Crowdinvesting: basics and rental yields

Invest in real estate instead of the next sneaker? Sounds strange, but that’s no longer a problem with crowdinvesting. Crowdinvestment means as much as real estate investment for everyone. But what exactly is crowdinvesting?

Here in short, before we go into details, the most important summarized on the subject of crowdinvestment:

• Many shares of a property divided to private individuals
• Only a small outlay of equity
• Loan is not paid to developer, but only participation in property

What does crowdinvestment mean exactly?

Crowdinvestments are very similar to a corporation that sells many company shares to private individuals and institutions in order to obtain the necessary financing for the company’s growth. So too, with crowdinvestments, individual shares of a property are sold to private investors. The advantage? You can invest in such real estate even with a small amount of equity and thus secure your pension.

• Comparison: stock corporation
• Many shares of a property divided to private individuals
• Only a small outlay of equity

How does crowdinvestment work in the first place?

Let’s stay with the example of the stock corporation. When a property is newly built or renovated, it is published on a special crowdinvestment platform. This is responsible for the distribution of the real estate shares to capital investors. Through the platforms, the owners are considerably relieved.

Differences from a normal investment:

• No targeted partners for financing, but division of the property by platform
• Loan is not paid to developer, but only participation in property
• Share is not used for personal use, one obtains the part of a yield

How do I find profitable real estate?

In order to know which property is worth investing in, one should know what the return on investment of the respective property is. Here you can use a simple formula to calculate this.

Formula Rental Yield:

Annual rent / investment x 100 = rental yield

If you want to know even more about rental yield, read our article Rental yield and purchase price factor here.

Financing real estate yourself? Equity

When you’re young, you often don’t have the equity directly available to invest in a property. Thus, equity probably plays the biggest role in real estate purchases for first-time investors. Many ask themselves the question, how much equity do you need at all for a regular property?

Equity depending on the situation

The answer is always related to the location of the property. If your property is in an A location such as Munich, Cologne or Hamburg, it is unaffordable for most people. In a B – location or good C- location, however, the prices fall. Depending on the micro-location, prices can also vary depending on how far into the city center you want to live.

• A- location (big city) extremely expensive
• B- location and good C- location moderate prices
• Microlocation is crucial

Equity investment depending on financing

No matter what the final purchase price of a property, the bank usually always requires an equity contribution of 15%, especially for first-time investors. In addition, one must always reckon with the addition of the ancillary purchase costs, brokerage costs (if commissioned) and the land transfer tax.

• 15% equity investment

Real estate as an investment: Provision for old age

Our pension is getting smaller and smaller and our money in the bank is subject to inflation in any case. So we are left with real estate as a good way to invest our money, as it neither loses its value due to inflation nor is it always in demand. Moreover, after a few years we benefit from the increase in value of the property.

The great advantage of a property as an investment is that it is rented out, unless you want to buy your property for your own use. The income from the rent generates a constant cash flow, with which the property and all costs incurred can be covered. By earning a high return at best, you build wealth on top of that. In addition, real estate always remains fairly constant on the market, which means that you minimize risk when you buy.

• Real estate is stable in value
• Real estate offers inflation protection
• Real estate provides constant cash flow
• Asset building

Crowdinvesting: Videos

To better illustrate crowdfunding, we have two videos here for you to illustrate the point.

What is crowdinvesting?

Here, crowdinvesting is explained to you with the help of graphics and drawings.

Self-disclosure for banks: Real Estate Financing

Whether Deutsche Bank, Volksbank or Sparkasse, banks need collateral for real estate financing. The more collateral you can offer, the less risk there is for the bank. So that bankers can assess your financial situation, there is the self-disclosure.

A self-disclosure has no fixed form. That means you will find different templates online.

Source: Real Estate Experience.com

What is the self-disclosure?

Self-disclosure lists your personal data, your monthly income and expenses, as well as your assets and debts. Your net worth (income and assets against expenses and liabilities) should be positive. This surplus is your financial leeway for the condominium or your new house.

In our article Buying an apartment, we have already explained the entire process of buying an apartment. Today we want to look again specifically at what must be in a self-disclosure. Because, importantly, once you submit the documents to your bank, everything should be accurate and complete.

Now let’s look at self-disclosure in detail.

What does the self-disclosure say?

• Summary of the financing request in short form
• Personal data of you as applicant, if necessary also of the co-applicant (e.g. your partner)
• Monthly balance sheet: income and expenditure
• Balance sheet: assets and liabilities (liabilities)
• Financing requirements in detail (property, financing structure, loan amount)
• Consent Schufa information
• Consent Data protection

Free Download: PDF and Word Template

Self-disclosure as PDF and Word template:

• Self Disclosure PDF Template
• Self Disclosure Word Template

Self-disclosure: simply explained

How does the self-disclosure, simply explained? Here are the answers!

Summary of the financing request in short form

Step number one is a brief summary of your financing requirements. In the self-disclosure form, you provide the following information:

Personal data of you as applicant, if necessary also with applicant (e.g. your partner)

After the short overview in the first step, the second step is the specification of personal data. Very basic information, name, address, date of birth, marital status, etc. Either by yourself as the applicant or together with a second person, e.g. a partner or a family member, the so-called co-applicant.

Monthly balance sheet: income and expenditure

Step number 3 deals with your monthly income and your monthly expenses. When you compare your monthly income and expenses, there should be a surplus. Or simply put, you earn more than you spend.

This surplus is the margin for your real estate financing, or the later monthly repayment.

This monthly overview is supplemented by your assets.

Income includes:

• Wage / salary (net)
• Recurring monthly variable income
• Income from self-employment
• Pensions and annuities
• Rental income (cold)
• Child benefit
• Maintenance
• Other income

Your expenses include:

• Housing costs; rent or loan and question: Will be eliminated in the future yes / no?
• Health insurance
• Other insurance (pension, building society, life insurance, etc.)
• Cost of living
• Loans
• Leasing
• Liabilities
• Child support obligations
• Other expenditure

Balance sheet: assets and liabilities (liabilities)

In the fourth step you compare your assets and your debts. Your assets include any simple savings account, but also securities and real estate, if you already own any.

Your credits include:

• Bank and savings accounts
• Securities (market value)
• Insurance policies (surrender value)
• Real estate assets
• Building savings balance
• Other assets

Your liabilities (debts) include:

• Bank, instalment and leasing loans
• Guarantees
• Other liabilities

Financing requirements in detail (property, financing structure, loan amount)

Step number 5 in the self-disclosure is a detailed description of your financing requirements. In detail, it is about the property that is to be financed, the financing structure and the amount of the loan.

Read more about it here (external):

• Self-disclosure: Financing

Consent Schufa information

In step number six, you give your consent for Schufa to obtain information about you. If you haven’t heard of Schufa yet, here’s a brief explanation!

What is Schufa? Schufa is a big card, so to speak, that collects information about consumers. This includes personal data, current loans, leasing contracts, as well as the general payment morale and creditworthiness of individual consumers.

Contractual partners can access the databases at any time and thus carry out rapid creditworthiness checks.

So when banks obtain a Schufa report, this is a completely normal process. That’s why you already give your consent in the self-disclosure.

Tip. Once a year you get this self-disclosure free of charge:

• Schufa (external)

Proof of income

In the last step of the self-disclosure, you collect evidence of your income. If you are an employee, you need to provide proof of income, if you are self-employed, you need to provide your tax returns.

Documents for employees:

• Last 3 pay slips
• Wage statement from December, previous year
• Last tax assessment
• If real estate assets, also income tax return
• Copy of identity card
• Schufa self-disclosure

Documents for the self-employed:

• Last 3 tax assessment notices
• Last 3 tax returns / balance sheets
• Ongoing BWA (business management analysis)
• Copy of identity card
• Schufa self-disclosure

Done! Self-disclosure ready for the bank

That’s it. With that you have your self-disclosure for the bank, with your financing request, complete.

Here again the free download of the templates

• Self Disclosure PDF Template
• Self Disclosure Word Template

Buying your first apartment: Here’s how

Buying your own apartment – As soon as you move into your first own apartment, for most people it’s rent, rent, rent. Every month you go to work many hours to spend the largest part ultimately for the next rent due at the beginning of the month. It’s no wonder that many young people are considering buying a condominium as soon as possible.

• Buy first apartment

Buy real estate in the most exclusive streets

From Harvestehuder Weg in Hamburg, to Annastrasse in north-west Frankfurt, to Tegernsee in southern Munich – the German real estate landscape is quite respectable by international standards. And not only that: Anyone who thinks that the most expensive streets in Germany are only to be found on the mainland is mistaken. Nowhere in Germany are properties as sought-after and exclusive as in Sylt. More about how much a square metre costs here in a moment. Here are the most expensive streets in Germany at a glance.

Berlin: Kurfürstendamm, Tiergarten & Co.

