Luxury real estate Los Angeles: Lukinski’s highlights – Plots up to $6.5 million!

Luxury Real Estate Los Angeles – Are you looking for a condominium or a house with an exclusive location? Our luxury real estate expert Stephan M. Czaja shows us today his new highlights in Los Angeles. Bel Air, Beverly Hills or Bel Air, he has the latest properties and today he gives an exclusive insight into the LA real estate market.

Thanks for the interview to Lukinski Real Estate Scouting Property Los Angeles & Roger Perry Realtor Los Angeles.

Bel Air, CA 90077 – 1298 Stradella Road: My Highlight

This object in Bel. Air is my absolute highlight for the start of the year! The object is currently under construction and will be finished soon. The big advantage also for everyone who wants to invest here, because the interior design as well as individual elements are accordingly still flexible to set. With a total of 7 bedrooms and 12 bathrooms, the property also offers flexible possibilities for use.

This luxury designer home, designed by A.I.A., is located in the middle of Bel Air, one of the safest neighborhoods in Los Angeles. Here you live next door to many Hollywood celebrities, not only actors but also musicians, sportsmen and of course successful people from business and industry.

This object in Bel. Air is my absolute highlight for the start of the year! The property is currently under construction and will be finished soon. The big advantage also for everyone who wants to invest here, because the interior design as well as individual elements are accordingly still flexible to set. With a total of 7 bedrooms and 12 bathrooms, the property also offers flexible possibilities for use. To the Real estate: Bel Air

This luxury designer home, designed by A.I.A., is located in the middle of Bel Air, one of the safest neighborhoods in Los Angeles. Here you live next door to many Hollywood celebrities, not only actors but also musicians, sportsmen and of course successful people from business and industry.

Whoever sees the 3D visualization of the new building for the first time is really amazed by the modern architecture, the design and of course the unspoilt view of the city of Los Angeles. Fitness room, sauna, high-end luxury kitchen, this object really leaves nothing to be desired.

The property offers not only living space but also a lot of private green space, directly on the hillside.

The absolute highlight of this property, however, is located on the terrace, overlooking Los Angeles: A rimless 80m swimming pool. In the real estate exposé, above the description, you have an excellent view of your 80m rimless cool, but also of the whole your property with its three floors.

Borderless pool and exclusive furnishing

Price $ 6,495,000

The purchase price of the property is currently $6.5 million. Converted, that’s about 6 million euros. Whoever is interested in the property should act quickly, because such a property does not remain available on the market for long. Especially the wide view of LA City, exclusive days in Bel Air, high quality and exclusive materials, best and newest building fabric as well as renowned architects, an absolute dream property in Los Angeles.

Tip! Do not wait long, the property will be sold quickly due to its exclusivity… to the Real estate: Bel Air

  • Purchase price in dollars: $ 6,495,000
  • Purchase price in Euro: € 5,933,511
  • Purchase price in pounds sterling: £ 5,037,812
  • Area in sqFt: 16,622
  • Area in m²: 1,544.23
  • Bedrooms: 7; bathrooms: 12
  • Luxury designer house, designed by A.I.A
  • Rimless, curved pool
  • Hi-Luxus/Culinary Kitchen
  • Fitness room
  • Sauna
  • cinema
  • Wine warehouse
  • To Real estate: Bel Air


Beverly Hills, CA 90210 – 2511 Benedict Canyon Dr

My number two new real estate house Los Angeles is this light-flooded property, with lots of green in its own garden and separate, separate areas. Perfect for real estate owners who have frequent guests visiting. Go to Property: Beverly Hills

2000 m², swimming pool and panoramic windows

In the middle of Beverly Hills stands this unique property, in the typical American architectural style. Simple, modern and above all with lots of light! Especially the large panoramic window ensures that the sun can be seen from early morning to late in your own property.

What I personally like very much about this property is the abundant nature. Who knows Los Angeles, knows that I draw streets for miles. So to speak, house to house. Green oases are worth a lot! Here you have everything. Cool, clear water in your own swimming pool, a wonderful house and lots of garden area to be creative yourself or just to enjoy the green nature and the palm trees.

The property is also very practical for car lovers, it offers two covered parking spaces in the garage, as well as another five parking spaces for cars Moment can decorate a total of seven cars directly from the broom without having to create additional space. Of course, sufficient safety is also provided, because one of the most modern safety systems is installed.

Currently the property is offered for 4.25 million dollars, the equivalent of approximately 3.9 million euros. On the other hand, the 2,000-square-meter property offers an extremely wide range of design options. In addition, there is plenty of scope for interior design with 400 square meters of living space.

Price $4,250,000

For all singles, businessmen or businessmen here still another special tip, the property has an excellent sound system! Because of the large property and the free location in Beverly Hills, it is possible to organize one or the other bigger barbecue party.

To the Real estate: Beverly Hills

  • Purchase price in dollars: $ 4,250,000
  • Purchase price in Euro: € 3,882,590
  • Purchase price in pounds sterling: £ 3,296,489
  • Area in sqft: 4,299; Land (sqft): 21,711
  • Area in m²: 399.39; Land in m²: 2017.01
  • Bedrooms: 5; bathrooms: 7
  • Separate bedrooms / bathrooms; separate
  • Garage for 2 cars + 5 additional parking spaces
  • Private access from Benedict Canyon
  • Swimming pool
  • Green area, lawn and greenery around the property
  • Kitchen newly installed
  • XXL panorama window
  • Large laundry room
  • Modern alarm system
  • Excellent sound system
  • To Property: Beverly Hills

LA City, CA 91604 – 12236 Laurel Terrace, Studio

Would you like a little more? Los Angeles is the city for actors, musicians, artists, models, many people from the media world. Some of them are naturally looking for exclusive real estate, real designer houses. So here is my number 3 for the start of the year, this exclusive property in Los Angeles city. To Designer house: LA City

Designer House by Jeff Tohl

This property, in the middle of the city, is an architectural masterpiece, a 1993 design new building, designed by Jeff Tohl.

Currently offered for less than $2 million, the equivalent of about 1.7 million euros, a property that I too would like to see in my private portfolio. 300 square meters of living space on a total of just over 550 square meters of land. What I particularly like about the property is the daylight that comes in through the large panoramic window. And you favorably by the six meter high ceilings, it is in the house almost as bright as outside, that the whole day. Of course very beneficial for your own motivation and performance! The ideal house for singles, single people but also for creative families.

The property is complemented by additional balconies, which are located at the individual rooms. The private master suite has a fireplace and the garage offers parking space for two cars as well as charging stations for electric cars.

Price $1,880,000

Another highlight, for all food fans, is the breakfast bar, which opens to an outdoor courtyard, garden and BBQ area. The house has so much hidden ingenuity that the buyer will be eternally delighted with this architectural masterpiece. To Designer house: LA City

  • Purchase price in dollars: $ 1,880,000
  • Purchase price in Euro: € 1,717,475
  • Purchase price in pounds sterling: £ ,1458,212
  • Area in sqft: 3,204; Land (sqft): 6,002
  • Area in m²: 297.66; Land in m²: 557.604
  • Bedrooms: 4; bathrooms: 3
  • Architectural masterpiece
  • Design new building by Jeff Tohl from the year 1993
  • 20 foot (6 meter) high ceilings
  • Natural incidence of light through panorama windows
  • Fireplace in the Master Suite
  • Additional balconies
  • Breakfast bar, which opens to an outdoor patio, garden and BBQ area
  • Private garden plot with green meadow on the slope
  • Garage with 2 parking spaces + charging connection
  • Extendable area (e.g. recording studio, cinema or own fitness studio)
  • To Designer House: LA City

Los Angeles, CA 90024 – Wilshire Blvd APT 1401

Super, chic, super exclusive, when I first saw this property I thought: WOW! Maybe mentioned right at the beginning, even the kitchen is studded with jewels and about one with a chandelier. So much exclusivity, in a condominium, in a skyscraper, you rarely find! To Property: Los Angeles Tower

purchase price $3,550,000

Among the new condominiums in Los Angeles this property is my absolute number one! Whoever lives here feels the luxurious LA 24-hour lifestyle.

