Owner-occupiers: what matters to me?

Real estate for personal use is often associated with an emotional value, you have to like it. Accordingly, the property is preferred to the locality. Factors such as the route to work or kindergarten then take priority; in short, the micro-location becomes decisive.

Here again in short:

• Property that pleases personally
• Proximity to work/ kindergarten/ school/ …
• Micro location/quality of life is priority

Resale value: location is decisive

However, you should always keep in mind that it could still be that you have to sell your dream property again later. Reasons for this can be age justice, job change or the growth of the family. Therefore, one should always have a look at the location of the property when buying, because this determines the resale value.

C-location: The dream of the country

If you want to buy your dream property in the countryside, in a C-location, you have to expect possible losses. Here, briefly, the factors that are responsible for a decrease in property value.

• Declining population figures
• Negative development of the economy
• Tight local market, little demand

Capital investment: yield and investment property in comparison

Capital investors always choose the location with the goal of investment or yield property in mind.

Yield real estate as an investment

The aim here is to generate direct cash flow through rental income. This is achieved through low purchase prices and a high rental yield, which covers the costs incurred such as repayment, interest and operating costs. It is best suited as a B or C location here.

• Direct cash flow
• B- or C- position

Investment real estate as a capital investment

Investment properties pursue the goal of value appreciation in the long term. This is usually only found in A- locations or even less in good B- locations. The reason: The purchase prices are enormously high, so the running costs cannot be covered by the rental income.

• Value enhancement in the long term
• A- Location

The next step: Determine maximum purchase price

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

Macro, meso, micro: from the city to the neighborhood

The macro, meso and micro location is a size comparison of locations where exactly a property is to be purchased. In doing so, it goes deeper and deeper, from the question of which city? (macro), to which district? (meso), to the exact location, i.e. the immediate neighborhood (micro).

Here is a brief overview of the layer types:

• Macro- location: (A-, B- and C-location, i.e. where in the country / which city?)
• Meso location: which district
• Micro- location: exact location/ neighborhood

Macro- location: First decision – The city

This is mainly about deciding at which location you want to invest roughly in the country. You have already learned what A, B and C locations are all about in our article on location types. Here again in short the location types explained, which offer in principle a comparison of places:

• A-location (simply: metropolis)
• B-location (simple: large city / city with positive development)
• C-location (simple: small town / country in stagnation)

Meso location: Second decision – The district

The meso location goes one step deeper in the analysis and describes the specific district in which your property should be located. This is important because many influencing factors, such as infrastructure, educational institutions or proximity to public transportation, are decisive. Thus, each district has its individual advantages and disadvantages that need to be differentiated.

Here again is a brief overview of the meso situation:

• Infrastructure such as road and rail links, educational facilities, doctors, airport, etc.
• Economic situation
• General attractiveness of the location
• Environmental factors such as flooding, etc.

Micro- location: Third decision – The neighborhood

Here we look at the immediate surroundings. Parking spaces, doctors, supermarkets, parks and the background noise in the neighborhood. Depending on the destination, you have to decide what is most important to you.

Here again the micro situation at a glance:

• Public transport like train, bus, cab
• Parking facilities from public to carport and underground garage
• Shopping facilities such as supermarket and other stores
• Parks and playgrounds

For examples and more details read here more about the location analysis/ Immobilien-Erfahrung.de

Next step: The right location

Where exactly should I buy my first property? Owner-occupiers and capital investors, as well as yield properties or investors with the goal of value appreciation, accordingly, the decision of the perfect location is different. Here we go into the analysis again to help you find the best location for your goals!

Return vs. investment property: cash flow or value enhancement

Yield vs. investment property – What is it anyway? What is the basic difference between these two types of investment? And what exactly is an A, B or C location? The most important thing is that both types of investment yield a profit for you. In which form, you can read here. Here you can find out everything you need to know about the yield and the investment of a property.