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

Why do I have to pay property tax?

The property tax generally taxes the property. In contrast to land transfer tax, which is only levied once when an apartment is purchased, property tax is levied up to four times a year. For tenants, the property tax does not mean any additional costs, because it is part of the operating costs that can be passed on to the tenant. The property tax is calculated on the basis of the area or value and the individual assessment rates of the municipalities. There are also two types of property tax.

Two types of property tax:

• Land tax “A”: land for agricultural and forestry use
• Real estate tax “B”: Other developed and developable real estate

Property tax B: factors

Real estate, such as your first apartment that you bought as an investment, therefore always falls under the property tax B. However, the property tax does not have a specific value, but there are many factors that influence the property tax B, such as the assessment rate of each municipality, the state or the type of real estate.

Factors that influence the property tax are:

• Survey according to real estate value (unit value = real estate value)
• Individual assessment rate of the municipality
• State
• Real estate type

How is the property tax B calculated?

Fortunately, the property tax is easy to calculate. The unit value figure must always take into account the value of the land, which falls or falls depending on whether it is developed or undeveloped. The determined unit value is first multiplied by the uniform factor, the property tax rate, which in turn is multiplied by the municipal assessment rate.

Here is the formula of the calculation in brief:

Unit value x property tax rate x municipal assessment rate = property tax rate

Excursus Hebesatz: What is it?

The assessment rate for calculating the property tax is determined by each municipality itself and thus varies throughout the country. It ranges from 0% to 1,050%.

Property tax rate: what is it?

The property tax rate applies to the whole of Germany, but a distinction is made between the old and the new federal states. The figure is often given not in % but in per mille, i.e. ‰.

Old federal states

Here in brief how the property tax rate is measured in the old federal states:

• Single-family houses up to ~ 38,347 euros: 0.26%.
• Single family houses above: 0,35
• Semi-detached house: 0.31%
• Other residential property: 0.35%

New federal states

Here are the measurements of the new federal states:

The next step: documents for the bank

You’ve found the perfect apartment? Great, now it’s down to the nitty-gritty – the financing, with the self-disclosure and all documents for the bank. Here, the completeness, neatness and seriousness is particularly important. What else you need for your financing and what you should pay attention to, you can find out here!

Why do I have to pay land transfer tax?

Everyone who buys a property has to pay the real estate transfer tax. The good thing about it – it only has to be paid once at the time of purchase, and not annually like property tax. Since the real estate transfer tax is more or less depending on the federal state, one should inform oneself about the percentages before blindly buying an apartment for emotional reasons, because the price always plays a role. Generally, the land transfer tax is set between 3.5% and 6.5%.

Calculation of the real estate transfer tax

The real estate transfer tax can be calculated quite simply:

Purchase price x tax rate by federal state = real estate transfer tax

Overview: Property tax rate of the federal states

Here is a brief overview with the 16 federal states and the individual real estate transfer tax rate:

The next step: brokerage costs in the search for housing

You want to buy your first property, such as a condominium, and want to hire a real estate agent? Good idea, but first you should know that a real estate agent costs quite a bit of money, whereby a distinction is made between private and commercial sales. How much that is, as a percentage of the purchase price, you can find out here.

Buying real estate: What costs will I incur?

When buying a property, you always have to reckon with compound costs. On the one hand there is the purchase price, or the price for which the property is advertised, and on the other hand there are the ancillary purchase costs.

Incidental purchase costs: What are they?

The ancillary purchase costs are not always the same, they differ depending on the federal state. Therefore, always inform yourself in advance about the land transfer tax and the brokerage costs of the federal state in which you want to buy. The notary costs and the land register entry, on the other hand, always remain the same in percentage terms.

Incidental purchase costs are derived from:

• Real estate transfer tax (3.5-6.5%); varies by state
• Notary fees (1.5%)
• Land register entry (0.5%)
• Broker commission (3.57-7.14%; 50:50 for private purchase); varies by state

How do I calculate the total cost of my dream property?

The calculation of the service charges and the subsequent total costs of a property is actually quite simple. So that you understand it directly, we have an example calculation for you here. Let’s assume you buy a condominium in North Rhine-Westphalia with a purchase price of 200,000 euros. The final price is made up of six steps.

