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!

Loss of rent: yield effect

Vacancies, rent arrears or even re-letting and tenant selection. There is a lot for you to consider when buying real estate. Even if you have found a profitable property in the real estate acquisition process with a good property yield, 2 or 3 months of vacancy per year can make your investment suddenly unprofitable. Why and why is the choice of location / property type so important? You can find out more here in the Real estate purchase risk guide.

This guide is therefore about raising awareness of the topic of location selection and property type. When buying a property, in most cases you are taking over the current tenant. It is therefore important to always check the seller’s tenant history!

Loss of rent = you pay the costs instead of your tenant

Let’s start with the topic of vacancies.

Reasons for vacancies and rent losses

Tenants who don’t want to pay quickly make an investment unprofitable. But it doesn’t always have to be the worst-case scenario – rental nomads are rare – rent defaults can also occur because your tenant has financial difficulties and can no longer pay the rent on time. Or a change of tenant when you move and your new “ideal” tenant only moves in a month or two later.

In addition, there are structural changes, long-term vacancies, when the location becomes unattractive for tenants.

There are therefore many reasons for rent losses:

• Rent not paid – tenant has financial problems
• Vacancy, e.g. for new tenants – “desired” tenant arrives later
• Vacancies due to structural changes – in 5, 10, 15 years

Location + property + tenant selection

In addition to the choice of location and type of property, you, as the future landlord of a capital investment, also need to select tenants.

Let’s take a worst-case scenario as an example. Your tenant refuses to pay the rent, regardless of whether for personal reasons or financial reasons, and it takes 9 months to file an eviction suit. If the tenant himself is not sufficiently solvent, you will never see your money (costs of the eviction action) again.

Central, think about:

• Choice of location – structural vacancy? Less housing in the future
• Real estate type – How do you live? Micro apartment, instead of loft apartment
• Tenant selection – Who is a tenant? Creditworthiness (and trust)

The better you prepare for this when buying your first property, the better.

• Choice of location: A, B and C location
• Property type: Houses or apartments

Vacancy or not: loan installment must be paid

The vast majority of people finance their property. This means that you give about 15% equity and a bank gives you the rest (85%) as a loan. You repay the loan. The monthly installment of repayment and interest is called the loan installment. The bank doesn’t care if your tenant gets into trouble. You have to pay the monthly installment.

No matter what happens:

All costs continue to run!

Vacancies: influence on real estate yields

When buying real estate as a capital investment, the main focus is on returns. Simply put, the rental yield indicates how much rental income you achieve in relation to the investment (purchase price of the property, ancillary costs, maintenance). The result is a percentage. The higher, the better.

Example (simple):

• Investment in real estate: 100,000 euros
• Rental income / year: 3,000 euros
• Yield = 3%

3% would be relatively low, as you have to expect around 6% for interest/repayment and maintenance (currently). This means that your property must yield at least 6% to cover the costs.

As soon as you slip below ~ 6% yield, you pay more

Assuming you have calculated extremely tightly when buying real estate. So that you just achieve a 6% return, which covers the management / loan installment (interest and repayment). Now you have only 2 months of rent loss – the calculation is no longer correct and the yield drops to 5%. At 5%, the “missing” percent has to be paid out of your own pocket.

• Calculate real estate yield

Calculation: Return effect 2 months default

Let’s now calculate with the extremely tightly calculated 6% yield property. The big goal in all our guides:

Your tenant pays for your property = good return

Example 6% yield with full rental payment:

• Investment in real estate: 100,000 euros
• Rental income / month: 500 euros x 12
• Rental income / year: 6,000 euros
• Yield = 6%

Example effect of loss of rent (2 months):

• Investment in real estate: 100,000 euros
• Rental income / month: 500 euros x 10
• Rental income / year: 5,000 euros
• Yield = 5%

That means 1,000 euros out of your own pocket this year.

– 1,000 euros instead of “Tenant pays for your property”

Financial freedom? That’s why preparation is so important!

Tenants should therefore always be closely scrutinized. You should do a really thorough check.

• Self-disclosure
• Previous landlords speak
• Schufa information
• …

Rent arrears and reserves

It doesn’t always have to be a complete loss of rent. In practice, there are many reasons, for example, your tenant may not accept a rent adjustment following modernization measures. In other words, you modernize and adjust the rent and your tenant refuses to accept the rent increase.

Here, too, you are faced with the problem that you have made your investments and suddenly the tenant refuses. A dispute like this can go on for a long time and, in the worst case scenario, it can take 6 – 12 months before an eviction action is brought.

So that you can go into your first property without any worries, remember this:

Build up reserves!

What does that mean?

Building up reserves: security for the first property

Ideally, protect yourself financially against two possibilities:

1. Reserve for maintenance
2. Reserve for rent losses
3. Reserve for all eventualities

Reserves do not have to be set aside. However, they protect you from costs that you may not know how to cover spontaneously. Because, as you have learned, it doesn’t matter whether it’s rent arrears, loss of rent or vacancy:

All your costs continue to run

Reserve for maintenance

One cost factor that you will always have to bear is maintenance. More or less, of course, depending on the year of construction and condition of the property. In general, however, you already calculate 2% reserves for maintenance in the first yield calculation.