Who knows Los Angeles, knows that many properties are built relatively flat and the city is very wide. Accordingly, there are only a few places where you have a perfect view over the city. This condo shines especially with its wide views (towards LA North), including the golf course of the LA Country Club. From the 14th floor you can overlook large parts of the city.

Due to the attractive north orientation you not only see a large part of the city but also have sunshine in the morning and in the evening. There are only four apartments on each level of the high-rise building. Accordingly, the neighbourhood is very exclusive.

The condominium currently costs 3.55 million dollars, the equivalent of approximately 3.25 million euros.

Not only do you get the exclusive view, but also a gourmet kitchen with jewels and crystal chandeliers, a 24-hour doorman and, for prices over two million dollars, of course an in-house servant, Dustin Service, is available 24 hours a day, 7 days a week. To Property: Los Angeles Tower

  • Purchase price in dollars: $ 3,550,000
  • Purchase price in Euro: € 3,243,104
  • Purchase price in pounds sterling: £ 2,753,538
  • Area in sqFt: 3,143
  • Area in m²: 291,98
  • 3 bedrooms; 4 bathrooms
  • Extremely attractive city location
  • Living room with marble fireplace
  • Wide view (direction LA North), amongst others golf course of LA Country Club
  • Gourmet kitchen with jewels and crystal chandeliers
  • 24-hour doorman
  • valet
  • To Property: Los Angeles Tower

Beverly Hills, CA 90210 – 1423 Schuyler

For buyers who want to live a little more remotely, and yet only a few minutes from downtown, I brought this property from Los Angeles.

Price $3,995,000

In the middle of Beverly Hills you will find this little piece of paradise, surrounded by green nature, built with such natural elements, from half-timbered houses with precious woods a bit to sandstone at the swimming pool.

For four million dollars there are more than 2000 square meters of floor space, converted it is about 3.65 million euros. To the Real estate: Beverly Hills

Beverly Hills: Safe and attractive location

The real highlight of this property is that the seller is currently offering a discount of €700,000, as long as the property is sold quickly. Accordingly, you can now secure an extremely large advantage!

Not only the price is very attractive, the property also has its own wellness area, an unspoilt view of Los Angeles and absolute cosiness, with a separate fireplace in the living room and bedroom of its master suite. To the Real estate: Beverly Hills

  • Purchase price in dollars: $ 3,995,000
  • Purchase price in Euro: € 3,649,635
  • Purchase price in pounds sterling: £ 3,098,700
  • Area in sqft: 3,486; Land (sqft): 23,570
  • Area in m²: 323.86; Land in m²: 2189.72
  • Bedrooms: 5; bathrooms: 6
  • Unspoilt view of Los Angeles
  • Beverly Hills: Safe and attractive location
  • Extremely generous design and cut of the object
  • 16 foot high ceilings, modern and natural elements
  • $700,000 discount from the seller
  • Swimming pool with optimal solar radiation
  • Kitchen with new appliances and high-quality granite worktops
  • Fireplace in bedroom and living room
  • Private wellness area
  • Go to Property: Beverly Hills

Brentwood, CA 90049 – 2107 Stoney Hill Road

There are currently options on this property for 2.7 million dollars and 2.5 million euros respectively. And the special thing about this property, it is not located directly in the city of Los Angeles, but in the tranquil Brentwood, only a few minutes away from Los Angeles. Go to Property: LA Brentwood

Price $2,695,000

Over 400 square meters of living space, double ceiling height, inlaid hardwood would and hand polished marble mantle, in this property everything is pure luxury!

The exclusive marble fireplace in the master suite, the spa bath with opulent onyx finish, a fully equipped kitchen for your own pleasure at the stove or your staff, palm trees and lush greenery in the garden. All in combination and with a focus on the 40-foot long and extra round pool. Of course there is also plenty of room for your own fleet, e.g. with two and direct access to the house.

This object leaves nothing to be desired and rounds off my list of highlights from the beginning of the year for me.

Tip! Now I have two more objects for you, which you can already acquire under one million Euro. And that in the middle of Los Angeles! As always, first comes, first serve. Whoever makes the decisive bid first gets the contract from the seller. To Property: LA Brentwood

  • Purchase price in dollars: $ 2,695,000
  • Purchase price in Euro: € 2,462,019
  • Purchase price in pounds sterling: £ 2,090,362
  • Area in sqFt: 4,620
  • Area in m²: 429,21
  • Bedrooms: 3; bathrooms: 4
  • Scenic Canyon/Pacific Ocean View
  • Double ceiling height
  • Floors: Inlaid hardwood floors and hand-polished marble mantle
  • Marble fireplace in the Master Suite
  • Spa bathtub with opulent onyx surface
  • Fully equipped kitchen
  • Garden area with 40-foot long and extra round pool
  • 2 garages with direct access to the house
  • Go to Property: LA Brentwood

Exclusive bargains under $1 million

Los Angeles, CA 90068 – 2145 Fairfield Ave

Price $950,000

To Property: LA house for $ 950,000

  • Purchase price in dollars: $ 950,000
  • Purchase price in Euro: € 867,873
  • Purchase price in pounds sterling: £ 736,862
  • Area in sqft: 4,229
  • Area in m²: 392,88
  • Bedrooms: 3; bathrooms: 2
  • Bargain! Under §1 million
  • To property: LA house for $950,000

Los Angeles, CA 90010 – 3810 Wilshire Blvd APT 1105

Price $845,000

To Property: LA condo for $ 845,000

  • Purchase price in dollars: $ 845,000
  • Purchase price in Euro: € 771,950
  • Purchase price in pounds sterling: £ 655,419
  • Area in sqft: 1,300
  • Area in m²: 120,77
  • 2 bedrooms; 2 bathrooms
  • Kitchen with cooking island
  • Kitchen is further enhanced by black granite countertops
  • Balcony with sliding glass door
  • Breathtaking 180 degree view
  • Swimming pool on the roof
  • Spa and fitness room
  • BBQ grill
  • parking spaces: 2
  • To Property: LA condo for $ 845,000

Thank you very much for the interview!

Thanks to Lukinski & Roger Perry

Thanks for the interview to Lukinski Real Estate Scouting Property Los Angeles & Roger Perry Realtor Los Angeles.

Investment XXL – Real Estate, Stock, Gold, Cars, Arts & Co

Capital investment – 1.000 Dollar, 10.000 Dollar, 100.000 Dollar, from when is it worthwhile to invest in real estate, shares, funds, overnight money, cars and art? Consumers can use different possibilities to invest capital. There are many mistakes. Therefore, investors should know in advance what risks they actually want to take. For the final selection of the individual investment, it is important to know how much capital you want to invest. Did you already know? Real estate can offer additional tax advantages when investing capital.

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Types of investment and alternatives

Where can 1,000 to 100,000 dollar be invested to get the top results? There are many different ways in which savers can invest their money. Which forms of investment are suitable for short, medium and long-term investment? There are many more questions! What does investment in real estate mean? How do you calculate the return on a property? What is a safe investment? Is real estate a good investment? We start with the simplest forms: Saving money. Later we also come to topics such as cars, safe investments like real estate and speculative investments like art.