The six steps to the final price:

1. Purchase price
2. Real estate transfer tax
3. Notary fees
4. Land register entry
5. Brokerage costs
6. Incidental purchase costs

Step 1: Purchase price of the property?

Let’s start with the purchase price. In this example, it is 200,000 euros for a condominium in NRW.

• Purchase price: 200.000 Euro

Step 2: Amount of real estate transfer tax?

In NRW, the land transfer tax for each property is 6.5%. For our apartment, this means a surcharge of 13,000 euros

• Real estate transfer tax: 13,000 euros

Step 3: Amount of notary fees?

The notary fees are the same in every federal state. They amount to 1.5% of the purchase price, which corresponds to 3,000 euros.

• Notary fees: 3,000 euros

Step 4: Costs of the land register entry?

The costs of the land register entry are also the same in every federal state, namely always 0.5%. So another 1,000 euros are added to the purchase price.

• Land register entry: 1.000 Euro

Step 5: Calculation of the brokerage costs?

When you hire a real estate agent, you always pay a certain fee in brokerage costs in addition. These costs vary depending on the federal state. In NRW these costs amount to 3.57%. The positive thing about it? The brokerage costs are divided equally between the buyer and seller, i.e. 50:50%.

• Brokerage commission: (3.57% [7,140 / 2]): 3,570 euros

Step 6: The result of the total cost

Once you have calculated the incidental costs in relation to the purchase price, you can determine what you will ultimately have to pay.

• Purchase price: 200.000 Euro
• Real estate transfer tax (6.5% in NRW: 13,000 euros
• Notary fees (1.5%): 3,000 euros
• Land register entry (0.5%): 1,000 euros
• Brokerage commission: (3.57% [7,140 / 2]): 3,570 euros

Total amount:

• Total incidental costs: 20,570 euros
• Total price at purchase: 220,570 euros

The next step: land transfer tax

You have found your dream apartment at a dream price? Good, but the purchase price is accompanied by ancillary costs, which include land transfer tax. But how high is the land transfer tax that I have to pay additionally, once when buying my first own apartment? Depending on the state in which you buy, the land transfer tax has a different percentage. How you can easily calculate this, you can find out here!

Determine maximum purchase price: Creditworthiness, equity & Co.

How much real estate can I afford at all? This question is asked at the beginning of the process of buying what may be your first home and depends on many factors. These include your creditworthiness and self-disclosure, in terms of assets, the monthly asset balance (repayment), the equity and the mortgage lending value of the property to be financed. Here you will learn everything you need to know to determine the maximum purchase price.

• Maximum purchase price

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.

How does the pension system work?

The pension system in Germany is based on three pillars; statutory, occupational and private pension provision. Many people are probably aware that this system is not doing too well these days. Read here what the three pillars are all about:

Here is an overview of the three pillars:

1. Statutory pension provision
2. Occupational pension provision
3. Private pension provision

Statutory pension provision: Collecting points for all they’re worth

Statutory pension provision ends up not really being worth talking about, thanks to certain factors such as inflation, i.e. the devaluation of money. Roughly speaking, “pension points” must be accumulated, all of which have a certain value:

• Average earnings (< 60,000 euros gross / year): One point per year
• Below average earnings : Half point per year
• Above average earnings (> 60.000€ gross/year): Two points per year

The points are then added up to the pension and multiplied by the “pension value”. Here you can find the current formula for calculating the monthly pension amount:

Monthly pension amount = earning points x access factor x pension value x pension type factor

Here is a quick example to calculate the pension of an average earner:

Example: Average < 60,000 / year

Example (40 years of work):

• Pension points: 40
• Pension value current: ~ 34
• Standard age limit / pension type factor: 1

Monthly pension:

• 40 x 34 x 1 = 1.360 Euro

Factor source: German Pension Insurance.

However, it does not stop there. Even with this amount, all taxes and inflation must still be calculated. Factors such as tax, health and long-term care insurance must also be taken into account. Especially inflation hits your pension hard. Don’t you think? Here you can find an overview of the change in the inflation rate in Germany from 1992 to 2020.

You can find more statistics at Statista.

Occupational pension provision: Secondary cover as a solution?

The company pension scheme is an additional safeguard to the statutory pension scheme. It is considered a supplementary pension and is financed by the employer. Even with this, it is difficult to cover one’s costs in old age.

