Small money, big opportunity: micro-apartments

In conversation with Lukinski / Kapitalanlagen (Stephan M. Czaja) – Investing with little money, spreading risk from the outset and earning even more money directly through kickers such as furnished rentals – sounds good? It is!

My tip for young investors: Invest in micro-apartments – even with little money! I’ll show you why here!

You can enter the real estate market even with little start-up capital. Micro-apartments in particular offer you the advantage of a manageable price, but can still generate a solid return – especially in sought-after locations.

Perfect for trainees, students, young professionals! You can get such apartments with 25m², 30m² in medium-sized and larger cities for less than €20,000 (with 20% equity, you would only need ~ €4,000)

You heard right! Let’s continue:

What is a micro-apartment?

A micro-apartment is a small, efficient apartment of around 20 to 30 m². Perfect for students, young professionals or commuters who want to live centrally and compactly. For you as an investor: low purchase price, easy to let.

5 facts: What makes a micro-apartment

These features are standard in micro-apartments and make them particularly attractive:

1. Small living space of 25m² – 40m²
2. Combined living and sleeping area
3. Compact kitchenette or kitchenette
4. Small bathroom with shower
5. Furnishing with clever storage space solutions

Micro-apartment?! Small apartment, high yield

You can find more videos of me on YouTube x Real Estate Experience!

Why micro-apartments are interesting for you

If you want to start small, this form of housing is ideal. You don’t need a lot of capital and still benefit from stable demand and good rental opportunities.

Advantages at a glance

These arguments clearly speak in favor of micro-apartments as a starting point:

• Already available for less than €20,000
• Easy to rent – furnished and compact
• Low ancillary costs due to small area
• Popular in cities with universities or commuter structure

Sample calculation: how realistic your entry is

You can find a micro-apartment for €25,000 in cities like Braunschweig or Magdeburg. With negotiation and a bit of luck, you can pay just €18,000. With 20% equity – i.e. €3,600 – you can finance the rest from the rental income. Your start in the world of real estate – without a huge budget.

What you should look out for when buying

It is particularly important not to buy too emotionally when starting out. You should check these factors beforehand:

Checklist for your purchase

Get an idea before you buy – these points will help you:

• What is the location like? (Proximity to university, city or train station)
• How much renovation is required?
• Are there comparable rents in the area?
• Is the apartment furnished or do you need to upgrade?

Why demand is so high

The trend is clearly moving towards small, efficient apartments, as more and more people are living alone. This is also shown by the figures from recent years:

• Almost 50 % of all households in Germany are single-person households
• Many people live alone today – whether young or old
• The desire for central living continues to grow
• Rents are climbing – especially for small units

What should you bear in mind?

Micro-apartments have many advantages, but you should also be aware of their limitations:

• Little space – not for families or furniture fans
• Fluctuation can be higher (e.g. for short-term rentals)
• Furnished rentals need a little more organization

Get off to the right start!

Getting started doesn’t have to be complicated. Look at specific offers, calculate realistically and focus on good locations with high demand. The best way to gain initial experience is with a small, manageable property.

My tip for young investors: Invest in micro-apartments – even with little money

Even if you “only” have €10,000 or €15,000 at your disposal: You can get started! Micro apartments offer you a real opportunity for your first real estate investment with manageable risk and potential for more. My tip: Watch the full video on YouTube or visit immobilienerfahrung.de for more practical tips.

Bought and now? Rent as….

Imagine entering the world of real estate – not with millions in your bank account, but with only around 5,000 euros in equity. Sounds like a dream? But it is possible. That’s what today’s special is all about: how to start your first own apartment as an investment with style, color and a little courage.

• Renting a student apartment

Interview: Family foundation in Germany

FIV: So that we can all get an idea, what are the big family foundations that everyone knows about?

Stephan: There are some well-known examples that most people will be familiar with. The “Krupp Foundation” and the “Siemens Foundation” are two of the best-known family foundations in Germany. Both foundations have set themselves the task of preserving the family fortune and passing it on to the next generation. However, they also support social and cultural projects. The purpose of a family foundation is primarily to secure and increase the family’s assets in the long term.

FIV: What is their purpose, why do these well-known families set up foundations?

Stephan: Large family foundations such as Krupp or Siemens are often about keeping the company and its assets in the family and protecting them across generations. The foundation separates the assets from the private assets and they cannot be sold or inherited so easily. Family foundations also enable long-term tax optimization and provide a legal framework to protect the inheritance from external influences.

FIV: We also stand for names and who has what! Can you give us a small top 3 of the larger foundations?

Stephan: Let me think for a moment.

• There is the Körber Foundation, which I believe has a volume of around 600 million euros and was founded by Kurt A. Körber,
• There is the Robert Bosch Stiftung, founded by Robert Bosch and worth a few billion euros,
• Or the Quandt Foundation, which everyone knows BMW with a volume of around 1 billion euros, founded by Johanna and Susanne Klatten.

Family foundation explained: What is it?

FIV: What exactly is a family foundation and how does it differ from other foundations?

Stephan: A family foundation is a private foundation whose main purpose is to preserve the assets of a family over generations. In contrast to charitable foundations, which focus on the common good, family foundations focus on the protection and preservation of family assets such as real estate, companies or other investments. The highlight here is that the assets are transferred to the foundation and therefore legally belong to the foundation and no longer to the founder or descendants. This offers a number of advantages, such as protection against inheritance disputes or third-party access.

What are the benefits of a family foundation?

FIV: What are the specific benefits of a family foundation? What advantages can you expect from it?

Stephan: The biggest advantage is certainly the protection of family assets. Through the foundation, the assets remain bundled and cannot be split up or sold so easily, for example in the event of a divorce or inheritance disputes. There are also tax advantages. Income generated within the foundation is usually subject to a lower tax burden than private income. Gift and inheritance tax can also be legally minimized by setting up a family foundation.

Here again very briefly:

1. Protection of family assets from sale or inheritance disputes
2. Tax advantages due to lower tax burden
3. Minimization of gift and inheritance tax

Who establishes a family foundation?

FIV: Who does this? Is there a certain type of person or family for whom a family foundation is particularly worthwhile?

Stephan: Family foundations are particularly attractive for entrepreneurial families who want to keep their company in the family for generations, or for families with large real estate holdings. But wealthy private individuals who want to secure their capital and optimize it for tax purposes also use this option. The establishment of a family foundation often comes into play when assets exceed the limit of around 1 million euros – at this point it really is worth considering.

How can you set up a family foundation yourself?

FIV: If you want to set up a family foundation yourself, what are the first steps?

