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

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

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

What do you need to pay attention to?

Checklist:

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

Occupy property yourself – Error 1

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

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

Too little room for negotiation – Error 2

Mistake 2: Buying without enough negotiating leeway

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

Buying without accurate check – error

Mistake 3: Buying without accurate verification

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

Thorsten Bader

Interview with Thorsten Bader

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

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

• Real Estate Experience.com

Broker and property developer ordinance at a glance

The Real Estate Agent and Property Developer Ordinance is a legal ordinance that primarily issues specifications to protect the purchaser of real estate during the process. It regulates the form and general provisions for concluding a real estate development contract, but also applies to brokers, lenders, loan agents and construction supervisors.

The most important facts in brief

• Regulations regarding property development and brokerage contracts
• Determines the timing and amount of payments
• A guarantor is needed to accept payments
• Surety bond can be equated with indemnity bond

You can find out all the details you need to know about the Real Estate Agent and Property Developer Ordinance in this article.

What does the MaBV regulate?

At what point is a broker or developer allowed to take money from you? These and other questions are answered by the Real Estate Broker and Property Developer Ordinance. The ordinance aims to create clarity in confusing processes in the real estate industry and to protect the money of real estate buyers from misuse or unauthorized access.

The most important points at a glance:

• Performance of the developer is secured with a guarantee
• Payments (in %) by buyers are based on construction progress
• Payments may only be used for the contractual projects
• Separate asset management for different projects

The background to the guarantee is to secure claims for damages by the purchaser. These may arise if the developer or subcontractors commissioned by the developer have deliberately committed tortious acts. However, the guarantee is not a completion guarantee

For whom is the Real Estate Agent and Property Developer Ordinance relevant?

For example, you want to move into an apartment as a tenant in a large city? Especially in urban areas, the real estate market is a highly competitive area, where in many cases you cannot avoid a real estate agent. Through the guidelines of the MaBV you have the possibility to regulate and control the performance of your real estate agent. If agreements made or services rendered are not fulfilled, you can, for example, refuse payment.

Real Estate Buyers

Even those who want to buy a house, whether as their own home or as an investment, can benefit from the regulation: The precise regulations, which govern down to the smallest detail when and how much is to be paid, safeguard the buyer against the developer.

Read on to learn when your broker or developer may require payment from you.

Requirements for payments

If a developer contract is concluded, this does not mean that the developer can immediately demand the corresponding purchase price from you. The reason for this is that you as the buyer should be protected by the MaBV. Therefore, some conditions are attached to the receipt of payments (payment claim), so must/must:

1. A legally binding purchase agreement is available
2. The purchase contract must be confirmed by a notary
3. All permits have been obtained (e.g. building permit)
4. A priority notice of conveyance for the buyer exist
5. The object of purchase to be free from land register liens
6. All other benefits of the contract must be fulfilled

Only then can the broker or developer demand payment from you as the buyer of a property. However, if points of the contract have not been fulfilled by the developer or broker, you as the buyer can:

• Refuse payments
• Demand compensation
• Demand repayments

In summary: Buyer protection and legal consequences

The Real Estate Agent and Property Developer Ordinance is intended to guarantee security for buyers of real estate in particular and to protect them from fraud. This is to ensure that the contractually agreed services on the part of the developer or broker are fulfilled in full. In the event of non-fulfillment of his performance obligation, the buyer can assert rights against his contractual partner. These rights can be, for example, damages or a refusal to pay.

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

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

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

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

• Taxes Germany

Taxes USA: Buying property and paying taxes in America

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

• Taxes USA

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

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

• Inheritance tax real estate

Save taxes: Where do I start? – Examples

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

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

Video Tips: Taxes explained by experts – tricks and more

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

Overview Tips & Tricks: Tax Videos

Tax basics: explanation, definition and settlements

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

• Video Tips: Tax Basics

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

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

• Video Tips: Tax return

Taxes real estate: basic knowledge and where you can save

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

• Video Tips: Taxes real estate

Taxes & Capital Gains: Capital gains tax and more

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

• Video Tips: Taxes & Capital Gains

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

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

• Video Tips: Tax Tips & Tricks

Book Tips: Recommendations and tax optimization

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

Overview Tips & Tricks: Tax Books

Tax basics: tax lexicon, basic knowledge and more

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

• Book Tips: Tax Basics

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

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

• Book Tips: Tax Return

Taxes real estate: buy or sell your own home

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

• Book Tips: Taxes real estate

Taxes & capital gains: Flat rate withholding tax and more

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

• Book Tips: Taxes & Capital Gains

Tax tips & tricks: recommendations + how to save taxes

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

• Book Tips: Tax Tips & Tricks

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

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

• Book and Video Tips: Wealth Building XXL

Real estate agent T. Andrich about Hamburg real estate market

Thorben Andrich is the founder and managing director of Redhome Immobilien GmbH and, as a young and modern real estate company, has made it his mission with his team to score points with expertise and communication at eye level. They are not only experienced in the Hamburg real estate market, but in the entire region around Schleswig-Holstein, Hamburg and northern Lower Saxony. The expert talked to us about his most exciting projects, costs, financing options, investments and popular districts in Hamburg.

Which properties do you particularly like to broker as an estate agent?