Investment Portfolio: Asset diversification

Anyone who has learned from the past, from economic crises to currency fluctuations and inflation, should diversify their capital in such a way that even in uncertain times, a certain degree of freedom and mobility is maintained, that is:

  • 1/3 Fixed-income assets/securities
  • 1/3 Real estate
  • 1/3 Mobile material assets, e.g. diamonds

Savings book – The classic

The savings book offers, especially for young people, a good start through the mental obligation to regularly deposit money. The big disadvantage is that interest rates are currently low, even close to zero.

The classic savings book is suitable for continuous asset accumulation. You regularly pay your monthly savings contribution, for example through your salary. Often the account management is free of charge and every dollar deposited earns interest, albeit small

A savings account is easy to set up for just about everyone. With the way to the bank or the on-line mechanism over a direct bank, for each saver possible, flexible availability of the capital very small capital yields very low nearly none. The yield of savings books is very low and therefore there is almost no risk. Savings books are easy to set up, possible for every saver, flexible availability of capital. But there are also disadvantages of passbooks such as very low returns on investment.

Facts about the passbook

The 3 most important facts about the savings book:

  • possibility to invest the first capital stock
  • no (extremely low) default risk
  • available for everyone

The savings book offers a secure investment and is a good option, without risk, especially for people who want to build up their first small capital stock.

Read more about the simplest form of investment, the passbook.

Fixed-term money – binding term and yield

Money that you do not need to access for the next 1 to 3 years can be invested in a term deposit account. The longer the term, the higher the interest.

Fixed-term deposits offer the advantage of easy set-up, stable interest rates and various maturities are selectable early termination is often not possible, termination is only possible for a fee. The risk assessment of fixed-term deposits is therefore low compared to the investment alternatives. However, the current yield of fixed-term deposits is just as low due to the current interest rate situation as is the risk – a trade-off that every saver must weigh up for himself. Therefore, just like a savings book, a fixed-term deposit is easy to set up, it offers stable interest rates and you can choose different maturities. Conclusion: Many advantages, little return.

Facts about the time deposit

The 3 most important facts about time deposits:

  • For capital that is not essential needed
  • Obligatory term (previous exit only with losses)
  • Fixed return after time

Overall, fixed-term deposits are suitable for people who can do without part of their capital for a certain period of time. This is invested with a fixed term, in return for which you receive a fixed return.

Binding term and yield, read more about saving with a fixed-term deposit

For those who want to calculate their possible interest payments themselves, there are very simple formulas available for calculation. The two most important are these:

Interest per year:

Interest per year = (investment capital x interest rate) / 100

Interest per day:

Interest for t days = (investment capital x interest rate x t) / (100 x days per year)

Daily allowance – flexibility and security

Overnight money is absolutely easy to set up, often the offer is included ready in the opening of the account. Your deposited capital is available at any time, unlike investing in a fixed-term deposit account with a binding term. For the start with overnight money you need only a small investment income or income.

Due to the current interest rate development, as will be seen later in the statistics, the increase of capital via overnight money is only worthwhile from very large amounts of money. In return, you have a very low, almost no risk in your capital investment. The current return on overnight money is very low as described, which is little to no risk, but you will hardly make any profit. Overnight money is like time deposits and savings books easy to set up in many bank branches and of course online. Your capital is always available.

Facts about the overnight money

The 3 most important facts about the daily allowance:

  1. Available for everyone
  2. Constant availability of your money
  3. Low return

Overnight money is a flexible reserve option for small savers. You can fall back on your money at any time, but the returns are more moderate than with a time deposit.

Current interest rates and more: call money.

Overnight money comparison: Interest rate development from 120+ banks

The basis of the interest rate statistics are currently 12 tested overnight deposit accounts, which you will also find in all overnight deposit comparisons.

  • 2008 by 4.15%
  • 2010 by 1.12
  • 2012 by 1.22%
  • 2014 by 0.39%
  • 2016 by 0.12%
  • 2018 by -0.03%
  • 2020 by -0.08%

Deposits rise despite falling interest rates

How do interest rate developments relate to the amount of deposits? As we have already noted with regard to the savings book, this is mainly due to the scepticism of savers, towards the stock market and the economy.

In general, one should be able to assume that the current fall in interest rates, which is dependent on the interest rate situation, will lead to a corresponding fall in interest among savers.

However, as the chart shows, this is not necessarily the case, as a glance at the infographics below shows. In the chart you can see how the interest rates on overnight deposit accounts have been falling steadily since the beginning of 2012, but the amount of deposits of private households with daily maturity almost always increases.

More facts and figures about overnight money.

Direct comparison – savings book, overnight and time deposits

daily allowance fixed income savings book
Possible interest from 0 to 0,50 % From 0.001 to 1.97 % 0.1 to 1.97 %
investment amount 1 to unlimited 1 to unlimited 1,000 Dollar to unlimited
Installation time unlimited 30 days to 10 years 1 to 10 years
security at least 100,000 dollar through the statutory deposit insurance (S&P country rating to be observed) at least 100,000 dollar through the statutory deposit insurance (S&P country rating to be observed) at least 100,000 dollar through the statutory deposit insurance (S&P country rating to be observed)

Building society contracts – house purchase, construction and conversion

When you save with a building society, you benefit from various support options such as premiums from the state. You can use your bauspar contract for the construction, purchase or conversion of a house. However, a bauspar contract is also interesting for real estate owners, for example to finance modernization measures. The respective costs depend strongly on the provider. Read more about bauspar saving here.

Procedure and phases – The strengths of a building society contract lie in its fixed planning capability. A bauspar contract consists of two phases, the saving and the saving phase. With a bauspar contract you first save about half of the planned bauspar sum (see bauspar calculator), the other half is then available as a loan at a fixed interest rate.

As already described, there are many questions, ranging from what is the savings phase and how long is the term of a savings agreement to what is meant by a savings agreement? But the advantages and disadvantages are also important for many people who want to start saving. What are the advantages of a bauspar contract?

No equity capital necessary – the highlight of every bauspar contract is that it can be used without any equity capital at all. It can be set up anywhere, locally in branches but also online in comparison portals.

The disadvantage, the payout is bound to strict regulations, the risk of default is extremely low, especially with old contracts. Did you already know? It is possible to convert building society contracts into capital investments by paying premiums – but this advantage is usually limited to the old contracts just mentioned. Unfortunately, such contracts are hardly offered anymore with the current interest rate situation. The current yield of bauspar contracts is average.

Facts on building saving

The most important 3 facts about the building society contract:

  1. No equity capital required
  2. Support through premiums from the State
  3. Earmarked (according to strict regulations) for house construction, purchase and reconstruction

Building society savings really pays off for everyone. The conclusion is simple, the plan has a clear goal. No matter whether it is rent-free living or old-age provision, building saving is a real must in order to build up equity.

Read more about bausparing here.

Real estate – capital investment and retirement provision

The great advantage of real estate as a capital investment is its long-term value and, in addition, the corresponding increase in value in a good location. If you are looking for an exclusive property, you do not need a normal broker but a luxury realtor with specific knowledge and a good network. Many of these objects will never appear in the usual real estate portals.

Another advantage in the current interest rate situation, the investment of capital is possible through cheap loans with favorable financing – according to the motto, if not now, then when? Of course, there is also the option of tax advantages, but these should be discussed and planned with an experienced real estate agent or tax consultant. Read more about capital investment real estate here.

Real estate overview: Risk assessment

The most popular are

  • Plots of land
  • Condominiums
  • Private homes
  • Pure and semi-detached houses
  • Retirement home

The risks and disadvantages include the complex effort involved in buying and selling real estate. From collecting the documents to the viewing appointments and the negotiation phase or the purchase contract.

The increase in value is strongly dependent on the location, as describe.  In addition, as a property owner you will have responsibilities as a home owner and property manager if you do not outsource the service to a company. To get started in real estate, you usually need a lot of equity, depending on various factors.