Stephan: The first step is to get comprehensive advice. There are many legal and tax aspects that need to be considered, and mistakes can be expensive. Basically, everything starts with drawing up a foundation charter that regulates the purpose of the foundation, the organization and the management of the assets. The foundation must then be registered with the relevant tax office and the foundation supervisory authority. It is also important to think about the composition of the foundation board, as this is responsible for the administration of the foundation.

FIV: Can real estate and assets also be transferred to a newly established foundation?

Stephan: Yes, that is possible, I have a great guide online, maybe you can link to it: Transferring real estate to foundations.

FIV: Thank you very much for the interview, Stephan! Is there anything else you would like to tell our readers about the family foundation?

Stephan: Yes, I would say: inform yourself well and get professional advice. A family foundation is a great instrument for protecting assets and saving taxes, but it needs to be well planned and carefully implemented. If you do it right, you can protect your family and your assets in the long term. May I give you two more link tips?

FIV: Yes, of course!

Stephan: If you want to know more about

1. Foundations in general, you can also visit the Federal Association of Foundations
2. Establish family foundations for real estate, please have a look at my website under foundation establishment
3. And now generally on Saving One about family foundations in Germany

Cash & Flow: Investor Podcast

The “Cash & Flow” podcast is specifically designed to provide you with a comprehensive knowledge base as a real estate investment beginner. With new episodes regularly, this podcast presents a wealth of information to help you make informed real estate investing decisions and improve your investment strategies.

Learn Investment: In this podcast, you will learn step by step how to successfuly invest in real estate. From choosing the right properties to calculating returns and effective property management, all the important topics are covered. You’ll get valuable tips and proven strategies to maximize the potential of your investments.

Real estate management: A successful real estate investment also requires efficient management. In the “Cash & Flow” podcast, you’ll learn how to effectively manage your properties to generate stable long-term revenue. From tenant management to maintenance to leasing strategies, practical insights and best practices are shared.

Current Topics: In addition to the basics, the podcast also covers current topics in the real estate industry. You’ll stay up to date on new legislative changes and technological innovations such as the heating ban, heat pumps, solar panels, and wall boxes. This allows you to identify trends and developments and adapt your knowledge accordingly to be proactive in your investments.

From real estate-experience.com:

• Podcast Apple
• Podcast Spotify

Immocation Podcast: Real Stories

On the “immocation Podcast,” you’ll learn how to successfuly build wealth through real estate, whether as a retirement plan, foundation for financial freedom, early retirement, or even full-time employment. Here, the hosts share stories from their coaches and from the community and offer exclusive content, including select YouTube series, to expand your knowledge of real estate investing and help you on the path to success.

• Podcast Apple
• Podcast Spotify

Real Estate Wiki: The basic knowledge

“Real Estate Wiki” – The podcast “Real Estate Wiki” is specially designed for real estate investment beginners like you, who want to specifically expand their knowledge of technical terms and basics of the real estate world. In this podcast, the most popular and most read articles from the Real Estate Wiki are presented in a short and understandable form.

Popular articles from the real estate wiki: The wiki covers a wide range of real estate terms and information. The Real Estate Wiki podcast selects those articles that are most requested and read by other listeners like you. This gives you the opportunity to focus on the most relevant topics and deepen your understanding of the real estate industry in a targeted way.

The podcast “Immobilien Wiki” offers you new episodes every day. You can find it for free on platforms like Apple Music, Spotify, Amazon, Deezer and many more. Whether you’re cleaning up, sitting in the car, or playing sports, you’ll have the opportunity to expand your knowledge of real estate anytime, anywhere.

From real estate-experience.com:

• Podcast Apple
• Podcast Spotify

Tip. Buy your first property (cheaply)

Want to invest your money in real estate? We have 30 steps for your first real estate purchase as an investment. Capital investment means: buy and rent. Ideally, you’ll get so much rent that your property will pay for itself!

Learn how to do it here:

• Buy first apartment as an investment
• Buy property (cheap)

The Immopreneur Podcast

“The Immopreneur Podcast” – If you’re interested in real estate development and real estate entrepreneurship, then “The Immopreneur Podcast” is for you. Here you’ll hear firsthand from successful real estate entrepreneurs about how they analyze their projects, close deals, and build their real estate businesses. Whether you’re looking to venture into real estate yourself or simply want to learn more about this exciting field, this podcast will provide you with inspiring stories and valuable insights into the world of real estate entrepreneurs.

• Podcast Apple
• Podcast Spotify

Immo Insider: Broad spectrum

“Immo Insider” – Dive into the world of real estate financing with the podcast “Immo Insider”. Here you’ll get comprehensive information about different financing options, tips on choosing the right lender and important aspects to consider when financing real estate. This podcast is an indispensable tool for anyone who wants to successfuly finance their real estate projects.

From Engels & Völkers:

• Podcast Apple
• Podcast Spotify

The Landlord Podcast: Says it all

“The Landlord Podcast” – The Landlord Podcast is a valuable resource for all landlords and those interested in getting into the rental property business. It covers all relevant topics related to renting, including legal aspects, leases, tenant selection, tenant management, and optimizing rental income. Whether you’re already a landlord or thinking about renting out a property, this podcast will provide you with practical tips and helpful insights to make your rental efforts successful.

From ImmoScout24:

• Podcast Apple
• Podcast Spotify

Real Estate Investor Podcast

“Der Immobilieninvestor” – The Real Estate Investor is a podcast that specializes in sustainable real estate investing. Here you will learn how to find high-yield properties, which investment strategies are successful and how to make your real estate portfolio sustainable. The podcast offers valuable insights into the world of sustainable real estate investing.

By Alex Fischer:

• Podcast Apple
• Podcast Spotify

Old But Concrete Gold

“Old But Betongold” – Fabian Fröhlich, who describes himself as a likeable “doer”, gives easy-to-use tips on real estate, investments and entrepreneurship in his podcast. With his hands-on mentality and easy-going manner, he appeals especially to the younger generation who want to start immediately to achieve financial prosperity through clever real estate strategies. Although the podcast hasn’t had any new episodes since 2021, the old episodes are definitely worth listening to and provide valuable knowledge for long-term success.

• Podcast Apple
• Podcast Spotify

L’Immo: real estate and housing industry

“L’Immo” – The real estate industry is undergoing a transformation. In our podcast, you will hear leading minds talking about challenges, political decisions, approaches to solutions and new developments. Dirk Labusch and Iris Jachertz, the editors-in-chief of “immobilienwirtschaft” and “DW Die Wohnungswirtschaft,” ask topical and personal questions. Stay informed about the real estate industry.

• Podcast Apple
• Podcast Spotify

The best real estate apps

Don’t miss the chance to benefit from these great real estate podcasts! Learn, invest and manage real estate with the “Cash & Flow” podcast, while the “Real Estate Wiki” podcast explains the most important terms in a way you can understand.

