6 providers in comparison! Test winner + ranking

Here is the overview with test winner! After the list, you will find once again all the detailed calculations for the usage fee and the increase in value.

German part purchase – Best price / performance

Rank 1 by conditions in the 1st step of the partial sale and in the 2nd step of the total sale is currently Deutsche Teilkauf (as of 01/22).

• Usage fee p.a. = 2.89 % = 241 Euro
• Increase in value (total sales) = + 41.53
• Let evaluate on German part purchase

House anchor – Best conditions

Is part of Deutsche partial purchase, almost the same, only +1 euro in the monthly cost of use.

• Usage fee p.a. = 2.90 % = 242 Euro
• Increase in value (total sales) = + 41.53
• Get rated on house anchor

Value factor

At 29.13%, the increase in value over 15 years is -12.4% compared to #1 and #2. Likewise +1 euro per month, compared to the test winner.

• Usage fee p.a. = 2.90 % = 242 Euro
• Increase in value (total sales) = + 29.13
• Let evaluate on value factor

Partial sale One

Teilverkauf One offers fair conditions for sellers with Deutsche Teilkauf and Hausanker.

• Usage fee p.a. = 2.89 % = 241 Euro
• Increase in value (total sale) = + 28.50
• Get rated on partial sale One

House provision

Also with Hausvorsorge you pay monthly + 1 Euro compared to the test winner. In terms of total sales, Hausvorsorge is currently – 15.19% in relation to rank 1 and rank 2.

• Usage fee p.a. = 2.90 % = 242 Euro
• Increase in value (total sales) = + 26.34

Engels & Völkers

• Usage fee p.a. = 2.75 % = 229 Euro
• Increase in value (total sale) = + 25.33

German part purchase – test winner

The conditions at a glance (source: Rechner deutsche-teilkauf.de).

• Valuation on: German part purchase

User fee: 241 € / month / 2.89 % p.a.

• Share: 20%
• User fee: 241 Euro

Usage fee after partial sale in %:

• User fee / year = 2,892 euros
• % p.a. = 2.89

Total sales: + 41.53 % increase in value

Total sale at Deutsche Partial purchase after 15 years, incl. appreciation and fees.

• Value in 15 years: 699,128 euros
• Residual share: 566,103 euros
• Fee: No implementation fee
• Second disbursement: 566,103 euros

Value appreciation and fees in %:

• Increase in value: 41.53
• Fees: 0 %‬
• Second payout: 41.53

The total revenue is thus (in 15 years) 566,103 euros.

House anchor

Hausanker belongs to Deutsche Teilkauf. The conditions are almost the same. Only in the usage fee you pay monthly + 1 Euro. The conditions at a glance (source: hausanker.de calculator).

• Rating on house anchor

User fee: 242 € / month / 2.90 % pa.

• Share: 20%
• User fee: 242 euros

Usage fee after partial sale in %:

• User fee / year = 2,904 Euro
• % p.a. = 2.90

Total sales: + 41.53 % increase in value

Total sale at Deutsche Partial purchase after 15 years, incl. appreciation and fees.

• Value in 15 years: 699,128 euros
• Residual share: 566,103 euros
• Fee: No implementation fee
• Second disbursement: 566,103 euros

Value appreciation and fees in %:

• Increase in value: 41.53
• Fees: 0 %‬
• Second payout: 41.53

The total revenue is thus (in 15 years) 566,103 euros.

Value factor

With Wertfaktor you can sell a property worth 500,000 euros only from 20%, maximum 50%. The conditions at a glance (source: calculator Wertfaktor.de).

• Valuation on value factor.

User fee: 242 € / month / 2.90 % pa.

• Share: 20%
• User fee: 242 euros

Usage fee after partial sale in %:

• User fee / year = 2,904 Euro
• % p.a. = 2.90

Total sales: + 29.13 % increase in value

Total sale at value factor after 15 years, including appreciation and fees.

