Berlin real estate: an urban investment

Urban treasures: Berlin’s real estate market

The properties we are looking at are located in the vibrant metropolis of Berlin. The city is known for its dynamic culture, history and growing economy, making it an attractive market for investors. The increasing demand for residential and commercial space in Berlin has led to a significant increase in value and thus to interesting investment opportunities.

The Rolex Daytona: an icon of luxury watches

The symbol of exclusivity: the Rolex Daytona

The luxury watch we are analyzing is the Rolex Daytona, an icon among luxury watches. Known for its precision and iconic design, the Daytona is not only a coveted collector’s item, but also an investment that has gained considerable appreciation. Its popularity and value are closely linked to the quality and prestige of the Rolex brand.

Performance since 2012: a detailed comparison

The figures speak for themselves: both real estate in Berlin and the Rolex Daytona have experienced an impressive increase in value. But the figures also show that the Daytona has put in an outstanding performance, outperforming the solid gains from the real estate market.

Table of value appreciation: a direct comparison

The following comparison shows the percentage increase in value of both forms of investment since 2012. The table illustrates the increase in value and the potential of both investment options:

Sources: Watch prices / Real estate prices

Rolex wins!

Rolex = 260.77 %

Property = 189.29 %

Conclusion: The importance of diversification

These figures underline the importance of diversification in investment portfolios. Investors should always monitor market developments and can minimize risk and maximize returns by spreading their capital across different asset classes.

Outlook: The future of the plant in style

Investing in luxury watches and real estate remains attractive. These forms of investment are expected to continue to play an important role for style-conscious investors seeking a combination of financial return and aesthetic value.

Rolex & Luxury Watches

• Luxury watches
• Rolex

Graft Architekten – Real estate with passion

The architectural firm Graft from Berlin was founded by three German architects, and is now a renowned and both nationally and internationally successful company. We have conducted an extensive interview with the founders, which we have divided into 3 thematic sections, for each of which an article was created. In the first part the founders talk about passion and drive of the company. The second part of the interview deals mainly with residential and mixed use projects. The third part deals with Graft’s future projects. Click here to get to the respective parts of the interview:

1. Architect’s office
2. Residential & Mixed Use
3. Future: E-car charging station & Co.

Joint architectural studies, foundation and company statement

FIV: Dear Graft team, let’s start the interview with you as an architecture firm. When it comes to founding great companies and ideas, everything often starts off the beaten track. The founders of Uber, one of the most innovative companies in the USA and now also in Germany, met by chance in Paris. The architecture firm Graft, now also based in Shanghai (China), has its roots in Los Angeles. What was the idea, situation or objective that gave rise to the Graft architecture firm? How did you come together in LA?

Graft: It’s customary for us architects to meet at the university. That’s how it was with us, too. We all studied architecture in the same semester at the TU Braunschweig and got to know each other there. Believe it or not, we also played classical music and sang acapella together back then.

In this way we got to know each other well and quickly realized that we harmonize both vocally and humanly. With us, the whole thing was even quite professional, we toured and also released a few CDs together. An intense friendship developed out of it and looking back it seems almost fatefully clear that something lifelong would develop out of it.

Why did we found the office in LA? As young architecture graduates, we decided to go to the US at the end of the 90s, because that was the place of departure and the beginning of digitalization within our profession. In this respect, Germany was simply still a developing country.

Building in Germany or America – authorities make the difference!

FIV: A quick question for our readers who might want to build in America. German building law is, like many things here, particularly bureaucratic. So for you as an architect, free, creative planning is certainly more difficult in Germany (e.g. Berlin) than in Los Angeles (USA), for example? Does the country make a difference?

Graft: Yes, you could say that. Interestingly, building law in America is just as complex and quite strict. It is the mentality of the people in which our experiences with the responsible offices differ.

In the USA, the American idea of service also prevails in the authorities, and work is done with a higher degree of innovation and dynamism. In Germany, people stick to existing rules and are very reluctant to break new ground. In the USA, there is a much greater motivation on the part of the authorities and the other parties involved to solve the concerns of the counterpart together.

One of the flagship projects is the Charlie Living Quartier in Berlin. Get an impression of the building complex here, which has become a flagship of the company in Germany.

Architects as experts: Innovation is the key

FIV: For our readers who are discovering Graft for the first time today, how would you as the owner, founder and idea generator describe your architectural practice in a few words, what makes Graft, as a company, a brand?

Graft: We are innovators. We want avant-garde, although we are romantics at the same time. We love the origins and long history of architecture as much as the unknown future. Lars Krückeberg, for example, is a great Renaissance connoisseur, and has just returned from a one-year stay as a scholarship holder at the Villa Massimo in Rome. You could say we are seekers with strong roots. It was this search that led us to the New World back then – to the academic world of America, which was more interesting at the time. Into the spirit of optimism of a start-up culture in California. We would say we were curious, pushy people who wanted to rattle the bars of the cage called “this is how it’s always been done”.

“We are seekers with strong roots”.