Listen to them for free on platforms like Apple Music, Spotify, Amazon, Deezer and many others. Use your time effectively by expanding your real estate knowledge while commuting, on your lunch break or during a relaxing walk. Start now and build your real estate knowledge step by step!

Have fun learning!

Robot under construction

In the interview Real Estate & AI with Lukinski, we talked about the future with AI. We had a few follow-up questions about the exciting topics and what we can expect in 4, 5 years. Among others, it was about:

Robots under construction with AI

Robots in construction are robots that use AI technology to autonomously perform certain construction tasks. The use of robots can help increase efficiency and accuracy in the construction process and reduce the need for manual labor.

An example of a robot in construction is an autonomous tiler capable of laying tiles on floors and walls. The robot uses AI technology to precisely position and adjust the tiles to achieve a perfect result.

Another example is an autonomous painting robot capable of painting walls and ceilings. The robot uses AI technology to analyze the surface and calculate the amount of paint needed to achieve an even finish.

There are also robots in construction that are capable of lifting and transporting heavy loads. These robots can help reduce the need for manual labor and increase safety on the construction site.

The use of robots in construction can also help speed up the construction process by performing tasks faster and more accurately than humans. As a result, construction companies can increase productivity and reduce costs.

Overall, robots in construction can help optimize the construction process by reducing the need for manual labor, increasing efficiency and accuracy, and boosting productivity.

Fancy more future?

Real Estate & AI (Artificial Intelligence) – The Interview

Today and the future – How is a villa created and how would it be created if artificial intelligence were in play. This interview with Stephan Czaja of Lukinski provides an overview of the steps involved in planning and visualizing villas and their timeline. Architects usually create 3D visualizations to give their clients a better idea of their design.

Artificial intelligence (AI) can improve the process of 3D visualization in the future through automation, personalization, simulations, increased efficiency and real-time updates. Other possible developments include automation of planning, control of construction machinery by AI, creation of 4D visualizations, and personalized advice through AI-based tools. A look into today and the future with AI!

• Real estate & AI (artificial intelligence) – the interview

A preventive maintenance strategy can also increase efficiency in the maintenance process by allowing maintenance work to be planned and carried out in a more targeted manner. In addition, predictive maintenance can help to increase safety on the construction site by identifying and eliminating potential problems at an early stage. Overall, predictive maintenance can optimize the maintenance process, reduce costs and improve safety on the construction site.

Predictive Maintenance

In the interview Real Estate & AI with Lukinski, we talked about the future with AI. We had a few follow-up questions about the exciting topics and what we can expect in 4, 5 years. Among others, it was about:

Predictive Maintenance with AI

Predictive maintenance is a method that uses AI technology to optimize the maintenance of buildings and construction machinery. It uses data from sensors and other sources to predict potential problems and failures before they actually occur.

Detect anomalies and problems early

By monitoring data and sensors in buildings and construction machinery, AI-based software can detect anomalies and problems early on, preventing costly damage and breakdowns. For example, the software can predict when a machine needs to be serviced to avoid failure, or which parts need to be replaced to ensure a longer machine life.

Efficiency in the maintenance process

By using predictive maintenance, construction companies can also increase efficiency in the maintenance process by being able to plan and carry out maintenance in a more targeted manner. This can reduce costs by avoiding unnecessary maintenance and preventing expensive repairs or breakdowns.

Predictive maintenance can also help to increase safety on the construction site by identifying and eliminating potential problems at an early stage. This can prevent accidents and injuries that can be caused by a lack of maintenance or defective machines.

Overall, predictive maintenance can help optimize the maintenance process, increase efficiency, reduce costs, and improve safety on the jobsite. By using AI technology, construction companies can develop a predictive and preventive maintenance strategy to identify and avoid problems at an early stage.

Fancy more future?

Real Estate & AI (Artificial Intelligence) – The Interview

Today and the future – How is a villa created and how would it be created if artificial intelligence were in play. This interview with Stephan Czaja of Lukinski provides an overview of the steps involved in planning and visualizing villas and their timeline. Architects usually create 3D visualizations to give their clients a better idea of their design.

Artificial intelligence (AI) can improve the process of 3D visualization in the future through automation, personalization, simulations, increased efficiency and real-time updates. Other possible developments include automation of planning, control of construction machinery by AI, creation of 4D visualizations, and personalized advice through AI-based tools. A look into today and the future with AI!

• Real estate & AI (artificial intelligence) – the interview

Checklist: Goals and criteria of the first condominium

When buying your first property, you should make a well-considered decision. You should set a goal for yourself, which criteria play the biggest role for you in a property and in no case buy for emotional reasons. Make your decision based on business facts and figures that compare well.

In the following post, we’ve broken down for you the points for setting goals when buying a property. Here are our eleven points summarized in short questions:

1. Self-interest or capital investment?
2. What is the maximum purchase price?
3. How low is the maximum gross rental yield?
4. Should I buy rented or unrented?
5. Which cities are eligible?
6. What is the perfect location?
7. Invest in existing or new buildings?
8. How old can a property be?
9. How big does a property need to be?
10. Ground lease?
11. Social binding or post-binding?

Step 1 – Self-interest or rather capital investment?

As already explained in our article on the subject of owner-occupation vs. capital investment, it is always better to use the first property as a capital investment. Because, with owner-occupancy, you always pay 100% of the running costs yourself. Capital investors, on the other hand, primarily let the tenant and the tax office pay.

• Here you will find everything on the topic of self-interest vs. capital investment

Here in brief what self-interest and capital investment mean:

• Self-interest: 100% responsible for costs
• Capital investment: Tenant and tax office pay

Step 2 – What should be the maximum purchase price?

This question depends on many factors. However, the most important criterion is probably the creditworthiness in terms of assets, as well as the monthly balance of assets and equity. These are all decisive factors for your bank when it comes to deciding on financing.

• Read more about maximum purchase price here.

Here is a brief overview of the most important factors:

• Credit rating
• Monthly balance sheet
• Equity

Step 3 – How low can the minimum gross rental yield be?

You want to make the biggest possible profit from your apartment. How high must the rental yield be at least so that the tenant ideally pays off the property and you yourself do not have to pay for repayment and interest?

• Read more about minimum gross rental yield here.

Here, in brief, is the formula for calculating the gross rental yield:

Formula: Annual rent / purchase price x 100 = gross rental return

This goal is also called efficient asset accumulation. Accordingly, the gross rental yield of an investment property should also be high.

Step 4 – Buy a property rented or unrented?

When buying an apartment for personal use, it is always advisable to buy unrented. The exception: notice of termination for personal use. For capital investors, however, an unrented property would be much more time-consuming, since you have to look for new tenants.

