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

Editor’s recommendation

Why we like the app so much?

The calculators are easy to use and provide you with a quick overview of the financeability of your real estate projects. You always have the key figures in view and the app is always available on your cell phone. Just try it out and discover the advantages of the practical real estate calculators on the Lukinski app.

You can download the app directly and get started!

Download from App Store: Free

Free of charge in the App Store:

What can the real estate app do?

Here are 3 small recommendations and frequently used real estate calculators in the app:

Yield check: This is what a property brings in

One of the most popular features of the app is the yield calculator, which helps you evaluate the profitability of your real estate investments. The yield check calculator allows you to quickly and easily check whether a planned real estate investment is profitable. This way you can find out if the investment is worthwhile and if the return meets your expectations. The quick yield check is particularly useful for capital investments and helps you to make well-founded decisions.

For your smartphone

Calculate net yield: Exact return

The app also includes a net yield calculator, which you can use to calculate the net yield of your property. You can enter the gross return as well as the applicable taxes and costs (e.g. maintenance costs) to determine the net return. This way, you get a detailed analysis that helps you make informed decisions regarding your investments.

Calculate brokerage costs

If you want to know how high the brokerage costs are for buying a property, you can also use the corresponding calculator in the app. Simply enter the purchase price and the app automatically calculates the brokerage costs. This way, you always have an overview of all costs incurred and can plan your finances optimally.

Editor’s recommendation: smartphone + tablet

Download from App Store: Free

Free of charge in the App Store:

Don’t do this! The top 3 real estate mistakes

In our magazine, we have already given a lot of input when it comes to the first property. For example, this XL guide: Buying your first apartment or self-disclosure for the bank. But before we get started:

What do you need to pay attention to?

Checklist:

1. Buying a property for your own use instead of as an investment
2. Shopping without enough negotiating leeway
3. Buy without accurate verification

Occupy property yourself – Error 1

Mistake 1: Buying a property for your own use instead of as an investment

Investors often make the mistake of using their first purchased property directly for their own use instead of treating it as an investment. When the property is owner-occupied, one loses the ability to finance through rental income. Instead, one must incur costs for management such as taxes, insurance and operating expenses, which increase by an average of 5% each year. In addition, one’s credit rating suffers because no rental income is generated. Instead, the first property should be used exclusively as an investment, with the return from the rental income used to pay off the loan and build up capital.

Too little room for negotiation – Error 2

Mistake 2: Buying without enough negotiating leeway

Another mistake is to buy a property without enough room to negotiate. The price of a property is usually negotiable, but investors should have enough leeway to negotiate with the seller and get the best price. It is also important to keep a sufficient reserve for unforeseen costs.

Buying without accurate check – error

Mistake 3: Buying without accurate verification

A third and most important problem with buying a property is purchasing it without a thorough inspection. It is important to check the property thoroughly before making a purchase decision.

Thorsten Bader

Interview with Thorsten Bader

Thorsten Bader, an experienced real estate expert, has built up the online portal “Immobilien-Erfahrung.de” together with his team in order to provide interested parties with comprehensive knowledge and tips on buying and financing real estate.

More expert tips (free of charge) can be found here:

• Real Estate Experience.com

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

Guide: Taxes, Income & Co. – Everything explained!

Taxes are dry and annoying for most people. But those who deal intensively with the topic can also recognize its advantages. For example, if you know your way around, you may be able to save or avoid a lot of taxes with the right strategy. So it’s worth getting to know and understand taxes, because in the end you can always make a profit from them – and you don’t necessarily need an experienced tax advisor for that!

Taxes in Germany: Income tax, property tax & more explained

Whether income tax, wage tax, real estate transfer tax or trade tax: there are many taxes in Germany. So it’s understandable that many people find it difficult to keep track of them all. Here we present the German tax forms and summarize them roughly. Which tax has to be paid under which circumstances – whether for individuals or companies – and much more you can find out here in a summary. We would like to give you an overview of the common taxes in Germany in the following linked article.

• Taxes Germany

Taxes USA: Buying property and paying taxes in America

What taxes do you pay when you buy a house in the US? In this article you will find a list of all the types of taxes you have to pay, how much they are, what they are used for and where you can learn even more about the subject. Everything you need to know about taxes related to buying a property, be it a house or a vacation home. We answer your questions here like: What are “transfer taxes”? How much is the property tax when buying a property? You can find out all this and more in the article linked below.

