Becoming self-employed: What does that mean?

Becoming a self-employed designer in the high fashion sector means that you are the founder of a start-up. This requires not only money, but also an inventory lead time, which means you have to buy and store clothes. Compared to other industries, such as an advertising agency, there are additional costs for the development of your fashion, production and storage.

Why am I telling you this?

With my social media agency, the model agency, the fashion magazine and other brands, I was able to accompany many fashion labels, including high fashion streetwear, in an advisory and development capacity. What are the 3 most important learnings for your fashion startup?

Perseverance is everything! Motivation & financing

Most businesses fail because of money, the so-called “runway”. Let’s assume you have a start-up capital of 150,000. 50,000 of this goes into production, while you use the remaining 100,000 for yourself and marketing, divided into 5,000 per month. This means you can bridge about 20 months in which you have to continuously earn new money.

Believe me, everything costs money:

• Rent, furnishings, cables, lights, stationery, …
• Internet access, web space, domain, software, …
• Much more and yes, you and your employees too

Golden rule: If you can do X, you can also do X2

In entrepreneurship, conventional wisdom says that if you survive 2 years in the market, you can make it another 2 years. If you survive 5 years in the market, you have a good chance of surviving the following 5 years. Start-up capital is therefore essential, especially in the high fashion sector.

Statistically speaking, 90% of all start-ups fail after 5 years. So your goal should be to overcome this critical mark and survive for 5 years! Rome wasn’t built in a day, and neither was your new fashion label. It all starts with careful planning and preparation.

There are two options: Either you have sufficient motivation and capital or you don’t.

Here are some tips:

Runway: Sufficient capital (and turnover) – Risk #1

When founding a company, one thing counts above all:

Runway: Make sure you have enough capital to avoid going bankrupt straight away.

But how do you reach this point without your own capital?

3 alternatives to get money

You have three options:

1. You can work hard and save money, but this can take a lot of time.
2. Alternatively, you could ask your parents for a private loan.
3. Or you can opt for a loan.

When taking out a loan, it is important to get good conditions, primarily low interest rates. This means you can also take out a loan on good terms as a self-employed person. Choose a term that is long enough so that you don’t have to pay everything back after just 6 months, and make sure that the monthly installments are reasonable.

The reality is harsh, as a company no one will shed a tear for you. When your company goes bust, the daily business of others continues the next day.

Production, manufacturer and supply chain – risk #2

Supply chain: Make sure you have reliable production.

What do you need to look out for?

You need efficient development, high-quality fabrics, precise workmanship – all of this is crucial in the high-fashion streetwear sector. Customers attach particular importance to quality when it comes to high-priced products. Allow sufficient time.

Many founders fail because of production. With small quantities (MOQs = Minimum Order Quantities), you are often placed at the bottom of the manufacturers’ priority list. Make sure you have a reliable production line. If you sell more, you won’t have any problems with replenishment. Many high-fashion start-ups have already failed here, so be warned.

Marketing: Half the battle

Another important aspect is fashion marketing. Henry Ford once said:

Marketing: “For every dollar you invest in your product, you need another to make it known.”

That’s right!

What can you do? Avoid expensive experiments.

1. Work with small micro-influencers who are already recognized in the high fashion scene. Growth often comes from joint efforts.
2. Use advertisements, especially retargeting. If a user has visited your store but has not bought anything and has left, remind them of your offer again with targeted advertising.
3. Be active! Show behind-the-scenes insights, the design process, material selection, the store, promotions and repost posts from micro-influencers.

These are our three key tips for your high fashion startup 2026!

Interview: This is what it’s all about!

To successfuly complete a Fix & Flip project, the ultimate goal is to make a profit. The basic idea of Fix & Flip is to increase the value of a property. You buy a cheap but lucrative property, add value to it yourself and sell it at the end for a profit. This means you have to work cost-efficiently to keep your expenses low and thus increase the profit.