Private pension provision: Investment in real estate

Let’s move on to private pension provision. The first question that arises here is how do I invest my money and in which form of investment should I invest at all? Inflation is our biggest enemy when investing in a financial product, but it is our best friend when investing in real estate, as we have already described in the article Wealth Creation & Inflation.

Here briefly again in simply explained!

Investment form Financial product:

• 10,000 euros in a savings account are and remain 10,000 euros. Even if the money is only worth half in 30 years (inflation).

Investment form real estate:

• If you buy a condominium for 10,000 euros, the money in 30 years is only worth half, you get for your property 20,000 euros

As you can see well here, when you invest in a property, you are always very well protected against inflation and can also still make profits. Unfortunately, our pension is similar to the investment in a financial product – in the end, we all make a loss.

The next step: real estate as an investment

This article compares the classic investment of money in the bank with a capital investment in the form of real estate. Real estate creates “real value”. Find out what that means here!

Learn here about the benefits of investing in real estate for your retirement savings, too!

Hiring a tax advisor: 3 mistakes

In our great overview on the subject of tax advisors, the recommendations for many cities, for good tax advisors in the area, the tax advisor costs everything on the subject of starting a company and possible legal forms; taxes are so important for entrepreneurs that today we once again focus on the tax advisor choice. Because, especially the selection of the tax advisor is a central factor, for the success of your company. Before we look at the 3 mistakes in detail, here is an overview for you.

Assign risks to the tax advisor:

1. Intensive, regular cooperation; means commitment and time for tax consultant changes
2. Amount of monthly and additional costs; money missing for reinvestment
3. In the long term: lose money (pay too much tax, plus costs for tax advisor, lack of reinvestment) due to lack of qualitative / quantitative advice

Source: Lukinski.de, article tax consultant for enterprises

Let’s look at each of the commissioning risk factors.

Communication and bonding – risk number 1

First of all, a risk factor that is not directly related to the topic of “losing money” or “costs for the tax advisor”. It’s the regular, intensive relationship you have with your tax advisor. While most business relationships are relatively irregular, you’ll need to talk to your own tax advisor for many, recurring transactions in the. Whether it’s levies, consultations or queries.

If you don’t feel absolutely comfortable during the first meeting, or if you are not on the same wavelength, then you should refrain from working together. That is why it is so important to compare tax advisors, through recommendations from experienced entrepreneur friends or through initial discussions with different tax advisors. Also important so you have different quotes in front of you. How often you will communicate, you can already see by the weekly to annual meetings, even if only digitally.

Deadlines for submission of accounts, wages and annual financial statements

Regular communication includes, for example:

• Monthly submission of the accounts, by the 10th of the following month (deadline at the tax office)
• Wages and salaries, as of the 15th of the month
• …
• Financial statements

As an entrepreneurial person, you are in constant contact with the tax office. Therefore, you should also look for people with whom you, as described, are on the same wavelength. If it quickly comes to disagreements and disputes, the share of communication decreases and so you come to risk number 3: The lack of tax advice.

At the same time, you’re just as reluctant to make contact and won’t ask some questions you would have asked an accountant you trust.

So in addition to all the facts and figures, the personal level also plays a role.

Change of tax advisor: When mistakes add up

Already by the above points you have seen how in your company is connected with the tax adviser. Accordingly, a change is not possible overnight, it must be well prepared. You need to find a new firm that will take you on as a client. Especially good law firms check if they want to work with a client. The new tax advisor must then, as immediately start working for a smooth transition, for example, if you have a dispute with your old tax advisor.

So the commitment is relatively long-term, until you notice mistakes (we’ll get to that in a moment) and find time to change tax advisors in addition to the day-to-day business of your company. But don’t worry, if you find someone who accepts you as a client, the change is made relatively quickly, from the first conversation to the start is maybe 7 to 14 days.

Thanks to digital accounting, the change of tax advisor is possible within 24 hours if the mandate is accepted by a law firm.

Monthly, too high cost burden – risk number 2

Of course, tax consultants don’t work for free. When you look at the costs of a tax consultant, you also look at two values.

Cost factors: 1) Regular and 2) Additional services

Cost factor 1: Regular services – The basics, i.e. your bookkeeping and financial accounting, are usually calculated according to the value in use. Value in use means that the monthly amount of the costs is based on the amount of your turnover. The more turnover you make, the more you pay. The fees are calculated according to an official scale of fees. In addition, tax consultants have a small margin, up and down.