• Taxes USA

Inheritance tax on real estate: tax-free amount & market value

Anyone who inherits or wishes to inherit real estate should take a few things into account, as taxes are also levied on inheritances in Germany. The amount of the tax allowance depends on the degree of relationship to the testator. Relevant here is the tax class to which the heir belongs and the tax rate applicable to this tax class. Since 2009, it has been common practice for inherited real estate to have inheritance tax determined according to the market value.

• Inheritance tax real estate

Save taxes: Where do I start? – Examples

Classification, income, turnover, coaching: tax advantages and benefits as well as tips and tricks on the subject of “saving taxes” are essential for entrepreneurs, freelancers, pensioners & Co. in order not to lose track of the many laws and guidelines in tax law. Although everyone is familiar with the word “tax”, only a few people actually know what taxes are. What taxes are there? For what do we pay taxes and how much? To whom do we pay taxes? What tax tricks and tax saving tips are there? And very important: How does saving taxes work at all and which tax saving tools should I use? You can find out about this and much more below, quickly and easily.

• Tips & Tricks: Where do I start? Save taxes

Video Tips: Taxes explained by experts – tricks and more

Understanding taxes is not easy, especially with such a complicated tax system as in Germany. But once you have a grasp of it, you gain many advantages. We have compiled helpful expert videos for you, with which you can understand the world of taxes easier. Whether it’s tax returns, real estate taxes or basic tips and tricks: you’ll get help here, and in an understandable way!

Overview Tips & Tricks: Tax Videos

Tax basics: explanation, definition and settlements

Taxes are extensive and complex. But who understands the principle behind it, also understands more and more connections. In this article, we want to show you videos that teach you what taxes are exactly, what they are used for and what types of taxes there are in Germany. You can also find videos with helpful information on the topic of tax returns, as well as a definition of the differences between direct and indirect tax.

• Video Tips: Tax Basics

Tax return: how, when and where? – Deadlines and instructions

Why, why, why are tax returns so important? Not only professionals, but also students or pensioners can benefit from a tax return. If you have never deducted anything from your taxes and have no previous knowledge, you can get super informed in our tax return guide. We show you tips and tricks on how to avoid mistakes and provide you with tutorials that will help you with your first or next tax return. Here you will find everything important on the subject of tax returns to watch in the most popular and helpful videos. Whether you’re looking for instructions or tips and tricks on how to save even more, we’ve got a video to answer every question.

• Video Tips: Tax return

Taxes real estate: basic knowledge and where you can save

Real estate is basically a big financial issue. Buying, selling, renting, investing, etc. But what about taxes when it comes to real estate? Through tips and tricks you can save a lot of taxes, you just have to know how. In our video list you will find many videos in which experts explain to you what really matters and which mistakes you should avoid at all costs. With this help, you will soon be able to fully understand the topic of real estate taxes and save money!

• Video Tips: Taxes real estate

Taxes & Capital Gains: Capital gains tax and more

Capital gains: One or the other may have heard the term before. However, there may also be people who can not yet do so much with the term. What it is exactly and what it has to do with taxes, you will learn here. Capital gains tax, tax return, dividends and interest in relation to taxes are also adressed. You will also get tips for the tax return and for more net income.

• Video Tips: Taxes & Capital Gains

Tax tips & tricks: recommendations for families, employees & more

Almost everyone knows it, there comes a time in the year when it is called: The tax return is due. For many, this is still a vexing topic, but it doesn’t have to be! With the right tax return and the appropriate tips, you can often get a lot of money back. We have compiled the most important and exciting tips and tricks for you, so that you can also save money and look forward to the next tax assessment in the future!

• Video Tips: Tax Tips & Tricks

Book Tips: Recommendations and tax optimization

Everyone knows them and virtually no one likes to deal with them: taxes. But taxes don’t always have to be something negative. With tips and tricks, everyone can save taxes, be it when buying or selling a home or the usual annual tax return on all kinds of topics. We’ve rounded up the most interesting and informative topics for you. With book recommendations we try to bring you closer to the world of taxes and show you how you can save as much money as possible with as little effort as possible. Find out more here!