• Read all about buying rented or unrented here.

Buy unrented as an investment:

Here in brief the advantages and disadvantages!

Advantages:

• Renovation work: Immediately feasible and deductible
• Use of own lease
• Market rent

Disadvantages:

• Vacancy at the beginning: loss of rent
• Renovation expense

Buy rented as an investment:

Advantages:

• No time required for new leasing
• Payment behavior and behavior of existing tenants is known
• Low risk of vacancy

Disadvantages:

• Rental mostly below current market value
• Existing rental agreements must be taken over

Step 5 – Which cities are eligible?

A-, B- or C- location, where is the best place to buy my property? The central question here is whether I choose an investment property or a yield property.

• Read more about layer types here.

A, B or C position

Here is a brief overview of how which of the three layer types is defined:

• A-location (simply: metropolis)
• B-location (simple: large city / city with positive development)
• C-location (simple: small town / country in stagnation)

Where do I buy which property?

The different location types compare areas. Higher yields go hand in hand with lower appreciation. Therefore, depending on the location, one chooses between yield or investment property.

• Investment property: Only to be found in A-location
• Yield property: Good B- or also C- location

Macro, meso, micro location

After the comparison of the A-, B- or C- location, districts and the concrete neighborhood are compared.

• Read all about macro- meso- micro- location here.

Here is a brief overview:

• Macro location (A, B and C location, i.e. where in the country / which city?)
• Meso location (where in the city)
• Micro-location (exact location)

Step 6 – What is the perfect location?

Where exactly should I buy my first property? Owner-occupiers and capital investors, as well as yield properties or investors with the goal of value appreciation, accordingly, the decision of the perfect location is different. Here we go into the analysis again to help you find the best location for your goals!

• The perfect location

Step 7 – Invest in existing or new buildings?

When buying a home, in addition to the question of owner-occupancy or capital investment and return or investment property, one wonders whether to invest in existing or new construction. Both forms have their advantages and disadvantages. In this article, you will learn what they are.

• Read all about existing or new construction here.

Advantages of new construction

• Current state of the art
• Low risk for maintenance and repairs
• Co-determination in interior design

Disadvantages of new construction

• Higher purchase price and incidental purchase costs
• Lower rental yield
• High value loss at the beginning
• Other costs for public development

Step 8 – How old can a property be?

You want to invest in an old building? Then you need to consider a few things before buying. Old properties have some advantages, but also disadvantages. We have compiled a brief overview of all the facts of the different construction years in comparison.

The age of a property is a decisive factor when it comes to buying a property. But what are the differences and defects depending on the age and year of construction of a property? Is it worth investing in an aging house or apartment?

• Year of manufacture and condition

Step 9 – How big does a property need to be?

How big should my first property be? Micro-apartment, 2, 3 or even more rooms? This question is answered here by comparing living space for owner-occupancy and investment. In general, the number of square meters and the room layout is particularly important.

• Read all about the maximum size of a property here.

Here is a brief summary of the criteria for owner-occupants:

• Well-being has priority
• Plan sufficient living space for the future, e.g. family planning
• Area not too oversized > Purchase price, ancillary costs
• Equipment can be improved later

Here is an overview of the three goals for capital investors:

1. High rental yield
2. Good rentability
3. Few vacancies

Step 10 – Is a ground lease necessary?

When dealing with the topic of ground leases for the first time, many questions arise. What is a ground lease and does it make sense? Also one wants to know whether one can deduct the costs of the ground lease, the ground rent from the tax? All your questions will be answered here.

• Read more about ground leases here.

Here is the ground lease summarized in brief:

• Ownership and usage rights permanently separated
• 2 parties: ground lease giver and ground lease taker
• Leasehold lender cedes a plot of land for development
• Leasehold owner receives ground rent for it

Step 11 – Social binding & post-binding?

Before looking for housing, you should know everything about the topic of social commitment in housing. Here you will learn all the pros and cons and what you can do everything from low-interest loans by public authorities for social housing, to obligations, to the grace period.

• Here you will find everything else about social binding and post-binding.

Social binding summarized in brief:

• Affordable housing through public funding
• Very good conditions for loans or grants
• Rent for persons with a certificate of eligibility for housing

The rebinding in a nutshell:

• Commitment to social housing until loan is repaid

Loss of rent: yield effect

Vacancies, rent arrears or even re-letting and tenant selection. There is a lot for you to consider when buying real estate. Even if you have found a profitable property in the real estate acquisition process with a good property yield, 2 or 3 months of vacancy per year can make your investment suddenly unprofitable. Why and why is the choice of location / property type so important? You can find out more here in the Real estate purchase risk guide.

This guide is therefore about raising awareness of the topic of location selection and property type. When buying a property, in most cases you are taking over the current tenant. It is therefore important to always check the seller’s tenant history!

Loss of rent = you pay the costs instead of your tenant

Let’s start with the topic of vacancies.

Reasons for vacancies and rent losses

Tenants who don’t want to pay quickly make an investment unprofitable. But it doesn’t always have to be the worst-case scenario – rental nomads are rare – rent defaults can also occur because your tenant has financial difficulties and can no longer pay the rent on time. Or a change of tenant when you move and your new “ideal” tenant only moves in a month or two later.

In addition, there are structural changes, long-term vacancies, when the location becomes unattractive for tenants.

There are therefore many reasons for rent losses:

• Rent not paid – tenant has financial problems
• Vacancy, e.g. for new tenants – “desired” tenant arrives later
• Vacancies due to structural changes – in 5, 10, 15 years

Location + property + tenant selection

In addition to the choice of location and type of property, you, as the future landlord of a capital investment, also need to select tenants.

Let’s take a worst-case scenario as an example. Your tenant refuses to pay the rent, regardless of whether for personal reasons or financial reasons, and it takes 9 months to file an eviction suit. If the tenant himself is not sufficiently solvent, you will never see your money (costs of the eviction action) again.

Central, think about:

• Choice of location – structural vacancy? Less housing in the future
• Real estate type – How do you live? Micro apartment, instead of loft apartment
• Tenant selection – Who is a tenant? Creditworthiness (and trust)

The better you prepare for this when buying your first property, the better.

• Choice of location: A, B and C location
• Property type: Houses or apartments

Vacancy or not: loan installment must be paid

The vast majority of people finance their property. This means that you give about 15% equity and a bank gives you the rest (85%) as a loan. You repay the loan. The monthly installment of repayment and interest is called the loan installment. The bank doesn’t care if your tenant gets into trouble. You have to pay the monthly installment.

No matter what happens:

All costs continue to run!