This means you pay a fixed value depending on how much revenue you make. Nevertheless, offers from different tax advisors can differ, as they have a percentage margin.

Cost factor 2: Additional services – In addition to your monthly basic costs, there are also additional services, for example consulting, but also the annual financial statement is charged extra. Here lies the risk factor, how much consulting is good, how much is bad for you and your company? There is no general answer to this question. Because, depending on how much previous commercial knowledge and also interest you bring yourself, ideally only 1 or 2 hours a month. Consultation means already inquiries here. Just about every minute is billed. If your tax advisor talks to you on the phone for 10 minutes, then an employee has to be informed (5 minutes), another 20 minutes of documents are procured, a decision is made and a call is made back – already 1 hour of additional effort has arisen, for one question. At 120 euros / hour, quickly a relevant topic for young companies.

So you have two cost factors and especially the additional services can quickly add up. If you use a lot of consulting, which many founders do, then every minute is charged. If you take an hourly rate of 120 Euros as a basis and only 1 additional hour per week, 4 hours of additional consulting (one appointment or distributed) will cost you 600 Euros. As a large limited liability company, this may not be a problem, but especially at the beginning, in the start-up phase, this is a lot of money.

Example calculation: Extra costs due to consulting

Here again in quick and simple summary, the calculation of the additional costs, by consulting service.

• Hourly rate tax consultant: 120 Euro
• Additional effort / week: 1 hour
• Monthly extra costs: + 600 Euro
• Annual extra costs: + 7.200 Euro

If a GmbH was founded with 25,000 Euro starting capital, an item of 28.8% of the equity capital, in addition to the costs for regular accounting.

Advice is important, but pay attention to dotted questions and be prepared, for example by doing your own research, this saves time

Dubious tax consultants? Too much advice

If you have a less reputable tax advisor and regularly 10, 12 or even 15 hours extra per month, which at first doesn’t sound like much, over the whole month, the risk quickly becomes a danger. This brings us to risk 3, the consequence: losing money due to too much overhead and taxes.

Losing money through bad / no advice – Risk 3

Through lack of communication (risk 1), too high fees for too much advice (risk 2) or even lack of knowledge, you lose money to reinvest and further tax benefits.

Too much paid money, tax benefits, you can no longer claim afterwards / partly costly, that’s why it is so important to have a good advisor at his side.

The tax advisor training is relatively simple, it is not a long, state training or a study, the training to the tax advisor makes one in a course, with subsequent examination. By and large, it is about the administration of taxes, not about the design of taxes.

Full-time training lasts (only) 2 months

No one learns the intricacies in the tax system in 2 months, it’s more about filing monthly and yearly correctly.

Many tax consultants also pass on their work to employees who then show little interest in the individual clients, for example because these employees are overloaded with tasks. Accordingly, the work is processed, that is, managed again, not designed. If you hire a tax advisor who does not attach much importance to communication, especially in terms of tax advice, you will quickly lose a lot of money, starting with tax allowances and ending with tax structuring for different legal forms.

Hiring a tax advisor: mistakes + 3 tips

Let’s summarize the four key risks again:

1. Intensive, regular cooperation; means commitment and time for tax consultant changes
2. Amount of monthly and additional costs; money missing for reinvestment
3. In the long term: lose money (pay too much tax, plus costs for tax advisor, lack of reinvestment) due to lack of qualitative / quantitative advice

Source: Lukinski.de, tax consultant for companies

This leads to the following question, how do you find a good tax accountant?

Find a tax advisor: 3 tips

Do I have to hire a tax consultant? What tasks does a tax consultant perform? How much does a tax consultant cost? Here you will find the answers to your questions and much more information on the subject of tax consultants in the area, finding tax consultants, costs, tasks, financial accounting, annual financial statements and taxes in general – but let’s start at the beginning.

• Find a tax advisor: 3 tips

Tax consultant in the vicinity

Nearby Tax Accountants – Find a good tax accountant near you? We have searched the internet for you for days to find the best recommendations for tax consultants in your area: Hamburg, Berlin, Cologne, Dusseldorf, Munich, Stuttgart & Co. for your private tax return or income tax return or more complex accounting for companies, from monthly financial accounting to annual financial statements. Including adresses, telephone numbers and website.