We conduct the interview with Immobilien-Erfahrung.de (in conversation “IE”). We talk in the interview about:

• The purchase and finding of lucrative properties
• Saving costs when upgrading and renovating
• The profitable sale of the object
• Bonus topics such as taxes, legal forms and financing

What is Fix & Flip?

FIV: Let’s start with the basics. Can you start by explaining what Fix & Flip is and how it works?

IE: Of course! Fix & Flip is a strategy or even method from the real estate world that focuses specifically on trading real estate. That is, unlike traditional real estate strategies where properties are held to generate long-term returns, Fix & Flip actively trades properties. The core aspect is to increase the value of real estate in order to generate profit when trading. The increase in value is achieved through cost-effective upgrading and renovation.

So the strategy consists of three basic steps – buying, upgrading and selling.

Fix & Flip Find & Buy Property

FIV: We have already talked about Fix & Flip in one of our articles and have shed some light on the three steps. Surely we could not clarify everything there what an expert with experience can report about it. Let’s go through the three steps again and see what you can tell us. Let’s start with the first step – the purchase.

IE: Yes, with pleasure. Getting started is the biggest difficulty! In order to start trading real estate at all, you need real estate. So the first step is all about acquiring real estate. This is also one of the most complicated parts of Fix & Flip. First of all, you need to create and work through a criteria checklist when searching for the perfect property.

Criteria for the selection of Fix & Flip real estate

IE: The checklist for the real estate search should include important key data that are important to you as a flipper. Basically, the location and the condition are the basis for the decision.

The property must be in an advantageous location for you. Advantageous in the sense that it is an attractive area for future buyers – so it can be sold quickly – and is still in an affordable location for you. A-locations are not advantageous, since city centers, for example, are not worthwhile in terms of price. B-locations or developing C-locations are much more suitable.

In addition, the condition of the property must be considered. Since the focus is on “cheap” properties, these often also harbor problems. This is fine to a certain extent, of course, as the strategy involves “fixing” after all, but it should still not be overestimated.

With the Fix & Flip it is important to avoid sanitation!

These are too costly and time-consuming. The building fabric of your object should therefore basically be in tact.

FIV: With the basic criteria in mind – where is the best place to look for real estate?

Search & buy objects: How do I proceed?

IE: Online portals provide a solid basis for the search. Here, offers in the corresponding location can be found and compared with each other. So you get a rough picture and an idea of the price. However, I would rather use the online portals for research and not for the purchase.

You get the better buying options privately through off-market properties. Ideally, you already have a network of people who will contact you as soon as they hear about a sale. If you don’t have that, you have to look for the personal contact yourself. Either you show yourself, for example through marketing and let customers come to you, or you take the initiative and approach customers personally.

To explain this now would go beyond the scope of this article.

FIV: Okay good. We’ll summarize the first step again:

• Checklist with criteria for the property
• Location & condition of the object are important
• Avoid objects in need of renovation
• Use online portals for research
• Off-market real estate from private contact

What would come next? The upgrade?

IE: I would talk briefly beforehand about financing options for the purchase.

Fix & Flip financing: which loan is suitable?

Just recently I talked to one of our partners about an interesting topic and that is Fix & Flip without equity. In order to run Fix & Flip without equity, you need outside capital. The debt capital is provided through loans and credits. In discussing which type of loan was best, I first realized how important the question of financing is in the first place.

Therefore, I wanted to briefly list the most important points again.

The funding can be divided into two areas

The financing of the property itself and the financing of the renovation process. Both areas can be financed individually but also in combination. This is decided according to one’s own ideas. There are different types of loans for both options.

Credit types at a glance

To finance the entire project, in principle, all conventional loans can be used. Hard money loans are particularly suitable for the purchase of the property. These are based only on the value of the property, not on the equity.

There are several good financing options for upgrading. Small loans are the simplest solutions. But credit lines are more interesting! These give in principle a budget from which you can take what you need. Accordingly, only the interest is paid and repaid what is consumed.

FIV: I’ll hold on again:

• Purchase financing
• Renovation financing
• Separate or combined
• Regular loans
• Hard Money Loans
• Small loans
• Credit lines

With funding out of the way, there’s not much standing in the way of the upgrading process right?