Part of the yield calculation, 2% maintenance reserve:

2% reserve for maintenance

Property for 100,000 euros (investment) = 2,000 euros reserve / year

Reserve for rent losses

In addition, a 6% rent reserve is recommended for possible rent losses:

+ 6% reserve for rent losses

Property for 100,000 euros = 6,000 euros reserve

6% would also correspond to a return of 6% = 1 annual rent.

Reserve: Extra, for all eventualities

Especially for the first property, without large assets of your own (as a rule), you should think about an additional reserve. Why? So that you never run out of money and miss a payment to the bank.

Ideally for the first property, not a must but security:

+ 10% extra reserve

Property for 100,000 euros = 10,000 euros reserve

Follow-up financing: risks and interest rate changes

Vacancies not only have a negative effect on yields. Most property loans have a fixed interest rate with a fixed term. At the end of the term, the conditions are renegotiated, known as follow-up financing.

This is where the 2 central aspects come into play again:

• Choice of location – structural vacancy? Less housing in the future
• Real estate type – How do you live? Micro apartment, instead of loft apartment

Lending: Factors

The bank also follows a clear path for follow-up financing. Let’s say you fixed the interest rate for 10 years for your first real estate financing. After 10 years, with 25 normal repayments, the remaining debt is around 76%. This must now be financed.

For follow-up financing, go back to your bank or to another one. If you are offered better conditions, it is worth obtaining alternative offers for the follow-up financing. Bank A, B, but also C will take another focused look at your property and you:

• Real estate
• Creditworthiness

Structural change: lower property valuation

Factor 1: Structural change – Because everyone is reassessed for the follow-up financing. Let’s say your fixed interest rate expires after 10 years and the bank says the property is now worth 20% less, for example because many people have moved out of the region in the last decade, property prices are falling and so on.

Banks want security, if the property is then worth less, the bank would have lost money in the worst-case scenario (loan installment defaults, forced sale/auction). So the interest rate rises.

Interest rate change: interest rate development in 10, 15, 20 years

Factor 2: Interest rate changes – Interest rates are currently lower than ever. It is impossible to make a serious forecast of what interest rates will be in 10, 15 or even 20 years’ time. However, a look back shows that interest rates in this country were still above 8% until 1990, 4-6% until 2000 and currently only 1-2% for real estate loans. If interest rates fall, it’s great for your follow-up financing. However, if interest rates rise, it’s bad, because then you pay more and the return calculation no longer works.

What to do? Tips for good returns

First of all: keep your eyes open when buying real estate!

Don’t buy yourself any problems!

Don’t buy yourself any problems, learn here with us step by step how to buy your first property, from the preparation, to the acquisition (finding profitable properties), to the purchase contract. By the time you’ve read our guide to buying your first property, you’ll know how important it is to find profitable properties in the real estate acquisition process.

Read here again:

• Choice of location: Buying an A, B or C location?
• Property type: Houses or apartments?

3 tips: Low interest rates

You now know that it is very unfavorable if the property suddenly costs money instead of bringing in money. What can you do? Here are 3 simple tips:

Tip 1: Buy cheaply – It sounds simple, but “the profit is in the purchase”. A piece of business wisdom that is also true when buying real estate. Buying cheaply means finding a property that is sold below market value, or that you, as the buyer, buy below market value. We have more on this topic here: Buying real estate.

Tip 2: Fixed interest rate – If you fix your interest rate for 10 years, you will have to take care of follow-up financing in 10 years. The longer the fixed interest rate, the longer you don’t have to worry about interest rate changes. To maintain the current low interest rates, you can agree a longer fixed interest rate, for example 15 years or 20 years. In case of doubt, until the end of the loan.

Tip 3: Higher repayments – If interest rates explode and ruin many yield calculations, higher repayment installments are an option to reduce interest rates. Interest is always calculated on the basis of the debt or, from the first payment, on the basis of the remaining debt. The lower the remaining debt, the lower the interest. With the current low interest rates, however, it is worthwhile financing real estate over a long period of time, as inflation ensures that your loan installment is always “smaller” in terms of purchasing power.

You can also start financing with more equity right at the beginning. This means that the loan amount is smaller and so is the repayment. This means that the loan is repaid more quickly and long-term interest rate changes no longer affect your financing.

Let’s summarize the 3 tips once again:

1. Purchase price – Buy cheaply (below market value)
2. Fixed interest rates – agree longer fixed interest rates (15 years, 20 years)
3. Repayment rate – Repay more or start with higher equity

Here are 2 practical tips for finding “problem-free” properties:

2 tips: Real estate viewing

Here are 2 practical tips for your real estate search.

Tip 1: Pay attention to the property management company – Is the property management company doing a good job from your perspective? In other words, do you have the feeling that the property management company knows what it is doing?

Tip 2: Owner-occupiers in the house – When you view properties, you also make sure that there are a few owner-occupiers living in the house. You tend to make sure that the property remains “well-maintained” in terms of its condition and the tenants.

In short, you pay attention to:

1. Property management and trust
2. Owner-occupier in the house

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)

Different forms of credit – different terms and conditions

When it comes to loans, most people think first and foremost of real estate loans. In other words, a loan that has to be taken out because hardly anyone is in a position to pay for an apartment or a house out of their own pocket. But most loans in Germany tend to be personal loans. That is, loans that are needed for the purchase or repair of important things.