The return on property is average, with a high tendency for good properties in attractive locations. The local increase in value of any property, whether it is a condominium or a home of your own, depends strongly on the location. Prices literally explode in cities like Munich and Hamburg. The risk as well as the return on real estate is medium to high, depending on the various factors mentioned. Real estate offers long-term value, which is its great advantage, also for investors who are thinking about retirement provisions.

Facts about real estate

The 3 most important facts about real estate as an investment:

  1. Requires a lot of equity from the saver
  2. Long-term capital commitment
  3. Requires know how when buying (object, location, etc.)

Real estate is advisable for laymen, like stocks, at the first purchase only with the help of experts (e.g. real estate agents). It is a long way from the first research to the inspection and the purchase contract as well as the subsequent property management.

Read more about capital investment real estate.

The question as to which capital investment is the most lucrative cannot be answered in a blanket way. Depending on the amount of investment and personal goals, the search for the best capital investment is more or less difficult. The fact is, however, that the right investment with a suitable return brings with it a worthwhile increase in value and has many advantages for the investor.

Procedure and selection process

This is how you buy real estate:

  1. Keep a cool head when buying property and don’t let personal feelings guide you.
  2. Always let him show you a sample calculation of the yield of the property and question the assumptions.
  3. Compare the return on your property purchase with that of other investments.
  4. 4Take advantage of the competition among the providers of construction financing.

Invest money in real estate

Real estate as a capital investment becomes very attractive for many investors, especially at the current low interest rates, and offers many advantages for long-term investment and value enhancement. We give you the most important tips:

  1. Key figures
  2. Land as an investment
  3. Semi-detached houses and apartment buildings
  4. Buyer tips

And much more you can find now in the article “Real estate as a capital investment?

Equities – risk and return

Access to shares is easy for everyone, online or in the bank branch. Every bank offers such accounts, some also charge custodian fees. Read more about buying and selling shares here.

For laymen there is always a risk, because the trade is confusing. Stock market tickers, news, tweets, many things influence prices and developments. The (daily) trading with shares requires competence and experience. In case of speculations, high losses are possible immediately. This means that the risk, but also the loss in case of doubt, is medium to high. If you want to start trading more safely, you should use ETFs. Where there is shadow, there is sun. For example, the returns on shares are just as medium to high compared to traditional investments such as savings books, time deposits or overnight money. You can read more about this in our articles on equities and index funds (ETF).

Facts on shares

The 3 most important facts about shares as a capital investment:

  1. Know how required
  2. High risk (even complete failure possible)
  3. Purchase fees must be taken into account in the volume

Equities offer great returns, as we also show in the dividend payout in the example on our article. It is only important that you take a close look at shares before you make your first purchase. We tell you what you need to consider in the first steps.

Read more about buying and selling shares here.

Is it worthwhile buying shares?

Anyone who holds shares for a longer period of time will receive dividends at the end of the financial year, if they are successful.

271.1 % Increase in dividends in 15 years

In this diagram, you can see very impressively how dividends are rising year after year, billion after billion. This is the development of the dividend payments of DAX companies in the years from 2003 to 2019 (in billions of dollars). The leap from 2004 to 2019 alone, i.e. 15 years, resulted in an additional annual payout of 27.8 billion dollars. This represents an increase of 271.15 % over the previous year.

Read more here and look at the statistics that show the extreme rise in profits in the stock market: Stock trading.

Funds (ETF) – Less risk and return

ETFs are bundled shares, which reduces the risk (default, profit and loss peaks). The A&O in the balancing process. ETFs are linked to fixed terms. Read more about safe investment in funds here.

Funds, like shares, must be set up at every bank. Different investment portfolios are possible and thus a corresponding gradation according to the risk appetite of the individual investor is possible. Of course everyone knows the tax advantages that are possible with capital transactions. Due to the large selection of fund products you can spread the risk well.

Each purchase and the fund management costs fees. Your capital is tied up for the long term, dissolution is only possible with loss before the end of the term.

The current return of funds is medium (compared to the investment alternatives) and the risk of funds is absolutely manageable.

Facts about funds

The 3 most important facts about funds as capital investment:

  1. Binding maturity (earlier exit associated with losses)
  2. Minimized risk through bundled individual values
  3. Purchase fees must be taken into account in the volume

For those who can save money, funds are an excellent alternative to individual shares. Bundled funds are less sensitive as they contain many players that are more stable overall. Returns are correspondingly more moderate than for equities, but as you can quickly see in our best practice of dividends, it is worth investing in. In the last 15 years alone, dividends have tripled, from 2004 to 2019, which is 15 years, bringing an additional annual payout of 27.8 billion dollars. An increase of 271.15 % over the previous year.

Read more about safe investment in funds here.

Shares & Funds – Tips for your first purchase

If you are interested in buying an ETF, you will find many different pricing models on the internet. Here the individual prices per trade depend on the online broker. The standard fees are usually five to eight, maximum ten dollars. There is also a fee of 0.25%, depending on the amount traded. The fee per purchase is typically limited to an upper maximum amount.

First purchase: 100, 1,000 or 10,000 dollars ?

Another unbeatable advantage in fund trading, even with small investment amounts you can get in. When investing in real estate, you have to present 10% – 20% equity capital to the bank, which in large cities such as Hamburg, Berlin, Munich and Cologne can quickly amount to 50,000 – 100,000 Dollars. Investing in equity funds is often worthwhile at only 10% of the sum, about 5,000 – 10,000 dollars per package.

Why should you not buy smaller packages? There is an order fee for each trade. If you buy a package for 100 Dollars, many banks charge an order fee of 5-8 Dollars directly. Accordingly, your portfolio will shrink directly to 92-95 Dollars. This means that you have already made the first 5-8 Dollar loss, which a corresponding rise in the price of the fund must first offset. That means, directly at the purchase 5% – 8%

Loss of value.

Purchase of 100 Dollar Ø 6.5% loss
plus 0.25% trading fee

If you buy a package of 1.000 Dollar, the trading fee of our exemplary 5-8 Dollar is already much less important. With a purchase of 1.000 Dollar you keep 992-995 Dollar in value. Accordingly, the loss in value is reduced to only 0.5% – 0.8%.

Purchase of 1.000 Dollar Ø 0.65% loss
plus 0.25% trading fee

With a package of 10,000 dollars and an order fee of 5-8 dollars, the loss in value is directly reduced to 0.05% – 0.08%.

Purchase of 10,000 Dollar Ø 0.07% loss
plus 0.25% trading fee

Therefore it is worthwhile to buy larger packages directly.

In addition, there is the previously mentioned purchase fee of about 0.25% of the traded package.

Of course, the administration fee for your portfolio is just as favourable. The more value you hold, the smaller the effect on your portfolio.

You can find more interesting facts here:

  • Stocks
  • Funds

Bonds – yield and rating

Government bonds, or treasury bonds, are usually available in the local currency. In contrast to treasury bills (2 years), German Government securities have a relatively long maturity. This maturity is for example 10 or even 30 years. Read more about government bonds as capital investments here.

So when you buy a government bond, you are an investor lending money to the state. This bond is granted for a fixed period of time. In return, you as a lender receive a fixed interest rate, so-called coupons. The nominal value of a bond usually remains the same over the entire period.

Facts on government bonds

The 3 most important facts about government bonds as a capital investment:

  1. Government bonds are used to finance government spending, so you lend money to the government when you buy bonds
  2. Government bonds pay a fixed interest rate annually to the investor, the so-called coupon
  3. The interest rate and price of the government bond issued is based, for example, on the current creditworthiness of the issuing country.