• Value in 15 years: 673,000 euros
• Residual share: 538,400 euros
• Fee: – 21.872 Euro
• Second disbursement: 516,528 euros

Value appreciation and fees in %:

• Value appreciation: 34.60
• Fees: 4.06 %‬
• Second payout: 29.13
• Attention: Total sale under inflation

The total revenue is thus (in 15 years) 538,368 euros.

House provision

The conditions at a glance (source: Rechner hausvorsorge.com):

User fee: 242 € / month / 2.90 % pa.

• Share: 20%
• User fee: 242 euros

Usage fee after partial sale in %:

• User fee / year = 2,904 Euro
• % p.a. = 2.90

Total sales: + 26.34 % increase in value

Total sale at home provision after 15 years, including appreciation and fees.

• Value in 15 years: 672,934 euros
• Residual share: 538,347 euros
• Fee: – 32.974 Euro
• Second disbursement: 505,373 euros

Value appreciation and fees in %:

• Increase in value: 34.59
• Fees: 6.12 %‬
• Second payout: 26.34
• Attention: Total sale under inflation

The total revenue is thus (in 15 years) 561,813 euros.

Engels & Völkers

Place 5 in the raking of the partial buyers is Engels & Völkers with the following conditions in the overview (source: computer ev-liquidhome.com):

User fee: 229 € / month / 2.75 % pa.

• Share: 20%
• User fee: 229 Euro

Usage fee after partial sale in %:

• User fee / year = 2,748 euros
• % p.a. = 2.75

Total sales: + 25.33 % increase in value

Total sale at Engels & Völkers Liquidhome after 15 years, including appreciation and fees.

• Value in 15 years: 672,934 euros
• Residual share: 538,347 euros
• Fee: – 37,011 Euro
• Second disbursement: 501,336 euros

Value appreciation and fees in %:

• Increase in value: 34.59
• Fees: 6.86 %‬
• Second payout: 25.33
• Attention: Total sale under inflation

The total revenue is thus (in 15 years) 560,086 euros.

Partial purchase makes sense? Partial sale + credit comparison

Partial purchase – Can you sell part of your house? Yes. Sell part of your own property, continue to live in it, it sounds tempting, especially if there is immediate money. The terraced house, single-family house or even the condominium in the apartment building. Surely you have already seen the advertisements of the many part purchase offerers. This purchase offer adresses itself in particular to older real estate owners, who need money, for example for a more pleasant Lebensabend. But, is a partial purchase really sensible? A look at usage costs and a small comparison, what is “cheaper”: Partial purchase or real estate loan?

First, a quick, short definition.

What is meant by partial purchase?

With partial purchase you sell a part of your property to a financial company. In return, you get the purchase price (independent of banks / loans), depending on how much share of your property you want to sell. The financial company then becomes the part owner. This makes you a community of owners consisting of two parties.

Of course, no second person moves into your property; you remain the sole user. However, as the former sole owner, you now pay a fee for the use of the part of the property that no longer belongs to you in full after the partial purchase – comparable to rent. This payment is referred to as “compensation for use” or “usage fee”.

Advantage! Sold fast, paid fast

So “advantage” could be described as:

• Financing method independent of banks

Disadvantage? Use in cost comparison

As described in the introduction, the “Partial Purchase” offer is aimed in particular at older property owners.

“Banks give no / few loans to older people”.

Such a common prejudice. That is why advertising with the “partial purchase of your property” currently works so well. However, the subsequent costs are often not taken into account. For example, if you sell 25% of the property and then pay 300 euros a month usage costs, you should definitely compare the amount with a regular real estate loan, more precisely mortgage loan.

Usage fee for partial purchase – disadvantage

Now for the “follow-up costs.”

What is monthly user fee? Many currently advertise it as “easy,” “convenient,” “no bank.” True. But the price is high. First of all, the ongoing costs incurred in the partial purchase to financial companies. The financial company becomes a co-owner. The sold part of the property, will be returned to you.

So you do not give “half” of the garden or part of your rooms: you continue to use your property alone.

For this you pay the “compensation for use”.