A good example is the purchase of a new car. If you are in a position to pay the purchase price directly, you can usually negotiate better terms with the dealer. Here, the conditions can even improve so much that even minus the credit costs, you can still make a profit. Therefore, it makes sense and sustainable, if you support such a purchase through a personal loan. It is important to choose the appropriate and also the most favorable loan.

Compare personal loans – the differences can be amazing

If you want to take out a personal loan, you should compare the personal loan online to be on the safe side and thus take a closer look at the different providers. The differences – depending on creditworthiness and the amount of the loan – can be considerable. A good credit comparison also helps you to orient yourself in the jungle of different providers a little better and to recognize which offers are valid. Not every offer is equally attractive, since all providers advertise the lowest interest rates, which, however, hardly anyone can fulfill.

Online loan comparison – the advantages

So if you’re planning to take out a loan, you shouldn’t go straight for the first offer that comes along, but actively compare them. And that’s much easier online than offline. Whereas in the past you had to go from bank to bank and obtain the various offers, it is now noticeably easier. With just a few clicks, you can specify the general conditions and then compare the various regional and national providers. It’s hard to find a suitable loan more quickly and easily. What’s more, you’re not alone. More and more people in Germany are taking out personal loans for a variety of reasons.

Installment loans and personal loans in Germany – the trends

If you look at the current statistics on lending in Germany, it is hard to miss one trend. More and more loans and ever higher total loan amounts are being taken out. This is due to a wide variety of factors. On the one hand, the demand for consumer goods has increased significantly and many people are also buying such goods on credit. Among other things, this development was due to the zero interest policy offered for a long time, which was actively used by many companies for advertising. However, the rising standard of living also ensures, among other things, that people take out loans more easily in order to be able to make important purchases more quickly.

Personal loans are taken out for, among other things:

• The financing of a motor vehicle
• The financing of vacations
• Important purchases such as refrigerator, stove or washing machine
• Repair costs for car or washing machine & Co.
• Other consumer loans

So you see that there are many people who want to and take out a loan for the most diverse reasons and purposes. But not every purchase and not every purpose is good enough. Because a personal loan is always also a financial burden, which you must bear. Therefore, it is important to consider which loans you take out and which loans you are better off doing without.

Do not take out a loan thoughtlessly – consciously control your own credit rating

Very many people think they already have the best possible credit rating. Many people are not aware that credit inquiries can damage this credit rating. That’s why you should think carefully in advance about which loan makes sense and which you can do without. After all, regularly and reliably serviced loans also increase one’s own credit rating on the other hand. It therefore makes sense to have your Schufa score checked and see how your own creditworthiness is doing. It is therefore not a good idea to take out a personal loan for a vacation trip, for example.

After all, there is also the possibility of enjoying a camping vacation in Germany, for example, and thus saving money. However, if expensive purchases such as cars, bicycles or electrical appliances in the kitchen segment are pending, a loan can be quite useful. This is because the loan amount is matched by an item that can be sold again in case of doubt and offers a certain value. To stay with the example, this would be different for a vacation. There are therefore many good reasons for taking out a good personal loan, especially one that is attractive in terms of interest rates, if the need is correspondingly great.

Priorities in the personal loan – weigh carefully

It’s best to think about this before you make your first request: Do I need the loan for a purchase that is crucial to my life? I need a car to get to work, to provide for my family or to be more flexible in my free time. I need a stove or a washing machine for my daily life. Do I need that huge new TV so badly that I have to take out a loan for it? Is that luxury vacation worth going into debt for? If you set these priorities right, you can definitely find the right personal loan for you.

A well-planned personal loan can make many purchases or repairs possible

Although the era of zero-interest loans is probably a thing of the past, there are still considerable differences in the structure of the loans, the repayment and the interest rates. So if you inform yourself in advance and compare the various offers on the market, you will benefit significantly in the end and can obtain loans at better conditions. In the end, this also means that you pay significantly less money for the same item or the same repair, which is a considerable economic advantage.

Every regularly and reliably serviced loan also ensures a better and more stable credit rating, which can make a considerable difference when it comes to later real estate loans, among other things. Therefore, it is important and sensible to take out loans when needed, as long as you are able to service these loans safely and without pressure. So if you need an appropriate personal loan, it is best to compare the various offers and always keep an eye on your own credit rating.

Homeowners’ association at a glance

A condominium owners’ association (WEG) is an association of owners of apartments in a common building.

The community of owners can be described like this:

Community of all owners of a property.

As the owner of your apartment, you are a member of the WEG and have joint responsibility with the other owners for managing the common property, e.g. the staircase, the roof, the facade and the common utilities.

You also decide jointly on maintenance and repairs and on the financing of these measures. It is important to note that every decision in the WEG is made jointly and that you, as a member of the WEG, are also obliged to participate in the decisions and bear the costs.

The WEG at a glance:

• Each owner can represent his right to vote at the meeting of owners
• Each owner has a certain co-ownership share in the common property
• Each member of a WEG must bear costs for the common property
• Each owner is responsible for his or her own special property
• Each owner has to fulfill certain rights and obligations
• Each COA must have certain documents that set out rules and boundaries

The legal basis for a WEG is provided by the Condominium Act. It provides the owners with guidelines and regulations for the proper administration of the WEG. Let’s take a closer look at the Condominium Act (WEG for short).