Government bonds are a safe bank for money. Whoever deals with the current inflation sees quickly, government bonds currently bring no returns.

Read more about the topic Government Bond here

Yield with 10-year maturity

Yield on ten-year government bonds of selected countries worldwide in October 2019.

Positive interest income

  1. USA with 1.7
  2. Greece with 1.34
  3. Italy with 0,92 %.
  4. Spain with 0,22 %.
  5. Portugal with 0,19
  6. Ireland with 0.02

Negative interest income

  1. Germany with – 0.45
  2. Luxembourg with -0.39
  3. Netherlands with -0.3 1%
  4. Austria with -0.2
  5. Finland with -0.2
  6. Japan with -0.16
  7. France with -0.14
  8. Belgium with -0.14%

Precious metals – gold, silver, platinum & palladium

Gold, silver, platinum & palladium and the current price – here you will find everything about precious metals as an investment. Gold in particular is regarded as the investment form during and outside of crises. Did you already know? The purchase of investment gold is exempt from VAT. Current prices, tips and more on the subject under precious metals as a capital investment.

Precious metals can be used as an investment form by the investor without much know-how (an exception is silver).

In contrast to investments such as vintage cars or art, a concrete value is tangible and is determined daily on the world’s stock exchanges. Investors only have to follow the current share price. But be careful: high fluctuations in the price of gold (and other precious metals) are also possible here, so the risk is medium to high (for example with silver).

The return is medium, depending on the price development. The yield of precious metals is medium to high, depending on the price development, as is the risk of precious metals. Precious metals are an attractive form of investment worldwide. It can be used at short notice, without great know-how. Through stock exchanges and trading, concrete values are always within reach. You as investor only have to follow the share price. Of course there are also risks with precious metals as well as the generally high fluctuations, as known from the gold price.

Facts on precious metals

The 3 most important facts about precious metals as a capital investment:

  1. Gold is mainly bought in times of crisis, so the price development is often contrary to the stock prices (accordingly predictable)
  2. Platinum is particularly rare and valuable (as seen in cars as an investment or in art as an investment, rarity is a top indicator), accordingly palladium is such an interesting substitute
  3. Palladium is very interesting because it can replace platinum in the industry

The big advantage of precious metal is that you can always follow the current prices and thus have a solid assessment of value and appreciation (when looking at the current prices and also history)

Current prices, tips and more about gold, silver, platinum and co. under precious metals as a capital investment.

Diamonds – Valuation & Certificate

Diamonds offer protection against inflation, bank failures, stock market crashes and currency reforms. Not only that, anonymity also plays a major role for many investors. There is no registration of the investor for diamonds, no state access. Diamonds are not only anonymously obtainable for buyers, they also offer the unbeatable advantage that they are easily convertible worldwide. Safe or not? Diamonds as a capital investment.

Cartier jewelry (even the finest particles are used):

Did you know? Diamonds are the only internationally recognized substitute currency that is valued equally in all countries.

Every diamond is unique. They can be the same size, but have extremely different values. The quality is measured by the 4C of diamonds. This means that differences are formulated by “Carat, Color, Clarity and Cut”. They determine the quality and value of the diamond. As soon as you decide to actually buy diamonds, the tax-free increase in value also plays a role (take a look at our statistics on increase in value later). The tangible asset without maintenance costs is free of maintenance costs, provided that safekeeping is solved.

Facts on precious metals

The 3 most important facts about precious metals as a capital investment:

  1. Protection (inflation, bank failures, stock market crashes and currency reforms)
  2. Anonymity of the buyer
  3. Global convertibility

Diamonds are an excellent choice as part of your own portfolio. As we have already described in the introduction of the article, a good portfolio should consist of one third each of fixed-interest investments or securities, real estate and mobile tangible assets, such as art, designer fashion or even diamonds.

Safe or not? Diamonds as a capital investment.

Jewellery – value investment

Jewellery is extremely different. On the one hand, there is the well-known costume jewelry from the city centers and from online mail order companies. Even at the beach promenade around in the supermarket there is costume jewelry to buy. On the other hand there are special and exclusive pieces from brands like Cartier, Chaumet, Bvlgari, Patek Philippe, Rolex and Tiffany. Read more about jewellery as an investment.

The rarer a piece is, the more expensive it can become. High-quality jewellery should only be bought from renowned jewellers. If in doubt, you should commission a value appraisal before buying the desired pieces. But under what circumstances is it worth investing in jewellery?

Facts about jewellery

The 3 most important facts about jewellery as an investment:

  1. Equity capital required (entry 5 to 6 digits)
  2. Moderate, long-term return (stable to slightly rising) / commitment if desired
  3. Anonymous purchase and trade

With such high purchase sums, which as described also quickly reach a 6-digit value, jewelry is an investment for wealthy people and heirs. For the private, smaller investor the later resale is not easy and in most cases it is loss-making.

Read here further to the capital investment jewellery

Jewellery brands: Ranking

  1. Cartier
  2. Van Cleef & Arpels
  3. Boucheron
  4. Harry Winston
  5.  Chaumet
  6. Kloybateri
  7. … the top 10 luxury jewelry brands

Art – Durable system without fixed sales value

Access to the established art market is possible for newcomers via galleries or auctions. For buyers with capital, art is certainly attractive as an investment.

It is risky that art has no fixed values and therefore no clear prospects of profit. Buyers must also have appropriate storage facilities. The risk is correspondingly high. Today’s return on art is high, if asked for, in keeping with the high risk of art as an investment.

Art is readily traded. The entry into the art trade takes time, art is therefore not a short-term investment. You can access the established art market through galleries and art auctions, for example, in which you can participate with prior registration. Whoever bids, the weather is also a little bit. Accordingly, there are no clear profit prospects in the art trade, especially at auctions. Security also plays a role, as buyers must have appropriate safe storage facilities when storing art objects.

Read more about art as a capital investment.

The most expensive works of art in the world

  1. Leonardo da Vinci – Salvator Mundi for US$ 450.3 million
  2. Pablo Picasso – Les femmes d’Alger for $179.4 million
  3. Modigliani – Nu couché for 170.4 million US-$

Read on under Art as Investment.

Procedure: 3 tips for finding objects

  1. Choose an art form that is interesting for you such as painting, photography, graphics, design
  2. Search for special unique copies and / or objects, which were only produced in small numbers
  3. Finally comes the choice of the right strategy, you speculate on known artists, unknown artists

Designer fashion – shoes, jackets and bags

Designer fashion as a capital investment? Shoes, jackets and expensive bags, high fashion is not only conquering the world’s metropolises, but more and more investors are turning to designer pieces. Haute couture is at the top of the list in New York, Dubai and Beijing. The leading luxury brands earn billions. We take a look at the most popular high fashion designers and potential investment objects. Read more about fashion as an investment.

The big advantage of designer fashion: fashion from designer labels can be bought by every consumer in a boutique simply and easily. It gets even better, if required it offers practical benefits for the buyer. However, those who buy bags & Co. from Hermés, Prade, Versace & Co. are less interested in practical use than in increasing value. The purchase and transport is anonymous, no buyer is registered.

Facts about designer fashion

The 3 most important facts about fashion as an investment:

  1. Availability for everyone
  2. Anonymity at purchase
  3. Risk of loss of value due to trends, news or influencers

On average, humanity is becoming increasingly wealthy. Especially countries like China and India want more and more luxury goods. So the prices for special pieces are rising. Expensive handbags, fine dresses and shoes are making high profits.

Read more about designer fashion as a capital investment here.

Luxury brands: Ranking

Tip! The 10 most expensive handbags in the world. Read more about the top 10 luxury fashion brands here.