FIV: Before we go into the many details of the city: as a real estate agent in Hamburg, what type of house/apartment do you most like to broker? Are there any favourites, for example the normal 3-room apartment, the loft or rather the luxury property on the outskirts?

Andrich: I think that every agent likes to sell luxury properties, it’s different prices and often highly interesting personalities that you get to meet, and you always have to adapt to new people. With our in-house photographer, we have the opportunity to work very flexibly and present the property accordingly. Especially with luxury properties this is very important.

But also the classic 3-room apartment is presented by us accordingly, we make no distinctions. We are very self-critical and even a “small deal” includes good photos and a great exposé. Our goal is to pick up the customers with the exposé and even if we do not come into business, perhaps to be recommended.

• Website: Redhome Immobilien GmbH
• Instagram: redhome.realestate

FIV: What was the most exciting or beautiful property you remember from your years as a real estate agent?

There have been many great deals, but I always like to tell the story about one deal. It was an apartment building where I had been in regular contact with the owner for over 2 years. He was unable to get the price he wanted to put himself on the market for over two years. We kept talking very nicely and I often offered to take care of it for him. He would often call and ask all sorts of things and I would always help him along, even though I knew that if he sold the property himself, I would come up empty. At one point he called me and offered to let us show his house to our network clients.

After the exchange of documents and the photo session, we have created an exposé and offered the property to the appropriate customer from the network. The following weekend we visited the property and the following Friday we went to the notary. The seller received his desired sales price and the buyer was very happy to pay us the brokerage fee, because he knows that we always call him again for suitable properties. The buyer has since become a very good friend who has bought another investment property from us. The seller also came back to our office after 6 months and asked us for help regarding a planned new building. This example shows quite well how we work and what is important to us. We are happy to go the extra mile and convince with our service and expertise. Brokers who only want to make a quick buck will not be successful in the long run.

We see ourselves as a classic service provider and view every transaction and every contact in the context of a long-term cooperation. Especially with investment properties, this idea pays off time and again.

“If you’re a broker who just wants to make a quick buck, you’re not going to succeed in the long run.” – T. Andrich

Where should you move to in Hamburg? Districts for Singles, Families & Co.

FIV: The majority of our readers are buying a property for the first time. So that our readers have a direct insight: If someone newly moves to Hamburg and asks you as an expert in Hamburg the question “where should one move to?”, which districts would you recommend?

Andrich: This is not an easy question to answer, because there are certainly different approaches and ideas. If I may take myself as an example.

• Single / career-oriented? : Sternschanze, St. Pauli, Winterhude, Uhlenhorst, St. Georg, Eppendorf

Networking is the name of the game and extremely important, especially in this day and age. With social media (Instagram, Facebook, Xing, LinkedIn, etc.) there are endless possibilities to go to networking events and exchange ideas. Probably the most popular districts that offer a mix of networking, scene and fun are (Just to name a few): Sternschanze, St. Pauli, Winterhude, Uhlenhorst, St. Georg and Eppendorf. Here you meet the young entrepreneur as well as old hands and in general you have a very special mix. Each district has its own charm. Due to the central location, you can reach every district very quickly. I have lived here and have met many great people.

• Families with child(ren)? Lokstedt, Schnelsen, Eidelstedt, Poppenbüttel, Groß Borstel, Alsterdorf, Langenhorn and many others.

The central locations in Hamburg also offer great opportunities for families with children. Nevertheless, young families tend to move to the outskirts of Hamburg. Here you get a little more m² of living space for your money and that makes quite a difference. Popular districts are for example: Lokstedt, Schnelsen, Eidelstedt, Poppenbüttel, Groß Borstel, Alsterdorf, Langenhorn and many others. It simply depends on what people can afford and want.

• Wealthy people (property prices over 1 million)? : Rissen, Blankenese, Ottensen, Wellingsbüttel, Duvenstedt, Klein Flottbek

The 1 million euro mark is quickly cracked in Hamburg. Around the Alster it goes particularly fast, but also the city districts that are far away from the Alster are partly very expensive, or have become expensive. Examples: Rissen, Blankenese, Ottensen, Wellingsbüttel, Duvenstedt, Klein Flottbek.

Costs, rents & prices in Hamburg: Estimation from a professional

FIV: What costs should one expect in Hamburg when renting, and more importantly when buying an apartment or house? How would you compare Hamburg with other cities, and which districts are currently particularly attractive?

Andrich:

• Rent: The average rent in Hamburg is currently around 14,-/m².
• Apartment purchase: The average purchase price for condominiums is currently around 4,500/m².
• House purchase: The average purchase price for houses is currently around 4,200/m².

The prices vary extremely depending on location, size and equipment. Hamburg has a very good infrastructure, endless recreational opportunities. With the Alster and the many parks, this city also has very good recreational areas and is very popular with tourists. Hamburg is large, but still manageable and each location offers different aspects and has its own charm.

The most popular districts are: all districts around the Alster, such as Rotherbaum, Harvestehude, Uhlenhorst, Winterhude, Eppendorf, St. Georg, but also Ottensen, Sternschanze, St. Pauli, Altona, Eimsbüttel and Barmbek-Süd. I could certainly list more, but that would go beyond the scope now.

