As you read the current news or even talk with friends and acquaintances, it seems uncertainties are prevalent: from the Corona crisis to the strong fluctuations in the financial market, many are concerned with how the past and coming months will affect their lives. However, one important sector has remained dependably stable. Experts agree that right now is exactly the right time to invest in residential property. As a long-term investment, real estate’s stability makes it crisis-resistant, and with the current unbeatably low interest rates, now is the time to buy. Home ownership investment is attractive and unique—let us show you how:
As early as the 16th century there was a saying in England that said, "My home is my castle." - and thus refers to the importance of the home as a private refuge and place of individual development. Behind your apartment door you feel safe and secure. Especially if it is not a temporary rental apartment, but your permanent and unshakable home.
2. Freedom of design
The design possibilities of common rental properties are extremely limited. A new fitted kitchen, different wallpaper or a more modern tiling must be agreed with the landlord and is often subject to his own taste and financial conditions. It is completely different when you furnish your own home. Here you can individually decide on the design of the rooms and let your creativity run free, tailoring your home exactly to your personal taste and needs.
3. Tangible investment
The stock market is subject to strong fluctuations, and many have already suffered heavy losses. The housing market, on the other hand, is proving to be far more crisis-resistant. While certain investments simply become obsolete in times of crisis and lose much of their value, home ownership is one of the most stable and reliable forms of investment. Depending on where you buy, property value is generally going to continue to increase through the years, with the decisive advantage that you can use the property in real terms - whether as your own home or as a lucrative capital investment.
4. Low interest rates
The current interest rate level is lower than ever and will probably go down in financial history. Since it is only vaguely foreseeable how the financial market and interest rates will develop in the coming decades, now is exactly the right time to benefit from the more than promising interest rate conditions.
5. Value growth
The good old savings book has had its day and only makes a name for itself through negative interest rates. Far-sighted investors are therefore increasingly investing in real estate, which is proving to be far more lucrative due to the low interest rates. Because while unused savings lose value year after year, the value of real estate increases over time and can also be positively influenced by factors such as location or furnishings.
6. Moderate purchase prices compared to greater Europe
The exorbitant housing prices in Paris, Copenhagen and Co. show that the cost of home ownership in Berlin is still moderate compared to other European trend cities. While you will pay up to 18,000 euros per square metre in cities like London, the average price per square metre in Berlin is only 5,000 euros.
7. Demand surplus
Cities such as Berlin and Leipzig are among the most popular in Germany and are also known far beyond the national borders. The diverse cultural and culinary offerings, the flourishing art scene and numerous inner-city lakes and green spaces make them sought-after places to live. In many cases, the supply of apartments cannot meet the great demand. More than enough reasons to take advantage of this opportunity and secure a home in one of the up-and-coming cities.
8. Buying is cheaper than renting
More often than not, if you can afford to rent, you can also afford to buy. Additionally, the purchase of a property promises numerous advantages such as protection against rising rents and letting or an increase in value for trendy residential areas. Moreover, the credit is often as high as the rent - with the decisive difference that you are saving for yourself, not for third parties.
Whether it's the "Wohn-Riester", the home ownership programme of the KfW-Bank, the building children's allowance (Baukindergeld) or regional subsidies: in Germany you can benefit from numerous promotional programmes that support you in the acquisition of residential property.
Secure retirement provision
The purchase of a residential property pays off - especially in old age. Once the home has been paid off, it can be used, rented out or resold and thus serves as rent-free living space or a profitable additional income. More than promising prospects for a carefree retirement.
Translated by Catherine Norris