  1. Hermes
  2. Chanel
  3. Louis Vuitton
  4. Christian Dior
  5. Ferragamo
  6. Versace

In addition to the three basic rules of rarity, original condition and patience counts, the increase in value must exceed the running costs of the value investment car. Sports cars, youngtimers and oldtimers can be easily purchased and acquired by everyone via the used car market, so getting started is easy. However, it is extremely important that specialist knowledge is available. Experience in the field is absolutely necessary, for laymen completely unsuitable and also in the risk medium to high, without knowledge. Read more about cars and classic cars here.

The return on cars is medium to high, if the increase in value is given by following the 3 rules for car buyers. Where there are high profits, there is always risk, with cars as a capital investment the risk is high and investments should be made accordingly with planning. Cars are especially for men one of the investment objects, but for laymen the investment in cars and classic cars is unsuitable. We recommend a good alternative, such as funds and bonds. With a little more willingness to take risks also real estate.

Facts about cars and oldtimers

The 3 most important facts about cars as a capital investment:

  • Attractive increase in value (important: increase in value only in original condition)
  • A lot of experience and know how for the valuation and the purchase is a prerequisite
  • Active enjoyment of the object instead of ‘just’ investing

If you want to buy cars as an investment, you have to take a lot into account. In addition to the three basic rules of rarity, original condition and patience, the increase in value must exceed the running costs of the car as an investment (sports, youngtimers and classic cars). For laymen, the investment in cars and classic cars is therefore rather unsuitable.

Read more about cars and classic cars here.

Luxury car manufacturer: Ranking

Read more about the top 10 luxury jewelry brands.

  1. Rolls-Royce
  2. Bentley
  3. Ferrari
  4. Lamborghini
  5. Maserati
  6. Aston Martin

Antiques – Coming soon

Soon you will also find more information about antiques here.

  • Sotheby’s
  • Cristies

Private lending – duration, costs and comparison

What are the advantages of a personal loan from my bank? Can I get the credit without SCHUFA? There are many questions, we have the first important answers. For all other questions, it is best to contact your bank advisor or a renowned comparison portal for loans. So you are available through various credit mediation portals. The current rate of return on personal loans is mediocre and the risk of personal loans is therefore also not high. Private lending enables simple investment opportunities via various credit brokerage portals. Read more about private lending here.

Of course, there are also disadvantages with personal loans, because when taking out a loan, detailed information about the providers is necessary to avoid mistakes.

Read more about personal loans here.

Questions about personal credit

  • What are the advantages of a personal loan from my bank?
  • Is a given personal loan earmarked?
  • Is a prior credit check obligatory in Germany?
  • … read on: Personal loan

Life insurance – risk & asset generation

Life insurance policies can basically be divided into two types, term life insurance and endowment life insurance. Life insurance policies stand out above all as the best protection for partners and children (term life insurance). However, they can do more, for example asset accumulation for old age (endowment life insurance). All about life insurance.

We answer your questions: How does life insurance work? How useful is a life insurance policy? Is it possible to get the life insurance paid out? The good news first, yes! This special insurance is called endowment insurance, or capital-forming insurance. The cost of the insurance you take out depends on your individual goal of protection and the agreed term.

Facts about life insurance

The 3 most important facts about life insurance as an investment:

  1. Capital Security
  2. Protection for survivors in the event of death
  3. Capital accumulation (for endowment insurance)

Depending on your personal family and professional status, different life insurance policies are possible. In principle, however, anyone who has a young family or close relatives should think about them.

Read all about life insurance investments here.

Investment management – Private asset managers

Asset Management – Asset managers help their clients to find their way in the complex and increasingly digital financial world. Through conversations and trust we analyse the financial situation of the client in detail, so trust is central to our work together. Your personal current circumstances and long-term goals are taken into account in the planning. The result is a detailed, personal asset planning, individually developed for the client. Well-founded and high-yield asset management is possible for both financially strong investors and small savers. More about costs and minimum investment amounts later. Read more about private asset management here.

When does asset management pay off?

The big question is: When does asset management start to pay off? Banks offer standardized products for assets starting at 50,000 dollars. Online there are even much lower models.

Standardized banking products from 50,000 dollars

An individual and personal, correspondingly profitable asset management is only worthwhile from a minimum investment sum of 500,000 dollars.

Personal investment advice from 500.000 Dollar

Independent investment advisors help with financial advice and brokerage. But what does an investment advisor do, what costs do you incur as an investor and how does the profession differ from the classic bank advisor in a bank branch?

Read all about the topic: Asset management

The most popular investments

Which of the following investments are currently the most popular? These statistics from the Federal Office are the result of a survey of over 1,000 respondents on the various preferred forms of investment in Germany. At the time of the survey, “about 27 percent of the people questioned owned a life insurance policy. In 2011, around 40 percent of those surveyed still stated that they had taken out a life insurance policy for old-age provision”.

13% fewer life insurance policies in 8 years

You can find further information on statistics on Statista.

2019 2018 2017 2016 2015 2014 2013 2012 2011
real estates 28% 31% 27% 27% 27% 29% 28% 29% 30%
a building savings contract or building savings plan 28% 26% 28% 31% 32% 32% 29% 33% 33%
an overnight money account 24% 25% 22% 23% 32% 29% 27% 29% 33%
fund units 24% 20% 17% 18% 23% 20% 21% 23% 25%
shares 15% 15% 13% 13% 15% 12% 13% 15% 16%
13% 13% 14% 12% 19% 17% 21% 20% 21%
net: gold/silver 13% 12% 8% 7% 11% 8% 7% 11% 8%
11% 10% 7% 6% 9% 7% 6% 9% 6%
antiques, such as a very old cabinet* 6% 8% 4% 5% 7% 6% 5%
arts of art, such as paintings* 4% 4% 3% 3% 5% 4% 4%
silver bars or coins 4% 6% 3% 2% 5% 4% 3% 6% 4%
bonds* 4% 3% 2% 3% 4% 2% 3%
Looking for a luxury property? New York, Los Angeles, Miami - Take a look at Lukinski: Luxury Realtor

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Investment real estate: tax advantages? Nursing home? – Questions and answers

Many real estate issues are complex. In particular, topics such as capital investment are often incomprehensible to laypeople. It is therefore all the more pleasant when someone who is familiar with this topic explains it in simple words. FIV has conducted an interview with an expert for you. In this interview you will learn everything about capital investment.

Interview with real estate expert Jan Rickel from IHV – Die Immobilien Makler.

Capital investment real estate – You should note this

FIV: Investing money is complex. Especially when it comes to real estate. Condominium, single-family house, land or an entire apartment building. How would you describe your approach to investments in a few sentences for our readers? What do I need to know if I want to invest money in real estate?

Right from the start I work according to the motto “only those who know their goal can achieve it”! Sounds banal, and actually it is. I must have a clear idea of what I want to achieve when it comes to investment – as I do in life. Once I’ve defined the goal, it’s about the strategy to achieve it.

FIV: Okay! I’d like to be a millionaire. It’s a clear target, isn’t it? With which system can I achieve this in the best and safest way?

Since my business is real estate, I can ultimately only speak for this area. But this much is certain: when it comes to long-term prospects for capital accumulation, these can be very well and reliably planned with real estate. Company investments – whether as funds or investments in a single company – are subject to strong fluctuations in their performance. Although these can also be offset over a longer investment period, there is still a higher residual risk than with real estate. In addition, there is another very important aspect with real estate: Under certain circumstances, I can achieve a significantly higher return with my existing equity capital than with any other investment. This is due to the so-called lever effect. This always occurs when I do not use the purchased property myself – i.e. rent it out. The rent is my income with this form of investment. If I compare this return exclusively to my invested equity capital, then yields in the solid double-digit range are generated.

Should you take risks?