Hamburg districts for real estate investment? Tips from the investor expert

FIV: Another look at those who want to invest and rent out. As a real Hamburg insider, which district(s) are currently experiencing an upswing and are particularly interesting for capital investors / investors? Which districts are exciting for landlords and investors here?

Andrich: The outskirts of Hamburg currently still offer good investment opportunities. However, a large proportion of investors have already moved to Hamburg’s suburbs. This has also led to strong price increases here. As a rule, an investor still wants to exploit potential and achieve returns. A classic investor wants to “park” his money in a property, is perhaps still counting on appreciation and is interested in top locations.

Investors are therefore more interested in urban districts such as: Barmbek, Schnelsen, Stellingen, Hamm, Eilbek or Wandsbek. Larger investors and capital investors tend to focus on, for example: Winterhude, Eppendorf, Uhlenhorst, Neustadt and St. Georg. Each district also has good and bad locations.

“Every neighborhood has good locations and bad locations.” – T. Andrich

Real estate purchase & sale with broker or private search: advantages and disadvantages

FIV: According to statistics, well over 50% of all properties in Hamburg are bought / sold with an estate agent. From your point of view: when should one search privately and when should one hire a professional real estate agent for the search? Where are the advantages and disadvantages?

Andrich: If you are a private individual looking for a property in a specific district, you should introduce yourself as a customer to the local estate agents and have a corresponding search profile created. Many offers no longer go online and are offered internally in the customer files. As a private person who is looking for a property, one usually gets nothing of this. In addition, one should place “search agents” with the usual portals in order to be informed about new objects. Filled out customer profiles, with all information, help brokers to decide for customers. In addition, the financing should already be clarified in the rough, in order to be able to act quickly.

• Advantages of searching with a real estate agent: You get offered more properties, you may receive exclusive offers and you experience a different appreciation.
• Disadvantages of searching with a broker: Usually higher additional costs, the broker also works for other interested parties.

Typical first-time buyer mistakes, and how to avoid them

FIV: As I said before, the majority of our readers are first-time buyers. What are the mistakes that first-time buyers typically make? Conversely, as an expert, what advice would you give to someone buying his or her first property?

Andrich: It is extremely important to be quick, especially with good offers. If you know what you want and are looking for, you can go through a financing with a sample offer. You get so a good feeling up to which volume you can look, and in the case of the cases you can then strike quickly and give the broker a purchase commitment in the inspection, perhaps with a financing confirmation. Also, know how to read different documents. It’s best to enquire about different properties and “practice”.

Real estate financing: Annuity loans & Co. – options and tips

FIV: What financing options for a property would you most likely recommend in Hamburg – or in general – and what options do first-time buyers have?

Andrich: In most cases, buyers pay at least the ancillary costs themselves. Sometimes it makes sense to include the brokerage costs in the purchase price to make the financing more comfortable. I would generally recommend, for owner-occupied properties, to repay a little more than 2% and to secure the favourable interest rates with a longer fixed interest rate. The classic annuity loan is often used as the financing model. In some cases, it can also make sense to completely finance the ancillary costs – in addition, you should include necessary renovations in the calculation. Financing is a very complex topic and you should look into the possibilities in advance.

FIV: How much equity should you have and what other factors influence financing / creditworthiness? What tips can you give as an expert from your experience?

Andrich: The banks usually want at least the incidental costs to be paid from equity. The interest rates will be better if additionally a part of the purchase price is paid from equity. Whether and how far it makes sense, depends on the buyer and also the property. Here there is no right or wrong.

Service charges & taxes in Hamburg: These are the costs you have to reckon with

FIV: In addition to the purchase price, there are of course also additional costs. A big factor for buyers in Hamburg are taxes. What taxes do buyers in Hamburg have to reckon with when they buy a house on the outskirts of the city or a condominium in Hamburg Mitte/ Hafen-City?

Andrich: When buying a property, a different land transfer tax is incurred depending on the federal state. In Hamburg, for example, it is 4.5% of the purchase price and in Schleswig-Holstein 6.5%. If ancillary costs, such as the brokerage costs, are transferred to the purchase price, the purchase price increases and the land transfer tax also applies to these costs. Further taxes are only incurred in the event of a sale – depending on the constellation and the period of use. (speculation tax)

High prices Hamburg, when is an investment in real estate property worthwhile?

FIV: Rents and purchase prices in Hamburg have risen sharply in recent years. What is the decisive factor driving this development most strongly in the Hamburg property market? Would you currently recommend investing in property or wait?

Andrich: The achievable income in Hamburg is significantly higher than in rural regions such as Dithmarschen, for example. Young people in particular move to Hamburg to study and pursue a career.

On the one hand, it is the growth from the other regions that is causing prices to rise, and on the other hand, the favourable interest rates have made it possible for people with not so high incomes to purchase property in Hamburg. Hamburg is one of the most popular cities in Germany. In principle, I would always advise to own property, but only with the right income. The relationship to the value of the property and the income must fit and should be sustainable.

Tip: Luxury condominiums in HafenCity Hamburg – The Crown

Pure luxury: this is what the new residential tower “The Crown” in Hamburg’s HafenCity promises. Anyone who likes luxury real estate is definitely at the right address with this property. Imagine standing on your balcony, some 50 metres above the Elbe, looking down on the wave-shaped building of the Elbphilharmonie and enjoying the sun reflected in the Elbe, making the water glisten. Doesn’t that sound dreamlike? No wonder, then, that almost all of the residential units in the project have already been sold.

