Profitable real estate: 3 tips for investors
Real estate is becoming increasingly popular among investors as a capital investment. Compared to many other classic forms of investment, a property can achieve a significantly higher return due to the positive price development with low risk. We reveal three valuable tips to keep in mind when purchasing a property as a profitable investment.
Tip 1 – Real estate as a safe investment: timing and return are crucial
If you as an investor have a permanent job and sufficient equity, real estate is recommended as a safe investment. The sooner you start investing, the sooner you will benefit from your return. It is also advisable to choose a time of purchase when interest rates for construction financing are as low as possible. Provided you as an investor succeed in managing optimally, returns of up to eight percent are possible, depending on the region and location. In principle, a rented property is the more lucrative investment in contrast to owner-occupation, as you receive a monthly additional income from the rental income and benefit from tax advantages as an investor.
Tip 2 – These properties are suitable for investment
If the maximum expected return is decisive for you, it is advisable to invest in a multi-family house. Investment properties of this type score with multiple rental income, which gives you a direct influence on the return. If you shy away from the high management costs that an apartment building entails and can do without part of the return, a condominium is a good investment. Single-family homes, on the other hand, which appreciate the most in value depending on location and lot, are a worthwhile investment if you want to earn your return by selling later.
Tip 3 – This is what you should pay attention to as an investor when renting out real estate
If you are aiming to rent out your property, it is not only important to pay attention to an optimal location, seamless transport links and a good infrastructure, but also to keep an eye on the average rental price situation. In addition, carefully check the building fabric and the equipment before buying and ask the owner to show you building plans, floor plans and all documents on modernization measures carried out. Also, make sure you purchase a property with a high energy efficiency rating and keep in mind that the amount of rental income is critical to the return you can expect.
You would like to be on the safe side as an investor and would like further advice from an experienced real estate agent? At WEISS IMMOBILIEN, we have been committed to achieving the best returns for investors in Hamburg for over thirty years. We look forward to hearing from you.