FIV: But these are tricks, aren’t they? I have to borrow money from the bank to buy a property. That also costs money in the form of interest and redemption.

I don’t MUST borrow money, but I should do it. And this has nothing to do with the interest rates, which are still favourable at present.
Assuming I had enough equity to finance the property I wanted without a loan. Then I save the interest and repayment, but have a much worse return, because I use a lot of money to earn the rent. If, on the other hand, I borrow the money from the bank, then I only have to deduct the interest from the rental income – if I am serious about it. The repayment of the credit is my over the repayment years stretched additional own capital funds, which I put into the “piggy bank” real estate. Strictly speaking, it does not depend on the return on equity. On the contrary, if I have made the right choice when choosing a flat or apartment building, the flat will continue to gain in value in the coming years. If the speculation period of ten years and best also the financing period has expired, I can sell the apartment again and collect the increase in value as an additional return on my redemption capital.

What do I have to consider?

FIV: Sounds very simple. But what’s the catch?

Only in two places you have to be careful! I had already mentioned one place with the right location of the property. If you want to invest your money in a rented apartment, you have to pay attention to the location. Even if it should not be the top location at the time of purchase, there must be a noticeable improvement in sight within the planned investment period – i.e. as long as one wants to keep the apartment. Otherwise, the increase in value won’t work.

On the other hand, this leverage effect only works if the financing interest for my borrowed capital is not higher than the total return on capital of the property. With the current interest situation, however, this is not an issue for the purchase of a decent apartment today.

I recommend here to simply visit one or the other bank. There you usually get clear statements as to which financing framework the bank is prepared to cover. Conversely, I then know how much own money I need as an investment or in which league I can afford an investment object.

FIV: What’s better then? To buy an apartment or a house for yourself, or rather to rent it out?

When it comes purely to capital investment and returns, a property for rent is the better choice. If I want to occupy the capital investment for “today” and the property itself for the future, then I should make sure when choosing the property that the furnishings and location of the property meet my own living requirements.

FIV: How do you then confidently walk the capital market, especially if the future always remains uncertain? Are there any concrete recommendations from you as an expert for our readers?

Of course I will only be able and willing to talk about the real estate market. Anyone who has invested in the real estate business for a long time already knows how to present themselves in this market segment. But everyone else can learn that well! For beginners in the investment business, I recommend starting small. A small two-room apartment in a city or region whose population has grown steadily in recent years is a good place to start investing safely in real estate. The certainty as to whether there will also be a move in for the following years or decades and thus a need for living space can be obtained from the respective municipal administrations, for example. Often the homepage of the city or region already has some information about the urban development.

Catch up with expert advice

With regard to the property itself, the overall state of construction and equipment is of course important. In case of doubt one can consult an architect, a friendly craftsman or other people with appropriate real estate expertise. What renovations have been made? What’s on the agenda? What is the overall ownership structure of the house like? How high is the fluctuation among the tenants of the other apartments? Is there any information about the apartment I’m about to buy? Of course, this is only possible with existing properties. In the case of new buildings, one takes a look at the houses that the developer has already built elsewhere and, if necessary, talks to the residents who have already bought from this developer.

The “right” purchase price still remains…. The Bank is in demand here, as I explained earlier with regard to the leverage effect. Be sure to have several banks calculate for you how rental income, running costs (reserves, etc.) will relate to the loan conditions and the equity capital for you. In plain language: You will also receive different offers from different banks. This may be worth it for you.

FIV: And now the question of how self-confident should I appear in the conversation:

Self-confidence doesn’t mean I’m performing with the proverbial big arms. On the contrary: the real estate seller and the banker will quickly notice how experienced you are in matters of capital investment. It’s better to be a beginner! After all, bankers are now also strongly liable if they give the wrong advice.

Is the investment worth it?

FIV: We currently hear a lot about real estate returns of 4.5 percent, sometimes 6 percent. In the context of the current development of interest rates on savings balances, this sounds like a sensible investment. Would you agree with me? How much do real estate currently pay off as a capital investment?

These yield data are really serious and covered by my experiences. As far as the pure return on equity is concerned, it often even looks much better, as we have heard above. I can only repeat here that real estate is a good and safe investment in terms of yield as a capital investment – the so-called “concrete gold”. Prerequisite: the location of the property is such that it generates continuous rental income at the normal market level. If longer periods of loss of rent are to be feared, for example because the residential area or the house has a high tenant fluctuation, then the investment does not pay off.

Various types of real estate – Investment opportunities

FIV: Which type of property would therefore pay off for me? Better the small single apartment, the large condominium for families or better a detached house?

If you are a beginner in the real estate business, then start with the small single apartment. The single-family house is rather a problematic thing as a capital investment for letting. If you are then times correctly in it and also have the necessary capital, it is with real estates like with shares: the mixture macht´s! Single-apartments in corresponding regions (e.g. student cities) combined with large housing units makes sense. In concrete terms, houses with apartments between 50 sqm and 110 sqm are ideal, as apartments over 110 sqm are usually more difficult to let.

FIV: Many questions, when is it worth investing? 10,000 euros, 20,000 euros. Are the investment opportunities just discussed suitable only after a certain financial framework or are there perhaps also new alternatives and possibilities, for example in the form of regular instalments?

Here, too, we would like to point out once again that good real estate can be financed even with small investment amounts. The prerequisite is that the bank also recognises that the property is a secure investment. Condition of construction, location, amount of rent, etc. – all this must be right so that you get the credit for the purchase price demanded. Ultimately, the annual net cold rent is the proverbial crux of the matter. Of course, everything also depends on my having a regular income.

FIV: For all those who are thinking about selling or buying. Which region and location do you consider to have the greatest potential in Germany?

Oh, dear… There are so many regions. I myself live in the Rhine-Main area. This is in any case a good region to buy. And I’m not just talking about the big cities of Frankfurt, Wiesbaden and Mainz. The small towns in this region are also doing well in real estate. Hamburg, the Bonn-Cologne-Düsseldorf line, the Munich area, Berlin and Stuttgart are further examples.

Investments in nursing homes or homes for the elderly

FIV: Finally, the question: What do you think of investments in old people’s homes or nursing homes?

Very little! – is my short answer. This is related to the very high risk that this form of housing has as an investment. We’re talking about so-called social real estate here. In view of the aging population and the resulting increase in demand for senior citizens’ and nursing homes, it is suggested that this is a safe investment. However, these properties as management properties – like hotels, for example – have a serious disadvantage: if the operating company works poorly, such a property quickly becomes a bottomless pit. In the meantime, there are numerous examples of nursing homes that were either not used to capacity or lacked the necessary investments to guarantee a high standard of care. Then again the residents are absent, which in turn leads to a lack of investment by the operators. A vicious circle! Not only is there no rental income, you usually also have to inject a lot of capital in order to get the house in shape or to keep it that way.

Private customers are already being taken advantage of when it comes to the purchase prices of nursing home properties! Usually nursing homes are acquired by so-called institutional buyers. Like a hospital company or something. However, they are only prepared to invest a maximum of 14 times the expected net annual rents. This is why the developers of these facilities have in the past switched to approaching private customers – with the corresponding return promises. Often 20 times the net annual rent is charged as the purchase price, because it is supposed to be a great and safe investment. I’m not saying “hands off”, but it takes a lot of experience and advice to get into this business.

Thank you very much for the interview!

Interview with real estate expert Jan Rickel from IHV – Die Immobilien Makler.

Capital investment real estate – money long-term in real estate property invest

The question of which capital investment is the most lucrative cannot be answered in general terms. Depending on the investment volume and personal goals, the search for the best investments can be more or less difficult. The fact is, however, that the right capital investment with a suitable yield brings a worthwhile increase in value with itself and has many advantages for the investor. Real estate as a capital investment becomes very attractive for many investors, especially at the current low interest rate, and offers many advantages for a long-term investment and appreciation.