• Hafen City luxury condo: The Crown Hamburg

Cologne real estate agent about real estate market, tips & development

Cologne real estate agent Jaap Westermann has been working as a real estate agent in Cologne and the region for over 13 years now, and is therefore an absolute real estate expert. He spoke to FIV Magazine about attractive districts, financing options and the Cologne real estate market. Benefit from the know-how of the professional and learn a lot about the search, purchase and financing of real estate.

Property types popular with agents & the most personally exciting projects

FIV: Before we go into the many details of the city: as a real estate agent in Cologne, what type of house/apartment do you most like to broker? Are there any favourites, for example the normal 3-room apartment, the loft or rather the luxury property on the outskirts?

Westermann: Of course, it’s not just the prospective buyers who have a feast for the eyes, but also us estate agents. The more attractive the property and the surroundings, the more you enjoy it. In general, the more one can imagine that a property fits my own, current, future or past life situation, the easier it is, of course. In the case of apartments and single-family houses, it is nicer when they are or become empty. Then you don’t have potential owner-occupancy notices for tenants in the background – and also better opportunities to do homestaging. This problem does not arise with apartment buildings.

FIV: What was the most exciting property you remember from your years as a real estate agent?

Westermann: The most exciting cases are certainly those in which people deal with each other less harmoniously (inheritance, divorce). That’s where we’re glad when we as mediators, often also with the lawyers of the parties involved, get into calm waters. Several of the most beautiful properties come to mind. The apartment building with development potential in Deutz, the modern city apartment at Waidmarkt, where homestaging would never have been possible because everything was so perfectly furnished, the attic old building seasonette with roof terrace in Klettenberg in a dream location, an apartment on the 39th floor of the Uni-Center, where I spent 2 hours taking photos at blue hour and sunset, and many more.

The most beautiful experience, however, comes above all from the conversations with the sellers and tenants with whom you have the most intensive contact. A trusting cooperation and later happy faces of buyer(s) and seller(s) then provide the really nice moments. Regardless of the property.

“Only if you know how a property is valued can you communicate on an equal footing with financial advisors and experienced investors. Only if you know what a bank will finance under normal circumstances, you also know how much equity is needed for lover’s prices.”

Rheingold Immobilien: Website & Youtube

Where should you move to in Cologne? Districts for singles, families and more

FIV: The majority of our readers are buying a property for the first time. So that our readers have a direct insight into Cologne: If someone newly moves to Cologne and asks you as an expert in Cologne the question “where should one move to?”, which districts would you recommend for:

• Single / career oriented?
• Families with child(ren)?
• Wealthy individuals (property prices over 1 million)?

Westermann: I think it’s difficult to give a general answer. As the people of Cologne say, every person is different. Some are drawn to where there’s the most action, others seek balance in the peace and quiet. For some, the schools in the area are the most important thing, for others the way to work, to the airport or to the main station. Some wealthy people love the opportunity to develop freely in Hahnwald, others are more drawn to the city centre.

I recommend that every prospective buyer first ask themselves the question: What is important to me? In the case of families, all family members should do this. In addition to the location, the requirements for the dream property should also be written down. The second question should be: What can I spend? The third step should be to check where you are willing to compromise. Can the budget be increased after all? Which points concerning the equipment and the location are “must haves” and which are “nice to have”? We have written descriptions of the districts on our website. Here you can find out what makes a neighborhood special. We have also included information on property prices from our annual property market report. You can see right away if it fits or if compromises seem necessary.

Real estate prices in Cologne, attractive districts: Buy or rent, city comparison

FIV: What costs should one expect in Cologne, for rent and more importantly, when buying an apartment or house? How would you compare Cologne with other cities and which districts are currently particularly attractive?

Westermann: Compared with Berlin or Munich, purchase prices in Cologne are certainly still moderate. Foreign investors tend to concentrate on these cities, in some cases with vacancies in the properties they have acquired and with speculative expectations of further increases in sales prices. Hamburg certainly stands out due to its construction activities. Here, one city has set the right course to bring demand and supply back into line. In Cologne, much has already improved, but there is still much to be done. The current construction measures are not enough to satisfy demand.

For the price it always depends on the combination of location, equipment, year of construction, status of modernisation. When buying an apartment, it is also important to know how high the house payments are and how much the community has saved up for upcoming measures. Basically, however, the following applies: The more central the location and the better the condition (year of construction, modernisations), the more expensive it will be. However, certain streets (e.g. avenues with Wilhelminian-style houses), park locations or locations directly on the Rhine are particularly attractive.

There are only a few locations in Cologne that are not in demand. However, the price level is certainly particularly high in the entire city centre, the districts in the southwest of Cologne, Nippes in the north, Dellbrück and Brück on the right bank of the Rhine. But of course also in other districts in direct proximity to the Rhine or directly at the park. Last but not least, Corona makes people appreciate this even more. Your readers will find details in our annual property market report.

Districts with an upswing: Sülz, Klettenberg, Zollstock or Hürth?