Berlin is not only the capital of Germany, but also an attractive location for international companies, a stronghold of German culture and a popular place to live for couples, singles and students. The capital of Germany is a breathtaking city in every respect. No wonder, after all, it is home to almost 4 million people. Thus, the metropolis inspires with its lively and diverse cityscape, its high historical value, its turbulent nightlife and its stable economy. While Kurfürstendamm is one of the most luxurious shopping streets in Europe, the area in and around Berlin-Mitte, Tiergarten and Charlottenburg are home to the city’s most exclusive properties.

• Most expensive streets in Berlin

The most expensive streets in Berlin include:

• At the circus, Werderscher Markt
• Breitscheidplatz
• Gendarmenmarkt
• Island Road
• Klopstockstraße
• Kurfürstendamm
• Paris Square
• Savignyplatz

The most expensive street in Berlin is Inselstraße.

Inselstraße in Berlin

The Inselstraße in Berlin-Mitte inspires with its exclusive location. The banks of the Spree River are within walking distance, the city’s most important monuments and sights are only a subway ride away, and for those who need a break from the colorful hustle and bustle of the city, the many green spaces and parks offer a relaxing change of scenery. Property prices here are around 23,000 euros per square metre.

Up to 23,000 euros per m²

Read more here about:

• Most expensive streets in Berlin

Düsseldorf

The capital of North Rhine-Westphalia inspires with its luxurious quarters, exclusive villa districts and its breathtaking skyline. The comprehensive good infrastructure, the diverse shopping facilities and the internationally positioned local economy also make Düsseldorf a superlative city. Düsseldorf’s attractiveness is also reflected in the local real estate market: especially the streets in the Old Town and Oberkassel are among the most exclusive residential areas.

• The most expensive streets in Düsseldorf

Here are the most expensive streets in Düsseldorf:

• Old Town
• Kaiser-Wilhelm-Ring, Kaiser-Friedrich-Ring

The most expensive street in Düsseldorf is the Altestadt.

Old town in Düsseldorf

The Altestadt in Düsseldorf is not only the most expensive street in the entire city, but also the most beautiful. The banks of the Rhine can be reached on foot, the historic Burgenplatz is only a few minutes away by car and Düsseldorf’s city hall is also at home here. One of the most famous shopping streets in Europe is also nearby: Königsallee. Property prices here are around €13,500 per square metre.

Up to 13,400 euros per m²

Read more here about:

• The most expensive streets in Düsseldorf

Frankfurt am Main

With a population of about 750,000 and an area of almost 750 square kilometers, Frankfurt am Main is one of the important German metropolises. As one of the most imposing German cities, the Hessian metropolis of Frankfurt is in no way inferior to the other cities of Berlin, Hamburg and Munich. The standard of living is high and the economy stable. While students appreciate the colorful nightlife, the strong banking and financial sector attracts mainly entrepreneurs and investors here. Thus, not only apartments in the city centre are popular here, but also villas and detached houses on the outskirts of the city.

• Most expensive streets in Frankfurt

Here are the most expensive streets in Frankfurt am Main:

• Anna Street
• Siesmayerstrasse

The most expensive street in Frankfurt is Annastrasse in the north-west of the city.

Annastrasse in Frankfurt

Properties in Frankfurt’s North End are particularly sought-after. Not only is Siesmayerstrasse located here, but also the most expensive street in the entire metropolis: Annastrasse. Here, property prices are around 11,000 euros per square metre.

Read more here about:

• Most expensive streets in Frankfurt

Hamburg

Strong economy, sea air, international orientation – all this makes Hamburg in the north of Germany. Hamburg has its very own charm, shaped by its unique history, maritime shipping and the many international residents from all corners of Europe. It is not only home to families, students and entrepreneurs, but also to famous faces from the worlds of film, television, music and sport. This, of course, makes the Hanseatic city’s real estate market particularly attractive. So anyone who owns a property in Hamburg can consider themselves very lucky.

• The most expensive streets in Hamburg

See some of the most expensive streets in Hamburg:

• By the quay
• Bellevue
• Elbchaussee
• Great Elbe Strait
• Harvestehude road
• Midway
• Beautiful view
• Strandkai

The most expensive street in Hamburg is Harvestehuder Weg.

Harvestehuder Weg in Hamburg

Enclosed by the Aussen-Alster and the Isebekanal, the Harvestehude district is located in the Eimsbüttel district. Harvestehuder Weg is also located here. Property prices here are around €16,000 per square metre.

Read more here about:

• The most expensive streets in Hamburg

Munich

The Bavarian capital impresses with its beautiful architecture, a wide range of cultural activities and a high standard of living. As a historic art and cultural metropolis, Munich fascinates families, couples, students and young professionals. Entrepreneurs and investors are also attracted by the proximity to the Alps, the multitude of breathtaking lakes and the proximity to the Italian coast in the south. As Germany’s third largest city, Munich also stands out for its very low unemployment rate, as well as its strong technology and science sector. No wonder that hardly any other city in Germany is as expensive as Munich. Whether it’s a spacious villa in Maxvorstadt, a renovated apartment in the Glockenbachviertel district or a modernised detached house in Bogenhausen – here you’ll find the most luxurious properties in Germany.

So the list of Munich’s most expensive streets is long. See for yourself here:

• Elizabeth Square
• Fleming Street
• Klenzestraße
• Queen Street
• Lake Road
• Mandlstrasse
• Maria-Theresia-Straße
• Müllerstrasse
• Schellingstraße
• Sophienstraße
• Stone Street
• Zuccali Street (North)
• Driveway (south)
• Titian Street
• Montenstrasse
• Bäumlstraße

Among the most expensive streets in Munich are Königinstraße, Seestraße and Mandlstraße in Schwabing.

Queen Street in Munich

The former art and cultural district of Schwabing is home to Königsstraße. The properties here are among the most exclusive in Germany. Property prices here are around 20,000 euros per square metre.

Norderney: Island dream in the North Sea

Norderney is one of the East Frisian islands in the North Sea. Only seven of the 12 islands are inhabited. With its almost 7,000 inhabitants, Norderney is the most densely populated island of all and delights with its unspoilt nature, picturesque beaches and multitude of sights and monuments.

• The most expensive streets on Norderney

Here are the most expensive streets in Norderney:

• On the west beach
• Kaiserstrasse
• Knyphausenstraße

The most expensive street in Norderney is the street Am Weststrand in the west of the island.

On the west beach in Norderney

The street Am Weststrand in Norderney convinces with its proximity to the beach. Several bars, restaurants, playgrounds and green spaces are also located here. Whether it’s an exclusive holiday apartment with a view of the sea or a permanent residence away from the mainland – everyone feels at home here. So if you want to buy a plot of land on Am Weststrand, you have to reckon with 11,200 euros per square metre.

Read more here about:

• The most expensive streets on Norderney

Lake Starnberg

Lake Starnberg is located just under 40 km from the centre of Munich and is thus midway between the Bavarian capital and the popular residential and holiday resort of Tegernsee. Grünwald is also not far away by car. Cultural richness, untouched nature and the quiet and relaxed atmosphere make the communities around the lake a popular place to live. German celebrities in particular appreciate this. So be prepared to run into one or the other famous face here.

• The most expensive streets at Lake Starnberg

Here are the most expensive streets at the Starnberger See:

• Front lake road
• Celtic Road
• Lakeside Road
• South lake road

The most expensive street on Lake Starnberg is Südliche Seestraße in Münsing.

Southern lakeside road at Lake Starnberg

While the north of Lake Starnberg convinces with its small town feeling and the community of Seeshaupt in the south with its family atmosphere, the east of Starnberg is considered a former residence of German nobility. And it is precisely here that the most expensive street in all of Bavaria is located, with its breathtaking view over the entire lake. Property prices in the southern lakeside street are around 25,000 euros per square metre.

Read more here about:

• The most expensive streets at Lake Starnberg

Sylt: The most expensive place to live in Germany

Sylt is and remains an island of superlatives. And there in many respects. The proximity to the North Sea and the unspoiled nature makes the clocks tick differently here. While a large number of European holidaymakers from the mainland are drawn here in summer, the autumn and winter months are all about peace and relaxation. This is also reflected in the purchase and rental prices. Nowhere in Germany is real estate negotiated as expensively as here.

• The most expensive streets on Sylt

Here are the most expensive streets on Sylt:

• Heideweg / Heidewinkel
• Meadow Path
• Hoboken Way
• Osterheideweg

The most expensive road on Sylt is Hobokenweg in the east of the island.

Hobokenweg in Sylt

Also called the ‘street of the super-rich’, Hobokenweg outstrips all other streets in Germany in terms of price per square metre. Only those who can afford it live here: From wealthy heirs to successful corporate executives. Nowhere else in the entire Federal Republic is it as expensive: property prices here are in fact around 35,000 euros per square metre.