Condominium Act (WEG)

The German Condominium Act (Wohnungseigentumsgesetz ) is of great importance to all condominium owners in Germany, as it lays down the legal foundations for the organization and management of condominium associations.

The WEG regulates, among other things, the distribution of rights and obligations between the individual owners and the community as well as the management and maintenance of the common property.

There are clear specifications for holding owners’ meetings, passing resolutions and managing funds. The establishment and duties of the management advisory board and the administrator are also regulated in the WEG.

The WEG regulates:

• The distribution of rights and obligations
• The management and maintenance of the common property
• The conduct of the meeting of owners
• The decision making
• The management of funds

The owners’ meeting is guided by the laws of the WEG:

In a WEG, every member is involved and must fulfill certain rights and obligations. In the next section, we will explain what you have to do as an owner.

Rights and obligations of the owners

As an owner in a homeowners’ association, you have certain rights and obligations. You have the right to use and manage your apartment, but you must also consider the common interests. This means that you must abide by jointly agreed rules and regulations that apply to the building and its residents.

Furthermore, as an owner in the homeowners’ association, you are obligated to participate in the management and maintenance of the common areas and facilities.

Rights of use to one’s own home

As the owner of your apartment in a homeowners’ association, you have the right to use and manage your apartment. It is up to you whether you live in the apartment yourself or rent it out. For example, you can renovate your apartment or buy new furniture, as long as you do not interfere with other owners.

The own apartment may be managed and designed by the owner, as long as the common property is not affected.

However, you must also consider the interests of the other owners and the community when using your apartment. For example, you may not make any structural changes to your apartment that could affect the appearance of the building or cause problems with other apartments.

Rights of use to common property

As an owner in a homeowners’ association, you are responsible for managing and maintaining the common areas and facilities together with the other owners. This includes, for example, the staircase, the elevator, the roof, the facade, the outdoor facilities and, if necessary, the heating system.

These rights and obligations accrue to owners on the common property:

• Management and maintenance of common areas

How these costs are financed and distributed is explained in the next section.

Financing common costs

As an owner in a homeowners’ association, you are obliged to contribute to the common costs of the association. This includes, for example, the costs for the management and maintenance of the common areas and facilities, but also the costs for the operation of the elevator, the waste disposal or the water supply.

The costs are usually calculated according to the ratio of your share in the common property. For this purpose, the declaration of division specifies which share you have in the homeowners’ association. This distribution of costs is also called the cost distribution key.

In addition to the running costs, larger maintenance or renovation measures may also be required, which are associated with a higher financial outlay. For this purpose, a reserve is usually formed, which is regularly replenished by the owners with a certain amount. This reserve is used to finance larger repairs and maintenance measures without the need for additional funds to be raised by the owners.

These costs are incurred in a WEG:

• Costs for the management and maintenance of common areas
• Costs for the operation of the elevator, waste disposal or water supply
• Maintenance reserves

The costs incurred are discussed at the owners’ meeting:

Organization of a homeowners association

The organization of a homeowners’ association is an important part of living together. There are various committees and bodies that are responsible for managing the community.

The most important body is the owners’ meeting. Here, all owners meet once a year to make important decisions and to discuss the concerns of the community.

Another important body is the management advisory board. This is elected by the owners’ meeting and supports the administrator in the management of the community.

The administrator is the executive body of the condominium owners’ association. He or she takes care of the administration of the community and ensures that all necessary work is carried out.

The most important instances of the WEG at a glance:

• WEG administrator
• Management Advisory Board
• Owners’ meeting

Now let’s take a closer look at the individual instances.

Administrator of the WEG

The administrator is the executive body of a condominium owners’ association and is responsible for the administration of the community. This includes, among other things, the organization and monitoring of maintenance measures, the preparation of accounts and communication with the owners and the various committees of the community.

The duties of the administrator include:

• Organization and monitoring of maintenance measures
• Preparation of accounts
• Communication with the owners and the various committees

The choice of a suitable administrator is therefore of great importance. As a rule, a professional management company is commissioned that has the necessary knowledge and experience. However, voluntary management by an owner is also possible.

Management Advisory Board

In addition to the administrator, there is also the management advisory board. The management advisory board consists of at least three owners. This body is elected by the owners’ meeting and has the task of supporting and monitoring the manager. However, the management advisory board has no decision-making authority and can only make recommendations.

The Management Advisory Board at a glance:

• Composed of at least three owners
• Elected by the owners’ meeting
• Supports and controls the administrator

Owners’ meeting

The owners’ meeting is the highest decision-making body and meets at least once a year. Its task is to discuss and decide on important matters concerning the community.

The owners’ meeting is convened by the administrator or by an owner. Certain deadlines and formal requirements must be observed. As a rule, invitations must be issued in writing at least two weeks before the meeting. The invitation must state the items on the agenda as well as the place, date and time of the meeting.

The typical topics of an owners’ meeting include the adoption of the business plan, the election of the manager, the vote on maintenance measures or the definition of house rules. The owners’ meeting also decides on the amount of the monthly house fees.

The community of owners at a glance:

• Meets at least once a year
• Advises on important matters of the community
• Convening takes place through the administrator

Editor’s recommendation

Why we like the app so much?

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

You can download the app directly and get started!

Download from App Store: Free

Free of charge in the App Store:

What can the real estate app do?