That is one thing. And at the same time, we are also typically German: people with a sense of social justice. We don’t only work on high-end projects, but also initiate social projects for which we partly work for free. We are always looking for problems to solve and our time offers many urgent tasks.

These can be about beauty, about wanting to experience something you’ve never experienced before. But it can also be that one builds a house for people who otherwise cannot afford a house. The goal here is to not just repeat yourself if possible. To be a problem solver as well as a designer, that’s what we’re all about.

Print in business: always new, always different? Fashion & Architecture

Graft: The same applies to the topic of fashion, which I’m sure your readers are interested in. Only there it is much freer and at the same time subject to faster changes. For fashion designers, it’s both a curse and a blessing that they have to constantly reinvent themselves.

People don’t want to wear the same thing every day. Only when it comes to an investment and not a consumer good, the behavior is much more sedate and cautious. For many people, buying a home is a once-in-a-lifetime investment. That’s why there’s naturally more concern about maintaining value, and the question arises, “What will it all look like in 50 years?” Our claim is to design something new and a classic at the same time.

The constant search for new things is the drive

Here, too, there are pioneers on the side of the clients, whom we call “early adopters”. People who have a certain understanding of culture and art, who strive for something new in architecture. And not only does a modern car or interesting contemporary art go with modern fashion, but also contemporary architecture.

Awards and planning of new properties

FIV: Ideas from Graft is a collaboration of 3 strong founders and their partners. They are all excellent architects! Founded in 1998, they have over 20 years of expertise, experience and references. They have won many international awards. New spectacular ideas are being implemented, charging station for E.ON, the air taxi Volo-Port.

The Charlie Living Quartier in Berlin is also from your company, with which you have just been nominated for the “Archdaily 2021: Best Building Award”. Congratulations! After all these years, is it still exciting for you to tackle a new project, to plan a new building, or has all this become routine for you?

Graft: It’s always exciting. The expertise we have gained means that we can recycle our knowledge well. But that doesn’t just mean formally, creatively or inventively, but also in the tools of the trade. We now know all the tricks of the trade when it comes to building.

Every now and then we literally stand in front of a blank sheet of paper. We recently built an ice stadium for the first time and learned a lot of new things in the process.

The ice stadium in question, the “Schierker-Feuerstein-Arena”, is located in Wernigerode (Germany) and was completed in 2017. The task here was the reactivation of a historic ice stadium with a new roof construction. Here you can see the result of the Graft project.

Experience & inspiration lead architects to success

Graft: When the next assignment for a residential building or a villa comes up, we already have so many ideas and dreams from the past that you haven’t been able to implement yet, and with which the internal library in your head is filled. You look into sketchbooks and look up past designs, this fertilizes the project in a more complex way. At the same time, each project is unique and requires something new. The three of us find the actual moment of the idea the most exciting. A design often needs many ideas, variations to mature and develop.

As an architect, you should be ready to contribute to the building culture of our society and the problems it solves. The profession should be approached with verve and a desire for the unknown.

Development process: From the idea to the finished design property

Graft: We like to brainstorm and sketch together and inspire each other with ideas. That flow in creativity where a vague idea becomes a concrete design. That’s what we live for, probably like any creative person.

That’s why every new order is a chance to relive the moment of brainstorming before you have to make a final commitment to plan and build the project. We like to invest a lot of time to enjoy this process.

“Passion makes a good first a very good idea.”

We are especially grateful that we feel our profession as a vocation and may live as such. Just like with good music or good fashion, you can tell if someone brings passion to the table and if there is passion in a result. Without passion, that last mile that can take an idea from good to very good can’t happen.

Projects with pride: villa for Brad Pitt, dental practice and more

FIV: I’d like to talk about a few of your projects now, but first of all, looking back over 20 years of experience as architects, which of your projects, around the world, are you most proud of?

Graft: We always remember our first steps, even if they were only small projects. The first villa for Brad Pitt, for example, or the dental practice on the Kudamm, which we have continued to build for 20 years.

Social commitment in New Orleans: Reconstruction & Co.

Graft: We are particularly proud of the first major social commitment, in which we volunteered for 10 years to help rebuild New Orleans after the destruction caused by Hurricane Katrina. We invited many colleagues to participate in the project. We also created a sustainable curation for the process of rebuilding the city.

Another highlight is certainly that we were curators for the German Pavilion at the 2018 Venice Architecture Biennale. For architects, this is a great accolade. In the exhibition, we looked back at what has been created architecturally and culturally along the former Wall strip in the 30 years since reunification. For me (Wolfram Putz), the greatest projects are those that are just getting started. To put it simply: I find tomorrow much, much more beautiful than yesterday.

“Tomorrow is much, much more beautiful than yesterday.” (W. Putz, founder)

I (W.Putz) have the habit of rarely returning to the projects we have built after a while. A life in motion or in the moment of invention, that is basically the most beautiful thing.

Here you can see one of Graft’s flagship projects: The Bricks in Berlin Schöneberg, right on the main street. As an old post office site, this project was particularly challenging, and the result has been both commercial and private residential space. You can read more about this exciting project in the related article: Bricks Berlin.