Read more here about:

• The most expensive streets on Sylt

Tegernsee

Those who sometimes need a break from the colourful hustle and bustle of the big city will find it at Lake Tegernsee. The lake is located south of Munich and is easy to reach by car. Thus, the communities around the Tegernsee inspire with their idyllic landscape, the high level of discretion and the breathtaking nature. While the breathtaking view over the Tegernsee and the adjacent valleys is the charm of the Leerberg, the communities of Gmund, Wiessee and Rottach convince with their proximity to the lakeshore.

• The most expensive streets at Tegernsee

Here are also the most expensive streets around the Tegernsee:

• Bad-Wiessee
• Gmund
• Rottach-Egern

The most expensive streets on the Tegernsee are in the municipality in Rottach-Egern.

Rottach-Egern on Lake Tegern

One of the most popular residential areas is Rottach – a community south of Lake Tegernsee. Compared to Leerbach, the villas and apartment buildings here don’t have the greatest lake views, but they do inspire with their proximity to the village centre and the lakeside. Especially individuals who do not like to live on top of the mountain like to settle in Rottach. Property prices here are around 15,000 euros per square metre.

Read more here about:

• The most expensive streets at Tegernsee

Baden-Baden, Juist and Constance

Baden-Baden, Juist, Constance and Stuttgart are also home to the most expensive streets in Germany. As always, several factors determine the price per square metre. These include, above all, location, infrastructure, the local cultural offerings and the safety of the residential environment.

Here are some more of the most expensive roads in Germany:

• Lichtentaler Allee (Baden-Baden)
• Beach promenade (Juist)
• Alpsteinweg (Constance)
• At the Bismarck Tower (Stuttgart)
• Feuerbacher Heath (Stuttgart)

The most expensive residential streets in Germany

Source: Image / Engel und Völkers

Real estate agent T. Andrich about Hamburg real estate market

Thorben Andrich is the founder and managing director of Redhome Immobilien GmbH and, as a young and modern real estate company, has made it his mission with his team to score points with expertise and communication at eye level. They are not only experienced in the Hamburg real estate market, but in the entire region around Schleswig-Holstein, Hamburg and northern Lower Saxony. The expert talked to us about his most exciting projects, costs, financing options, investments and popular districts in Hamburg.

Which properties do you particularly like to broker as an estate agent?

FIV: Before we go into the many details of the city: as a real estate agent in Hamburg, what type of house/apartment do you most like to broker? Are there any favourites, for example the normal 3-room apartment, the loft or rather the luxury property on the outskirts?

Andrich: I think that every agent likes to sell luxury properties, it’s different prices and often highly interesting personalities that you get to meet, and you always have to adapt to new people. With our in-house photographer, we have the opportunity to work very flexibly and present the property accordingly. Especially with luxury properties this is very important.

But also the classic 3-room apartment is presented by us accordingly, we make no distinctions. We are very self-critical and even a “small deal” includes good photos and a great exposé. Our goal is to pick up the customers with the exposé and even if we do not come into business, perhaps to be recommended.

• Website: Redhome Immobilien GmbH
• Instagram: redhome.realestate

FIV: What was the most exciting or beautiful property you remember from your years as a real estate agent?

There have been many great deals, but I always like to tell the story about one deal. It was an apartment building where I had been in regular contact with the owner for over 2 years. He was unable to get the price he wanted to put himself on the market for over two years. We kept talking very nicely and I often offered to take care of it for him. He would often call and ask all sorts of things and I would always help him along, even though I knew that if he sold the property himself, I would come up empty. At one point he called me and offered to let us show his house to our network clients.

After the exchange of documents and the photo session, we have created an exposé and offered the property to the appropriate customer from the network. The following weekend we visited the property and the following Friday we went to the notary. The seller received his desired sales price and the buyer was very happy to pay us the brokerage fee, because he knows that we always call him again for suitable properties. The buyer has since become a very good friend who has bought another investment property from us. The seller also came back to our office after 6 months and asked us for help regarding a planned new building. This example shows quite well how we work and what is important to us. We are happy to go the extra mile and convince with our service and expertise. Brokers who only want to make a quick buck will not be successful in the long run.

We see ourselves as a classic service provider and view every transaction and every contact in the context of a long-term cooperation. Especially with investment properties, this idea pays off time and again.

“If you’re a broker who just wants to make a quick buck, you’re not going to succeed in the long run.” – T. Andrich

Where should you move to in Hamburg? Districts for Singles, Families & Co.

FIV: The majority of our readers are buying a property for the first time. So that our readers have a direct insight: If someone newly moves to Hamburg and asks you as an expert in Hamburg the question “where should one move to?”, which districts would you recommend?

Andrich: This is not an easy question to answer, because there are certainly different approaches and ideas. If I may take myself as an example.

• Single / career-oriented? : Sternschanze, St. Pauli, Winterhude, Uhlenhorst, St. Georg, Eppendorf

Networking is the name of the game and extremely important, especially in this day and age. With social media (Instagram, Facebook, Xing, LinkedIn, etc.) there are endless possibilities to go to networking events and exchange ideas. Probably the most popular districts that offer a mix of networking, scene and fun are (Just to name a few): Sternschanze, St. Pauli, Winterhude, Uhlenhorst, St. Georg and Eppendorf. Here you meet the young entrepreneur as well as old hands and in general you have a very special mix. Each district has its own charm. Due to the central location, you can reach every district very quickly. I have lived here and have met many great people.

• Families with child(ren)? Lokstedt, Schnelsen, Eidelstedt, Poppenbüttel, Groß Borstel, Alsterdorf, Langenhorn and many others.

The central locations in Hamburg also offer great opportunities for families with children. Nevertheless, young families tend to move to the outskirts of Hamburg. Here you get a little more m² of living space for your money and that makes quite a difference. Popular districts are for example: Lokstedt, Schnelsen, Eidelstedt, Poppenbüttel, Groß Borstel, Alsterdorf, Langenhorn and many others. It simply depends on what people can afford and want.

• Wealthy people (property prices over 1 million)? : Rissen, Blankenese, Ottensen, Wellingsbüttel, Duvenstedt, Klein Flottbek

The 1 million euro mark is quickly cracked in Hamburg. Around the Alster it goes particularly fast, but also the city districts that are far away from the Alster are partly very expensive, or have become expensive. Examples: Rissen, Blankenese, Ottensen, Wellingsbüttel, Duvenstedt, Klein Flottbek.

Costs, rents & prices in Hamburg: Estimation from a professional

FIV: What costs should one expect in Hamburg when renting, and more importantly when buying an apartment or house? How would you compare Hamburg with other cities, and which districts are currently particularly attractive?

Andrich:

• Rent: The average rent in Hamburg is currently around 14,-/m².
• Apartment purchase: The average purchase price for condominiums is currently around 4,500/m².
• House purchase: The average purchase price for houses is currently around 4,200/m².

The prices vary extremely depending on location, size and equipment. Hamburg has a very good infrastructure, endless recreational opportunities. With the Alster and the many parks, this city also has very good recreational areas and is very popular with tourists. Hamburg is large, but still manageable and each location offers different aspects and has its own charm.

The most popular districts are: all districts around the Alster, such as Rotherbaum, Harvestehude, Uhlenhorst, Winterhude, Eppendorf, St. Georg, but also Ottensen, Sternschanze, St. Pauli, Altona, Eimsbüttel and Barmbek-Süd. I could certainly list more, but that would go beyond the scope now.

Hamburg districts for real estate investment? Tips from the investor expert

FIV: Another look at those who want to invest and rent out. As a real Hamburg insider, which district(s) are currently experiencing an upswing and are particularly interesting for capital investors / investors? Which districts are exciting for landlords and investors here?

Andrich: The outskirts of Hamburg currently still offer good investment opportunities. However, a large proportion of investors have already moved to Hamburg’s suburbs. This has also led to strong price increases here. As a rule, an investor still wants to exploit potential and achieve returns. A classic investor wants to “park” his money in a property, is perhaps still counting on appreciation and is interested in top locations.

Investors are therefore more interested in urban districts such as: Barmbek, Schnelsen, Stellingen, Hamm, Eilbek or Wandsbek. Larger investors and capital investors tend to focus on, for example: Winterhude, Eppendorf, Uhlenhorst, Neustadt and St. Georg. Each district also has good and bad locations.

“Every neighborhood has good locations and bad locations.” – T. Andrich

Real estate purchase & sale with broker or private search: advantages and disadvantages

FIV: According to statistics, well over 50% of all properties in Hamburg are bought / sold with an estate agent. From your point of view: when should one search privately and when should one hire a professional real estate agent for the search? Where are the advantages and disadvantages?