FIV: Another look at those who want to invest and rent out. As a real Cologne insider, which district(s) is (are) currently experiencing an upswing and is (are) particularly interesting for capital investors / investors? Which districts are exciting for landlords and investors here?

Westermann: Due to the tight market, it is certainly always most interesting where there are still strong price drops between two neighbouring districts. If someone is looking in Sülz and Klettenberg, but doesn’t find what they’re looking for there, it’s not uncommon for them to look beyond their own nose to the next district. This ensures rising prices in Zollstock and Hürth. The same applies to other districts. As an investor, it is above all relevant what you want: a property that is in very good condition with good rents that can be solidly sublet or rather a property with development potential (rental potential, vacancy and/or expansion potential).

When is it worth employing a broker? Advantages & disadvantages

FIV: According to statistics, well over 50% of all properties in Cologne are bought / sold with an estate agent. From your point of view: when should one search privately and when should one hire a professional real estate agent for the search? Where are the advantages and disadvantages?

Westermann: As a searcher, you should generally not limit yourself here and simply consider all possibilities. I would create search profiles with the brokers where you think you are most likely to find your dream property.

I myself live in a property that I bought through a broker, whereby the brokerage performance has not convinced me. If the total price of the purchase price and incidental acquisition costs (broker commission, notary fees, land transfer tax) but right, so you should strike at the dream property. If necessary with a fist in your pocket. You can see the professionalism of a real estate agent by the references, the way of working, the exposé, the possibility of virtual viewing after activation by the real estate agent and the completeness of the documents required for the banks.

Tips for first-time homebuyers: typical mistakes made by first-time buyers

FIV: As I said before, the majority of our readers are first-time buyers. What are the mistakes that first-time buyers typically make? Conversely, as an expert, what advice would you give to someone buying his or her first property?

Westermann: Don’t save at the wrong end and seek advice where necessary. Rather spent a few times money for a purchase consultation, than to suffer a high loss by an exaggerated purchase price or glaring lack, which did not notice for lack of knowledge. Critical areas are always basement and attic (damp, mould), and conversions of attic, conservatory or basement (permission required for this to become living space). Everything should be in order with good estate agents, although you should not infer work from a good well known brand name. The majority of franchises and internet companies work with freelancers. Accordingly, you can be lucky or unlucky.

Financing options: Building savings contract – yes or no?

FIV: Which financing options for a property would you most likely recommend in Cologne – or in general – what options do first-time buyers have? How much equity should you bring with you and what other factors influence financing / creditworthiness? What tips can you give as an expert from your experience?

Westermann: Building society contract only in the absolute exception! Here the financial service providers earn an increased commission, so that one sells this gladly. Talk with your house bank and two financial service providers best first independent of real estate, what is realistic. Consider in advance how much money you need each month. Do not forget payments that are due once a year: Holidays, possible repairs or new purchases. A property that takes you to the financing precipice is simply the wrong one for you.

Incidental costs when buying real estate: Taxes, costs & Co.

FIV: In addition to the purchase price, there are of course ancillary costs. A big factor for buyers in Cologne is taxes. What taxes do buyers in Cologne have to reckon with when they buy a house on the outskirts of the city or a condominium in downtown Cologne?

Westermann: The real estate transfer tax amounts to 6.5% in NRW, in addition notary’s office and registration costs of 1.5-2%, if necessary buyer’s commission (usual 0 to 3.57% – one should let higher deduct from the purchase price).

It is best to compare the total costs of the properties with each other right from the start. The upcoming running costs are also important: In the case of condominiums, these costs can be seen very well in the utility bills. They also pay attention to how much in reserves is available. The older the property, the more you should be prepared for future measures. Otherwise, you should plan for special charges.

In the case of houses, it is advisable to ask for a breakdown of running costs (property tax, municipal charges, energy suppliers). In my view, energy performance certificates often give an inadequate picture.

• Land transfer tax North Rhine-Westphalia: 6.5%
• Notary’s office & registration costs: 1.5 – 2%
• If applicable, buyer’s commission: usual 0 – 3.57%.

Rising rents in Cologne: Causes according to experts

FIV: Rents and purchase prices in Cologne have risen sharply in recent years. What is the decisive factor driving this development most strongly in the Cologne property market? Would you currently recommend investing in property or wait?

Westermann: The decisive factors for the development are low interest rates – which will probably remain low for the foreseeable future due to the high level of government spending – too little construction activity, few available free spaces and the high attractiveness of cities. The latter applies not only to young people, but increasingly also to pensioners who want to live in an environment where medical care is well assured.

It’s exciting to see what other developments time will bring us. Will more families move to the countryside as a result? Especially if home offices are allowed more often? Will there be more distressed sales in the future? If so, how many? The market still has a lot of catching up to do. But if the supply increases, not everything will be sold as easily as it is today. Moreover, it is already noticeable that not everything is financed anymore. Utopian price ideas fail at the latest when it comes to financing.

Jaap Westermann himself about his company:

“We see our path as an exciting journey with ever new technical challenges, but also opportunities. However, our focus is always on our clients. They are treated with us in a friendly, respectful and personal manner, just as I myself imagine a good service to be.”

