligations of the tenant, the renovation work when moving out, the subletting possibilities or however the height of the additional expenses pre-payments count for this. Avoid here unclear regulations or regulations which are clearly disadvantageous for the tenant.

At best, the lease is fair for both parties and leaves no room for interpretation. Prefabricated rental agreements from the tenant or landlord protection association are usually very detailed and well suited, but should always be checked in individual cases. If there are any open questions or problems, a professional real estate agent can help and provide remedy. Our guide helps: real estate agent.

Finding the right tenant – agreeableness and important key data

Choosing the right tenant is not always easy and can cause many problems and costs if a wrong decision is made. When choosing a tenant, not only the sympathy effect should be considered, but also important key data should be obtained. These include a credit check and obtaining receipts for the last income, a tenant self-disclosure and a certificate of no rent debts. If all these key data are to your satisfaction, the personal impression of the potential tenant is important. A personal meeting at the viewing appointment can clarify many questions and help with the decision. The sympathy effect should not be ignored, because a good relationship between tenant and landlord helps to avoid future problems and disputes and to achieve a long-term lease.

• The rental contract should be fair for both tenant and landlord
• A rental contract should regulate all important points

The exposé and the viewing appointment – the way to the ideal tenant

The Exposé is the A and O with the tenant search. This is the first thing the potential tenant sees of the apartment and must therefore make a good first impression. Beside the most important basic data, like size, equipment, rent, additional expenses and situation landlords are obligated to publish the most important key data of the energy document of identification in the real estate announcement. Additionally, special features of the property should be highlighted here. A roof terrace, stucco or a fitted kitchen provided by the landlord represent characteristics increasing the residential value and justify for example a higher rent and arouse additionally the attention of prospective customers. Please note the correct indication of the number of square meters in the exposé. Since the rent is measured at this, it must be correct, since tenants can demand otherwise also afterwards still too much paid mine. When calculating the rent, it is especially important to consider roof slopes, low ceilings and the correct calculation of terraces or balconies.

The inspection can be done in different ways. With many prospective tenants, an open viewing is possible, in which all potential tenants view the apartment on their own and then submit a small application with a self-disclosure, a covering letter and other documents. Based on these you can then select a tenant. In addition, closed inspections are possible, with which you can show the dwelling to the prospective customers and clarify so again the advantages and get to know the persons better. Which type you prefer is left to your individual taste.

• The exposé should contain all important facts about the property and convince with professional pictures
• The tour is possible both as open and closed appointment

The correct apartment handover – handover protocol and the deposit

Before the apartment is handed over, the rent deposit and the first monthly rent should already have been transferred by the tenant. If this is not the case, this fact already makes the tenant’s payment morale doubtful and is usually not a good sign. If the handover of the apartment takes place as planned, a handover protocol is kept. In this protocol, any existing suggestions in each room of the apartment, the cellar, the garage and the attic are documented. Additionally, the meter readings of electricity, water and gas are documented. When handing over the apartment, it is advisable for each party to take a second person as neutral as possible as a witness and to ensure the existence of the protocol in case of disputes in court. However, the protocol should be signed by both parties in any case after leaving the property and kept in the documents.

• The apartment will only be handed over after payment of the rent deposit and the first monthly rent
• At the time of handover, a log is created that documents meter readings and existing damage

The most important questions about renting a house or apartment

Especially for inexperienced or beginners, the topic of real estate rental raises many questions. Who is the right tenant? How do I draw up a fair rental contract? What are my duties as a landlord? With these questions the support of an experienced real estate agent helps, but this option always involves the loss of money. To make sure that all questions are clarified for you and that you successfuly start off as a landlord, the experts of Lukinski answer the most important questions about renting a house or apartment.

What are the most important contents of an advertisement?

The advertisement should contain all important information about the property, such as size, location, equipment, energy performance certificate, floor plan, rental price and additional costs. Especially important, however, are the photos, which convey the first impression of the property to interested parties.

Must the rental agreement be checked by a notary ?

The rental agreement does not have to be checked by a notary. At most, he can check whether all existing regulations are legally permitted, but the document does not have to be notarized by him.

Is the apartment handover certificate mandatory?

The apartment handover protocol is not required by law, but it is usually done anyway. It protects both the tenant and the landlord and is only beneficial to both parties.

Must the rent be determined by the rent index ?

The rental price must be determined by the rent index. This helps to keep the prices within a certain range and to ensure justice for tenants.