In times of decreasing interest rates and increasing uncertainty in the share and capital markets more and more investors decide to invest their money safely and buy properties. Buying properties is regarded one of the safest forms of investment in Germany. *
When we speak of properties as capital investment we mean one or more rented flats. The advantage: the main part of the costs is covered by the rental payments and - where applicable - tax benefits.
An investor that buys an income property generates earnings from renting and leasing. Excess rental income is liable to tax; a loss on the other hand leads to tax exemption.
The government helps by granting amortization and the recognition of certain costs in terms of tax: interest payments and account management fees, maintenance and repair costs, costs for land register security as well as administration.
For individual advice, we recommend an appointment with your tax advisor before you buy a property.
Important criteria for a rented flat are:
Location with high demand
Flat sizes between 40 and 80 m²
Rent appreciation potential
Good condition of the property overall – not just the single flat
Thorough concept for administration and maintenance
Buying properties online is an option but you will not have the thorough consultancy of people that know the topic and that support you through-out the process.
We offer a network of banks, notaries and craftsmen that point out important issues before, during and after the acquisition.
Leasing, accounting and re-letting are important topics. To avoid legal or economic mistakes we recommend commissioning a property manager. He/she will take care of any issues regarding your investment. Since you have chosen a long-term investment the operational safety is of decisive importance.
When you buy a property, you are looking for an investment and not a new hobby.
* Source: GFK study for the banking sector, December 2015
Conversio Immobilien | property as capital investment
Buying a property as capital investment – professional consultancy and support from Conversio in and around Hamburg city“