Andrich: If you are a private individual looking for a property in a specific district, you should introduce yourself as a customer to the local estate agents and have a corresponding search profile created. Many offers no longer go online and are offered internally in the customer files. As a private person who is looking for a property, one usually gets nothing of this. In addition, one should place “search agents” with the usual portals in order to be informed about new objects. Filled out customer profiles, with all information, help brokers to decide for customers. In addition, the financing should already be clarified in the rough, in order to be able to act quickly.

• Advantages of searching with a real estate agent: You get offered more properties, you may receive exclusive offers and you experience a different appreciation.
• Disadvantages of searching with a broker: Usually higher additional costs, the broker also works for other interested parties.

Typical first-time buyer mistakes, and how to avoid them

FIV: As I said before, the majority of our readers are first-time buyers. What are the mistakes that first-time buyers typically make? Conversely, as an expert, what advice would you give to someone buying his or her first property?

Andrich: It is extremely important to be quick, especially with good offers. If you know what you want and are looking for, you can go through a financing with a sample offer. You get so a good feeling up to which volume you can look, and in the case of the cases you can then strike quickly and give the broker a purchase commitment in the inspection, perhaps with a financing confirmation. Also, know how to read different documents. It’s best to enquire about different properties and “practice”.

Real estate financing: Annuity loans & Co. – options and tips

FIV: What financing options for a property would you most likely recommend in Hamburg – or in general – and what options do first-time buyers have?

Andrich: In most cases, buyers pay at least the ancillary costs themselves. Sometimes it makes sense to include the brokerage costs in the purchase price to make the financing more comfortable. I would generally recommend, for owner-occupied properties, to repay a little more than 2% and to secure the favourable interest rates with a longer fixed interest rate. The classic annuity loan is often used as the financing model. In some cases, it can also make sense to completely finance the ancillary costs – in addition, you should include necessary renovations in the calculation. Financing is a very complex topic and you should look into the possibilities in advance.

FIV: How much equity should you have and what other factors influence financing / creditworthiness? What tips can you give as an expert from your experience?

Andrich: The banks usually want at least the incidental costs to be paid from equity. The interest rates will be better if additionally a part of the purchase price is paid from equity. Whether and how far it makes sense, depends on the buyer and also the property. Here there is no right or wrong.

Service charges & taxes in Hamburg: These are the costs you have to reckon with

FIV: In addition to the purchase price, there are of course also additional costs. A big factor for buyers in Hamburg are taxes. What taxes do buyers in Hamburg have to reckon with when they buy a house on the outskirts of the city or a condominium in Hamburg Mitte/ Hafen-City?

Andrich: When buying a property, a different land transfer tax is incurred depending on the federal state. In Hamburg, for example, it is 4.5% of the purchase price and in Schleswig-Holstein 6.5%. If ancillary costs, such as the brokerage costs, are transferred to the purchase price, the purchase price increases and the land transfer tax also applies to these costs. Further taxes are only incurred in the event of a sale – depending on the constellation and the period of use. (speculation tax)

High prices Hamburg, when is an investment in real estate property worthwhile?

FIV: Rents and purchase prices in Hamburg have risen sharply in recent years. What is the decisive factor driving this development most strongly in the Hamburg property market? Would you currently recommend investing in property or wait?

Andrich: The achievable income in Hamburg is significantly higher than in rural regions such as Dithmarschen, for example. Young people in particular move to Hamburg to study and pursue a career.

On the one hand, it is the growth from the other regions that is causing prices to rise, and on the other hand, the favourable interest rates have made it possible for people with not so high incomes to purchase property in Hamburg. Hamburg is one of the most popular cities in Germany. In principle, I would always advise to own property, but only with the right income. The relationship to the value of the property and the income must fit and should be sustainable.

Tip: Luxury condominiums in HafenCity Hamburg – The Crown

Pure luxury: this is what the new residential tower “The Crown” in Hamburg’s HafenCity promises. Anyone who likes luxury real estate is definitely at the right address with this property. Imagine standing on your balcony, some 50 metres above the Elbe, looking down on the wave-shaped building of the Elbphilharmonie and enjoying the sun reflected in the Elbe, making the water glisten. Doesn’t that sound dreamlike? No wonder, then, that almost all of the residential units in the project have already been sold.

• Hafen City luxury condo: The Crown Hamburg

Real estate agent Robiné about the Düsseldorf real estate market, experiences & tips

Harald Robiné has made a name for himself with his company in Düsseldorf and beyond the city limits as a competent and exclusive real estate agent. ROBINÉ Immobilien attaches great importance to quality and customer service, and has specialised in the brokerage of premium properties. In addition to the brokerage and marketing of real estate, ROBINÉ Projektmanagement’s services also include the acquisition of land, the conversion & refurbishment of existing buildings, project development and management, as well as the turnkey construction of high-quality new buildings in the best locations in Düsseldorf.

In the interview, the real estate agent shared tips and tricks with us, talked about investments and he also gave us his assessment of what to consider when buying a property. Learn more about real estate in Düsseldorf and learn from the pros!

Tip! Luxurious living is also possible in Berlin! Take a look at a very special villa by Graft Architekten: Villa M

Brokerage introductions: Popular house types & most spectacular property

FIV: Dear Mr Robiné, before we go into the many details of Düsseldorf: As a real estate agent in Düsseldorf, what type of house or apartment do you most like to broker? Are there any favourites, for example the normal 3-room apartment, the loft or rather the luxury property on the outskirts of the city?

Robiné: The first property I brokered more than 25 years ago was a luxurious villa owned by a renowned Düsseldorf entrepreneur. Thanks to my good contacts and innate sales talent, I was able to successfuly market the property within a short time and quickly made a name for myself in Düsseldorf. After that, everything happened very quickly, I was offered one villa after the other for marketing and included in my portfolio.

However, this does not mean that we only broker premium properties today. Well-maintained detached houses in suburban locations are just as much a part of our range as courtyards in need of renovation, apartment buildings and commercial properties. Of course, it is much more exciting to broker high-priced properties in the luxury segment than a standard 3-room apartment in the city centre. Whether it’s luxurious villas, stylish loft apartments or classicist townhouses, it doesn’t really matter – ultimately, it’s important that the property has a certain character and represents something special.

• Website: Robiné Real Estate
• Instagram: Robiné Real Estate

FIV: What was the most spectacular property you remember from your years as a real estate agent?

Robiné: The most spectacular property was a historic castle complex from the 11th century. The tenant at the time was a U.S.-born goalkeeper for Borussia Monchengladbach, Kasey Keller. NBC visited the player at his home several times. Through these activities, the German media such as WDR, RTL etc. also became aware of me and the property. At the time, the landmarked property was literally getting quite old and was in dire need of renovation. Like me, the buyer at the time recognised the unique potential of this property and renovated it with great attention to detail for private residential purposes. It was incredible to see the property shine in new splendour a few years later. In an ambience that leaves nothing to be desired, a unique combination of history and modernity was created here.

Where should you move to in Düsseldorf? Districts and tips from the real estate agent

FIV: The majority of our readers are buying a property for the first time. So that our readers have a direct insight into Düsseldorf: If someone newly moves to Düsseldorf and asks you as an expert the question “where should one move to?”, which districts would you recommend for:

1. Single / career-oriented? Ober- and Niederkassel, Harbour, Derendorf, Pempelfort, Düsseltal, Bilk
2. Families with children? Grafenberg, Gerresheim, Golzheim, Kaiserswerth, Lohausen, Derendorf, Bilk
3. Wealthy individuals (real estate prices over 1 million)? Meerbusch, Ober- and Niederkassel, Golzheim, Zoo

Costs & prices for renting or buying a property in Düsseldorf + comparisons

FIV: What costs do you have to reckon with in Düsseldorf when renting, and more importantly when buying an apartment or house? How would you compare Düsseldorf with other cities and which districts are currently particularly attractive?

Robiné: The rents vary greatly depending on the district and the amenities. The cheapest properties in the simple locations start at around €7 per square metre. These apartments are very simply equipped and often there is even a renovation backlog. Even bathrooms from the 70s are not uncommon in such properties. Upwards the borders are open. Furnished apartments in good locations, on the other hand, reach prices beyond 30, – € per square meter. Of course, these are both extremes. The average rent for an existing property in Düsseldorf in 2020 was around €11.40 per square metre of living space, while the average price per square metre for a new-build property was around €14.

• Rents vary greatly according to district and amenities
• Cheap objects from approx. 7 € per m²
• High-quality, furnished apartments in good locations reach prices of 30€ per m² and more
• Average rent for existing property Düsseldorf 2020: €11.40 per m² living space
• Average price per square metre for a new property in Düsseldorf 2020: approx. 14€.

Robiné: It’s no different with condominiums. Here, too, location and furnishings determine the price, of course. While a simple 2-room apartment in the city centre can still be had for just under 250,000 euros, you pay three times that price for a well-equipped penthouse in a preferred location of the same size.