• Tax consultant in the vicinity

Price: How expensive is jade? Gram, carat and kilo

Jade is the name given to a group of different gemstones. How expensive a jade stone is depends on the color intensity and whether it is jadeite or nephrite. Nephrite has been losing its place on the market for a few years because there are many imitations and is accordingly no longer as price-intensive. Jadeite with a pure, strong color is the most valuable and smooth, evenly colored stones are the most expensive. Especially the coveted emperor jade acts as a store of value for investors.

In fact, each stone is valued individually. The price is set by dealers, jewelers and auction houses. But if we consider the example from above, then you would have the following selling prices.

Example calculation (Jade Fund in Myanmar)

210 tonnes > 210 000 kg

170,000,000 / 210,000 kg

809,52 USD / Kilogram

4,05 USD / carat

0,81 / gram

Price comparison gold / jade

Tip, read more about buying gold here.

• Gold per gram: 61 USD
• Jade per gram: 0.81 USD

Jade production in the year

Here are official figures from Myanmar (Government):

Average price: export to China

Increase in value after export to China

Mexican name origin

The term jade is derived from piedra de ijada = loin stone. This comes from the fact that it used to be regarded by the indigenous people of South America as a healing stone for loins and kidneys. However, it received its name only in the 16th century, during the conquest of Mexico by the Spaniards. Jade, or yu, the term commonly used in China, is actually a generic term for two different gemstones: Nephrite and Jadeite.

Exceptional composition

Originally, it was assumed that all jade objects were made from the same material. However, in 1863, a Frenchman, Alexis Damour, discovered that the material known as “jade” could be divided into two distinct minerals: Jadeite and Nephrite. Because these two materials are difficult to distinguish, and because the word “jade” is so ingrained in the common language, the name jade is still commonly used in many societies, industries, and academic disciplines.

Designations of the materials

In this article, the word “jade” is used for undifferentiated materials. “Jadeite” or “nephrite” is used when the identity of the material is known. The word “nephrite” is also an imprecise term. It is used for materials composed of the minerals actinolite and tremolite.

Jadeite, Nephrite and Science

Jadeite and nephrite have distinctly different mineral compositions. Jadeite is an aluminum-rich pyroxene, while nephrite is a magnesium-rich amphibole. However, the two minerals have very similar physical properties to the eye of the average person. Only trained observers with considerable experience are able to reliably distinguish between them without mineral testing equipment. For this reason, jadeite and nephrite were not properly distinguished by scientists until 1863.

Origin of the distinction

Unknowingly, Chinese artisans had distinguished jadeite from nephrite and valued it enough to pay a high price for jadeite. However, they did not have the knowledge and equipment in chemistry and crystallography to formally distinguish them.

Rarely did Chinese artisans encounter fine-grained jadeite with a bright translucency and a rich, uniform green color. This beautiful material was given the name “Imperial Jade” and was considered the stone of the highest quality. At that time in China, the possession of imperial jade was reserved only for the emperor. Now, anyone who can afford it can own Imperial Jade. The best specimens can cost more per carat than high quality diamonds.

• Chinese craftsmen first found out the difference
• However, did not have tools and knowledge to further investigate him
• Imperial jade was only allowed to be owned by the emperor in China

Still in great demand: Jade in China

The Chinese value jade much more than any other people. For thousands of years, jade has been the most popular gemstone in China. Chinese emperors desired excellent specimens of jade, and they traded or waged war with distant nations to acquire them. In China, gifts of jade are given at almost every important station in life, such as birthdays, anniversaries, weddings, and other celebrations. It is also a commonly used material for making religious art. China is the country where the importance of jade is the highest.

History of the green gems

Jade has been known since the Stone Age and was a highly sought-after mineral, especially in ancient China, where at times it was valued almost as highly as gold, but also worldwide. Since as early as 3,000 B.C. it has been regarded in China as a yu, a “royal gemstone”. It had always had a very special significance in the long history of art and culture. It was used for the finest objects and cult figures as well as for grave goods for high-ranking members of the imperial family. Even today, this gemstone is considered a symbol of the good, the beautiful and the precious.

Early use of jade in tools

People have been using jade for at least 100,000 years

The earliest items made from jade were tools. Jade is a very hard material and is used as a tool because it is extremely tough and breaks to form sharp edges. Most jade does not have the color and translucency that one would expect from a gemstone. However, when early humans found these special pieces of jade, they were often inspired to make them into a special object.