Amount of compensation for use

The compensation that the financial company requires for the use of the property is usually:

between 3-5% of the amount paid out

The sum refers to 1 year in each case.

Real estate loan comparison: 2-4% cheaper

How much do you currently pay for a “classic” real estate loan? Due to the low interest rate phase, you currently only pay:

approximately 1% of the disbursed amount

Total purchase price mostly below inflation – disadvantage

If you think carefully about the online calculation of step 2) the total purchase, you will notice that you do not specify any regions(real estate location) of the property. Accordingly, the increase in value is a very rough value. But let’s take this as a basis.

Inflation factor – If you now add inflation as a second factor, which according to the European Central Bank should be at 2% per year, but is currently even at 5% (as of 01/22), then you will see:

The increase in value of only 25%, 30% in 15 years, does not even equal inflation.

Partial sale property

Read more about partial sale here – A look at costs of use, advantages, disadvantages, the total sale, the calculated increase in value under inflation and a comparison, what is “cheaper”: partial purchase or the alternative real estate loan, more specifically the mortgage loan? In addition taxes, sale from community of heirs, divorce and much more. My recommendations for sellers!

• Partial sale property

Difference: purchase price factor and rental yield

For the calculation of both results, the same factors are used. The annual rental income and the investment costs. The difference lies only in the preparation of the calculation and thus in the result.

Both give an indication of profitability.

Rental yield: result says…. Definition

Result for rental yield calculation:

Rental yield > How much surplus remains each month to cover repayments, interest and reserves for repairs or capital accumulation?

Purchase price factor: result tells… Definition

Result for purchase price factor calculation:

Purchase price factor > In how many years will the investment costs be paid off by the annual rental income?

Simplified, the formulas you’re about to learn look like this:

• X / Y = Z1
• Y / X = Z2

Z = Profitability

My recommendation for beginners: rental yield

As a real estate beginner, you’ll need ongoing income quickly because most of your equity is probably in your first property. For beginners, it therefore makes sense to compare properties on the basis of rental yields. This way, you immediately know what monthly surplus an individual property can generate (for you).

The purchase price factor is more interesting for longer-term investments (target: appreciation and 10, 20, 30 years; before that you pay monthly), where short-term cash flow is not important.

• Tip. Read more about the difference here, on my new project, specifically for real estate buyers! The subtleties between yield & investment real estate – external

Either way, both calculations aim to help them compare different property listings and do it quickly!

Rental yield: Example

Let’s look at both forms of profitability calculation again in detail, with examples.

Once again, briefly the definition: If you calculate the gross rental yield, the result tells you what surplus remains monthly and forms your cash flow. For the repayment and interest (financing of the bank), as well as reserves for maintenance, or everything that then remains for your own, additional asset accumulation.

Formula and comparison

Rental yield = annual net income / investment * 100

Purchase price is 100,000, annual rent 3,200. Calculation looks like this:

• 3,2 = 3.200 / 100.000 * 100
• Result: 3.2

Calculate rental yield: Offer comparison (example)

The result of this calculation is always a percentage. This tells you how much surplus remains to cover the costs (repayment, interest, reserves for maintenance) and ideally a further surplus remains for you as an investor in the property.

With the current interest rate situation, you can expect approx:

• 2 % redemption
• 2% interest
• 2 % Management and maintenance reserves

reckon. Accordingly, properties with a yield of over 6% are interesting for you as a buyer.

• Yield therefore 6% + X

Just like the purchase price factor, you compare different offers in a quick way, based on two factors, the purchase price and the achievable annual rent.

• Object A: Rental yield 6.8%
• Object B: Rental yield 5.3%
• Object C: Rental yield 7.5%
• Property D: Rental yield 4.2%
• …

Accordingly, you would choose to look more closely at Property C, with a 7.5% yield (+1.5% over target of 6%). So the tenant pays off your property and you would have additional monthly income. Also, property A, with still 6.8% yield.

For object B, with 5.3%, you could check later, with your own experience and even more knowledge, whether there are any optimization possibilities, e.g. rent increase, if no adjustments are made by the landlord for a long time.