Architects as stage designers!? About the building process

FIV: A nice coincidence, you basically anticipated my next question. That would have been whether you dedicate yourself directly to the next project after completing one, or whether you also take the opportunity from time to time to return to the places or projects you created?

Graft: You visit a completed project now and then, but it’s not an explicit need. There are architects who have built a really great masterpiece. For example, the architect of the “Sydney Opera Hall” – he only built two things in his life, a small house in Mallorca and the famous Sydney Opera House. Of course, he has always returned to that house his whole life. It has also become a fantastic masterpiece, but after the keys are handed over, after the press appointment, a certain development sets in: The projects then “grow up” as if by themselves.

“A project is never yours for long”

Graft: Architects basically create a stage on which the users perform their own play. The feeling that a project belongs to you fades over time, even though you’ve worked on it for so many days. It then belongs to someone else. Sometimes it belongs to the private user, sometimes to the public, who, if it goes off “Berlin-style”, think up a nickname for it, and again make something entirely their own, a new identity out of it.

Collaboration with architects: Getting to know each other & developing an idea

FIV: Who wants to realize his ideas with a partner like you: how can we, as “home owners” imagine the concept phase, the planning, the construction of such spectacular real estate? What is important when planning a building with “design elements”?

Graft: In contrast to other well-known architects who often want to impose their own signature, we prefer a “learning journey”, the joint journey to the result. We are not so fascinated by the classic architecture competition mechanics, we prefer to get to know our clients personally. For example, we go out to dinner with them, watch football with them, dream, discuss or cook together. Getting to know each other very intensively is important to us.

“Getting to know people and putting them at the heart of invention is what we like best of all.”

This happens well before you develop a design approach, otherwise you run the risk of falling back too quickly on a drawer in your head. It’s a process, “design thinking, user-centered”: getting to know people and putting them at the center of the invention. That’s what we like best of all. It doesn’t always work, and it doesn’t always involve a single person. This process of being completely close to people, of being immersive, is what would describe us best of all. For this, it is essential that our counterpart brings the same desire for the project.

Example: Wave residential building in Berlin on the Spree

One of the architecture firm’s projects that has been completed in the meantime is, for example, the “Wave” project on the banks of the Spree in Berlin. Here, two residential buildings were created that lend the riverbank a special charm. The qualities of this special waterfront location in particular served as the conceptual model for the new building.

Here is another view into one of the many apartments of the residential building with a picturesque view of the Spree and the opposite bank.

Virtual Reality as an important medium – also for real estate

FIV: One area that is becoming increasingly interesting is VR, or virtual reality. Worldwide, for example, there is now the first real estate portal that lets new properties be presented by a virtual real estate agent, more precisely a virtual avatar named Ella . That is, she presents new properties, always looks the same, speaks countless languages, because it’s all digital.These are all first attempts, but how do you assess the future of VR technologies for presenting projects?

Graft: We find the technologies of virtual reality very fascinating. That was also one of the reasons why we went to America at the time: to further study the possibilities of the future there. There were more technological innovations in America that appealed to us. Whether it’s a software or just this hardware of VR glasses – which we actually also use in our presentations – everything is full of exciting possibilities.

Invention phase: Giving clients an idea

Graft: Architects have always learned certain techniques. One of the most time-consuming things in the invention phase is to visualize one’s own idea in the mind of the other person. In the past, the great architects used to do this, for example, by painting huge canvases that took weeks or even months to complete. Today, we have completely different technologies at our disposal to show the still embryonic architectural ideas to other people – up to the almost physical experience through VR glasses.

We were thrilled by the first demos of VR technology – it was clear that it could carry us forward. It makes architecture better, increases customer satisfaction, eliminates misunderstandings between architect and client. In addition, like any work, it suddenly gives feedback on how architecture is created. As architects, we can now use VR to better describe ideas in advance, before we cast something in concrete. It helps to control processes, to improve them, to make them more beautiful. That’s just fantastic!

Residential buildings and future projects – Interview part 2 & 3

You haven’t heard enough about the successful architects and their work? No problem, there are more interview parts waiting for you! Besides their basic work, we also asked Graft about future projects, as well as residential buildings and flagship properties. In the following posts you can dive deeper into the world of modern and innovative architecture.

Residential buildings, offices and popular projects of architects (2/3)

The second part of the interview is about flagship projects and residential and mixed-use properties. Whether it’s a dental practice, a revitalization project with a historic preservation factor, or a modern villa for private owners: the portfolio of the architecture firm is versatile and unique. No two projects are the same, and there is always something new to discover! Take a closer look at the projects here and let the founders explain more about the development processes, ideas and concepts.

• Residential real estate and flagship projects

© Tobias Hein

Future – modern architecture for air taxis & e-cars (3/3)

Electric cars, filling stations for electricity and air taxis – dreams of the future? Not at all! The modern company wants to act as a pioneer, create opportunities and solve problems! With its future projects, Graft, as a pioneer of the transport revolution, is embarking on a search for innovative solutions to modern problems together with strong partners such as e.on. Find out everything about the exciting architectural projects of tomorrow here!

