Typical mistakes – Here with me you will learn a lot about the subject of yield, investment and sale of real estate in Germany. But rarely, do we talk more specifically about buying real estate for the first time. First-time real estate buyers should avoid three mistakes at all costs when looking for their first condo. These 3 tips will help you directly.
Buying in Germany: first property
Good things should be recommended and one of the largest knowledge platforms in Germany, is definitely one of them, more precisely: Immobilien-Erfahrung.de. Tip. Use the Google Translator to translate the know-how into your language!
3 typical mistakes of first-time buyers
Thorsten Bader, expert at B&B Optimal GmbH and managing director of Immobilien-Erfahrung.de, recommends potential buyers to consider their first property exclusively as a capital investment instead of using it themselves. In this case, there is namely the risk that the management costs, such as insurance, property tax and operating costs, which in addition increase in their amount every year by an average of 5 percent, affect the financial independence.
Purchasing without accurate knowledge of the market
Mistake number two is to engage in the purchase of a property without accurate knowledge of the market. Here, there is a risk of buying a condominium at an overpriced price or spending more on renovation work than actually planned. Therefore, potential buyers should carefully plan their finances in advance and be aware of the current market value and the costs involved.
Condition of the property
Mistake number three is not getting enough information about the condition of the property. Here, one should not only check the appearance, but also the technical condition and the structural substance in detail. Hidden defects such as moisture damage or problems with the electrical system can lead to unexpected costs later. A well-done appraisal by an expert is also advisable here.
In summary, when buying their first property, interested parties should make sure that they consider it exclusively as a capital investment, have precise knowledge of the market, inform themselves about the condition of the property and plan their finances carefully. With these tips, a financially sound capital investment in a condominium can be realized.
Why is a capital investment “better”?
Living for rent and renting out your property?
Real estate as an investment offers several advantages over using it as your own home:
- Increase in value
- Financial security
Renting instead of owner-occupying
Real estate can be rented out, which can generate regular income. Your tenant pays the installments of your financing with the monthly rent. At the same time, as a tenant, you have to take care of virtually nothing yourself. Self-use, on the other hand, means: If your salary fails, the repayment of the financing fails. If the heating is defective, you have to take care of everything and, so to speak, always have double damage.
Increase in value
Increase in value: real estate tends to have a stable increase in value, which allows the owner to enjoy an increase in value.
Financial security: renting a property can provide financial security in retirement.
However, it is important to note that any investment carries some risk and it is important to consider an investor’s specific needs and goals before making a decision.
Investing in Germany
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