Overview Tips & Tricks: Tax Books

Tax basics: tax lexicon, basic knowledge and more

Taxes. Everyone has to pay them, but very few people have a complete overview. Tax advisors, who are well versed in the subject matter, are often expensive and not an option for everyone. In this article, we have therefore compiled book recommendations for you, in which experts discuss the basics around the topic of taxes. Among them you will find, for example, a tax encyclopedia or the basics of the real estate industry in the area of taxes. Find helpful tips and tricks for all your questions here!

• Book Tips: Tax Basics

Tax return: where, when and how? Learn how to do it!

The tax return is an unpleasant task for many people every year. But the world of taxes is not that complicated and inscrutable, especially not the tax return. Who, when, what and above all how and with whom you have to file a tax return, these questions will be answered in the following recommended books. We have compiled the most successful books by experts and professionals on the subject of tax returns, so that with this knowledge you no longer have to worry about your tax return in the future!

• Book Tips: Tax Return

Taxes real estate: buy or sell your own home

Taxes in the field of real estate and home ownership: For beginners, the tax world is already quite confusing, but to combine the whole thing with the real estate world is a whole new world. We want to make this entry easier for you with the best recommendations and tips from the pros. Our book tips will guide you through the whole world of real estate and taxes and offer help for learning the basics, guides for private investors and savings tips.

• Book Tips: Taxes real estate

Taxes & capital gains: Flat rate withholding tax and more

If you are interested in the topic of taxes in connection with capital gains and would like to read an informative and helpful book, then you have come to the right place. The higher the tax burden, the more important the topic of avoiding taxes becomes for you. Especially if your profit is growing and growing. The more profit, the higher the taxes: a vicious circle. But of course, there are also many options that the state provides you with. What’s important for you: Your tax advisor won’t tell you, that’s not his job. Tax avoidance is your job. Because you know your individual financial situation best of all.

• Book Tips: Taxes & Capital Gains

Tax tips & tricks: recommendations + how to save taxes

Every year it’s time to file your tax return. For many people, this has been an annoying topic for years, but it doesn’t have to be! With the appropriate know-how and tips, you can often get a lot of money back, and the tax return is easy to do. We have compiled the most important and exciting tips and tricks for you in the form of popular books by experts, so that you too can save money and look forward to the next tax assessment in the future!

• Book Tips: Tax Tips & Tricks

Tip! Wealth building XXL: Finance, Investment & Co.

Who wouldn’t like to build up their own assets? Whether you want to be able to afford something or would like to generate a financial buffer for old age, asset accumulation is a relevant and, above all, sensible topic for virtually everyone. But what options are there for building up assets? Life insurance, retirement planning, or investing in real estate? Here you will find an overview of articles, as well as book and video recommendations on the subject of asset building. From saving taxes to passive income to tips on successful investing – experts and professionals share their know-how in their videos and readings and answer all questions about wealth accumulation.

• Book and Video Tips: Wealth Building XXL

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

Rent out real estate: Investment, Investment – Tips & Tricks

Before we get to the video recommendations for real estate rentals, here are 3 tips on the topic: Learn for free on Lukinski, we have additional book tips, and for those who want to become real estate investors, another look at the topic of taxes, because the more money you make renting houses and condos, the more taxes you pay. The more knowledge you build up about renting and taxes, the more equity you will have for future investments as a landlord and real estate investor.

Tip! Overview Real Estate XXL

The world of real estate is complex and multifaceted. If you want to keep an overview and avoid making mistakes, you should prepare well and clarify as many open questions as possible in good time. No matter whether you want to build, buy and rent out a property or live in it yourself, or even use a property as an investment to generate passive income: The preparation is the A&O. Here you will find articles, as well as book and video tips with successful and helpful books and videos on the subject of real estate – including tips and tricks from professionals and experts.

• Book & Video Tips Overview: Real Estate

Book Recommendation: Letting Real Estate

In addition to videos, book experiences can help you build your knowledge of real estate and renting. Property rental is the perfect way to finance your property, or even better: your tenant pays the monthly installments. You can learn what you need to know to do that here. Videos are too superficial for you or you like to have something in your hand while learning? Then take a look at our book recommendations on the subject of renting out property.

• Rent out property: Book Tips

Buy and rent (external & free of charge)

Learn from the experts. You can find many, many more guide articles for free at Lukinski. Here you can learn everything you need to know about buying real estate for free. Start in general with buying real estate, go over your specific type of real estate, from apartment, to house, apartment building to buying land. In addition importantly, everything around sales contract (who pays the costs?), purchase additional expenses and taxes save with real estates. by legal forms such as a real estate GmbH or family donation. You lack equity capital? Here you can find a comparison of real estate financing. Finally, it’s all about buying and renting as well as letting.