Terraced house: definition, features & everything you need to know

A terraced house is a row of individual houses which are built directly next to each other without any space in between. However, there is no access between the houses, so there is still the privacy of a normal house. Most of these houses have a minimum size of 160m².

This type of house has been popular with people since the 19th century, as more and more people have moved into cities and conurbations since industrialisation. Row houses prevent the waste of space in densely populated areas. In order for a terraced house to be called a terraced house, at least three houses have to be in a row, otherwise it is a semi-detached house.

Due to the construction of at least three houses in a row, two sub-types of the terraced house are created here: the terraced end house and the terraced middle house. As the name suggests, the end-of-row house is located at one of the two ends of the row and the middle-of-row house in the middle of the building complex.

Often these are located near or on the outskirts of the city and are therefore not far from the centre and schools, universities and shops. For many, this makes the terraced house a cost-effective alternative to a house in the countryside with poor infrastructure. Every style can be catered for in a terraced house – from a retro charm inspired by the 60s or new build – you’re sure to find the right terraced house for you here!

Are you looking for the right house? Then check out our guide! Here you will find definitions, meanings and lots of information: House types from A-Z

Room layout: living room, kitchen, bathroom and co.

What kind of room layout can you expect in a terraced house? In many terraced house layouts, the living room and kitchen are located on the ground floor. The bathroom and other rooms, such as the children’s room, are usually located on the upper floor.

Suitable for whom? Ideal solution for families & couples

Row houses come in both simple and luxurious versions, accordingly, row house prospective buyers have people of different social groups. A terraced house is particularly attractive for families and young couples. How they benefit from a terraced house, you can read here.

Families: quiet zones to play with the neighbourhood children

The terraced house is very popular with families. The traffic-calmed settlements offer a suitable place for children to play, friendships can form here especially with neighbourhood children of the same age.

Parents who are employed and work full time have less time but also money to invest in their own property when they buy a townhouse.

Couples: togetherness in a home on the outskirts of town for couples

But it is not only families who see a terraced house as a perfect choice. Investing in a terraced house is also becoming increasingly attractive for young couples. Rather a small home on the outskirts than an expensive multi-room apartment directly in the center. In addition, the purchase of the terraced house can also be beneficial for later family planning.

Advantages and disadvantages: Purchase price, neighbors, garden & Co.

The uniqueness and special features can lead to many advantages but also disadvantages. We’ll get to the bottom of these and show you the upsides and downsides of a townhome, and help you make your next big decision.

Advantages: low purchase price, good infrastructure & neighbourhood support

Living in a terraced house brings with it a number of advantages. Lower land prices are a good reason to choose a terraced house over a detached house.

Due to the location in the city, you also benefit from a good infrastructure. Trams, buses and schools right near you. You have a wide choice when it comes to finding the right townhouse, if in the city you will find numerous such houses.

Sharing a plot of land with other people also has advantages when it comes to building. You also save costs when building the roof. The maintenance costs are also kept low.

With a mid-terrace house, the ancillary costs are kept within a manageable range, often these are only just above those of an apartment. The two adjacent houses ensure that the middle house is protected from heat and cold.

Direct proximity to the neighbours does not only have disadvantages: Joint barbecue and game evenings, mutual respect and caring for each other are the positive aspects.

• Low purchase price
• Good infrastructure
• Large selection of terraced houses
• Low construction costs
• Low maintenance costs
• Manageable additional costs
• Middle house is protected from cold and heat
• Neighbourly help and friendships

Disadvantages: Noise, small yard, neighbor dispute & low sales value.

But living in a terraced house can also bring just as many negative points and potential for conflict. Due to the closely built settlements, one is in close contact with the neighbours, especially here. Conflict issues such as noise or differences in joint decisions to be made.

Unlike a single-family home, the resale value here is comparatively low.

The two added walls created by the location of a mid-terrace home allow windows to be placed on only two walls of the home. If the right furnishings and color choices are not made here, the living space can quickly become depressed and gloomy.

There is usually only one mini-garden per unit per terraced house, but lovers of large gardens and their own green spaces can be put off here with an additional terrace. The open spaces of the house are between 50 and 100 square metres in size.

• Direct proximity to neighbours -> source of noise, points of dispute
• No big garden
• Low resale price
• Few windows for mid-terrace house
• Mid-terrace house: windows only possible from two sides

Source: Row house (Lukinski.de)

Buy: Yes or no? – Help for the right decision

Deciding to buy a townhome is just the thing for those who needed a little more space and still don’t want to completely break away from the city. But what should you consider when buying a townhouse?

The price of a row house is significantly cheaper than that of a single-family house you know now, but what is actually the cheapest among the row houses. The cheapest way you strike thereby with a row middle house. But besides the price, you should also be aware of other important points: How big do you want your home to be? Which rooms do you want to have and what is the layout of the individual rooms? These are important points, but external factors such as the surroundings, neighbours and parking facilities should also play a role.

Here’s what you should be aware of before buying your home:

• House size
• Building condition
• Purchase price
• Location
• Room layout
• Neighborhood
• Privacy
• Sound insulation
• Window/light incidence
• Basement
• Parking

Alternatively, you can also rent a terraced house, which saves you money and doesn’t tie you down to the house as much as buying it. So you are always flexible.