Vacancies: influence on real estate yields

When buying real estate as a capital investment, the main focus is on returns. Simply put, the rental yield indicates how much rental income you achieve in relation to the investment (purchase price of the property, ancillary costs, maintenance). The result is a percentage. The higher, the better.

Example (simple):

• Investment in real estate: 100,000 euros
• Rental income / year: 3,000 euros
• Yield = 3%

3% would be relatively low, as you have to expect around 6% for interest/repayment and maintenance (currently). This means that your property must yield at least 6% to cover the costs.

As soon as you slip below ~ 6% yield, you pay more

Assuming you have calculated extremely tightly when buying real estate. So that you just achieve a 6% return, which covers the management / loan installment (interest and repayment). Now you have only 2 months of rent loss – the calculation is no longer correct and the yield drops to 5%. At 5%, the “missing” percent has to be paid out of your own pocket.

• Calculate real estate yield

Calculation: Return effect 2 months default

Let’s now calculate with the extremely tightly calculated 6% yield property. The big goal in all our guides:

Your tenant pays for your property = good return

Example 6% yield with full rental payment:

• Investment in real estate: 100,000 euros
• Rental income / month: 500 euros x 12
• Rental income / year: 6,000 euros
• Yield = 6%

Example effect of loss of rent (2 months):

• Investment in real estate: 100,000 euros
• Rental income / month: 500 euros x 10
• Rental income / year: 5,000 euros
• Yield = 5%

That means 1,000 euros out of your own pocket this year.

– 1,000 euros instead of “Tenant pays for your property”

Financial freedom? That’s why preparation is so important!

Tenants should therefore always be closely scrutinized. You should do a really thorough check.

• Self-disclosure
• Previous landlords speak
• Schufa information
• …

Rent arrears and reserves

It doesn’t always have to be a complete loss of rent. In practice, there are many reasons, for example, your tenant may not accept a rent adjustment following modernization measures. In other words, you modernize and adjust the rent and your tenant refuses to accept the rent increase.

Here, too, you are faced with the problem that you have made your investments and suddenly the tenant refuses. A dispute like this can go on for a long time and, in the worst case scenario, it can take 6 – 12 months before an eviction action is brought.

So that you can go into your first property without any worries, remember this:

Build up reserves!

What does that mean?

Building up reserves: security for the first property

Ideally, protect yourself financially against two possibilities:

1. Reserve for maintenance
2. Reserve for rent losses
3. Reserve for all eventualities

Reserves do not have to be set aside. However, they protect you from costs that you may not know how to cover spontaneously. Because, as you have learned, it doesn’t matter whether it’s rent arrears, loss of rent or vacancy:

All your costs continue to run

Reserve for maintenance

One cost factor that you will always have to bear is maintenance. More or less, of course, depending on the year of construction and condition of the property. In general, however, you already calculate 2% reserves for maintenance in the first yield calculation.

Part of the yield calculation, 2% maintenance reserve:

2% reserve for maintenance

Property for 100,000 euros (investment) = 2,000 euros reserve / year

Reserve for rent losses

In addition, a 6% rent reserve is recommended for possible rent losses:

+ 6% reserve for rent losses

Property for 100,000 euros = 6,000 euros reserve

6% would also correspond to a return of 6% = 1 annual rent.

Reserve: Extra, for all eventualities

Especially for the first property, without large assets of your own (as a rule), you should think about an additional reserve. Why? So that you never run out of money and miss a payment to the bank.

Ideally for the first property, not a must but security:

+ 10% extra reserve

Property for 100,000 euros = 10,000 euros reserve

Follow-up financing: risks and interest rate changes

Vacancies not only have a negative effect on yields. Most property loans have a fixed interest rate with a fixed term. At the end of the term, the conditions are renegotiated, known as follow-up financing.

This is where the 2 central aspects come into play again:

• Choice of location – structural vacancy? Less housing in the future
• Real estate type – How do you live? Micro apartment, instead of loft apartment

Lending: Factors

The bank also follows a clear path for follow-up financing. Let’s say you fixed the interest rate for 10 years for your first real estate financing. After 10 years, with 25 normal repayments, the remaining debt is around 76%. This must now be financed.

For follow-up financing, go back to your bank or to another one. If you are offered better conditions, it is worth obtaining alternative offers for the follow-up financing. Bank A, B, but also C will take another focused look at your property and you:

• Real estate
• Creditworthiness

Structural change: lower property valuation

Factor 1: Structural change – Because everyone is reassessed for the follow-up financing. Let’s say your fixed interest rate expires after 10 years and the bank says the property is now worth 20% less, for example because many people have moved out of the region in the last decade, property prices are falling and so on.

Banks want security, if the property is then worth less, the bank would have lost money in the worst-case scenario (loan installment defaults, forced sale/auction). So the interest rate rises.

Interest rate change: interest rate development in 10, 15, 20 years

Factor 2: Interest rate changes – Interest rates are currently lower than ever. It is impossible to make a serious forecast of what interest rates will be in 10, 15 or even 20 years’ time. However, a look back shows that interest rates in this country were still above 8% until 1990, 4-6% until 2000 and currently only 1-2% for real estate loans. If interest rates fall, it’s great for your follow-up financing. However, if interest rates rise, it’s bad, because then you pay more and the return calculation no longer works.

What to do? Tips for good returns

First of all: keep your eyes open when buying real estate!

Don’t buy yourself any problems!

Don’t buy yourself any problems, learn here with us step by step how to buy your first property, from the preparation, to the acquisition (finding profitable properties), to the purchase contract. By the time you’ve read our guide to buying your first property, you’ll know how important it is to find profitable properties in the real estate acquisition process.

Read here again:

• Choice of location: Buying an A, B or C location?
• Property type: Houses or apartments?

3 tips: Low interest rates

You now know that it is very unfavorable if the property suddenly costs money instead of bringing in money. What can you do? Here are 3 simple tips:

Tip 1: Buy cheaply – It sounds simple, but “the profit is in the purchase”. A piece of business wisdom that is also true when buying real estate. Buying cheaply means finding a property that is sold below market value, or that you, as the buyer, buy below market value. We have more on this topic here: Buying real estate.

Tip 2: Fixed interest rate – If you fix your interest rate for 10 years, you will have to take care of follow-up financing in 10 years. The longer the fixed interest rate, the longer you don’t have to worry about interest rate changes. To maintain the current low interest rates, you can agree a longer fixed interest rate, for example 15 years or 20 years. In case of doubt, until the end of the loan.

Tip 3: Higher repayments – If interest rates explode and ruin many yield calculations, higher repayment installments are an option to reduce interest rates. Interest is always calculated on the basis of the debt or, from the first payment, on the basis of the remaining debt. The lower the remaining debt, the lower the interest. With the current low interest rates, however, it is worthwhile financing real estate over a long period of time, as inflation ensures that your loan installment is always “smaller” in terms of purchasing power.