Upgrading real estate: saving costs & increasing value

IE: Yes, that’s right. Since the process of upgrading is very detailed, I’ll try to be brief and mention only the most important things. We also have complete explanations and articles on our site.

Simply put, this step is about the actual value creation and thus the generation of profit. Here, the property, which is unattractive for the end users, is made attractive. This is achieved through cost-effective renovation measures.

Cost effective is the saying here!

Care must be taken to increase the value effectively without great expense. As already mentioned, extensive renovations are not advantageous.

The best way to increase the value of the property is to replace the flooring, kitchen and plumbing fixtures, new windows and doors, and garden and patio maintenance.

Those who are not skilled in handicrafts will find the best help and advice from craftsmen.

FIV: So the areas where renovation can be effective are:

• Flooring
• Bath
• Kitchen
• Windows
• Doors
• Garden
• Terrace

After upgrading, is the property then ready for sale?

Fix & Flip sale: exposé, offers & home staging

IE: In principle, yes! Already during the revaluation process, an appraiser can start valuing the property. This gives you an approximate idea of the selling price at an early stage. In addition, the preparation of the exposé can also be started promptly and the listing subsequently published.

For the creation there is one more crucial trick – home staging!

FIV: What exactly is it?

Home staging to prepare the display

Home staging is a simple trick to make the living space look more attractive for the pictures of the exposé. In the process, the rooms are made to look alive. For this purpose, no real furniture is used, but specially made cardboard furniture. This saves energy and costs for a “move”.

As soon as the exposé goes on the market you wait!

And when you’ve received enough offers, you compare them and negotiate if necessary to get an even better price.

After the selection of the buyer then follows only the notary appointment and the transfer of ownership.

Finally, the profit can be calculated. For visualization there is the Fix & Flip calculator on our site.

FIV: The sales process is now over. What happens to the profit? Surely it has to be taxed?

Fix & Flip Taxes: How much profit am I left with?

IE: Absolutely correct. Of course, taxes are due on fix & flip profits, just like anything else. What taxes and especially how much depends on the legal form you traded in.

As an individual or sole proprietor, regular income tax must be paid. Depending on how high your profit was in the end is assigned to a certain tax rate.

These tax rates are recorded in the tax progression.

If you plan to operate Fix & Flip for a longer period of time, it is worthwhile to establish a limited liability company. This requires a share capital of 25,000 euros, but you save a lot of taxes. In addition, your own capital is no longer liable but only the company limited to the paid-in capital.

As a GmbH, you then only pay corporate income tax of around 15% and trade tax of 3.5%.

I have now only given rough key data on taxation. Of course, the topic can be further elaborated.

If you want to know more about it, please visit our Fix & Flip guide. Among other things, I can recommend the articles Fix & Flip Taxes, Property Appreciation and Fix & Flip Sales.

FIV: Thanks so much for your time and insights into the Fix & Flip strategy!

IE: Gladly!

Summary: 10 Learnings about Fix & Flip

Let’s briefly summarize the most important points once again.

	Learning Fix & Flip
1	The basic idea of Fix & Flip is to increase the value of properties
2	The 3 steps of Fix & Flip: Buy, Upgrade & Sell
3	Checklist for the real estate search: consider location & condition
4	Find & buy objects via online portals & private contacts
5	Finance project & find suitable financing type
6	Cost-effective upgrading & renovation
7	Avoid objects in need of renovation
8	Have property valued & create exposé
9	Exposé prepared by home staging
10	Settle contract, transfer property & calculate profit (pay attention to taxes)

Interview: This is what it’s all about

As an entrepreneur, it is important to think from the outset about how one’s own assets and business can be secured and maintained in the long term. A family foundation can be an interesting option here, as it not only offers asset protection and inheritance planning, but can also have potential tax advantages. By establishing a family foundation, for example, entrepreneurs can reduce their tax burden and thus achieve tax savings.

We talk in the interview about:

1. What is a family foundation, why and when do you “need” it
2. What are the 3 central advantages of a foundation
3. What about taxes? Corporation, donation, inheritance & Co.