• Future projects – air taxi and e-car charging stations

© Bloom Images

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 and its relevance in the economy

The commercial property sector delivers and manages existing infrastructure and invests in new. Infrastructure that is necessary for companies to thrive and for the jobs that go with them – economic growth.

This sector of the economy is therefore a fundamental source of employment and economic growth and contributes significantly to meeting two crucial challenges of our time:

1. Providing liveable and functioning cities for a growing urban population, including the provision of work and office space for businesses of all sizes.
2. Reducing the ecological footprint of the built environment

Investments in Germany

Simply put, real estate can actually be one of the smartest, best investments you can make at a time when mortgage rates are extremely low, as you can also read here in the Capital Investment Real Estate article. For most people, buying real estate is a long-term ownership.

Investments in real estate are interesting for large investors as capital providers, but also for small investors who are looking for stable and, even better, rising values. Germany is extremely interesting in the real estate sector, which can also be seen in the development of house prices in Germany in the years from 2000 to 2019 (2015 = Index 100).

While the value remained stable from 2000 – 2010, prices have exploded since then.

• 2019: 128,1
• 2015: 100
• 2010: 83,9
• 2005: 83,3
• 200: 84,4

You can find more statistics at Statista

Housing stock in Germany

The big players around Vonovia, Deutsche Wohnen & Co. have a lot to do in Germany. According to the Federal Statistical Office, there are currently around 18.7 million residential buildings in Germany. These are further subdivided into around 40 million apartments, to which must be added the apartments located in non-residential buildings, resulting in a total housing stock in Germany of around 41.4 million units, according to the official figures.

People always live here!

Test result

The test result is really meaningful and also gives a forecast for development in the stock market. Only 7 out of 23 shares were able to increase or at least maintain their value. 16 out of 23 have suffered losses. Some due to the crisis, others lost value even before the crisis. Almost 70% in the test lost in this period.

Considered were:

• 23 Real estate shares
• Start: 15.01.2020
• End: 15.06.2020
• Timeframe: 1 month before; 4 months during the crisis

Results:

• 4 Shares increased in value
• 3 Shares remained stable
• 16 shares lost value

Rising prices

The share price development was evaluated for the period 15.01.2020 to 15.06.2020.

Vonovia

Charts and company: Vonovia share

• Opening 52,30
• High 53.52
• Low 51,98
• Market cap. 29.15 bn
• P/E RATIO 22.32
• Yield 2.93
• Vort.|Schl. 52,90
• 52-week high 56.18
• 52-week low 36.85

Vonovia share (36 months), chart from Ariva.de:

LEG real estate

Charts and company: LEG share

• Opening 116.32
• High 117.18
• Low 115,00
• Market cap. 8.10 bn
• P/E RATIO 9.15
• Yield 3.07
• V.p. 117,90
• 52-week high 119.88
• 52-week low 76.70

LEG Immobilien share (36 months):

Patrizia Real Estate

Charts and company: Patrizia Immobilien share

• Opening 21,75
• High 22.05
• Low 21,75
• Market cap. 2.04 bn
• P/E RATIO 38.57
• Yield 1.32
• Vort.|Schl. 21,85
• 52-week high 25.30
• 52-week low 16.13

Patrizia Immobilien share (36 months):

CR Capital Real Estate

Charts and Company: CR Capital Real Estate

• Opening 31,90
• High 33,00
• Low 31,90
• Market cap. 123.60 m
• P/E RATIO 13.53
• Yield 2.27
• V.p. 31,60
• 52-week high 41.80
• 52 week low 17,90

CR Capital Real Estate Share (36 months):

Only these few were able to recover and even partially expand their share prices.

Stagnant

Godewind, Dream Global REIT and Patrizia Immobilien remain stable.

Godewind

• Charts and company: Godewind share

Dream Global REIT

• Charts and Company: Dream Global Share

GSW Real Estate

Charts and company: GSW share

• Opening 96,50
• High 96.50
• Low 93,00
• Market cap. 5.27 bn
• P/E RATIO 10.18
• Yield 1.51
• Vort.|Schl. 98,50
• 52-week high 108.00
• 52-week low 60.00

Lisa and Lena

FIV: Lisa and Lena have decided to delete their Tik Tok account! Is Tik Tok just a stepping stone?

Stephan: On Lisa and Lena I would say so much, they have generally withdrawn. At their peak times, when they were only 15 years old, they had 23 million followers, alone on Tik Tok. That’s an incredibly high number and I think they’ve experienced a lot already. Tik Tok is again a constant pressure to produce new content, to be funny, to be creative, to be different from all the others! Both of them put so much effort into their young years that they deserved a break.

Tik Tok’s production is very elaborate, unlike Instagram it’s not enough to post a nice photo. The users want entertainment, pure entertainment! To constantly have new ideas, to dance, to sing, to be funny, to be emotional is a really big challenge. At Instagram you can post beautiful photos, on YouTube you have a week to post a new video. With Tik Tok it has to be something new all the time. That causes stress.

Tik Tok – what to know?