Tax Coaching! For landlords / investors: Experience report

If you write about real estate, you have to educate yourself. More concretely, when it is no longer just about personal use, but also about renting. Because, the biggest item on the expense side is taxes. The more you earn, the more taxes you have to pay – the problem is clearly defined, what to do? Learn from experience, from those who have made it. Many say that the Next Level Tax Coaching is the best in Germany. Reason enough to take part yourself. You want to become a real estate investor yourself?

Read more about tax coaching here:

• Real estate: Save taxes

Tips and tricks for renting real estate

Renting out a property can be very profitable for you. Find out what to consider in the following videos on topics like: Passive Income, Real Estate as an Investment, ETFs, Renting, Returns and much more.

Real estate as an investment

Rich through real estate? This is how much passive income you can expect from real estate. How does the calculation for passive income with real estate work? In this video, we get to the bottom of this question and explain how you can make money with real estate or apartments.

Earn money, rent properly, costs

Isn’t it worth buying a rented property for investment right now? Whether the calculation “the tenant pays off the installments to the bank”, is shown in this video.

Rent or buy ETFs?

What is more worthwhile: buying a property and then renting it out – or using the money to buy ETFs? In the following video, 6 scenarios are calculated.

Investment, calculation, return

Real estate investment: The calculation in 6 simple steps. The calculation is a very important step in a real estate investment or real estate as an investment. In this video it is explained to you what is important when calculating the return of real estate as an investment. For example, the tax, the real estate financing, equity and the cash flow or cash flow is discussed.

Is a new building worthwhile?

Is it worthwhile to build a new property as an investment? In this video you will be shown which construction costs you should not exceed for a good rental return. If you want to calculate the rental yield, you should use the yield calculator Excel Real Estate. For those who do not want to choose between owning a home or renting, the housing extension can be an option. On the property of the home can be created additional living space, which serves as a capital investment and real estate investment. One should inform oneself however in the apron about the appropriate dwelling permission. Thus, one need not decide whether to rent or own the property to use.

Tax structuring, saving taxes

Understand if and how you can really save taxes with real estate and what to look for to do so. It’s all about getting an advantage on your annual income tax. For this, it is important to know your own personal tax rate.

9 tips to rent out your property the right way

Renting out properly? Not so easy. In the following video you will get 9 steps that will help you to rent out your property properly.

Buying your first apartment – without prior knowledge

Becoming a real estate investor, buying and renting out apartments and living off the returns – that’s it! But how do you actually get started? How do you buy your first apartment? How you can take your first steps into the real estate business, tells you in this video real estate professional investor Gerald Hörhan.

9 common mistakes in buying real estate

You should avoid these nine mistakes at all costs if you want to successfuly buy a property as an investment. With this information and tips you can avoid these mistakes in the future.

Related links about the topic Real estate

The world of real estate is still a mystery to you, but you want to change that? With the video recommendations we’ve compiled with tips and tricks from real estate experts, you too can become a real estate pro! Find more videos here to start learning now!

Real estate agent

The profession of real estate agent is interesting for many, but what is behind it? Is it true that there is so much money to be made as a real estate agent? How does a real estate agent spend his day? And how do you become a real estate agent? Whether it’s information on training or how to avoid the biggest mistakes as a real estate agent, you’ll find out in this article. With the help of this video list you can click through the different areas of real estate agent.

• Video Tips: Real Estate Agent
• Book Recommendations: Real Estate Agent

Buy property

Buying real estate – Buying real estate is not like shopping in a mall. Before you buy a house or an apartment, many aspects must be clarified in advance. Many mistakes can happen. With our guide you avoid problems and get in the best case the perfect property. You want to deal with the topic of buying real estate again in peace? Then get one of these books, with top ratings and recommendations from other readers.

• Video Tips: Buy property
• Book Recommendations: Buying real estate

Overview Real Estate XXL: Investment & Co.

Here you get back to the overview of book and video recommendations on the subject of real estate in Germany. Investment cases, capital investment, passive income, house or apartment buy and rent and much more is explained to you here by experts and understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of real estate.

• Back to Book & Video Tips Overview: Real Estate