We conduct the interview with Immobilien-Erfahrung.de (in conversation “IE”).

What is a family foundation?

FIV: Let’s start with an overview:

IE: To ensure that family assets are preserved in the long term, it is important to protect them from various risks such as inheritance disputes, creditors and the tax office. One possible option here is to set up a family foundation, which can provide the founder and his family with economic security over generations and protect the assets from being broken up. This is a legally independent foundation that manages real estate, company shares and other assets.

So in a nutshell:

• Protection of family assets over generations
• Avoidance of inheritance disputes and break-up of assets
• Possibility to manage assets such as real estate and company shares in the foundation
• Tax advantages due to the taxation of the foundation with corporate income tax
• Possibility to avoid the right to a compulsory portion of family members

Well-known family foundations in Germany

FIV: Strong, because we have many articles on the subject of first capital investment buy & Co. So that it does not become too abstract for our readers, what are the most well-known family foundations in Germany? Who do you know? Can you tell us 3 examples?

IE: Yes, of course, there is the Bertelsmann Foundation, for example, founded by Reinhard Mohn, is one of the largest foundations in Germany and is involved in the areas of education, society and culture.

There is also the Robert Bosch Stiftung, founded by Robert Bosch, promotes projects in the fields of health, science and technology, and international relations. Another flagship would be the Krupp Foundation, founded by the Krupp family, is involved in the areas of culture, education and science as well as in the promotion of social projects.

Then there is:

• Aldi Nord and Aldi Süd Stiftung Stiftungs GmbH
• Otto Group Foundation
• BMW Foundation of Herbert Quandt
• And many more!

When does a family foundation make sense?

IE: Roughly speaking, very roughly speaking:

It only really makes sense to set up a family foundation with a capitalization of around 1 million euros.

Protection of family assets and businesses

FIV: Now let’s get to the core of the interview, the why and wherefore! What does protecting assets mean, from whom and why should I protect my assets – once I am a millionaire?

IE: Even though the family foundation is not tax-exempt, several factors can make it worthwhile to establish:

Raising a family is often a long and arduous process of hard work and hardship. It is therefore understandable that entrepreneurs are concerned that their legacy will not be carried on in their spirit after their passing.

One way to alleviate these concerns is to establish a family foundation.

Divorce, inheritance, family dispute – examples

Establishing a family foundation ensures that the entrepreneur’s assets remain in the family and are not fragmented by divorce or inheritance.

A foundation can also help avoid the breakup of the company, as foundations do not issue shares that can be bought out. This provides effective asset protection, as the foundation retains control over the assets and manages them in accordance with the wishes of the entrepreneur and his family.

In addition, family foundations can also help preserve family peace by providing a clear structure for the management and distribution of assets.

However, the foundation can also play an important role in supporting charities and non-profit projects, which can be of great importance for entrepreneurs who want to engage in social responsibility, of course also in the point of self-PR.

Inheritance: taxes and protection

FIV: According to the Hans Böckler Foundation, the annual inheritance volume in Germany, including gifts, will amount to up to 400 billion euros in the period up to 2027 – per year. Inheritance is an important topic. Therefore the question, what can a family foundation do in terms of inheritance?

To illustrate this, here are the figures for the number of taxable inheritances and gifts in Germany from 2008 to 2021.

400 billion per year

180,000 inheritances per year

You can find more statistics at Statista

IE: By establishing a family foundation, family members can be provided with binding security during the founder’s lifetime. The clear structure of the foundation can help to defuse potential inheritance disputes in advance. This can be of great advantage, especially in the case of large estates or complex family structures.

Inheritance and mandatory shares

Another advantage of setting up a family foundation is that the founder can avoid the claim of children or parents to his inheritance (so-called claim to a compulsory portion) if he transfers the assets to the foundation ten years before his death. This can be particularly important if the founder intends to concentrate his assets on certain family members or if he wishes to support a charity, for example.