Small furniture, functional furniture, lots of light: this is how you feel comfortable in your terraced house

Narrow but deep – this is what the floor plan of a terraced house looks like. Your main furniture, for example, should best be positioned at the wall ends so that your room appears visually wider. You should also decide against placing your furniture lengthwise in the room, instead you should spread it out in the room as much as possible. Small and delicate furniture works much better here than large furniture, which can quickly appear oppressive.

Light wall colours for the long walls and dark accents for the short walls – this method makes your rooms look airier, more open and wider. Functional furniture and lots of light sources are also ideal for terraced houses.

Tip! Our Interior XXL Guide has everything for you on the subject of furnishing and design! Numerous interior brands of different styles are waiting for you here: Furnishing brands

Real estate agent Cologne: How to find the best real estate agent

Using a real estate agent can be useful both when buying and selling a property. The expertise, the extensive experience and the extra help, are all arguments for hiring a realtor. Whether for an apartment, a house or a rental property, the broker helps where he can to make you happy. The Real Estate Agent and Property Developer Ordinance protects against fraud and defines the services to be performed for real estate agents.

Top 23 brokers – Recommendation Cologne

= Real estate agents with whom we have already been in personal contact, for example for our district interviews in over 50 cities in Germany!

Citak Real Estate e.K.

Recommendation for Citak on Google: 55 Rating

4.9/ 5.0 stars

More information, contact persons and directions:

• Website: Citak-real estate.com
• Phone: +49 221 29887120

Rheingold Real Estate Ltd.

Recommendation for Rheingold on Google: 25 Rating

4.9/ 5.0 stars

More information, contact persons and directions:

• Website: Rheingoldimmobilien.de
• Phone: +49 221 99519901

Real estate agent & project development Hardy Fuß

Expert for real estate in Frechen, Cologne West

Recommendation for Hardy Fuß on Google: 21 reviews

4.8/5.0 stars

More information, contact persons and directions:

• Website: Real estate agent Hardy Fuß
• Address: Kölner Str. 72, 50226 Frechen
• Real Estate Agent & Project Development Hardy Foot Website
• Phone: +49 2234 4358870

Real Estate Ernst

Recommendation for Immobilien Ernst on Google: 97 Rating

4.8/ 5.0 stars

More information, contact persons and directions:

• Immobilienernst.de
• Phone: +49 221 16990700

Sayan Real Estate Cologne

Recommendation for Sayan Real Estate on Google: 28 Rating

4.9/ 5.0 stars

More information, contact persons and directions:

• Website: Sayan-immo.com
• Phone: +49 221 16892660

Wolkenburg Real Estate

Recommendation for Wolkenburg Immobilien on Google: 21 Rating

5.0/ 5.0 stars

More information, contact persons and directions:

• Website: Wolkenburg-immobilien.de
• Phone: +49 221 7217348

Immo-Trend24 – Marco Stentenbach e.K.

Recommendation for Immo-Trend24 on Google: 31 Rating

4.9/ 5.0 stars

More information, contact persons and directions:

• Website: Immo-trend24.com
• Phone: +49 221 3909100

Falc Real Estate Cologne

Recommendation for FALC on Google: 27 Rating

5.0/ 5.0 stars

More information, contact persons and directions:

• Website: Falcimmo.koeln
• Phone: +49 221 29497744

Manfred Lang Real Estate

Recommendation for Manfred Lang Immobilien on Google: 26 Rating

4.9/ 5.0 stars

More information, contact persons and directions:

• Website: Manfredlang-immobilienservice-köln.de
• Phone: +49 221 16836017

Dahler & Company Real Estate Cologne

Recommendation for Dahler & Company on Google: 28 Rating

4.9/ 5.0 stars

More information, contact persons and directions:

• Website: Dahlercompany.com/company/real-estate-agents/koeln
• Phone: +49 221 2920130

Cityhouse Real Estate Ltd.

Recommendation for Cityhouse on Google: 21 Rating

4.8 / 5.0 stars

More information, contact persons and directions:

• Website: Cityhouse-immobilien.de
• Phone: +49 221 57080080

Real House Real Estate e.K.

Recommendation for Real House real estate on Google: 18 Rating

5.0/ 5.0 stars

More information, contact persons and directions:

• Website: Realhouse-immobilien.de
• Phone: +49 221 93282830

Müller & Lepek Real Estate Cologne

Recommendation for Müller & Lepek on Google: 28 Rating

4.6/ 5.0 stars

More information, contact persons and directions:

• Website: Mueller-lepek.com
• Phone: +49 221 5305161

Bezner Real Estate e.K.

Recommendation for Bezner Immobilien on Google: 21 Rating

4.6/ 5.0 stars

More information, contact persons and directions:

• Website: Bezner-immobilien.de
• Phone: +49 221 7193159

Von Poll Real Estate Cologne-Lindenthal

Recommendation for Von Poll Immobilien on Google: 38 Rating

4.5/ 5.0 stars

More information, contact persons and directions:

• Website: Von-poll.com/en/location/koeln-lindenthal
• Phone: +49 221 80064430

Goost Real Estate

Recommendation for Goost on Google: 18 Rating

4.8/ 5.0 stars

More information, contact persons and directions:

• Website: Goost-immobilien.de
• Phone: +49 221 48530774

Real Estate Company Petra Emmer e.K.