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

Yield check: This is what a property brings in

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

For your smartphone

Calculate net yield: Exact return

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

Calculate brokerage costs

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

Editor’s recommendation: smartphone + tablet

Download from App Store: Free

Free of charge in the App Store:

What is Fix & Flip?

The Fix & Flip strategy refers to buying, upgrading and selling real estate within a short period of time with the goal of making a profit.

The process begins with finding an undervalued property to buy and renovate. After the upgrading measures are completed, the property is sold on the market at a higher price.

So Fix & Flip is:

• Buy a cheap property
• Upgrade them cost-effectively
• Sell profitably

Buy Fix & Flip property

The first step in implementing a fix & flip strategy is to find and purchase a suitable property. Remember to do a thorough assessment of the building’s fabric to understand what kind of renovations are needed to increase the property’s value and get a realistic estimate of the selling price.

Here are some tips that can help you with this process.

Search undervalued real estate

These can be properties that are in poor condition or whose owners need to sell them quickly. Nevertheless, when choosing a property, pay attention to its location. The location is decisive for the subsequent selling price.

Use of online platforms

There are many online platforms that make it easier to find suitable properties, such as social media platforms or apps and online markets. Also, private contacts can be an ideal way to find lucrative properties for the fix & flip strategy.

Build a network: Brokers, craftsmen & Co.

Making contacts with brokers, craftsmen and other professionals in the real estate sector is very helpful to be informed about possible offers. Here you can simply use online platforms or contact private individuals.

Maybe your uncle knows someone who has renovated a bathroom cheaply before.

Secure funding & capital

Make sure you have enough capital to renovate and sell the property you buy. Many fix & flip projects fail due to insufficient capital. Generous planning of costs and financial resources is therefore very important.

Fix & Flip offers the possibility to finance them. You can find out how that works here:

• Fix & Flip Financing

After the purchase of the property comes the important step of upgrading.

Fix & Flip property upgrade

Upgrading the real estate is the real work. Here you must pay attention to a detailed planning of the work. With the planning you can better estimate expenses for costs and time. The goal of the revaluation is to increase the value of the property by effective measures, in order to achieve profit. With redevelopment, renovation and modernization measures, these goals can be achieved.

In the following article, you will find out exactly what you need to pay attention to, what work is involved and what costs you will incur:

• Fix & Flip property upgrade

Fix & Flip property for sale

The last step after upgrading the property is selling it. This step ultimately leads to your profit, which is why it is important to choose the right approach here.

First, you should have your property appraised by an expert, such as architects or realtors. They will give you a range in which you can set your selling price.

You can see how such a profit calculation looks like in this article:

• Fix & Flip Cost Accounting

Also interesting! Fix & Flip taxes differ depending on the legal form chosen.

Conclusion. Fix & Flip & Capital Increase

If you find a cheap property, the Fix & Flip strategy is a profitable way to invest in real estate. However, you must keep in mind that the strategy can also be associated with risks, such as unforeseen renovation costs or difficulties in selling the property.

High risk but high reward

In summary, the Fix & Flip strategy, when executed efficiently, contributes quickly and effectively to your capital increase. You must make sure that you are well prepared and understand the risks before starting with this strategy.

For detailed information, check out our partners’ Fix & Flip guide:

• Fix & Flip Real Estate

Are you interested in a building savings contract? Compare immediately current conditions for your building savings contract in the Immobilien-Erfahrung.de building savings calculator.

Fees for the building savings contract

How much does building savings cost? When concluding a bauspar contract, various fees are incurred that must be taken into account in order to enable a realistic cost calculation. These can include, among other things, acquisition and management fees, costs for insurance or processing fees for loans from the bauspar loan.

An overview of possible fees:

1. Connection fee
2. Annual contributions
3. Account management fees
4. Processing fees
5. Early repayment fee

In addition to these fees, other fees may apply depending on the provider. Now you can find out what the fees are and when they apply.

Connection fee

Some building societies charge what is known as a closing fee when a building savings contract is concluded. The fee may vary depending on the provider and tariff. The closing fee is used to cover the costs incurred in setting up the contract, such as preparing contract documents, carrying out credit checks and processing applications.

The connection fee at a glance:

• Contract setup fee
• E.g. for contract documents or credit check

In some cases, these fees are not charged or are already included in the contract terms.

Annual contributions

In order to maintain a building savings contract, many building societies charge annual contributions. The annual contribution is used to cover the costs of managing and operating the contract as well as the interest on the saved capital. Some providers charge lower contributions if you pay in a larger investment amount or choose a longer term, while others charge higher contributions if you pay in a smaller investment amount or choose a shorter term.

The annual fee summarized:

• To maintain the building savings contract
• Annual payment from saver to building society
• Amount depends on various factors

Account management fees

Account maintenance fees are incurred annually or quarterly and are used to cover the costs incurred in administering the contract, such as preparing statements, making transfers, and processing inquiries. The amount of the account management fees varies depending on the provider and the contract.

Use of the account management fee:

• Preparation of accounts
• Execution of transfers
• Inquiry processing

Account management fees for home savings contracts are controversial. In a ruling from 2022, the Federal Court of Justice (BGH) issued a decision on the charging of account management fees for home savings. However, it is currently only valid for customers of BHW Bausparkasse. Some home savings banks therefore do not charge this fee.