As a guide, the average asking price for existing apartments in 2020 was around €4,400 per square metre, while the average asking price for new builds was around €7,300 per square metre. Incidentally, the average asking price for detached houses is around 1.2 million euros.

Average bid price 2020 for:

• Existing apartments: € 4,400 per m²
• New buildings: approx. 7,300 € per m²
• Single-family houses: approx. € 1.2 million

Reasons for rising property prices in Düsseldorf

FIV: Rents and purchase prices in Düsseldorf have risen sharply in recent years. In your opinion, what is the decisive factor driving this development most strongly in the Düsseldorf real estate market?

Robiné: Düsseldorf is an extremely economically strong city in the Rhine-Ruhr conurbation. In addition to its central location, important factors include Germany’s third-largest airport and the Düsseldorf Trade Fair Centre with 24 leading international trade fairs. Düsseldorf is a leading location in the advertising, European patent, telecommunications and management consulting industries, as well as Germany’s “City of Fashion”. Our state capital is a globally oriented metropolis. Numerous internationally active companies and foreign firms have their headquarters in Düsseldorf.

The fact that the state capital of North Rhine-Westphalia is so popular as a place to live and work is certainly also due to the high quality of life on site. For example, the Rhine metropolis repeatedly takes one of the top places in various rankings for assessing economic strength and future viability.

As in most other major cities, Düsseldorf is experiencing a large influx of people from Germany and abroad. Since 2010, the demand for housing has increased permanently. However, land for the development and construction of new residential areas in the Düsseldorf urban area is scarce. Thus, the low supply of affordable housing combined with the high demand is constantly driving up prices in Düsseldorf.

FIV: As an expert of the Düsseldorf real estate market, would you currently recommend an investment in property or wait?

Robiné: In principle, I would always recommend investing in property, as tangible assets are sustainable and stable and the low interest rate policy encourages the purchase of property. In addition, there is the steady increase in the value of real estate. With a property you invest in your future and build assets for your retirement. Rental costs, on the other hand, are lost capital.

“Generally, I would always recommend investing in property as tangible assets are sustainable and enduring and the low interest rate policy encourages the purchase of property. In addition, there is the steady increase in property values.”

Where should you invest as an investor in Düsseldorf? Tips from the expert

FIV: Another look at those who want to invest and rent. As a real Düsseldorf insider, which districts are currently experiencing an upswing and are particularly interesting for capital investors / investors? Which districts are exciting for landlords and investors here?

Robiné: For capital investors, properties in the simple locations south of the city centre, such as Oberbilk, Wersten, Holthausen and Eller, are particularly interesting. Here, the price level is currently still relatively low compared to the other districts of Düsseldorf. Property prices for multi-family houses already start at around 2,000 euros per square metre. Since a rapid increase in value can also be assumed here in the future, these locations offer particularly good investment and yield opportunities.

Properties in central locations such as Bilk, Derendorf, Pempelfort, Düsseltal and Stadtmitte are also of interest. These parts of the city currently still have a rather average price level, but are very popular due to their central location and urban character. However, some of the prices per square metre are already almost twice as high as in the more modest locations.

• Simple locations with appreciation potential: Oberbilk, Wersten, Holthausen and Eller
• Medium-sized locations that are very popular: Bilk, Derendorf, Pempelfort, Düsseltal and Stadtmitte.

Real estate agent: advantages & disadvantages, costs and when to hire an agent?

FIV: According to statistics, well over 50% of all properties in Düsseldorf are bought / sold with an estate agent. From your point of view: When should one search privately and when should one hire a professional real estate agent for the search? Where are the advantages and disadvantages?

Robiné: Many owners and buyers underestimate the effort involved in selling / buying a property. For example, numerous documents such as energy certificates, floor plans, building and contamination information or the land register must be submitted in order to successfuly complete the sale. The real estate agent is familiar with all these requirements and covers all the necessary activities such as dealing with the authorities. Furthermore, he accompanies the seller and the buyer from the beginning and is still available for them after the conclusion of the sales contract. For this reason, I would always advise a layman to use the services of a real estate agent. A reputable real estate agent knows the local real estate market exactly and also supports the customer in finding a realistic purchase price.

I can’t think of any disadvantages. In most cases, the broker is commissioned by the owner of the property. However, since as a service provider he also represents the interests of the potential buyer, the buyer also pays a commission to the agent after the conclusion of a purchase contract. A new law, which came into force in December 2020, stipulates that in cases of dual consultancy, the owner and the buyer share the broker’s commission equally, mostly 3.57% incl. VAT of the notarised purchase price nationwide.

• Broker commission nationwide mostly 3.57% incl. VAT of the notarized purchase price
• Since 2020 law: owner & buyer share the brokerage commission in case of double consultancy half

Common mistakes & tips for buying your first property

FIV: As I said before, the majority of our readers are first-time buyers. What are the mistakes that first-time buyers typically make? Conversely, as an expert, what advice would you give to someone buying his or her first property?

Robiné: A mistake is often that real estate – as far as the purchase is not accompanied by a broker – is bought hastily and the buyer has not considered, for example, all technical data, a possible renovation backlog and special features of a property. Here it can come after a purchase to bad surprises. I recommend interested parties who are not familiar with the area to first rent a property in order to then calmly familiarize themselves with the individual districts and the available opportunities in the real estate market.

Real estate financing: equity, options & recommendations of the professional

FIV: What financing options for a property would you most likely recommend in Düsseldorf – or in general – what options do first-time buyers have?

Robiné: This depends primarily on the respective creditworthiness of a buyer. With the currently very low interest rates on loans, a loan from a bank is recommended. A real estate loan is a big financial and for many also a unique decision. All the more important it is to know the right financing partner at his side. Trust also plays an important role here. Therefore, it is understandable that many real estate buyers turn to the advisor of their house bank for construction financing.

Alternatives to the various banks are intermediaries. They compare the offers of many large banks for you and can sometimes offer you more favourable interest rates and better conditions.

FIV: How much equity should you have and what other factors influence financing / creditworthiness? What tips can you give as an expert from your experience?

Robiné: When it comes to equity, there is a simple basic rule: the more you bring in, the better, because bringing in your own money significantly reduces the financing risk. That’s why banks grant lower interest rates for financing with equity. Without equity, the interest costs can be twice or even three times as high. The existing equity should be at least between 20% and 40% of the purchase price, including incidental purchase costs. In addition, a buffer should also be set aside for maintenance reserves. Furthermore, a secure professional position should of course be a matter of course.

• Financing with equity: Bank grants lower interest rates
• Without equity, interest costs can be twice or even three times as high
• Existing equity capital should amount to between 20% and 40% of the purchase price incl. ancillary purchase costs
• Ideal: Financial buffer for possible maintenance measures

There is also the possibility of financing without equity, but this is associated with greater risks. This is because full financing runs over a longer period of time, and interest and repayments are considerably higher. Should it come to the foreclosure of your property, you are left with a mountain of debt. Therefore, it is advisable to buy a property only if you have sufficient equity available.

“The more equity you bring to the table, the better! That lowers the financing risk.”

Incidental purchase costs: land transfer tax, notary, broker’s commission

FIV: In addition to the purchase price, there are of course ancillary costs. A big factor for buyers are taxes. What taxes do buyers in Düsseldorf have to reckon with when they buy a house on the outskirts of the city or a condominium in Düsseldorf’s city centre?

Robiné: In NRW, the land transfer tax on the purchase of a privately used property is always 6.5% of the purchase price, regardless of whether it is a detached house or a condominium in an apartment building. For the registration in the land register and the notary approx. 1.5 % must be applied. If the purchase is made through a real estate agent, the buyer usually has to pay 3.57% incl. VAT of the notarized purchase price. Summa summarum one must plan thus on top approx. 11.5% of the purchase price as acquisition additional costs. Depending on the amount of the purchase price, there are quite a few additional costs, which should not be underestimated.

• Land transfer tax in NRW: Always 6.5% of the purchase price
• Entry in the land register and notary: approx. 1.5 %.
• Broker commission: usually 3.57 % incl. VAT of the notarized purchase price

“You should plan for about 11.5% of the purchase price as acquisition costs!”

FIV: Thank you very much for this competent and detailed interview Mr. Robiné. We wish you, your company and your team all the best!

Tip: To buy property or not? Big cities in comparison

Many people play with the idea of buying a property in one of the popular cities. These cities include Berlin, Hamburg, Cologne, Düsseldorf and Munich. But to find the right property is not so easy and as a layman it is often difficult to assess whether it is worth investing in an apartment or a house as an investment. We have conducted an interview with an expert for you.