FIV: Hey Stephan, you deal with social media and campaigns every day. Tik Tok has been around a bit longer now – maybe it’s even mainstream like Instagram and Youtube? We wanted to know from you what phase Tik Tok is currently in and what will happen next? More importantly, who uses Tik Tok, how old are the users?

Stephan: For Tik Tok it’s important to know that it’s not a new social network, but was completely rebranded a few months ago.

In former times the social network was known under the name musical.ly. The network developed since then strongly. Wobei already the basic idea was very ingenious. The founders concluded at that time contracts with the large music companies around Songs to use, so that users can sing own Playbacks on it.

About one year ago the platform hit a new way to reach new users. Until now, Tik Tok users were mainly between the ages of 11 and 14. They also tend to be a little younger or older.

In Germany, but also elsewhere, users are slowly getting older, up to 18 years old. Accordingly, Tik Tok is what Instagram was five years ago.

As far as the perspective for the future is concerned, Tik Tok will certainly join the portfolio of different social networks. Why? As with the other social networks, the youngest target group is represented here. But this target group is also getting older and the social network is thus becoming increasingly established.

What makes Tik Tok different? Help for influencers

FIV: What makes Tik Tok so different when it comes to the contributors? What distinguishes the Tik Tok marketing strategy from the others?

Stephan: How do social networks earn their money? Especially with the accounts that users make available to you. The more specifically you can train your own users to use trends and create good content, or even make it available on your own social platform, the better. So the more Tik Tok takes care of his creators’ interests, the more interesting content will be published on the social network. The more exclusive Tik Tok is to his influencers, the more potential you can estimate.

But don’t underestimate the fact that social platforms like YouTube, for example, take just as good care of their up-and-coming artists. Youtube even provides its own YouTube studios in many large cities, such as Berlin, for its creators. Here young talents can test high-end technology from green screen studios to 4K cameras for free.

Over the years, individuals have crystallized who create content that others like very much. Today we call you Influencer. The stars of social networks. Of course, you take good care of your producers.

What distinguishes Tik Tok, however, in a small, yet very interesting detail, is that the Likes are not only rated on individual postings, but collected on all releases. Also the total number of the Likes plays a role, so that even smaller users, who cannot call themselves otherwise influencers, come sometime on 10.000 or 100.000 Likes. That raises the self-esteem of each user enormously.

And that’s why Tik Tok cares more about his users. You focus on making users understand what content you need to produce and you have also found a simple and nice way to give smaller users added value through the total number ofikes on all media.

Future: Where is Tik Tok?

FIV: What’s next for Tik Tok? Are the user numbers increasing?

Stephan: The development in online trading, it has been rising consistently and consistently for 20 years. But the number of users in social networks is finite. The network should definitely tend to create 600 million users in the world, whether it reaches the billion users such as Facebook, YouTube and Instagram is currently still very difficult to predict, as the user numbers as said are finite. However, growth is still possible and probable, because many threads are also spun in the background.

Of course, in an interview I can’t go too deeply into the matter, but in the background I make sure that the content on the social networks becomes more diverse. So that at some point it’s no longer just about music and comedy, but about beauty, tutorials, vlogs, any form of video content that also works on other social networks.

FIV: Many thanks for the answers Stephan!

Interview with real estate expert Jan Rickel from IHV – Die Immobilien Makler.

Hire a broker – costs & expiry

FIV: For many of our readers who have never used a broker before, the first question that arises is: Who actually pays the broker? For brokers the so-called ordering principle applies from now on. Recently, as I have understood, the client has to pay the brokerage fee or commission for the real estate brokerage. In a few sentences, who pays the broker?

There’s a saying “whoever orders the music has to pay for it”. Since 2015, the buyer principle has applied in all cases to the rental of apartments, houses, etc. In plain language: Whether landlord or tenant – whoever commissions the broker also pays the fees. As a rule, of course, this is the landlord, but more and more tenants are using a real estate agent to find a suitable apartment in the sometimes scarce market.

So if you want to buy a property with the aim of renting it out, you have to reckon with further costs as soon as you call in a real estate agent. This makes it all the nicer if the property developer from whom you buy your (new) apartment already has tenant contacts. This saves time, money and sometimes even trouble. First tip: ask the owner of the property you want to buy if he already has tenant contacts. This is very simple, of course, if you buy an existing property that is already rented…

FIV: And what is it like when buying or selling a property?

So far, there is no uniform ordering principle regulated by the federal government! A corresponding proposal of the party “The Greens” has not yet been discussed further or even decided. Buyers and sellers often share the broker’s commission, also known as broker’s commission. Only for the federal states of Bremen, Berlin, Brandenburg, Hesse and Hamburg does the rule apply that the buyer pays the commission.

Commission – How is this calculated?

FIV: And how sieht´s with the amount of fees or commission from? Can any real estate agent do what he wants when selling real estate?

Strictly speaking, yes! There are no legal regulations for the amount of the fees. In practice, however, buyers and sellers or brokers orientate themselves on the usual fee rates in the respective federal state. These range from 3.57% to 7.14% of the purchase price. So not necessarily always a little something. However, depending on the federal state – as I said – buyers and sellers share these costs.