Handling fee

Processing fees are mainly incurred in the event of changes to the contract. During the savings phase, you have the option of adapting the contract individually to your circumstances.

Processing fees may apply for:

• Changes to the contract (term, savings target, amount of installments)
• Conducting audits or reviews in connection with the contract
• Preparation of certificates or proofs

The amount of the processing fee varies depending on the provider and can range from a few euros to several hundred euros.

Early repayment fee

The early repayment penalty is also known as a disbursement fee. It is due if you terminate a home savings contract prematurely before the agreed term has expired. It serves to compensate the provider for the lost interest and repayments that he had expected if the contract had remained in force until the end of the term.

Fees apply in the event of premature termination of the contract.

Conclusion and tips for those interested in building savings

It is important to be aware of the provider’s fee structure before signing a home loan contract. You should make sure that you take into account the cost of any additional services to be sure that you choose the offer that best suits your personal needs and goals. Comparing the terms of different providers and contracts can help you make the best choice.

Here are our tips that people interested in building savings should consider before signing a contract:

• Find out about the provider’s fee structure and take this into account in your cost calculation
• Compare the offers and conditions of different providers to make sure you get the best deal for your needs

Building savings contract: Saving for real estate financing

A building savings contract is a special type of loan. Building savings contracts usually consist of a savings plan and a real estate loan and are concluded with a building society. The basic idea of building savings and the associated building savings loan is the promotion of home ownership. You conclude the contract if you plan to build or renovate a house in the future or buy an existing property.

The building savings contract quickly summarized.

• Special type of loan
• Consists of savings plan and real estate loan
• Is concluded with a building society
• Serves to promote home ownership

Compare immediately current conditions for your building savings contract in the Immobilien-Erfahrung.de building savings calculator.

Building savings: How a building savings contract works

When you conclude a home savings contract, you specify various points that remain the same over the entire term of the contract. For example, you specify your savings target, also known as the building savings amount, and the term. A typical building savings contract has a term of between seven and ten years.

The building savings contract then goes through three phases:

1. The saving phase
2. The allocation phase
3. The loan phase

You will now learn the details of the individual phases.

Savings phase: Savings period in which equity is built up

The savings phase is the first phase that a building savings contract goes through on the way to financing your property. During this time, you save a contractually agreed percentage amount of the building savings sum. In addition to the savings target, which is between 30% and 50% of the bauspar sum, the duration of the savings phase is also defined when the contract is concluded.

The monthly savings rate is calculated according to the savings amount and term. During the savings phase, it is also possible to make special payments in addition to the monthly payments or even to provide the agreed minimum building savings balance through a one-time payment.

The savings phase in summary:

• Fixed part of the building savings sum is saved up
• Over a set period of time
• Monthly savings rate depends on savings amount and term

As soon as the savings target is reached, the building savings contract enters the second phase.

Allocation phase: Distribution of the building society loans by the building society.

The second phase of bauspar contracts is known as the allocation phase. In this phase, the amount of the bauspar loan is determined. The amount is determined by the difference between the building savings sum and the building savings balance. In order for the contract to be ready for allocation, certain requirements must be met.

The requirements for an allocation of a building savings loan are:

1. The agreed building savings balance was reached
2. Further allocation criteria were met

The exact allotment criteria vary from one building society to another. As soon as the allocation conditions are met, the loan is allocated and can be drawn down. The loan can only be used for residential purposes. This includes, for example, the construction, purchase or renovation of a property.

The loan is tied to a residential use.

Loan phase: disbursement and repayment of the real estate loan

Once you have decided to take out the loan, your building savings contract enters the final phase: the loan phase.

It begins directly after the allocation phase and starts with the loan application. The terms and conditions of the loan were already agreed when the building savings contract was concluded. This is often an annuity loan.

The amount of the building savings sum determined at the beginning influences the amount of the loan and consequently also the monthly repayment installments. In contrast to a construction loan, which often leaves a residual debt at the end of the fixed-interest period, the home savings loan is repaid in full within the term.

The loan phase at a glance:

• Starts with the loan application
• Terms of the loan already specified at the time of conclusion of the contract
• Repayment is made in monthly installments
• As a rule, no residual debt remains outstanding

Advantages of building savings contracts: Security and promotion

Like any financing method, the building savings contract also has advantages and disadvantages. Building savings contracts offer a flexible combination of savings and security for the construction or purchase of a home. They are characterized by attractive interest rates, favorable loan conditions, tax advantages and deposit protection. In addition, a home savings contract can also be used as a hedge against unforeseen events.

The advantages summarized:

• Combination of savings and credit product
• Flexible repayment options
• Attractive interest rate and favorable loan conditions
• State support through premiums
• Safe variant of real estate financing

Disadvantages of building savings: High fees and long commitment

In addition to the advantages, there are also disadvantages, as with all financial products. Due to the necessary prior savings phase, home savings contracts are less suitable for immediate financing.

The disadvantages at a glance:

• Long commitment period
• Low liquidity
• Higher costs compared to other forms of savings
• No availability of building savings in emergencies
• No flexible repayment options

For whom is a building savings contract worthwhile?

A building savings contract is suitable not only for those who want to fulfill their dream of owning a property, but also property owners. In addition to construction or purchase, the loan can also be used for modernization or as a maintenance reserve.