• Buy a property? Düsseldorf

Buy apartment

Apart from the substantial factors of a real estate, what counts for the living comfort above all:

1. Living
2. Bathroom, Cooking
3. Sleeping, storeroom
4. Stairs, Elevator

Old building apartment: stucco, high ceilings and floorboards

In Germany, apartments in old buildings are among the most sought-after properties. And rightly so: the era of old buildings ended an estimated 70 years ago, when the use of concrete walls and insulating glass windows became increasingly common. These buildings are thus filled with stories from the so-called Wilhelminian period around 1900, which is also noticeable in the architecture and the rooms, which are in the style of the Renaissance. Due to the predominant proximity to city centres, Altbau apartments are highly sought after on the market.

High ceilings, bay windows and box-type windows are characteristic features of this architecture and promise a feel-good factor. Whether renting or buying, here you will find useful tips, advantages and disadvantages around this special building type.

• Old apartment

Apartment: Small apartment, space miracle and often very modern

Apartment: Berlin, Hamburg, Munich, Cologne? Apartments are extremely popular in cities with millions of inhabitants and large cities. Many singles, students, trainees or seniors resort to this small but fine housing option. One-room apartments offer enough space for single people and score especially with lower prices. An apartment is a small flat with only one or at most one and a half rooms. The modern small apartment usually has high-quality furnishings.

Apartments are also available as fully furnished apartments. This type of apartment is mostly used for properties that are advertised for interim rent. An ideal solution for people who only need an apartment for a fixed period of time. Furniture and equipment can be taken over by the owner or landlord for a fixed price in the rent.

• Apartment

Top floor apartment: search, air conditioning and living with a view

A home under the roof can be super cozy if furnished correctly. But before you decide on a loft apartment, there are a few things you should consider that could complicate your move-in. Any apartment directly under the roof can be considered a loft apartment in and of itself. Penthouse apartments and lofts can also be attic apartments.

In the following article, however, we will focus on the general understanding of attic and mansard apartments as rooms that have special circumstances due to sloping roofs. We will introduce you to the advantages and disadvantages of attic apartments, and also give you a little insight into how you can make your life in this type of apartment a little more pleasant.

• Attic apartment

Granny flat: definition, features and advantages for landlords

As the name implies, granny flats are apartments that are “tucked in” to a house, i.e. a separate apartment in a house.

Granny flats are particularly popular for multi-generational homes: young adults or seniors can live here with their family, but still have privacy. However, a granny flat is not only attractive for members of a family. Due to the low rental and purchase prices, this form of housing is also popular with working singles, students or even au pairs. Whether in the attic or in the basement – granny flats can have just as much charm as normal apartments.

• Granny flat

Apartment: Lots of living space, several rooms & perfect flat share

Apartment is understood as all the apartments, which extend above the ground floor and below the top floor over an entire floor. This creates a lot of living space. Mostly, the apartments are found in apartment buildings, because smaller buildings often offer it to expand an entire floor to an apartment. Especially annoying stair climbing in your own home is omitted here. In addition, a flat on one floor is perfect for a shared flat. We have summarized the advantages and disadvantages of this type of apartment for you in the following article.

• Apartment

Loft: space for free development, luxury and modern equipment

During the 1940s, lofts first appeared in large cities such as New York. Old warehouses and factories were converted into living space in order to live inexpensively. This definition has nothing to do with today’s meaning of a loft. Nowadays lofts are highly sought after, exclusive and very expensive. Old industrial wastelands are still used as floor plans, but these have now been extensively modernised to meet luxury standards. Most of the residents are young, successful adults, also called yuppies. In addition, nowadays new buildings are also being built in loft style. If you want to learn more about the advantages and disadvantages or tips about this type of architecture, then you are exactly right here.

• Loft

Maisonette: Living on 2 floors, with gallery or spiral staircase

In Germany, a maisonette apartment is an apartment that is arranged contiguously on at least two floors of a building. It can be located both on the lower and upper floors of a house. In most cases, however, a maisonette apartment comprises the attic and the floor below. The second floor of a maisonette apartment can also be designed as an open gallery, as well as a comprehensive floor. Charming features of this type of housing are staircases, which often extend into the living space, and high ceilings. If you want to learn more about maisonettes, check out our article.

• Maisonette

Penthouse: Enjoy luxury & living comfort with plenty of space

When the word penthouse is mentioned, it is often clear: this is something particularly exclusive. Penthouse apartments promise special luxury and an excellent living experience. Mostly you know the apartment form especially from media such as film, television and video games. A penthouse stands for space, luxury and living comfort. Quality and a lot of living space are often decisive features of a penthouse.

This type of apartment has become big in the U.S.A. and is still the most widely represented there. But also here in German-speaking countries you can find one or the other penthouse. If you are looking for a luxurious living solution, it is definitely worth taking a closer look at this type of apartment. After all, a penthouse has its very own charm and stands for luxurious living.

• Penthouse

Basement apartment: cool and close to the ground

Basement apartments are underground living options which can be found in the basement or cellar. In addition, they are usually located in the middle of downtown but because of the location in the house, many potential buyers are initially deterred. Whether renting or buying. We did the research for you and found out all about the advantages, disadvantages, possible mold and the rental prices. Maybe your first impression was wrong and you like this kind of apartment.

Basement apartments are one thing above all. Cheap and practical. Usually located in the middle of the city center, these properties are rather unpopular due to various aspects and scare people away. However, you should not be fooled by this, because this type of apartment also offers some advantages that you do not include at first.

• Basement apartment

Terrace apartment: Living with a view

Ground floor apartment with terrace: the residential dream of many, especially in big cities. To escape the turbulent and hectic life in metropolises, terrace apartments are perfect. Cafés, crowds and hustle and bustle outside the four walls, peace, comfort and a piece of nature in your own four walls. If you’re lucky, your terrace will lead on to a small garden. As you can see, a dream of many apartment renters. But this is not where the definition of a terrace apartment ends. Especially in cities, the “rooftop terrace” trend is constantly gaining popularity. Modern architecture is reinterpreting the terrace apartment! See for yourself what advantages and disadvantages a terrace apartment has to offer, who it is suitable for and what other information is hidden behind this gem of an apartment!

• Terrace apartment

What is a granny flat and what are typical features?

According to the legal text of the 11 paragraphs of the Housing Act, a granny flat is considered to be an additional flat in a single-family house. The decisive characteristic of a granny flat is that the flat does not have separate access from the outside. The granny flat can only be accessed through the front door or the staircase of the flat. In contrast to the main apartment, the granny flat is of secondary importance. The apartment is usually located in the basement or in the attic.

In principle, the rule applies here that running one’s own household must also be possible in a granny flat in a completely autonomous way. If this were not the case, this would only be a pure room rental. If the apartment is also locked from the outside and has its own entrance, it is again a two-family house.

The rental contract will state whether you will receive a furnished or unfurnished apartment. The costs for a furnished apartment can be reflected in the rent in the form of a one-off payment or as an additional monthly payment. Domestic duties such as participation in garden maintenance or winter service must be stated in the contract.

The Einlieger has its origin as a dwelling for unskilled workers on a farm.

Are you looking for the right apartment? Here you’ll find definitions, meanings and lots of information on penthouses, granny flats, apartments & co.: Apartment types from A-Z

Room layout: Separate kitchen & bath – with one or two rooms

The prerequisite for a granny flat is that it is possible to run a household independently. You must therefore be provided with a kitchenette for independent provisioning and a separate bathroom.

The number of rooms in a granny flat, on the other hand, is flexible: while in some granny flats the bedroom and living area share one room, there are also granny flats with several rooms and a higher number of square metres. However, the minimum size must be 25 square meters. The garden or terrace of the house can be shared depending on the arrangement.

You want more impressions on the topic of apartment types and apartments? Then take a look at our Pinterest account! Here you can also find our pinboard on the subject of granny flats and much more.

Pros & Cons: Pros and cons of a granny flat

Living in or owning a granny flat weighs up both various advantages and disadvantages. Living with another household may be seen as an advantage or disadvantage depending on the person and their living situation. You can use the following criteria to decide whether a granny flat would be the right option for you.

Advantages: Ideal solution for families and good investment for the future

With a granny flat there are two perspectives of benefits, one is the landlord’s perspective and the other is the tenant’s perspective. Homeowners can turn their unused space in the house into cash, whereas apartment hunters can find a cheap apartment. Just in the age results here a 2nd pension and the flatmates provide for more life in the house and can be helpful also with everyday work like the purchase. This variant of living together is therefore particularly popular with families: The children can stay in the parental home, but also have enough privacy later and can take care of the parents.

You can earn an even higher income by renting out the rest of the house instead of the granny flat and living in the granny flat yourself instead. Finally, if you ever consider selling your home, the additional living space will further increase the value of the house.

Costs incurred in the construction of the granny annexe can be deducted from the tax, but only if they can be clearly allocated to the granny annexe, such as the installation of a kitchen.

If certain conditions are met, the granny flat can also reduce the tax burden, but in this case the rental income must also be taxed.