You can also start financing with more equity right at the beginning. This means that the loan amount is smaller and so is the repayment. This means that the loan is repaid more quickly and long-term interest rate changes no longer affect your financing.

Let’s summarize the 3 tips once again:

1. Purchase price – Buy cheaply (below market value)
2. Fixed interest rates – agree longer fixed interest rates (15 years, 20 years)
3. Repayment rate – Repay more or start with higher equity

Here are 2 practical tips for finding “problem-free” properties:

2 tips: Real estate viewing

Here are 2 practical tips for your real estate search.

Tip 1: Pay attention to the property management company – Is the property management company doing a good job from your perspective? In other words, do you have the feeling that the property management company knows what it is doing?

Tip 2: Owner-occupiers in the house – When you view properties, you also make sure that there are a few owner-occupiers living in the house. You tend to make sure that the property remains “well-maintained” in terms of its condition and the tenants.

In short, you pay attention to:

1. Property management and trust
2. Owner-occupier in the house

Flipper house & apartment 2026: Guest “Flipper Immo”

Today I’m talking to our interview guest Johannes Schwärzler. With his YouTube channel Flipper Immo, he shows fix & flip projects, explains the strategy, presents before / after examples and much more, all from the flipper practice. What does flipping mean to him, what are his experiences and tips as a house flipper!

PS: Finally, I asked Johannes for 3 video recommendations for Fix & Flip beginners. You can find the videos spread throughout the interview

FIV: Hello Johannes! Your story is really inspiring for those who want to make money in real estate and like hands-on work! Before we get to that, can you tell me in a nutshell, even for those who have heard about “flipping houses and apartments” for the first time, what is the “fix & flip” of real estate all about?

Johannes: As I grew up on a farm, I have always been involved in building, working and repairing. The first time I heard about the concept(buy, renovate, sellproperty) was on TV in a program from the USA: Fixxer Upper. A couple buys apartments and houses, renovates them and then sells them.

Fix and flip is primarily about creating value with worn-out apartments. The purchase usually also solves a few problems for the owner, who does not want to renovate, someone who can no longer rent the apartment or simply wants to sell it. The property is then renovated to a high standard and put back on the market after a few months.

Why is that possible? The best comparison is eating out vs. going out to eat. We could buy ingredients cheaply and spend time and energy cooking the food ourselves. Alternatively, we go to a restaurant, have someone cook, pay the rent and employees and prepare the ingredients, and are then prepared to pay money for this practical service. In this case, the restaurant owner has the margin and the associated profit.

It’s the same with apartments. Very few people want to renovate or even solve problems themselves. That’s where we come in as “pinball machines”.

Get out of the hamster wheel! Flipping and YouTube

FIV: Could you tell us how you went from an idyllic Demeter farm in the Allgäu region to real estate trading? What inspired you to do so?

Johannes: Looking back, all the jobs and experiences I’ve had so far have come together to form a big puzzle that has given me all the important skills to do this job.

After several years in corporations and start-ups, the day-to-day work no longer felt like you were creating real added value with what you were creating. You drive up sales and get new customers, but it’s not a satisfying creation of something. I also always wanted to be my own boss, to create real added value through something I produce and, of course, to be financially rewarded for it. After 10 years abroad, I realized that my future is right here and now and not hiding behind the next job or the next pay rise. As a result, I made the decision within a few days to finally do what I always wanted to do. To create something new from something old and earn money at the same time. Since that day, I’ve been living my hobby and sharing it with a cool community on YouTube and Instagram from day one.

It’s extremely fulfilling and fun every day. Flipping has so many different components. The financing, the people, estate agents, bankers, craftsmen, owners and, of course, a happy buyer who appreciates my work.

It’s extremely varied! I love it!

His start: draughtsman, estate agent, now pinball player

FIV: You have experienced different places like Dubai, Mallorca and Germany and had different jobs in real estate agencies and companies. What finally made you decide to start your own real estate flipping journey?

Johannes: That’s right. I trained as a draftsman when I was 16 and that was my first taste of real estate. I then went on to do my vocational baccalaureate because, to be honest, I didn’t really know what I wanted to do with my life.

As a result, in 2013, I went straight to Australia for 6 months for Work & Travel at the age of 23 and then straight to Dubai. I wanted to get out! I wanted to earn money, I thought that money makes you happy. In Dubai, I became a real estate agent as a career changer, was quite successful for my age and was able to make a good living from it. After 2 years, I wanted something different and then became a sales manager in a German company. With an excellent salary, a Porsche and 2-3 employees under my management, I realized that this couldn’t be it. Things don’t make me as happy as I had expected. The big mistake was my false expectations!

The opportunity arose and I moved to Mallorca, so after almost 4.5 years in Dubai, I started a new chapter.

Once there, I continued to work as a sales manager for an international German airline. In the B2B area, I looked after Amex, Priceline and similar major customers in the USA and Canada, so I got to see the world! I opened first flights in the USA at the airport on behalf of my company and of course visited many customers across the country. I am infinitely grateful for this experience to this day! An absolute privilege!

When COVID came, my 7-year relationship ended and I was at an important point in my life again, I had to make another groundbreaking decision.

What to do? Wait or simply… start!

There were two options: 1. to do the same thing I had been doing for the last few years. Look for a job. Work my way up and then sooner or later end up where I was at the time. Not quite fulfilled, looking for more and not my own boss.

Option 2: Whenever someone asked me back in Dubai what I wanted to do when I was “rich”, my answer was: buy old buildings, renovate them and breathe new life into them.

The famous loud click then came overnight: “Why wait until I’m rich to do what I want to do later. I’ll just do it now”!

So the plan was set. Create added value and thus generate more value. For me. According to my ideals, visions and creative ideas. After all, we alone are responsible for growth.

Video tip #1 – Old apartment becomes a modern luxury space

The ultimate MAKEOVER, you can find more videos on Flipper Immo.

The first Fix & Flip property

FIV: When you decided to follow your own path, you bought and renovated your first property in just two weeks. Can you tell us more about what this step was like for you and how you approached the renovation?

Johannes: Due to Covid and the long relationship, I decided to go back to Germany. To my origins. I had yellow postcards printed from Mallorca (“looking for a private apartment”) and ordered them to Germany. They arrived and on the 3rd day I was already out and about in the city for hours handing out these postcards. After a few days I received the first call, the first viewing and the notary appointment was 2 weeks later.

I also keep noticing that this is unfortunately a bit rare these days and that we try to get too much information about a topic. We always think there’s just one piece of information missing so that I can get started. The reality is that information is important, but implementation is even more important.