When and for whom is a building savings contract useful?

• People who want to purchase real estate in the next few years
• Investors who want to use government subsidies to build up assets
• Home savings customers who expect interest rates to rise
• Real estate owners who value calculation security
• Home purchase financing supplement

If you belong to one of these groups, a building savings contract can be doubly worthwhile. Building savers are supported by the state and receive state subsidies under certain conditions. The subsidies include the housing subsidy, the employee allowance and Wohn-Riester.

Tip: Taking out a home savings contract is particularly worthwhile during periods of low interest rates.

Rent, buy, live in Stuttgart

A good start in the real estate world is always the purchase of the first apartment. Michael Maile explains in his interview with FIV Magazine his experience with real estate in a good A-location. The yield here depends on the type of house or apartment. For example, microapartments have different exploitation possibilities than single-family homes. The meso location is also decisive in pricing, whether in Bad Canstatt, Feuerbach and other districts such as Sillenbuch or Vaihingen.

This is Stuttgart in Germany:

Stuttgart from close up:

Rent: Contract & Settlement

After the successful purchase of the property and the execution of the purchase contract, you naturally want to furnish your newly acquired property according to your individual needs. From the living room furnishings, to the garden design, nothing stands in their way of your creative imagination.

Buy: Return on investment through real estate

In our interview, you will learn everything about real estate and returns in Stuttgart. Should you buy a property in Stuttgart or is it more worthwhile to buy nearby, for example in Esslingen or Ludwigsburg?

Real estate agent interview about real estate in Stuttgart

The first condominium or real estate as an investment? In this interview you will learn the most important tips & tricks. Buy, rent, live in Stuttgart but also tips for capital investments. We ask the questions, he provides the answers.

Maile Immobilien: Interview Partner

FIV: Before we go into Stuttgart and its real estate market and your recommendations for tenants and buyers, we would like to know a little more about your agency Maile Immobilien. Could you briefly summarize for our readers what your agency does and what you specialize in?

Michael Maile: We are a real family business with me in the 4th generation. To guarantee a service with one’s name for so many decades is not a matter of course and of course totally shapes one’s daily actions and dealings with our customers.

Some of our customer relationships even date back to the founding year of 1925.
We have been located extremely centrally in Stuttgart’s Königstraße for almost 100 years and serve the entire greater Stuttgart area from here as a reliable contact for valuations, sales and rentals.

Interview partner Michael Maile:

Single family home or townhouse? Favorite properties

FIV: As a real estate agent in Stuttgart, which properties do you personally prefer to broker?

Michael Maile: Most people probably think that real estate agents always dream of the large luxury villas that undoubtedly exist in Stuttgart. Personally, however, I have always had the best experiences with somewhat smaller properties such as small detached houses, semi-detached houses or terraced houses. These are basically my favorite objects, also because you often have to deal with very pleasant customers on both the seller’s and the buyer’s side.

Rents in Stuttgart: Neighborhoods with a future

FIV: Neighborhoods for Singles, Families & Co. – For those who do not yet live in Stuttgart and want to move to Stuttgart, which neighborhoods have a future? Where should you move to in Stuttgart if you want to live nicely?

Michael Maile: Stuttgart has a very unique topography with the well-known Stuttgart Kessel. This in turn means that the city center is relatively limited. So if you want to live very urban with short distances or perfect local connections, there is something for everyone here. I wouldn’t make any big distinctions between the districts.

As before, the west and south is certainly the most popular.

For families, again, other priorities apply with something quieter, safer and greener location. There are plenty of these around Stuttgart, too. I personally favor the southern parts of the city, such as Sillenbuch, Degerloch and Möhringen, because of their very good infrastructure and short distances not only to the city center, but also to the airport or the highway.

Development of the real estate market: rent stagnation

FIV: Rents are a big topic, all over Germany. How has the real estate market and rental prices in Stuttgart developed in recent years and how will they develop in the future?

Michael Maile: Even if you hear different things in the media. We are noticing a clear stagnation of rents in all areas. The times of constant increases seem to be over for the time being. However, due to the natural limitation of the Stuttgart cauldron, the supply remains fundamentally very manageable. Even redensification or additions to existing buildings are only marginally feasible. In this respect, demand is still significantly higher than supply.

Through Corona, however, there are already sustainable reasons here, such as the home office, which rather provide for some relaxation in the inner city area. In turn, the green peripheral locations have become more sought-after. The future always means looking into a crystal ball, but I still consider Stuttgart to be a very stable location, although it seems to be settling at a fairly high level.

Modern apartments in Stuttgart-Vaihingen:

Recommendations for beginners: rent or buy?

FIV: In Germany, more people rent than buy. What would you recommend to a young couple or even a single person, renting or buying in Stuttgart?

Michael Maile: As you know, there are different philosophies here. And there are simply no blanket statements here. I myself am a big fan of owner-occupied property because it simply means a lot of freedom in everyday life and, in case of doubt, also a good retirement provision.

However, this must be preceded by a clear commitment to the location and solid financing that still leaves enough leeway for vacation, children, etc. These are often quite big hurdles. On the one hand, flexibility in the job often has to be higher today, and on the other hand, the purchase price is so high that financing is only possible with considerable restrictions.

In such cases I advise then rather to rent and rather to buy only if a family is to be founded. And then, in case of doubt, clearly outside the city at affordable prices and with other priorities such as short distances to school or a large garden.