• Lower rent for the tenant
• Only consideration for a neighbor
• Mostly shared use of garden
• Often already furnished
• Social contact
• Additional income for the landlord
• House has higher value when sold
• Ideal for several generations living together
• Invoice may be tax deductible if applicable

Disadvantages: Loss of privacy and intimacy.

Many people associate a granny flat with a disturbance of their own privacy due to another person crossing their own four walls. For many tenants, a granny flat may therefore not seem as attractive as a normal attic flat.

The extended notice period can be problematic for the landlord if there are problems with the tenants and especially if there are delays in payment.

• Limited privacy on both sides
• Extended notice period (possibly problematic for the landlord)
• If necessary smaller than normal apartment
• Participation in garden maintenance and winter service
• Good relationship with the other party is important

Source: Granny flat (Lukinski.de)

For whom is a granny flat suitable? Students, families and singles

A house with granny annexe is attractive for many people. This variant of the house with apartment is most popular for families. Several generations can live here together under one roof, but have enough privacy through a separation within the house.

This housing solution is particularly attractive, but also for professionals such as caregivers or au pairs who work in a private household. For whom granny flat, due to the low price are still suitable, you will learn in the following paragraphs.

Singles: Live cheaply and collect social contacts

Especially for singles who are not bothered or deterred by living with another household, this apartment is a good solution. Working young adults thus benefit not only from cheaper rent, but also from the social contact and less loneliness.

Students: Study and live cheaply in the basement or attic

For students for whom a room in a shared flat or a student hall of residence is out of the question, but who can’t afford their own apartment, the granny flat offers a good intermediate solution. The separate apartment in the basement or attic offers you enough peace and space to study.

Seniors: Living together with the family with their own privacy

Several generations of a family under one roof – a house with a granny flat is the perfect solution here. Adult children or grandfather and/or grandmother can move into the apartment and still keep some privacy for themselves.

Buy or rent? This is what you should consider!

Garden maintenance, participation in winter services, use of other household items such as the washing machine – these are points that you should definitely clarify and consider before moving into your new apartment – before misunderstandings or even unpleasant surprises arise in the end.

Likewise, tenants should note that the operating costs incurred are only charged proportionally to the living space. Alternatively, a separate water meter as well as gas and electricity meters can be used here. Additional costs that may arise if you take over the apartment furnished, you should also keep in mind. You should also take into account shared costs that may arise if, for example, repairs are necessary by craftsmen.

If you do consider buying a granny flat, be sure to look in a new development. Many builders who need money to finance their own house turn their basement into a granny flat and sell it. Unlike a regular home of your own, the purchase price of a granny flat tends to be low. This is especially suitable as a good investment for life in old age.

• Arrangement of participation in garden maintenance & winter service, joint use of other premises/household appliances
• Allocation of operating costs
• Buy: Location in a new development area
• Good investment for life in old age

Tip. Please also read our article on the subject of buying an apartment with even more tips & tricks: Buying an apartment

Furnishing: Homeware, colours and furniture for your next home

In most cases, granny flats are basement flats or attic flats. But what is the best and most attractive way to furnish such a granny flat? Since these apartments are usually rather small in terms of space, it is important to ensure that the room appears as bright and flooded with light as possible.

Light wall colours are a good start here; soft colours such as white, cream, sky blue or violet make your living space appear visually larger. You should also choose light and friendly shades for the floor and furniture. Instead of thick, heavy curtains, we recommend pleated blinds. Decorative, light, stylish and an ideal privacy screen.

Your granny flat is not yet furnished and you are still looking for beautiful furniture? In our Interior Guide you will find the top interior brands of this world such as Dior Maison, Fendi Casa or Moooi. Also for the inhabitants of furnished apartments you can find great homeware and decor, which will turn your apartment into your personal feel-good paradise.

Another tip: We have written a guide with tips and tricks on trendy styles for your interior! Read more here: Furnishing styles XXL

Poggenpohl: Making the kitchen better

Germany’s oldest luxury kitchen manufacturer offers its customers a broad product portfolio. Always with an eye for small and large details. At the same time, the art of individuality is not neglected. From the Venovo product range to the Segmento kitchen collection and the final Mood Design. Find out more about the Poggenpohl product range.

• Poggenpohl

Light: High-quality brand-name fitted kitchens

The supplier of luxury kitchens stands out due to its high level of individuality and adaptability – and has done so for many years. The product types of Leicht present themselves in great variety, which we will illuminate from the ground up. A distinction is made between the product types modern style, handleless kitchens and the traditional variants. You can find out exactly what is behind them here:

• Easy

Bulthaup: Experience creates consistency

Whether completely according to requirements or even minimalist. The b design series from bulthaup offers an all-round solution. Whether it’s a personalized b3 concept made to measure, the b2 model consisting of just three basic elements or the simple and understated b1 module. Based on experience. Click here for an overview.

• Bulthaup

SieMatic: Every kitchen is unique

The German kitchen empire Siematic has also stood for luxury kitchens in perfection for years. As the inventor of handleless kitchen units, SieMatic sets new standards. Today, the luxury kitchen manufacturer presents three product lines. For example with SieMatic Pure, elegant yet minimalist kitchen elements, the SieMatic Urba series, with a modern, as well as unconventional approach or yet the traditional variant in the name of SieMatic Classics.

• SieMatic

Eggersmann: Always reinventing the kitchen

The Eggersamnn company specialises in the furnishing and distribution of luxury kitchens. The German luxury kitchen expert also focuses on the attributes of individuality and first class. With Eggersamann Unigue minimalism is guaranteed. Large-scale furnishing with plenty of freedom of movement is the keyword. Added to this is the E3.0 product range, in which the individual wishes of each kitchen lover are taken into account. Last but not least, eggermanns-work’s rounds off the wide product range. With Works’s Eggermmann guarantees a professional kitchen according to your preferences,

• Eggersmann

Apartment: Features and What is actually an apartment?

Looking for your first own apartment? How about an apartment? But what exactly is defined as an apartment? An apartment is a small flat with only one or at most one and a half rooms. The modern small apartment usually has high-quality furnishings. The word apartment is also used as a synonym for a holiday home.

Apartments are also available as fully furnished apartments. This type of apartment is mostly used for properties that are advertised for interim rent. An ideal solution for people who only need an apartment for a fixed period of time. Furniture and equipment can be taken over by the owner or landlord for a fixed price in the rent.

Are you looking for the right apartment? Here you’ll find definitions, meanings and lots of information on penthouses, granny flats, apartments & co.: Apartment types from A-Z

Room layout: bedroom and living room in one

Typically, the apartment apartment consists of 1-1.5 rooms. Most often, the apartment has a maximum living space of 50 square meters. However, more luxurious, expensive properties can also have a living area of up to 100 square meters.

There are different sub-types of apartments. The single apartment, for example, is a traditional one-bedroom apartment where the living room and bedroom are in the same room. Whether in a separate room or as a built-in kitchenette in the bedroom or living area, you can also set up a great kitchen for cooking in a small apartment. The bathroom is located in a separate room.

Similar to the Single Apartment is the Studio Apartment. Sleeping and living area are also located in one room. The kitchen can be installed in the form of a compact kitchenette in the living room. In many studio apartments, however, a kitchen is used by several residents as a common kitchen. You will also find a bathtub or shower in a separate room.

Source: Apartment (Lukinski.de)

Pros and cons: Is an apartment right for you?

Apartments offer both advantages and disadvantages to their users and owners. We show you the positive and negative aspects of this type of apartment. Find out what you need to consider in an apartment and whether an apartment would be the right choice for you.

Advantages: Low costs and furnished apartment for temporary living

The biggest advantage are the low housing costs, the service charges are in a manageable range. You are only looking for a temporary apartment? In big cities furnished apartments are often offered, the ideal solution for students who need to spend a few months in another city. Few square meters don’t have to be a disadvantage! Even smaller rooms can be furnished nicely and stylishly, but you don’t have to buy so much furniture to make your apartment look complete.

• Favourable rental or purchase price
• Manageable costs
• Temporary accommodation (if necessary also furnished)
• Only one room needs to be furnished
• Lends itself well to the intermediate rent

Disadvantages: Only suitable for those living alone & no private garden

The most obvious disadvantage of an apartment is the size. The small apartment offers only enough space for one person and is therefore not suitable for couples or families. Despite the small size, apartments are very popular, which is why there is a high demand. This may mean that you have to look for a long time before you can get an appointment and finally find an apartment for you. For many young people, an apartment is their first home. A particular challenge here is taking responsibility for your own apartment and your new independent life. Since most apartments do not have a garden, balcony or terrace, this is probably a minus point for all those who like to have their own little spot in the fresh air.

• Little space
• Only suitable for one person
• High demand
• No balcony, garden or terrace

Who is an apartment suitable for: Apartment for singles, students & seniors

Due to their small size, apartments are especially suitable for people without a partner. A small apartment is also perfect for low-income earners such as pensioners or students who would like to have accommodation in the big city. A type of apartment that is suitable from young to old.