Learn even more about the return on investment!

At Real Estate-Experience.com, I’ll show you even more about rental yield and ways to make quick valuations, including looking at property location. Learn all about the here:

• Rental yield

Purchase price factor: Example

Again, as a reminder, the definition: if you calculate the purchase price factor as a result, it tells them in how many years the rental income, the investment costs covered.

Calculate purchase price factor: Offer comparison

The purchase price factor is typically between 10 and 40, depending on the region and location of the property, condition and so on. In Berlin the value is between 30 and 38, in cities like Düsseldorf it is between 18 and 24.

Formula and comparison

Purchase price factor = investment / annual net income

Purchase price is 100,000, annual rent 3,200. Calculation looks like this:

• 31,25 = 100.000 / 3.200
• Result: 31.25, so ~ 31

Accordingly, your comparison of real estate listings will look something like this:

• Object A: Purchase price factor 18
• Object B: Purchase price factor 21
• Object C: Purchase price factor 19
• Object D: Purchase price factor 17

So property D is the most profitable, because the financing would be paid by the rent within 17 years. Property A would be paid off within 18 years, property C within 19 years and property B, would need 21 years to pay off the entire financing, through the rental income.

Therefore this tip for you!

Tip. Calculate annual rent

How can you actually calculate the possible annual rent? You are probably looking for your property on a real estate portal, such as ImmobilienScout24, Immonet or another provider. Simply change your search filter from buy to rent. You can already see what rental prices are being charged for comparable properties in the same area or, even better, neighbourhood (1 km radius search). From this, you can forecast the possible annual rent that can be achieved for your property.

Of course, independent of the rent optimization just mentioned, if the previous owner has not made any rent adjustments for a long time, in addition there are upgrading possibilities and expansion possibilities, depending on the type of property.

Conclusion: Purchase price factor and rental yield simply explained

I hope you have found here the simplest explanation there is for purchase price factor and rental yield! If you want to learn even more on the subject of buying a property, whether owner-occupation or investment, numerous articles, guides and checklists, all free and available 24 hours online, with us!

Apartment, house, apartment building, everything for real estate beginners!

Now new on Immobilien-Erfahrung.de:

• Buying real estate: learn – external

In addition, for all beginners, still this tip:

• First property purchase

Darmstadt real estate market: Demand clearly exceeds supply

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

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

How supply and demand regulate prices in the housing market

You can find more infographics at Statista

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

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

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

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

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

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

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

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

Become a real estate professional – but how?

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

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

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

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

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

Investing where spring starts early

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

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

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

Investment alternatives to concrete gold

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

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

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

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

You can find more statistics at Statista

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

What can funds do better than owning your own property?

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

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

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

Buying real estate in the Darmstadt area

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

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

Focus Frankfurt: Investing in the Rhine-Main Region

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

Real estate yields in Wiesbaden stable at a high level

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

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

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

Real estate returns better than many other investments

You can find more statistics at Statista

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

Yield calculator online: The right instrument to start with

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

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

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

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

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

Not every square meter counts as living space!

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

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

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

Investing your money successfuly: Alternatives to real estate

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

You can find more statistics at Statista

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

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

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

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

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

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

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

Tax makes the difference: watch out for investments!

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

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

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

Wiesbaden: Living with high recreational value

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

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

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

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

Good yield opportunities also in the surrounding area of Wiesbaden

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

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

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

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

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

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

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

Discretion when buying and selling a house?

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

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

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

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Real estate prices: Mainz ahead of Wiesbaden

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

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

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

Wiesbaden in comparison

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

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

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

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

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

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

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

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

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

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

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

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

Yield calculator: An example

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

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

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

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

Not everything shines here: gold as an investment

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

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

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

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

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

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

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

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

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

Mainz offers big city life with small town charm

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

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

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

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

Demand exceeds supply: Real estate in Mainz

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

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

Bingen is a real alternative

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

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

• Capital investment Bingen

How a Diskret broker works

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

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

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

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

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