For the money, a neat broker also does a lot! After all, for example, he prepares a meaningful exposé of the property, arranges and coordinates visits to the apartment, is actively involved in the drafting of contracts and negotiations, and so on. In addition to experience, you also need a great deal of knowledge about appropriate training or even studies.

Competencies of a good broker

FIV: What are the mistakes? How do I recognize a good and reputable broker? A doctor’s degree?

For God’s sake, no! Nobody needs a doctorate or similar to become a broker or to be recognized as a good broker! Until today it is even so that one may call oneself “real estate agent”, without having made a special training for it. This does not exist in the end either. With the training occupations “real estate specialist” and “real estate agent” there are meanwhile however recognized ways to be able to deal expertly with real estates.
Basically one needs numerical understanding, commercial knowledge or experience are advantageous. The only legal requirement is to have a trade licence or a broker’s license.

But a good realtor needs much more. This starts with a high level of social competence. That is, the ability to adapt to a wide variety of people and their needs. A real estate agent should not be shy of contact at all. Above all, however, he must be very familiar with the market in which he wants to buy or sell his property.

And as a customer, you quickly notice: does he know the cities, locations and property types and their special features very well? Can he refer to references in the environment? You can also talk to “neighbours” who have bought from the same broker. A good real estate agent also has all the documents for the property to be sold ready. Best in a meaningful and well-designed exposé. In addition, he should also be able to advise and accompany you in matters of contract law and notarial negotiations.

It is ultimately also the much quoted “gut feeling” towards the broker that gives an indication of “good” or “bad”. If the broker puts too much pressure on the decision, for example, he always speaks in superlatives, this does not necessarily speak for a good broker. For example, he should also talk openly about possible disadvantages of the property.

Tasks of a broker

FIV: Many people think at first only of the viewing date, what exactly does a broker do for the client?

It’s nice that we’re going to go into that again. Already above with the fees I have already mentioned what the client gets for his money. The inspection date is only a part of the many achievements of an estate agent, even if a completely particularly important one!

Before the inspection, the first inspection of the real estate, a professional evaluation and the determination of the correct sales price stand however. This requires a great deal of sensitivity on the part of the broker. Because the seller usually has completely different ideas about the value of his property than the market allows. Of course, the broker is first and foremost on the customer’s side, but that also means that he informs him fairly about what the current and future market prices really are.

Then the exposé comes to the property. This is not just a glossy brochure for better sales. The aim is to highlight the characteristics of the property in an appealing way, to put every detail in the right light. Photos and texts should reflect reality, but at the same time create an incentive to buy. All information regarding energy consumption, ancillary costs, etc. must also be listed and procured beforehand.

Coordinating viewing appointments with the seller and buyer is often a demanding issue. All parties must agree on an appointment. In addition, both sides have a different view of the sales process. The seller wants to achieve the highest possible price, the buyer the exact opposite. Here again the social competence of the good broker is in demand. He must have an eye on both sides and be able to communicate accordingly.

After all, the broker also accompanies the actual sales process. By either conducting the negotiations completely alone, if the seller does not want to see the individual buyers at all, or vice versa.

Real estate purchase – These three points are important

FIV: What are the 3 most important points I need to consider when buying a property?

First and foremost is the state of construction of the property! But please always take a deep look behind the scenes! Roof, walls, windows, garden, cellar etc. should not require renovation or will be deducted from the purchase price.

In the second place is the answer to the question of whether I want to use the property myself or buy it as a capital investment. The third point that depends on this is how good the residential location is for the rental theme. A bad living environment – let’s leave it open for the moment what that can be – usually means a high risk of loss of rent and thus problems with financing. If I want to live in the property myself, I should look at the additional costs (additional cost calculator), so that I do not wake up badly later.

FIV: Would you recommend the purchase at the current prices?

The current prices can also discourage you from buying. After all, they are also driven by rising demand – at least in conurbations. But also from the still sensationally low interest rate level! There are enough sellers who want to add more or less “fat” to the actual selling price.

But because of the currently still low interest rates, buying really makes a lot of sense! I recommend kann´s, but I would also advise you to consider the duration of the financing! After the expiration of the credit period – and most buyers need bank financing – so much debt is already paid off that a changed interest landscape cannot endanger the entire project. So: either agree on a high repayment at the favourable interest rates, or agree on as long a term of the loan as possible with favourable interest rates and standard repayment (2%).

Invest in a condominium – When is the right time?

FIV: When should I invest in a condominium and when should I think about buying a house – what would the expert recommend?

That’s basically quite simple: First of all geht´s about what I can afford with my possibilities at all. A house is usually more expensive than an apartment.

But the answer also depends on what purpose I am pursuing with the property. As a capital investment or yield object with immediate effect, the apartment is usually the better model. The apartment is or will be rented and brings me immediate income. Of course, I can only “take” the increase in value with me when I sell the apartment again and the market environment has led to an increase in value.