Singles: (first) own four walls – a small home away from home

In big cities, one-room apartments are significantly larger than 2-room or multi-room apartments. For young singles who are working or studying and therefore hardly spend any time at home, a one-bedroom apartment would therefore be ideal. The money saved can be used for leisure activities, or saved for a more expensive property in the future.

Students: Perfect alternative to WG room & student dormitory

Especially for students, who usually only receive income through a part-time job, through support from parents or through Bafög, it is particularly important to find a cheap place to live. If you don’t want to move into a shared room with others and can’t find a place in a student hall of residence, a small apartment is just the thing for you. An apartment of your own offers young students, but also trainees, a greater degree of privacy. However, you have to bear much more responsibility and act much more independently.

Seniors: Back to the big city – small apartment in the heart of the city

Many seniors who previously lived in the suburbs are moving back to the big city at an advanced age. In most cases, the reason for this is the better infrastructure. Having shops, specialists and pharmacies close to one’s own apartment is a real criterion for many. However, it must be ensured that the apartment is barrier-free. In the best case, an apartment on the ground floor is chosen. For seniors without a partner, a one-room apartment is ideal.

Apartments are particularly often found in apartment buildings. The size can vary greatly, from three or four to 50 residential units. A good example of this is a project in Berlin designed by the renowned Berlin architectural firm Graft, the Charlie Living Quarter.

Buy or rent? Your options with an apartment

You have decided to buy an apartment, but you don’t know yet if you should buy or rent it? Most of the residents of an apartment rent it only because they use it as a temporary solution. Students and trainees, for example, rent the apartment only to move close to the university or training center and return home after these years. Another point for young professionals is that they later want to buy an apartment together with their partner or start a family.

Mostly only modernised apartments with luxurious furnishings are purchased. These are predominantly located in popular city districts and are among the more expensive properties. However, these are a good investment, as the rental yield is often higher than for condominiums, which are larger in area.

On the subject of buying property, we also have an article for you with helpful videos from experts on topics such as the process of buying, taxes and capital investment.

Furnishing: Bright furniture, functional equipment & Co.

Even small apartments can be made beautiful and inviting with the right furniture and decorations. Light-coloured furniture and walls make your living space look bigger. But it’s best to draw a plan of the limited space beforehand and go for functional furniture such as sofa beds or height-adjustable tables. For interiors of all styles, check out our Interior Brands Guide. Luxurious furniture brands such as Bretz or the home collection of popular fashion houses such as Tiffany & Co. Home are presented here.

Tip. All trendy interior styles at a glance can be found here: Furnishing styles XXL

Silver Lake: Young & Dynamic for students and party fans

Silver Lake is a neighborhood in East Los Angeles known for its hip and trendy flair. Besides houses with street-style art, you can find vegan cafés and creative restaurants here. Funky bars and young life draw people to this part of LA. Do you like being around young people? Do you like to spend your afternoons in small, hip places? Then Silver Lake is the place for you! Much like Germany’s capital Berlin, Silver Lake is a popular area for the young, dynamic and unconventional. Attractive living with everything the young heart desires is guaranteed in this part of town.

City park, film scene & living in houses and apartments

Silver Lake is located at the famous Griffith Park, which offers many employment and recreational opportunities. With an area of 17 km², the park is considered one of the largest in North America. Whether for walking, playing sports or as a meeting place with friends to pass the time, the park is ideal. Numerous film studios line the district, which is also known for newcomer artists, especially in the music & film industry. Simple flats, apartments or houses: you can find everything here.

Key figures:

• Population: 32,890
• Area: 7,12 km²
• Population density: 4,619 inhabitants/km²

Downtown LA: City center with shopping, clubs & bars

Downtown Los Angeles offers many different people the ideal opportunity to live. Trendy bars, famous art museums and modern skyscrapers are the hallmarks of the city. In Downtown LA you live right in the center of the action. There will never be a dull moment. At night, you’ll see a familiar face in almost every bar, and during the day, there’s always something new to discover. Hidden cafes and hip boutiques are not uncommon in Downtown LA. Apartments in high-rise buildings are plentiful here – although prices are significantly higher than outside the city centre.

Sights, neighborhoods & restaurants in the district of the stars

Tall skyscrapers with numerous offices line the streets of Downtown Los Angeles. The entire downtown area can be divided into five other neighborhoods. To the north of the district is Chinatown and the famous Olvera Street. To the west you will find the Financial District, while to the east you will find Little Tokyo. In the south you will find numerous trade fair and theatre buildings. Restaurants are plentiful in all areas: From Chinese to Japanese to American fast food chains: No wish remains unfulfilled here.

Key figures:

• Population: 85,000
• Area: 12,25 km²
• Population density: 6,938 inhabitants/km²

Hollywood Hills: Living in the Hills with luxury in villas and lofts

The Hollywood Hills are considered ”The place to live” in California. The Hills consist of a chain of hills above the city of Los Angeles. Imposing mansion quarters and impressive landscape are the hallmark of the famous residential area. The neighborhood has a much higher-than-average amount of greenery, and the east section is home to the famous Hollywood Hills Sign. Are you interested in living in a quiet and sociable neighborhood? With plenty of opportunities to explore the outdoors and a great view of the stunning Hollywood Hills? Then you’ve come to the right place! Luxury real estate, condominiums and penthouses are plentiful in this area.

Recreational Activities & Housing: Mountains, forests and parks

Walks to the famous Hollywood Hills Sign, road trips across the Hills or a relaxing evening at home: The Hollywood Hills offer you many recreational opportunities. In the Hills you have the opportunity to enjoy your everyday life far away from nosy neighbors and loud traffic. But even though the Hills are known for their luxury real estate, there are still many job opportunities. Whether it’s big companies or small businesses, you’ll find it all in this part of town!

Key figures:

• Population: 153,627
• Area: 65.3 km²
• Population density: 2,354.4 inhabitants/km²

Highland Park: Cultural Center & Area for Families

This historic neighborhood is located in the San Rafael Hills and is especially known for being the cultural center of Northeast Los Angeles. A neighborhood rich in art and diversity, it attracts creatives and families alike. If you’re looking for a cozy home for you and your family, this is the neighborhood for you. Many families have settled here and enjoy the historic and quiet flair of the city. In particular, you’ll find apartments, condominiums, and homes that are either centrally located or just outside the area. Many schools, shops and art galeries line the streets of this Los Angeles neighborhood.

Housing prices & housing options

Unlike other residential areas in Los Angeles, the Highland Park district is known for its comparatively low housing prices. Here you will also find mostly apartment complexes with several apartments. Since many young people or families live in this area, Highland Park offers many schools and jobs. The neighborhood has a more family-like atmosphere compared to the Hollywood Hills or Downtown LA, as people live close to each other.

Key figures:

• Population: 58,000
• Area: 8.806 km²
• Population density: 6,490 inhabitants/km2

Santa Monica: Living with stars on the beach

Santa Monica is probably one of the most famous neighborhoods in Los Angeles. Located directly on the ocean with endless beaches: Santa Monica is a dream place for many. At the Santa Monica Pier, in addition to the Santa Monica Beach, there is also the amusement and theme park Pacific Park with a historic carousel, which has become the landmark of Santa Monica. Also, Santa Monica is home to the famous outdoor gym Muscle Beach, where major weight training celebrities regularly train.

See and be seen: Living on the beach for young people and open families

Santa Monica is a very desirable part of town to live in. However, you have to expect a lot of hustle and bustle and quite a few tourists – and that every day, every day of the year. If you can handle that well or even enjoy the “see and be seen” lifestyle, this is the place to be. Strolling along the beach in a bikini or on rollerblades is the norm here. A young and diverse neighborhood where you can always experience a lot.

Key figures:

• Population: 91,411
• Area: 21.8 km²
• Population density: 4,193 inhabitants/km²

Mid City: Quiet, for families and young people

Mid City is located in the center of Los Angeles and is home to many schools, both public and private. There are numerous nightlife options such as restaurants and cafes, which make this neighborhood especially popular with families and young people. Similar to the Highland Park neighborhood, Mid City is especially popular with families with younger children. Condominiums and apartments on quiet streets characterize this residential area. You’ll find the best mix of activity and quiet here. The average age in this city is around 30.

Many schools, shops & apartments

The Mid City neighborhood, like the Highland Park neighborhood, is known for its more affordable housing options. Here you will also find several apartment buildings rather than luxurious villas. Restaurants, cafes and shops such as hairdressers and clothing stores can also be found in Mid City. The area, like many others, is known for its young residents and good educational opportunities.

Key figures:

• Population: 56,000
• Area: 3,37 km²
• Population density: 15,000 inhabitants/km2