Buying the first condominium in the city

FIV: Anyone who rents in Stuttgart is relatively flexible and can move if necessary. Anyone who buys a property, whether a home or a condominium, is at least tied to the property for the long term by the loan or financing. What are typical first-time buyer mistakes from your experience as a real estate agent and how can you avoid them?

Michael Maile: There are plenty of mistakes lurking around when selling and buying. For example, buyers tend to underestimate the capital required, look too much at the property and not enough at the location, or inspect the property superficially without an expert opinion. For me, however, one of the most serious is the lack of willingness to make sacrifices.

The perfect property simply does not exist.

And the sooner you recognize this and consciously set priorities, the sooner you will find something. In many cases, people have been looking for many years. And while the real estate became more and more expensive, it simply did not succeed at some points to be satisfied with less. In the end, I often hear “if only we had…”.

Therefore: Make a clear priority list with weightings and then do not hesitate for long when a good object appears. You will not find the perfect object.

Real estate transfer tax and incidental purchase costs

FIV: The purchase price of a property is one thing, but what ancillary costs and taxes must buyers in Stuttgart expect?

Michael Maile: The land transfer tax in Baden-Württemberg is currently 5% of the purchase price. For the notary and the land registry you should calculate 1.5%. If a broker is involved, this is between 0%-3.5%. Sometimes the seller pays the broker alone. In total, this is about 6.5-10% of the purchase price.

Stuttgart at a glance:

• Real estate transfer tax: 5%
• Notary fees: 1.5%
• Brokerage costs: 0-3.5%
• Total: 6.5 – 10%

Real estate as an investment – city proximity & old buildings

FIV: Stuttgart districts for real estate investment – we come still to real estates as capital investment in Stuttgart, for those, which want to buy and letting. If our*r Leser*in for the purchase, with following letting, decides: Which 2 districts or even satellites around Stuttgart, would you recommend to a buyer for their capital investment in Stuttgart? In your opinion as an expert, where do the most future opportunities lie?

Locations close to the city center continue to be of interest to investors.

Michael Maile: Here I would rather aim at charming old buildings than at replaceable new buildings. The development of the Rosenstein Quarter in particular will mean that quite a lot of apartments will be built in the city center in the medium term. So you should also be able to offer something unique here in the long term.
The better returns, however, are certainly to be found outside the confines of the city. I see Möhringen and Vaihingen, for example, as very interesting locations with very good infrastructure and large employers.

Types of real estate with a future – optics and efficiency

FIV: In your opinion, what type of real estate has a future in Stuttgart, what should one invest in? Small, large, existing, new construction?

Michael Maile: As already mentioned, I am rather a friend of the charming old building. Energy efficiency will certainly play an even more important role in the future, but the beautiful sandstone Art Nouveau façade will certainly not be insulated. Such buildings will always be sought after and in demand. Personally, I am not a fan of the often very monotonous new building architecture with the same residential silos that are arranged around a sad little playground, in which even the last square meter of the property is built on.

Nevertheless, it must also be emphasized that, for example, accessibility will be a more important issue, which is more likely to be found in newer buildings. Here, everyone has to weigh things up for themselves. And then, of course, it’s better to have three small apartments than one large one, also in terms of risk diversification.

Attic room of a family house:

Selling a property – quality check

FIV: Finally, one more question: You had mentioned the typical mistakes buying a property. Many buy, but some also want to sell. As an experienced real estate agent in Stuttgart, what tips can you give to those who are selling a property for the first time? What are the first steps and how do you successfuly sell a property in Stuttgart?

Michael Maile: First of all: In principle, you can do most things in the world yourself. The question is always how much time you have available and in what quality you can do this sustainably. Therefore, I would always strongly advise an inexperienced real estate seller to take an experienced broker on board. Simply because selling real estate at the best possible price involves much more effort than is commonly imagined. You should ask around among friends and acquaintances, check references and get a non-binding impression of the real estate company.

Renovation and modernization are always worthwhile!

Otherwise, it is important to make the bride pretty before the wedding. Small renovation works up to the conscious “stagen” of the real estate are financially worthwhile practically always. You should not only have all the documents relevant for the banks at hand, but also understand them and thus know, for example, the circumstances under land registry law or the regulations in the declaration of partition and be able to communicate them accordingly.

Deficiencies must be known and skillfully communicated. What is fatal here, of course, is the wilful concealment of such a defect.
On site it is important to arouse the emotions of a buyer. To understand which priorities he has and with which details you can arouse his final interest. Price negotiations are also often a fine line, where inexperienced sellers all too often have great difficulties.

Conclusion: Inexperienced sellers should definitely seek advice from a reliable and trustworthy expert first. Experienced sellers usually know that a good broker does not cost money, but brings money through his know-how, contacts and the enormous time savings.

FIV: Thanks to Maile Immobilien for the interview!

Buying your first apartment: Owner occupation or capital investment

You want to realize the dream of the first own property, but do not know where to start? Learn everything about the first home and the most important steps in our article.

• Buy first apartment

Rent, buy, live in Stuttgart

For the realization of their dream of the first home, whether you rent with or buy, and how to achieve the maximum return in Stuttgart, you can learn in our article about realtors in Stuttgart.

• Real estate agent in Stuttgart