Toughness is the ability of a material to resist fracture when subjected to loads. Hardness is the ability of a material to resist abrasion. Early toolmakers took advantage of these properties of jade and shaped it into cutting tools and weapons. It was used to make axes, projectile points, knives, scrapers, and other sharp cutting objects.

• Used for 100,000 years
• Earliest items: Tools
• Very tough and hard

Tough, in the context of gemstones, means: Ability of a material to resist breakage. Hardness means: ability of a material to resist abrasion.

Today’s use of jade as a gemstone

Jade is a durable, colorful material that can be worked into shapes and polished to a high shine. These properties make it a highly desirable gemstone. Jade has been used to make a variety of jewelry items such as pendants, necklaces, rings, bracelets, earrings, beads, cabochons, tumbled stones and other items.

These jewels are often made of solid jade, combined with other gemstones or set in settings of gold, silver or other precious metals. In addition to jewellery, jade is also used to make small sculptures, ornaments, religious art and small functional objects.

Jade trade: Video

Danger of confusion!

Maw sit sit

Maw Sit Sit is a rock composed of jadeite, albite and kosmochlor (a mineral related to jadeite). It has a bright chrome-green color and can be polished to a bright finish. For these reasons, it is used as a gemstone. Maw Sit Sit was first correctly identified in 1963 near the village of Maw Sit Sit in northwestern Burma in the foothills of the Himalayas. This is the only place where it has been discovered so far. It is used for cutting cabochons and making small sculptures. Because of its scarcity and low production, it is rarely used in jewelry.

• Rock consisting of jadeite, albite and cosmochlore
• First identified in 1963 in the Himalayas, near the village of Maw Sit Sit.
• So far the only find
• Only rarely in jewellery

Similar materials

A number of other minerals and materials that are commonly cut and polished are easily mistaken for jade. All of these materials can have a color, luster, and translucency very similar to jade – so similar that the average person cannot recognize them. These materials are often used to make cabochons, beads, and other items in the same style as jade. They sometimes come on the market with and without disclosure. They are often labeled “jade” or one of many misnomers.

Chalcedony

Chalcedony is a translucent variety of microcrystalline quartz that comes in a range of colors similar to jade. Chrysoprase is a light green, chrome colored chalcedony that when cut into cabochons, beads and small sculptures looks very similar to jade. Chalcedony comes in a variety of other translucent colors such as black, lavender, yellow, and orange that can look like the color variations of jade. Chalcedony can look very similar to jade as a gemstone. It can be distinguished from jade by its lower specific gravity and by a variety of instrumental methods.

Serpentine

Serpentine occurs in a variety of wonderful translucent to almost transparent green and yellowish-green colors that look very similar to jade. It is a metamorphic mineral that often occurs in the same geographic areas and the same rock types as jade. Serpentine is much softer than jade and also has a much lower specific gravity.

Vesuvianite, also known as idocrase, is another jade-like mineral that is very difficult to distinguish from jade without laboratory testing. It has a similar hardness, specific gravity, and physical appearance. It is not nearly as tough as jade and breaks more easily – but that requires destruction of the sample.

Jade types, treatments and tips for purchase

For thousands of years, the people who make and sell jade objects have found many ways to improve their appearance. Heat, wax, dye, bleach, acid, polymer injection, and other treatments have all been used to improve the color, luster, and stability of jadeite and nephrite. Although many of these treatments are part of the traditional jade manufacturing process, today’s serious jade buyers want to know about all the treatments that have been used in the manufacturing process.

Classification into type A, B and C

Commercial jadeite objects are classified into three “types” depending on the treatments used during the manufacturing process. They are referred to as Type A, Type B and Type C jadeite.

A jade locket: the deep green color jumps right out at you:

Jadeite type A: Treatment with wax layer

Type A jadeite objects have been treated with a wax coating. This is the most traditional jadeite treatment. It is expected and accepted by serious buyers and generally does not affect the value of a jadeite object. In this treatment, manufacturers boil finished jadeite objects in water to clean and prepare them for wax application. The objects are then dried and dipped in melted wax. The wax fills all pores and fractures near the surface. When the objects have cooled, excess wax is removed and the objects are polished to a high gloss. The wax fills in surface imperfections and gives the surface of the object a smooth, glossy finish.