In addition, the establishment of a family foundation can also help to protect the assets from creditors. As long as the assets remain within the foundation, they cannot be seized by the founder’s creditors. This can be important for entrepreneurs who have a high personal liability risk or who operate in a particularly high-risk business field.

Tax advantages: Only 15% tax

FIV: Now to question that everyone is most interested in, what is it about “saving taxes” when you set up a family foundation?

IE: In Germany, the establishment of a family foundation can bring tax advantages. The foundation is subject to corporate income tax, which can lead to a lower tax burden compared to other types of companies such as a GmbH, which have to pay trade tax. In addition, donations to the foundation may be tax-deductible under certain conditions.

FIV: Can you explain that in more detail?

IE: Simply put:

You can legally lower your tax burden to 15% with a family trust.

FIV: With a family foundation you can legally reduce your tax burden in Germany to 15%, ok. How does that work and what does a “normal” GmbH pay?

IE: The establishment of a family foundation can indeed help to reduce the tax burden in Germany to 15%.

This is the corporate income tax levied on the income of the foundation.

In contrast, a “normal” GmbH must pay trade tax, which can vary depending on the municipality. In addition, there is corporate income tax, which is levied on the income of the GmbH and is usually higher than for a family foundation.

However, the 15% corporate income tax for family foundations only applies up to a certain exemption amount and depends on various factors such as the size of the assets and the structure of the foundation. But it pays off, especially over the years.

But we don’t want to go into too much detail!

Inheritance tax and gift tax

FIV: As far as I know, you also have advantages in terms of inheritance tax and gift tax, especially through the allowances, which are taxed more favorably and can thus be paid in year after year. Can you tell us something more about this?

IE: Unlike charitable foundations, the family foundation does not enjoy any automatic tax benefits – that’s just in advance. Nevertheless, it can offer great potential for tax optimization compared to other corporate forms.

Transfer of assets to the foundation

When assets are transferred to the foundation – in particular when they are established – gift or inheritance taxes are incurred. In the case of a “normal” private foundation, the unfavorable inheritance tax class 3 is generally applied. In the case of a family foundation, on the other hand, the relationship between the founder and the entitled family members (beneficiaries) is decisive. If only the spouse and the descendants (children, grandchildren) are beneficiaries, the favorable tax class 1 applies.

Here’s a tip on the side, we also have a handy gift tax calculator. Here you can calculate what typically has to be taxed.

However, in the case of family foundations, a fictitious inheritance is assumed every 30 years, on which inheritance taxes are incurred. Here, an allowance of 800,000 euros applies, the so-called double child allowance. Otherwise, the general regulations for inheritance and gift taxes apply. However, if there are favored business assets, the corresponding exemption discount can lead to significant tax savings.

If you would like to learn more about this, please visit our blog. I can recommend, among others, the articles Asset Protection and Vermögensschutz durch Familienstiftungen by our foundation expert.

FIV: Thank you for the insight into family foundations!

Summary: 10 Learnings on the Family Foundation

Let’s briefly summarize the most important facts for you.

	Learning foundation
1	A family foundation provides asset protection and estate planning for family assets and businesses.
2	A family foundation can protect assets from divorce, inheritance and break-up, thus avoiding inheritance disputes.
3	A family foundation provides a clear structure for managing and distributing assets and can preserve family peace.
4	By establishing a family foundation, family members can be provided with binding security during the founder’s lifetime.
5	A family foundation can circumvent the claim of children or parents to the inheritance (claim to a compulsory portion).
6	A family foundation can protect assets from creditors.
7	A family foundation can be used as an instrument of social responsibility.
8	A family foundation is subject to corporate income tax and can thus reduce the tax burden to 15%.
9	A family foundation offers great potential for tax optimization compared to other corporate forms.
10	In the case of a family foundation, the relationship between the founder and the beneficiary family members is decisive for the tax classes for gift or inheritance taxes.

Buying a house: High cost, high risk

The dream of owning your own home – for many, this is a life goal that needs to be achieved. Besides many positive aspects, owning your own home also has its downsides. When you buy a family home, whether for your own use or as an investment, you are always 100% responsible for the costs incurred. Read more about the risk of buying a house here.