Buying an apartment house is only for real estate professionals! Buying and renting a single-family house as a yield property is also a complex matter. As a rule, the tenants of single-family houses are very attractive in terms of repairs and maintenance of the house. Because then prefer to think of their own home for their own use and consider it as an investment “for later”.

FIV: I want to sell! In your opinion, what are the 3 central topics in the sale of real estate?

I’ll give it a try:

1. Question whether you want to control the sale yourself, or if you prefer to hire a real estate agent to serve you the right buyers.
2. maintain that the elementary parts of the property are in good condition.
3. Question if your ideas of the selling price depend on personal and emotional things.

Thanks for the interview.

Interview with real estate expert Jan Rickel from IHV – Die Immobilien Makler.

Interview with real estate expert Jan Rickel from IHV – Die Immobilien Makler.

Condominium apartment as investment

FIV: You have been a successful real estate agent in the Rhine-Main region and beyond for more than 15 years. What are the five most important qualities that you think a real estate agent should have when it comes to selling a property?

Basically the same applies here as for the real estate agent who is to become active with the purchase of a real estate. I’ll start by saying it in a few words:

1. A good broker has proven experience.
2. A good real estate agent knows the local real estate market.
3. Good knowledge in the building industry distinguishes the good broker.
4. he has provided all relevant documents without being asked or has compiled them correctly.
5. A good broker accompanies the sales process at least until the conclusion of the notarial contract and accompanies the contract date.

FIV: But how can anyone who sells an apartment or a house for the first time know that?

You may find it a little strange, but here too – as in life in general – the first impression is very important. Nobody lets themselves be blinded anymore by big cars, suits and ties. A good real estate agent first takes a close look at the property and talks to the seller about his wishes and goals. Listen and watch: this is the start of a successful business relationship with the broker.

Rating for real estate portals

FIV: What do you think of the ratings on the various Internet portals?

This is really a very good first opportunity to find out about the quality of a broker. However, one should not only superficially rely on the rating stars, but also read the individual reviews. At least the more up-to-date ones, because they give you a good overview of the broker’s work quality and his effect on the customer. The number of evaluations received also plays an important role. Here the motto “a lot helps a lot” applies, in order to get a really representative impression of the quality of the broker.

Whether the real estate agent knows the real estate market in which the property is to be sold is also easily verifiable. He should know which prices are currently paid for houses of different quality levels; he should be able to assign the so-called “microlocations” by means of quarter or street names – preferably even without being asked.

I also recommend that the seller, before choosing a real estate agent, asks around in the city or region what the reputation of the real estate agency is. Especially if you are working with a broker for the first time, you will get a lot of useful first information and impressions.

FIV: What should I look out for in an initial consultation in order to distinguish serious brokers from dubious ones? Are there three concrete tips that you should take into account during the conversation or even during the first conversation on the phone?

During the first telephone call, there is usually nothing more happening than exchanging information on the modalities of cooperation and then, if necessary, arranging a viewing appointment on site.
During the first consultation it is important that the real estate agent explains to you what information he needs about your property and how he is going to market it. Also the selling price is discussed in the first appointment. Conversely, the seller should name his own wishes and goals in the sales process.

Otherwise, let the real estate agent look into every corner at his first viewing appointment! When he visits the traditional “weak points” of real estate on his own initiative, you know: the man is from the (construction) trade. Because even if you as a seller want to hide or conceal possible problem areas of the property: the experienced buyer will discover them and, in the worst case, refrain from the purchase.

The good broker looks into the cellar, under the roof, evaluates the condition of masonry, windows, heating, etc. and gives you recommendations as to whether and to what extent damage must be repaired before the sale. This is often a tricky subject. Very few sellers are interested in investing in the property to be sold. However, we recommend that you at least invest in basic maintenance in order to prevent possible damage to the property. So the roof should be really tight so that no serious moisture damage occurs.

The planning of a broker

FIV: Is there something like a checklist that I can expect from real estate agents?

No, we don’t work with a list to check off. An experienced real estate agent knows from his professional qualifications what is necessary and important for the successful sale of real estate. He will ask the salesperson about the basis of the sale in a consultation. These include floor plans, details of living space, year of construction, dates of renovation work and much more.

Finally, a good real estate agent will show you all the steps that are necessary and important from the valuation to the coordination and execution of viewing appointments to the notary appointment. He will also show you which services he provides as part of this process.

FIV: That is already a considerable effort up to here. Does the seller have to pay for this advice? What exactly does the real estate agent have to do afterwards and how much time does it take until the sale is completed?

In fact, the real estate agent is not paid until the property is sold. He shall offer all services rendered up to this point in time as advance performance. We’ll see how much work is done later.
At this point, let me say something about the keyword “sole mandate”. If you want to sell your property successfuly in the foreseeable future, you should give the estate agent this exclusive contract, ideally for a period of half a year. This “exclusiveness” is important if only because the broker also sets about the sales process with the necessary intensity. When I know that many “cooks” stir in the proverbial porridge, then much less commitment of the individual becomes necessary and possible. The commissioning of several brokers is also problematic in other areas. Several brokers often lead to different selling prices. If they all appear on the market at the same time, this throws a dubious light on the seller and his property.