Jadeite type B: bleaching by hydrochloric or sulphuric acid

Type B jadeite objects were bleached by soaking in hydrochloric or sulfuric acid. The acid removes oxidation stains and leaches sodium. This lightens the color of many materials. The jadeite is then impregnated under pressure with wax or a clear polymer resin. The impregnation fills all pores and fractures near the surface and gives the object improved smoothness, luster and color.

Unfortunately, the appearance of type B jadeite objects can deteriorate after only a few years. Acid treatment causes some jadeite to become brittle, and polymer resins can discolor over time or with exposure to heat and sunlight. Because of these problems, the treatment of Type B Jadeite should always be disclosed when an item is sold, but many items are sold without disclosure. This lack of disclosure is due to the fact that Type B Jadeite objects usually sell for a small fraction of the price paid for a similar Type A object. Sellers often get away with non-disclosure because Type B treatments are difficult to detect. Testing in a gemological laboratory is often required to detect Type B treatments.

• Bleached by soaking in hydrochloric or sulphuric acid
• Impregnated with wax or polymer resin under pressure
• Appearance may deteriorate after a few years
• Treatment should

Jadeite type C: Individual colouring

Type C jadeite usually has all the treatments of type B jadeite, but the object has also been dyed a more desirable color. The dyes may fade over time or with exposure to heat and light. For these reasons, Type C treatments should always be disclosed.

Color treatment can often be determined by examination with a microscope, spectroscope or gemological filters, but this examination should not be required – the seller should disclose the full extent of treatment for each object sold. Disclosure is not always made, as Type C jadeite sells for a small fraction of similar objects with Type B treatment.

Type C objects should be purchased at a price that assumes temporary use for a few years. Anyone spending the considerable money on jade should know the difference between jadeite and nephrite, have a good knowledge of jadeite treatments and how they affect value and future durability and appearance.

• More desirable colour than type b
• Type C treatments should always be disclosed
• Price that assumes temporary use of a few years

Retirement: Avoid mistakes and follow tips

Here you will find everything you need to know about pensions. With our book recommendations, you can really get smart and avoid mistakes when concluding the pension. Whether you’re a beginner or an advanced reader, we’ll show you the best and most helpful books.

Here’s another tip for you (external). What’s the best way to protect yourself from poverty in old age due to low pensions? The answer is: turning taxes into assets. Tax avoidance means building knowledge yourself. Online you can find a lot of (free) articles and tips on Lukinski.de: From real estate as an investment by renting to asset management to saving taxes with real estate (external). Everything free of charge from the expert.

Tip! Overview Wealth Building XXL – Book, Video, Tips & Tricks

If you want to build up private wealth and create financial reserves, there are a few things you should keep in mind. In addition to the tips you get in this article, you might also be interested in our extensive overview page. There you will find an overview of articles, as well as book and video tips with successful and helpful books and videos on the subject of wealth accumulation – including tips and tricks from professionals and experts.

• Book & Video Tips Overview: Wealth Creation XXL

Retirement for beginners

Rating: 4.6 / 5.0 (557 ratings)

For decades, you showed up for work every goddamn workday. Always dutiful, often on time, and usually in a good mood. You put up with no grumbling about missing raises, countless hours of overtime, and merry Christmas parties. You never thought about what it would be like when it was all over. And then suddenly it’s here: retirement. And now?
This book helps you prepare for the new phase of your life and is an indispensable companion for the time after work! Because in the huge, pitch-black hole into which you inevitably threaten to fall after your last day at work, there are plenty of pleasant surprises waiting for you!

• Buy at Amazon

Retirement in sight: Your financial guide to retirement

Ratings: 4.3 / 5.0 (10 ratings)

Well positioned for the third stage of life:

• What needs to be considered with regard to statutory pensions and occupational pension schemes?
• Tax liability and saving taxes: What applies to different incomes in retirement?
• Making the most of financial investments: How the transition to retirement influences financial strategy
• Health insurance, long-term care insurance and other insurance policies: This is how the insurance portfolio is reorganized
• Enjoying retirement abroad: What to consider when it comes to pensions, property and insurance? Pensioners and retirees are in a special financial situation: income, expenses and time horizon have become more manageable. Restrictions apply, for example on loans, and special rules apply, for example on taxation. In addition to retirement income, many men and women aged 60 and over have to take care of other financial areas, such as reducing investment risks or making well-considered arrangements for their estate.
• Buy at Amazon

My pension – Planning for retirement – Early retirement options

Ratings: 4.2 / 5.0 (5 ratings)

The new guidebook from Stiftung Warentest clarifies all the important questions using many clear practical examples: How do I manage to have enough money available after my working life? What can I do as an employed person to collect more pension points? What do part-time work, self-employment, child-raising periods and maternity pensions, mini-jobs, periods spent abroad or divorce mean for my pension provision? How can private pension provision supplement the state pension?