(Alb) – Dream: The pitfall of home ownership

For many, the former dream of owning their own home often quickly becomes a nightmare. Many use a building savings contract to pay off a house until retirement age, with the intention of living rent-free. However, the assumption is usually deceptive and you still get into debt, as you are responsible for 100% of the costs incurred. So one is never completely rent-free.

• 100% investment costs
• 100% self-responsibility for costs
• Even after paying off the loan not quite rent-free

3 mistakes when buying a house

There is a lot to consider when buying a house. What many people forget are the mistakes that can be made when buying a house. Here we have the most important points for you, why we advise against a house as a first property.

Error 1

The costs incurred for the house always remain, for which you yourself are 100% responsible. You are never really rent-free with a property for pure personal use.

• Management and maintenance costs of the house remain forever

Solution – For a truly carefree life, it is advisable to maintain a second and third property that you rent out. With the proceeds from these properties you can pay the management and maintenance costs of your own property and, depending on the return, pocket the rest as profit.

Error 2

The property you bought when you were young is not suitable for your old age later on. Sooner or later, the property will have to be remodeled to meet the needs of the elderly, which will incur additional costs.

• Property is not suitable for old age later
• Costs for age-appropriate conversion
• Property sooner or later becomes too big

Error 3

Your credit rating at the bank is reduced by a property with owner-occupancy and without an additional capital investment. Through the self-use of the property, you suddenly have more current expenses than income, the running costs are also always 100% your responsibility. In the event of a job loss, the bank of you additionally has no coverage, because this means loss of income and rent for you and thus a higher risk for you and the bank.

• More running costs, less spending
• Costs 100% personal responsibility
• Job loss means loss of income and rent – risk

Source: Real Estate Types/ Real Estate Experience.com

Multi-family house: high equity, high costs

So owner-occupancy is the most expensive way to live. The situation is different with investment property. Here the tenant and the tax office more or less pay off your debts. Therefore, we now come to a multi-family / multi-party house. But real estate beginners are warned! This area is more for experienced people.

So when should you think about buying an apartment building? When you have enough equity to cover the purchase price, management costs, maintenance costs and modernization costs. Despite the ongoing rental income, here, as with owner-occupation, they are 100% responsible for all costs incurred.

Here again in brief summarizes the disadvantages of a multi-family house:

• High equity required to cover costs
• 100% of the costs must be borne by the owner himself as the owner

Residential and commercial buildings (WGH)

WHGs behave similarly to multi-family houses, but are nevertheless much riskier to invest in. Since they are equipped with commercial space in addition to residential units, they are vacant more often than residential units. The area must be maintained nevertheless, whereby additional costs result. This in turn means that you have to raise more equity.

• High risk due to vacancy
• Even higher equity required
• Vacancy must be kept in operation – More costs

Condominium: High yield & cost sharing

The solution for your first property? A condominium! The big advantage? When you buy a condominium, you are part of a community of owners, so you don’t have to bear the costs of a house all by yourself. The costs for maintenance, repair and modernization are shared among all owners. Regardless of whether it is for your own use or an investment property, the running costs are always lower than in a house where you are the sole owner.

• Part of a community of owners
• All costs incurred are divided by the number of owners

A short example: Let’s say we are talking about a heating system for 16,000 euros. You are part of an 8-part apartment building, with 1 condominium. The costs are divided by 8, so you pay -14,000 less and only 2,000 euros for the new, modern heating system.

Commercial, special real estate and monument protection

You should take a closer look at properties with commercial use, listed buildings or properties for a special purpose before buying. Why, you will learn here in a short overview!

Commercial property

• Nothing for beginners
• Subject to different legal framework than residential
• More frequent vacancies than for residential space (fluctuation)

Special real estate

Villa, farm, winery or even workshop and shopping center, all these are special real estate.

• More difficult financing due to high risk for banks
• Rather buy in A- and B- locations, as a rural location carries too high a risk

Real estate under monument protection

Real estate with historical value and special status (rights, obligations, taxes and subsidies).