Real estate as a capital investment – comparison of houses and land

Using real estate as a capital investment is currently a trend and for good reason. Interest rates are currently at an all-time low, which has a negative impact not only on the profitability of traditional investments such as government bonds or equities, but also on the conditions for loans. They are very attractive due to the low interest rates and house buyers can take out loans at very advantageous conditions from banks. But also the development of the real estate market speaks for the investment in a real estate. Investment property prices are rising steadily, especially in hip areas such as Berlin, Hamburg and Munich, which is reflected in high yields.

Real estate can be used as a capital investment in three different ways. First of all through self-use. A property is bought and the owner lives in it himself, thus saving rental costs and using his investment. Of course, the property can also be rented out. Thus, the investment is used to earn monthly rents and thus increase its equity. In addition, the money can also be invested indirectly in real estate through real estate shares or funds. A lucrative method for investors of smaller capital or those who shy away from the administrative expense of owning their own property. However, it should be clearly mentioned that a property is a long-term investment and is not suitable or profitable for short-term investments.

The 9 most important key figures – Real estate as investments

  • Purchase price –The purchase price should always be set in relation to the annual cold rent. Check here whether the ratio is usual for the location. A factor of 20-25 tends to be favourable and common in most locations, but from a factor of 30 it becomes expensive.
  • Auxiliary costs –In your calculation pay attention in any case to the land transfer tax, the notary costs and the broker commission, since these can make up a considerable amount
  • Taxes –How high is the depreciation and the marginal tax rate and what effects can this have on the property as an investment?
  • Lifetime –A property is a long-term investment. The intended useful life should always be known in advance, also in order to evaluate the lucrativeness of the property.
  • Resale –What influences the performance of your property and how can you resell it profitably in the future?
  • Income –In what area are the square metre costs in your region? And what rental income can be expected? Consider also the case if the property is empty and a new tenant has to be found and the rent losses associated with it.
  • Maintenance effort –How old is the property and is it possible to incur future costs for renovation, refurbishment, etc.?
  • Administrative costs –How high are the administrative costs that the property occupies?
  • Financing –Do you need financing to acquire the property as a capital investment? Be sure to pay attention to the monthly repayment rates and whether a property is still worthwhile as a capital investment for you.

Here you can find the answer to the question: How can I invest my money sensibly?

One-family house as capital investment – renting, own use or as holiday home

Investing in a detached house has many advantages. For the investment in a house a considerable capital is assumed first of all natural. By letting, however, the capital invested can grow and the property pays for itself in the long term. Compared to other investment properties, a detached house offers the advantage that it can be offered at a high rental rate depending on its location and quality, and the investment pays for itself and yields success in a shorter period of time. Single-family homes are also in great demand and popular with young families in particular. Of course, a single-family house can also be used for one’s own purposes or made available to one’s own children or family members. Single-family houses are also suitable as holiday homes in the right areas and as such can be rented out temporarily.

Land as investment – clever businessmen watch out

The acquisition of land as an investment can be very profitable if certain things are taken into account. On the one hand, due to steadily rising population rates, it can be assumed that real estate will no longer lose value in the future. In addition, buyers have the advantage that the additional revenue generated after the sale of the property becomes tax-free after a holding period of at least 10 years. During the holding period, the capital invested can also be increased by rent or lease income. An additional possibility is the rental of small rental spaces, such as garages, parking spaces, parking lots, storage containers, but also the rental of space for advertising, vending machines or clothes collection boxes is possible. A trick that clever businessmen use again and again is the purchase of very large areas of arable land. This land is then divided into smaller sections and resold for the construction of single-family houses, for example. Large plots are usually relatively cheap compared to smaller plots, which makes the sale of several divided small plots profitable.

Investment in land also has some advantages over investment in real estate. The holding costs are comparatively lower. In addition, there is a lower risk of damage to the building or nomadic tenants.

Two-family- & multiple dwelling as investment – much responsibility for investors

First and foremost, two-family houses or apartment buildings have the advantage that they generate regular rental income from several tenants instead of just one rental income per month, as is the case with single-family houses. The security of the capital increase is therefore comparatively high for multi-family houses, whereby it must also be noted that the capital contribution must also be higher than for a single-family house or a property. A further risk exists in possible rent losses or expensive repairs, which must be made at the house. Investing in a multi-family dwelling has a high responsibility and in the worst case can mean a lot of work, but the capital investment can also be very profitable and have many advantages.

Condominium as an investment – small starting capital, high capital maximization

A condominium as a capital investment offers great opportunities to maximize the capital invested. The possibilities are somewhat limited compared to a house as an investment, but the risk is lower. The rental of the condominium brings a monthly rent, which expands the capital employed. As a prerequisite, however, a lower starting capital is necessary than with the purchase of a house, which is extremely advantageous for many buyers. The risk of loss of rent also exists with this capital investment, but the risk of damage is much lower than with a house. The EIgentumswohnung can also be used as a holiday home and can be rented to short-term tenants or used for personal use.

5 tips for buyers – a property as an investment

  • Tip 1: Clarify your budget at an early stage
    The amount of equity capital is the most important indicator that future real estate owners should deal with. This key figure is not only important for the calculation, but also for the repayment of the possible loan and interest. How much budget is available is therefore decisive for the purchase decision process and influences it the most.
  • Tip 2: erase as high as possible
    The initial redemption should be at least two percent, so that you also have something of your property in the long term. This plays an important role especially in low-interest phases, since the repayment portion of the rate increases more slowly with low interest rates than with high ones.
  • Tip 3: Estimate prices correctly
    In order not to buy a property above the market price, important parameters should always be compared in advance. Points such as location, price development, environment and equipment or size of the house should be compared with the individual market of the environment.
  • Tip 4: Hedging interest rates
    Choosing a long borrowing rate commitment is essential for real estate buyers, because if the market interest rate has risen at the end of the borrowing rate commitment, the credit rates automatically become expensive. A low-interest phase should therefore be exploited in order to secure the best interest rates for the entire term as far as possible. Full planning security offers full repayment loans that are fully paid off at the end of the fixed interest period.
  • Tip 5: always stay calm
    Even if market pressure prevails, the decision to invest in real estate should not be made prematurely. It means keeping calm and always rethinking the decision well. When making this decision, always consider the rental income in relation to the returns on other investments.

New building VS old building – care and maintenance of the investment

The question of a new building or an old building is not always easy, because both captivate with their own advantages. A new building has the decisive advantage that the property can be designed entirely according to the wishes of the client. This applies both to the property itself and to the choice of location. When a new house is built, the latest technology is always used. Both in terms of security and theft protection as well as energy efficiency. The latest insulation and thermal insulation not only helps the environment, but also reduces heating costs. But a building also has one or two disadvantages. Building a house can be very strenuous and exhausting, as the client always has to keep control over the construction site and the work required. In case of problems with the developer, the client always gets the short end of the stick, as the money invested is usually lost. In addition, construction errors are only noticed very late in a new building, usually only after a few years. In addition, a new building is more expensive than an old one because everything has to be made new. With an old building, on the other hand, the stressful planning and construction phase is eliminated and the move-in can be started immediately. The old building also has the advantage that it can be inspected and checked for construction errors in advance. Since there are no costs for the public development, old buildings are usually cheaper than a new building, even if with an old building often still renovation and redevelopment costs result. In order to avoid these costs as much as possible, a detailed appraisal of the building should be made in advance to avoid any negative surprises. A further disadvantage of the old building is that conversion measures are often only possible to a limited extent due to the building structure or monument protection.