• Your personal roadmap: How to make the right decisions for more retirement at key life junctures
• Work and family: getting more out of life as an employee, self-employed person and in family times
• The pension in front of your eyes: Increase your pension with voluntary payments, find the right date to jump ship
• Buy at Amazon

You don’t get retirement for free, you have to earn it!

Ratings: 4.7 / 5.0 (122 ratings)

Your father, a friend or a colleague is retiring? Then give the retiree in Spe with this small gift book a farewell gift with a wink. The booklet is an amusing substitute for a greeting card on retirement. It also makes a wonderful addition to a bouquet of flowers or a monetary gift. The combination of colourful illustrations, funny texts and wise words give the retirement gift that certain something.

• Buy at Amazon

Private old-age provision: Provision requirements – Financial roadmap

Ratings: 4.5 / 5.0 (8 ratings)

Close the pension gap. Start your retirement planning now and time will work for you. Every year, the Finanztest experts test more than 10,000 products on the subject of old-age provision. Make more of your money – despite low interest rates. This guide shows you which investments you can use to build up a comfortable financial cushion even in times of low interest rates. Determine your individual pension needs and develop your personal financial roadmap.

• Personal roadmap: How to get to the optimal provision step by step
• Statutory pension: What you can get out of it
• Pension provision with state assistance: Which offers are worthwhile – and which are not
• Private pension provision: How to find top providers
• Practical examples: Which investments fit your life situation
• Buy at Amazon

The pension consultant

Ratings: 5.0 / 5.0 (2 ratings)

The expert guide to all pension issues and retirement provision (including Riester pension and Rürup pension). The book includes all legal changes through the latest pension package, the new regulations, the Flexi-Rente.

• When can I retire without deductions?
• How much will my pension be?
• What are pension deductions?
• Which periods are taken into account for my pension?
• What can I earn in addition to my pension?
• Buy at Amazon

State Pension Practice: The expert guide

Ratings: 5.0 / 5.0 (3 ratings)

When can I retire?, How much is the pension?, What are pension deductions?, Which periods are taken into account for my pension? The book provides answers to these and many other questions. The authors place great emphasis on the connection to practice.

• 55 years of reforms in the statutory pension insurance
• The three pillars of old-age provision
• Periods under pension law
• Minijob and Midijob
• Insured persons’ pensions
• Survivor’s pension claims
• Pension equalisation and pension splitting
• The most important facts about pension calculation
• The tax treatment of pensions and contributions
• The insurance account and information
• Private old-age provision in the form of a Riester pension
• Private pension provision in the form of the Rürup pension
• Company pension scheme
• Basic income support in old age and in the event of reduced earning capacity
• Buy at Amazon

Further links

We have more helpful video and book lists for you on topics that might interest you. Below are some helpful links for you.

Retirement provision

The topic of old-age provision is one of the most important issues Germans are concerned about. Already at a young age, one is made aware of the need to provide for later. But how exactly do I do that? When do I start with the old-age provision? Which mistakes should I avoid? Where can I get tips? And why do I need a pension at all? We answer all these questions and more here.

• Video tips on the subject of old-age provision
• Book recommendations on the subject of old-age provision

Tax return

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. If you want to know even more, then we have a great article on the tax basics: income, sales & Co.

• Video tips on the subject of tax returns
• Book recommendations on the subject of tax returns

Buying real estate

With our book and video list on buying real estate, you can’t go wrong with your next real estate purchase. Our book tips cover all topics from the right inspection to the closing and the possible resale. What do you have to pay attention to? How do you finance your purchase? How do you evaluate a property? And how do you conclude the contract? You will find the answers here.

• Video tips on buying real estate
• Book recommendations on the subject of buying real estate

Advisor Wealth Accumulation 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

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