However, the sales process is certainly not accelerated by hiring several brokers. The sale of a house often takes up to half a year or longer. Very rarely it takes only a few weeks.

And that doesn’t always have anything to do with the quality of the property! Just the preparation of the exposé by the real estate agent, the placement of the property with the appropriate customer group, in the corresponding portals takes some time. Above all, however, the broker’s mediation work comes into play here. His job is to mediate between seller and buyer. For example, with regard to the sales price, the planned handover date, etc.

On the part of the seller, the period depends, for example, on whether all important documents are already available or have to be obtained first. The location of the house is also very important. In sought-after residential areas it is often much quicker to sell a house. Even if it’s not in the best condition.

Development of selling prices

FIV: A few words at the selling price. Do brokers screw up selling prices artificially along with sellers? The broker for the commission, the seller for the proceeds?

I don’t think so. In addition to the general market situation of supply and demand, the price of a property is primarily determined by tangible factors. This includes the location, the state of construction, the age of the house and, in individual cases, the circumstances of the seller, i.e. whether he may have to sell the house out of a predicament.

Otherwise, it is a sign of a quality broker that he is not simply earning the highest price and entering the market. There are indeed brokers who try to secure the sole contract for the property with high entry prices. According to the motto: go down with the price I can still later. The selling price as a tactical tool of the broker… That’s clearly to the seller’s disadvantage! We, on the other hand, determine an optimal price for your property that takes the above-mentioned aspects into account. By the way, this also creates trust on the buyer’s side! Most buyers are well informed about the property prices and expose the tactical high price offers.

FIV: What influence does the issue of “financing the purchase of real estate” have on the duration of the sales process?

That puts us back on the buyer’s side. In fact, the financing of the purchase price on the part of the interested party is often a brake on the sales process. There are always buyers who do not enter the bank discussion until they have visited the property. In the worst case, they then realize very late that their own financial leeway is not sufficient to acquire the offered property. From the salesperson’s point of view it is therefore important to work with several interested parties. Attracting these interested parties and inspiring them at the viewing appointment is then also one of the important and labour-intensive further tasks of the broker.

Tasks of a broker

FIV: This is a good introduction to the next question: What do you do besides receiving interested parties at the viewing appointment?

An estate agent does not only receive the prospective customers at the inspection date simply! Even the appointment arrangements cost – as already mentioned – a lot of time… A viewing appointment is a difficult matter. This isn’t just a house tour! It’s about feeling what the prospective buyers are like. What do they value about the house? Where might it be necessary to mediate between seller and buyer? What do the interested parties say to me between the lines regarding their needs in living and living? We also try to determine whether the buyer’s financial strength is sufficient for the project at the inspection date. After all, we are the seller’s representative first and foremost and want to protect him from unpleasant surprises. Nothing is worse than when the sale bursts shortly before the agreed notary’s appointment, because there is no money at the buyer’s…

We have already mentioned the creation of a meaningful exposé above. Usually we do not only make appealing texts, but also the photos for the exposé. This also takes time and requires a lot of experience. The exposé is usually also the basis for financing the buyer. Therefore, it should be as meaningful as possible.

The sales process does not end until all sides are happy. Until then, as brokers we also accompany the preparation of the purchase contracts, the notary appointments and contact buyers and sellers. Depending on the size of the property, personalities of sellers and buyers, or even detailed questions regarding the purchase price payment, the moving out date, etc., this is a tedious and lengthy brokerage work of the broker. And he doesn’t get paid until the sales contract is signed. A lot of upfront work, then.

Costs around real estate

FIV: What kind of property do you spend the most time on when it comes to mediation?

If all requirements are met, it does not matter whether I sell a single-family house or an apartment building. However, multi-family houses do not always tend to sell rapidly. But that is not because such objects are not in demand. On the contrary: the apartment building is usually a capital investment project for the buyer. This is why the buyer puts his investment through its paces, and vice versa, the broker should have all the necessary information ready.
In the case of a single-family house, too high a price expectation on the part of the seller is often the hurdle to rapid sales success. Here a broker must proceed very cautiously in order to create a realistic view of the seller.

FIV: If I want to buy a property, be it a condominium, a single-family house or an apartment building, what do I have to do or what can I do to have an advantage over other interested parties? So how can we score with the owner or broker?

Quite simple: Be honest to yourself and to the seller or his representative the broker! Don’t fool around with false truths about your financial possibilities. Because that happens more often than you think. Many buyers believe that they only have to put on enough weight in terms of their financial means to win. However, the experienced broker knows how to uncover this mask with specific questions.

As a potential buyer, find out what your bank will give you before the viewing date. If you then enter into a conversation with a concrete and current financing commitment from a bank, this underlines both your serious intention and your seriousness.

Finally, it is also very important to clearly express one’s own wishes and dislikes with regard to the property. This helps both sides to save time and ensures tailor-made offers from the broker.

Thank you very much for the interview!

Interview with real estate expert Jan Rickel from IHV – Die Immobilien Makler.