Recommendation for Company Petra Emmer on Google: 19 Rating

4.6/ 5.0 stars

More information, contact persons and directions:

• Website: Real estate-company.net
• Phone: +49 221 9904490

Melles Breitbach Real Estate

Recommendation for Melles Breitbach on Google: 16 Rating

5.0/ 5.0 stars

More information, contact persons and directions:

• Website: Melles-breitbach.com
• Phone: +49 221 28091300

Becker & Becker Real Estate OHG

Recommendation for Becker & Becker real estate on Google: 15 Rating

4.5/ 5.0 stars

More information, contact persons and directions:

• Website: Becker-becker-real-estate.com
• Phone: +49 2203 599000

Terranova Immobiliengesellschaft mbH – Property management Cologne

Recommendation for Terranova Immobilien on Google: 13 Rating

4.7/ 5.0 stars

More information, contact persons and directions:

• Website: Terranova-real-estate.com
• Phone: +49 221 2577772

DoMstadt Real Estate Company Ltd.

Recommendation for DoMstadt Immobiliengesellschaft on Google: 28 Rating

4.6/ 5.0 stars

More information, contact persons and directions:

• Website: Domstadt-immobilien.com
• Phone: +49 221 88867074

D&B Real Estate

Recommendation for D&B Immobilien on Google: 14 Rating

4.9/ 5.0 stars

More information, contact persons and directions:

• Website: Dundb-immobilien.de
• Phone: +49 221 9129333

Century 21 Cologne Real Estate

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• Website: Cologneimmobilien.de
• Phone: +49 2234 2509615

Purchase, sale, investment or rent

A real estate agent can be helpful in many situations. Both when buying and selling but also when renting. Learn everything about buying, selling, renting and investing now!

Purchase: procedure, construction and building savings

When buying real estate, the first question that always arises is whether to buy with or without a real estate agent. But financing or, for example, the topic of building or buying is also on the minds of some prospective buyers. However, the question of which alternative is the most sensible cannot be answered in a generalized way. This decision depends on many individual factors, such as the location, the offer and the personal wishes.

Sale: valuation and viewing dates

Particularly important in the sale is the correct valuation of the property. Even if most sellers still know what you paid for their property, this is not necessarily the sale value. Renovations may have increased the value of a property, which can lead to a higher selling price. A realtor can help determine the value of the property or recommend an expert in the field. However, an agent has other areas of responsibility when selling the property, such as coordinating viewings and suggesting potential buyers. If you don’t agree with the broker’s services, you can file a cancellation claim against your broker.

Capital investment: Finance broker – real estate and equity capital

For the capital investment in a house, first of all, a considerable capital is naturally assumed. However, by renting out the capital invested can grow and the property will be profitable in the long run. A single-family house offers the advantages compared to other investment properties that it can be offered at a high rental rate, depending on the location and quality, and the investment pays off after a shorter period of time and brings success.

The gross rental yield is calculated as follows:

100 x annual net rent / purchase price of the property = gross rental yield in %.

More on the topic of real estate as a capital investment? Here you will also find an interesting article on the subject of real estate investment.

The rent – apartment or house after all?

Depending on the individual life situation, renting is often the better decision next to the option of buying. Renting offers many advantages, such as increased flexibility, easy termination, but also the freedom to test different regions for living. Renting is particularly suitable for people who have not yet found the right place for eternity, but also for people who, for example, have to be flexible due to their job and move often. Both renting and buying a property offers many advantages and disadvantages, which must be coordinated depending on the life situation.

Broker commission and fees – the cost of renting and buying

If a broker is consulted for rent, purchase or sale, there is always a commission for the work of this. How high this Ausfällt, depends always on different criteria, such as the region or the purchase price of the property. The bill from the broker usually comes directly after the protocol at the notary. The amount of the commission is freely negotiable and is usually between four and six percent of the purchase price of the property. A recommended total commission of 3.48 percent including VAT is a realistic value here.

Who pays the broker?

Who pays the broker depends primarily on whether the property is a rental or purchase property. In the case of rented properties, the principle of the commissioner applies, but in the case of properties for sale, a different regulation applies. In the case of objects for sale, the client negotiates both the broker’s commission and the arrangement for the payment of the commission. So here it is determined whether the commission is paid by the buyer, seller or both. Depending on the state, there is more or less leeway for the client as far as the division of the payment of the commission is concerned.

Brokerage principle – From when do I pay?

The “Bestellerprinzip” is applied to rental properties. It regulates that the person who has also commissioned the broker pays him. Thus, if the landlord has commissioned an agent to market his property, the agent pays the commission even if the tenant has responded to the agent’s advertisement. If this occurs, the amount of the commission can be freely negotiated between the landlord and the broker. However, if the tenant pays the commission, it may not exceed two months’ rent plus VAT.

Are there brokers for insurance?

Yes, there are brokers for insurance. However, they are not supposed to speak on behalf of one insurance company like insurance agents, but have an extensive knowledge of offers from several insurance companies. So the job of an insurance broker is to objectively advise their clients on the best insurance quote. Unfortunately, the reality is that many insurance brokers are commissioned by insurance companies and their opinion and advice no longer remain objective, but develop tendencies towards the insurance company that commissioned them.