The first 2, 3 objects

The aim was also to renovate the first 2-3 objects as best I could myself in order to get to know the material and my “new” product. As I knew that I would be doing a lot of flipping in the future, it was important for me to get to know my product. Inside and out. Of course, the best way to do this is to renovate an apartment yourself with your father, the hard-working farmer to whom you owe your manual skills.

To this day, I am incredibly proud that he is part of my first GmbH and “works” wherever he can! I call this part: giving something back!

The first project was an exciting step. I knew that no matter how long it took or what mistakes I made, I was only doing it for my future and myself! It was so much fun that while one apartment was still being renovated, I had already reserved the second one.

More money, more happiness?

FIV: You mentioned that you earned your annual salary in just three months with the sale of this first property. How has this experience affected your perspective on work and money?

Johannes: I’ve spent my life chasing money, or rather I thought that more money meant more happiness. From the day I created added value with something I’m passionate about, money was no longer so important and has been flowing more than ever since.

Of course, this is also due to the industry in which I work. A restaurant or car dealer sometimes has a margin of 25% or more on their products, but with an apartment in the Allgäu region, you quickly cross the €200-300,000 mark. In this case, 25% is of course significantly more money than 25% on a car that costs €20,000. From these beginnings and the countless doors that have opened, there are now several limited companies and the number is growing every year.

FIV: Your transformation from the pursuit of money to what you describe as the most fulfilling job or hobby in the world is fascinating. Can you tell us more about how your motivation and focus has changed?

Johannes: I haven’t gotten up for money for about 3 years. I can organize my day completely myself, can do more or less what I want and enjoy every day that I can live out my hobby, now my job. Since then, the focus has always been on win-win situations. As long as I put quality before quantity and don’t try to squeeze every penny out so that it ends up in my pocket, things have been going extremely well ever since!

Do what makes you happy!

FIV: As someone who is now working for their passion rather than just money, what advice would you give to young people who are looking for a fulfilling career or hobby?

Johannes: Go into crafts! Art, crafts and a very few other professions are proven to make you “happy” because you have a creative process. You see what you’ve done at the end of the day. Also, with the current developments, heating laws and the biggest housing shortage the country has ever seen, it makes extreme sense to get into an industry that is part of the “real estate” economic chain. Yes, it sounds like a lot of work, especially for the “work-life balance generation”, but success is hard work in 99% of cases, and it doesn’t make you rich overnight. Even if the gurus on Instagram tell you that every day.

Plumbing, electrical and other trades requiring a master craftsman’s certificate will have no problems finding work for the next 20 years.

To the young people: Please stop comparing yourselves! Social media is 95% fake.

Everyone seems richer, no one works and everyone has a supposedly better life than you do. The grass is not greener on the other side, but where you water it!

Remember: everyone has their own pace! Not everyone has to be rich, not everyone can be rich and not everyone should have employees, be a boss or sell online courses from Bali on their PC. Above all, it is important to understand that we are not working towards a final point in life. Not a career point after which everything magically gets better. Not a relationship that works without work. The journey is still the destination and if you do something you don’t like every day, that’s fine for a while, but sooner or later you should do something that fulfills you, provides a roof over your head and you have enough time for family and friends.

Video tip #2 – Buy, renovate, sell your apartment!

First project 2023, very recent:

Personal flipping experiences: What should you look out for?

FIV: How has your personal journey in real estate flipping influenced you in terms of your values and priorities? What role does materialism play in your life today?

Johannes: Very, very little. Of course I buy new things from time to time, but cars, watches, brand-name clothes or anything else are completely unimportant to me. I primarily spend my money on travel and experiences. The question you should ask yourself when making major purchases is: if no one was allowed to see the item I really wanted to buy and I couldn’t tell anyone about it, would I still buy it or would I buy it to have an effect on those around me?

Money is a means to an end. Money is only valuable if it is used for something. A lever, so to speak. For me, it’s primarily buying my time back out of the system, traveling and wonderful experiences with a handful of important people.

FIV: You gave the impression that your journey in real estate flipping has only just begun. What are your long-term goals and visions for your future in this field?

Johannes: yes, absolutely! I’ve only just got going. There are a few things I’m working on at the moment. On the one hand, I will continue to flip 1-2 properties in the Allgäu with my father. In the other GmbH, I’m flipping larger projects with partners. YouTube will continue to be extremely expanded in 2024. A new company is currently being founded in the real estate software sector, which will make a huge impact on the market. We are solving a real problem and not just artificially creating one and then presenting the solution as a start-up. However, I can’t reveal anything more about this at the moment; you’ll find out in the spring on social media.

The 3-year goal is to flip Mallorca, again quality instead of quantity. Of course, this is also economically viable, but my primary aim is to have one foot back on my old island so that I can escape the cold weather in Bavaria from time to time and live on the island for a while.

FIV: Finally, what advice would you give to young people who are setting out to follow their own path and pursue their passions, as you have done?

Johannes: You have to be aware that you have to work for success. Dropshipping, affiliate marketing, smma or other entertaining business trends only work if you invest years of your time, diligence and work. Focus on one thing at the beginning! Not 7 income streams or whatever other nonsense is being spread. Every successful person out there has started a business and made it big over a few years. After that, you can diversify yourself and your attention. This usually happens all by itself because you expand your network accordingly and new opportunities are brought to you. To make the first big leap, you need laser focus!

FIV: Thank you very much, Johannes, for your insights and your inspiring story, your experiences. I can also endorse your focus on one thing in every respect. It was a great insight into the topic. Finally, our #3 video recommendation for your Fix & Flip entry!

Video tip #3 – Before and after! A Scandinavian dream!

This is how Johannes renovated! You can find more videos on Flipper Immo.

Residential legal protection: Legal protection for property owners and tenants

What is a residential legal protection?

You may be wondering what exactly lies behind the term “residential legal protection”. Residential legal protection is a special form of legal protection insurance that aims to cover legal disputes in connection with residential rights, real estate and property.

This insurance provides some security and support when it comes to disputes and legal challenges that may arise in the context of real estate. Important, for example, when you buy your first apartment or house.

• For you, if you own a property
• For you, if you are tenant:in

Benefits of the residential legal protection

What is the benefit of residential legal protection?

Let’s take a look at the usual services:

• Legal advice and support in real estate disputes
• Assumption of attorney’s fees and court costs
• Coverage for disputes with neighbors, tenants and landlords
• Assistance with property boundary and building permit issues.
• Support for construction and building projects
• Protection when buying or selling real estate
• Coverage of legal problems in owners’ associations
• Comprehensive coverage for different types of real estate
• Protection in the event of tenant default and rental nomads
• Support with questions concerning renting and leasing
• Flexibility in adjusting the scope of insurance

Costs and scope of residential legal protection

What does residential legal protection cost?