• Tax incentives
• Higher costs for repair
• Restrictions on structural changes

Conclusion: What should I invest in at the beginning?

If you look at our comparison, you can clearly see that every property, except condominium, has disadvantages. Therefore, our conclusion is: condominiums are the easiest way to get started in real estate. Here again briefly our most important points at a glance:

• Self-use is the most expensive way to live – you are responsible for 100% of the costs yourself
• Ideal case for entry: condominium, for rent (investment), with good return!
• If it is to be owner-occupied, then directly with 2nd or 3rd property as an investment.

The next step: how to build your assets?

Are you interested in real estate to secure and build up your assets? Then read on here: Everything on the subject of investment, value investment and inflation.

ICON IMMOBILIEN GmbH

Icon Immobilien: Professional, innovative and efficient real estate agency in Hamburg, as well as on the North Sea and Baltic Sea. New construction projects are for example the 22 holiday apartments “Südstrand” in Großenbrode, the 12 condominiums “West Nest” in Gr0ß Flottbek, 21 modern rental apartments in Hamburg Rissen or the “Maison au Jardin” in Hamburg’s upscale district Eppendorf.

• Rating: 4.7 out of 5 (3 ratings)
• Mühlenkamp 59, 22303 Hamburg
• 040 65052990
• Icon-real-estate.com

Tomczak property developer GmbH

Tomczak Bauträger: Family business for 25 years. Current building projects include the construction of six exclusive architect townhouses in Hamburg-Alsdorf, seven modern architect townhouses in Hamburg-Lurup or the construction of eight modern semi-detached houses and four townhouses.

• Rating: 4.4 out of 5 (13 ratings)
• Stader Str. 260a, 21075 Hamburg
• 040 768991410
• Tomczak-bautraeger.de

Exporo

Exporo scores with a diverse range of properties with over 395 projects. Current portfolio properties include the health centre at Hasselbachplatz in Magdeburg, the “Alte Werft” residential and commercial property in the centre of Amsterdam and the Altstadt Quartier in Bremen.

• Rating: 4.2 out of 5 (41 ratings)
• Am Sandtorkai 70, 20457 Hamburg
• 040 210917300
• Exporo.com

OTTO WULFF

Otto Wulff creates living spaces that make people happier. In addition to the Hamburg office, there is also a location in Berlin and Leipzig. References are for example the office building “Schlachthofstraße” in Harburg, the school construction project “new Campus Steilshoop” in the north of Hamburg or the holiday apartments “Godewindpark” near the beach in Travemünde.

• Rating: 4.0 out of 5.0 (45 ratings)
• Archenholzstraße 42, 22117 Hamburg
• 040 736240
• Otto-wulff.de

Wph Housing and Project Development

wph Wohnbau: A family business specialising in high-quality real estate property in Hamburg. References include the “Parkside 2” in Lokstedt, the six condominiums “Doppeltes Lottchen” or the 12 high-quality condominiums “Aquamarin” in the new prestigious district of Hamburg-Altona.

• Rating: 4.4 out of 5.0 (7 ratings)
• Rothenbaumchaussee 44, 20148 Hamburg
• 040 21116570
• Wph-immo.com

NEUBAUTEAM CVJ Kapital & Immobilienberatungs-GmbH

The boutique company Neubauteam transforms the old and creates the new. Projects such as the “Ried Höfe”, consisting of 13 detached houses and 26 townhouses in Hamburg Rissen, the 12 modern condominiums “Les Belles” in Hamburg Hohenfelde or the Flurterrassen between the Elbe and the city are part of the repertoire.

• Rating: 4.3 out of 5.0 (6 ratings)
• Alte Rabenstraße 22, 20148 Hamburg
• 040 59362600
• Newbuildingteam.com

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

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

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

The 9 most important key figures – Real estate as investments

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

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

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

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

Land as investment – clever businessmen watch out

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

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

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

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

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

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

5 tips for buyers – a property as an investment

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

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

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