Of course, you are also interested in the financial aspect. The cost of residential legal protection can depend on various factors. These include the scope of coverage chosen, the value of the property covered, the region in which the property is located, and also personal factors such as your individual risk assessment. It is advisable to compare different offers from insurance providers to get an idea of the costs and benefits.

• Costs depend on scope of coverage, property value, region and individual factors
• Compare offers to find the right cost-performance balance
• Costs between 150 euros and 400 euros per year

Source: Residential legal protection costs

Comprehensive coverage for owner-occupied housing units

What does legal protection mean for all owner-occupied housing units?

Wondering if all apartments or properties are covered? Legal protection for all owner-occupied housing units means that not only a specific property or apartment is protected, but all apartments or properties that you occupy yourself. This can include your own home, a condominium or even rented apartments. This comprehensive approach gives you peace of mind that you are legally protected no matter where you live.

• Protection for all owner-occupied property types, including homes and condominiums
• Certainty that the personal living space is legally sc

Housing and property legal protection

Protection in property-related disputes.

What does the housing and property legal protection include?

You want to know what specific situations are covered by this form of legal protection? Housing and property legal protection insurance covers a wide range of legal disputes that may arise from the ownership, use or rental of apartments, houses and land. This includes conflicts with neighbors, tenants or landlords, but also matters such as building permits, property boundary disputes or other property-related challenges.

• Covering conflicts with neighbors, tenants, landlords and other parties
• Assistance with building permits, property boundaries and similar issues.

Real estate legal protection: Quickly explained

Comprehensive protection for property owners.

What does real estate legal protection cover?

The term “real estate legal protection” certainly raises questions. This type of legal protection insurance goes beyond the protection of apartments and real estate. It covers a broader range of legal matters related to real estate. This includes disputes in construction, real estate purchase and sale, construction planning issues, construction financing (Read Tip: Cheap Loan) and similar matters. So when legal problems arise that are related to real estate, real estate legal protection steps in.

• Coverage of construction disputes, real estate purchase and sale, construction planning and financing.
• Security in various legal matters in the real estate sector

When does real estate legal protection apply?

When does real estate legal protection apply?

Are you wondering in which cases this insurance will cover you? Real estate legal protection always kicks in when legal disputes arise in connection with real estate. This can be the case in a variety of situations, such as conflicts with construction companies during the construction phase, discovery of construction defects, disputes over property boundaries, building permits or when legal problems arise in connection with the purchase or sale of real estate. In short, whenever legal challenges arise in the real estate sector, you can count on real estate legal protection.

• Support with legal problems in the real estate sector
• Conflicts during the construction phase, construction defects, property boundaries, purchase or sale of real estate

Useful? Yes or no

Residential legal protection offers both property owners and tenants important coverage in legal matters relating to real estate. From legal advice and cost coverage to comprehensive coverage for different types of real estate, this protection ensures that your home and real estate are legally protected.

Metaverse and real estate

In the interview Real Estate & AI with Lukinski, we talked about the future with AI. We had a few follow-up questions about the exciting topics and what we can expect in 4, 5 years. Among others, it was about:

Metaverse: What’s next?

FIV: Thank you for taking a moment again! How will this affect metaverse visualization, construction and co.

Lukinski: The metaverse is a term that refers to a virtual world where people can interact and communicate with each other in real time. Metaverse technology is expected to have a significant impact on visualization, construction and other aspects of the real estate industry.

One of the main benefits of Metaverse is that it can facilitate collaboration and communication between project stakeholders. For example, architects, builders and engineers can hold virtual meetings to review designs and discuss changes without having to be physically present. This can speed up the design process and improve collaboration.

In addition, the Metaverse can enable immersive 3D visualization of buildings, guiding viewers through the building without having to be physically present. This can help builders and investors get a better picture of a building and its surroundings before it is built.

The metaverse can also help make real estate construction faster and more efficient by allowing virtual buildings to be designed, constructed and tested before they are physically built. This can help minimize errors and optimize the construction process.

Overall, the Metaverse can help transform the real estate industry by providing new ways to collaborate, visualize and plan buildings. However, it will take time for the technology to mature and become widespread to have a significant impact.

Buy real estate in the metaverse

FIV: Can you already buy real estate in the metaverse?

Yes, it is already possible to buy real estate in the metaverse. Virtual worlds like Second Life, Decentraland and Somnium Space already offer the possibility to buy and own virtual land and buildings.

In these virtual worlds, users can buy their own virtual property, build on it and erect their own buildings on it. The virtual buildings can also be rented or sold, similar to real life.

There are also already startups specifically focused on trading virtual real estate in the metaverse. These companies offer platforms where users can buy and sell virtual land and buildings.

It is expected that virtual real estate trading in the metaverse will continue to grow in the future as technology and virtual worlds continue to improve and attract more users.

Metaverse real estate examples!

here are some examples of virtual real estate in the metaverse:

1. Decentraland
2. Somnium Space
3. The Sandbox
4. CryptoVoxels

Decentraland

In Decentraland, users can buy and own virtual properties on which they can create their own buildings and applications. There are already several companies that own and use virtual properties in Decentraland, such as Atari, which operates its own virtual casinos.

Somnium Space

Somnium Space is a virtual world where users can buy and own land and buildings. The platform also offers the possibility to rent or sell the virtual properties.

The Sandbox

The Sandbox is a virtual world where users can own and build on their own virtual land. The platform uses blockchain technology to manage the ownership of the virtual land and buildings and enable trading with them.

CryptoVoxels

In CryptoVoxels, users can buy and own virtual plots of land on which they can create their own buildings and artworks. The platform uses the Ethereum blockchain to manage the ownership of the virtual plots.

These virtual worlds and platforms are just a few examples of virtual real estate trading in the Metaverse. It is to be expected that further platforms and virtual worlds will emerge in the future that enable trading in virtual real estate.

Fancy more future?

Real Estate & AI (Artificial Intelligence) – The Interview

Today and the future – How is a villa created and how would it be created if artificial intelligence were in play. This interview with Stephan Czaja of Lukinski provides an overview of the steps involved in planning and visualizing villas and their timeline. Architects usually create 3D visualizations to give their clients a better idea of their design.

Artificial intelligence (AI) can improve the process of 3D visualization in the future through automation, personalization, simulations, increased efficiency and real-time updates. Other possible developments include automation of planning, control of construction machinery by AI, creation of 4D visualizations, and personalized advice through AI-based tools. A look into today and the future with AI!

• Real estate & AI (artificial intelligence) – the interview