Small money, big opportunity: micro-apartments

In conversation with Lukinski / Kapitalanlagen (Stephan M. Czaja) – Investing with little money, spreading risk from the outset and earning even more money directly through kickers such as furnished rentals – sounds good? It is!

My tip for young investors: Invest in micro-apartments – even with little money! I’ll show you why here!

You can enter the real estate market even with little start-up capital. Micro-apartments in particular offer you the advantage of a manageable price, but can still generate a solid return – especially in sought-after locations.

Perfect for trainees, students, young professionals! You can get such apartments with 25m², 30m² in medium-sized and larger cities for less than €20,000 (with 20% equity, you would only need ~ €4,000)

You heard right! Let’s continue:

What is a micro-apartment?

A micro-apartment is a small, efficient apartment of around 20 to 30 m². Perfect for students, young professionals or commuters who want to live centrally and compactly. For you as an investor: low purchase price, easy to let.

5 facts: What makes a micro-apartment

These features are standard in micro-apartments and make them particularly attractive:

1. Small living space of 25m² – 40m²
2. Combined living and sleeping area
3. Compact kitchenette or kitchenette
4. Small bathroom with shower
5. Furnishing with clever storage space solutions

Micro-apartment?! Small apartment, high yield

You can find more videos of me on YouTube x Real Estate Experience!

Why micro-apartments are interesting for you

If you want to start small, this form of housing is ideal. You don’t need a lot of capital and still benefit from stable demand and good rental opportunities.

Advantages at a glance

These arguments clearly speak in favor of micro-apartments as a starting point:

• Already available for less than €20,000
• Easy to rent – furnished and compact
• Low ancillary costs due to small area
• Popular in cities with universities or commuter structure

Sample calculation: how realistic your entry is

You can find a micro-apartment for €25,000 in cities like Braunschweig or Magdeburg. With negotiation and a bit of luck, you can pay just €18,000. With 20% equity – i.e. €3,600 – you can finance the rest from the rental income. Your start in the world of real estate – without a huge budget.

What you should look out for when buying

It is particularly important not to buy too emotionally when starting out. You should check these factors beforehand:

Checklist for your purchase

Get an idea before you buy – these points will help you:

• What is the location like? (Proximity to university, city or train station)
• How much renovation is required?
• Are there comparable rents in the area?
• Is the apartment furnished or do you need to upgrade?

Why demand is so high

The trend is clearly moving towards small, efficient apartments, as more and more people are living alone. This is also shown by the figures from recent years:

• Almost 50 % of all households in Germany are single-person households
• Many people live alone today – whether young or old
• The desire for central living continues to grow
• Rents are climbing – especially for small units

What should you bear in mind?

Micro-apartments have many advantages, but you should also be aware of their limitations:

• Little space – not for families or furniture fans
• Fluctuation can be higher (e.g. for short-term rentals)
• Furnished rentals need a little more organization

Get off to the right start!

Getting started doesn’t have to be complicated. Look at specific offers, calculate realistically and focus on good locations with high demand. The best way to gain initial experience is with a small, manageable property.

My tip for young investors: Invest in micro-apartments – even with little money

Even if you “only” have €10,000 or €15,000 at your disposal: You can get started! Micro apartments offer you a real opportunity for your first real estate investment with manageable risk and potential for more. My tip: Watch the full video on YouTube or visit immobilienerfahrung.de for more practical tips.

Bought and now? Rent as….

Imagine entering the world of real estate – not with millions in your bank account, but with only around 5,000 euros in equity. Sounds like a dream? But it is possible. That’s what today’s special is all about: how to start your first own apartment as an investment with style, color and a little courage.

• Renting a student apartment

Buy a house or rent an apartment in Halle (Saale)

A good start in the real estate world is always the purchase of the first apartment. Jens Lehmann explains in her interview with us his experience with real estate in a good D-location. The yield here depends on the type of house or apartment. For example, micro apartments have different exploitation possibilities than single-family homes. The meso location is also decisive in pricing, whether in Hausen, Bockenheim and other districts such as the Gutleutviertel or Eschersheim.

Get acquainted with Halle’s neighboring cities like Morl, Petersberg and Kabelsketa. Halle (Saale) in macro location:

Here is an overview of the city and its districts. In addition to Trotha, the districts of Ammendorf, Neustadt and Lettin are popular in Halle (Saale). Halle (Saale) in micro location:

Rent, buy, live: Your future in Halle

Are you planning to move into a house or apartment for rent in Halle (Saale)? Then you should not miss these tips for bedroom furnishing and terrace design. How do you furnish your new home?

Or is your dream your own home in Trotha, Ammendorf, Neustadt or Lettin, but you do not know how to finance it? What you should consider before buying real estate, an experienced real estate agent from Halle (Saale) will tell you later in the interview.

Many want to become financially independent through real estate, you too? – Then another strategy is the right one for you. Tips from professionals on how to achieve your individual goals are available here.

Real estate agent interview about real estate in Halle (Saale)

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

Immobilienagentur Lehmann: Top real estate agent team

FIV: Before we talk about Halle (Saale) and its real estate market, we want to know a little about your real estate agency. What does your agency do and what exactly do you specialize in?

Answer: We are Immobilienagentur Lehmann and deal with three pillars of the real estate business: management, leasing and sales. The focus is on the interests and the goals of the customer. In recent years we have specialized in capital investors and investors. Our job is to develop a strategy from an idea of the owner and to apply it successfuly. In the interest of the owners. In doing so, we very often also take on an advisory role and accompany the processes until the goal is reached. This part is especially fun for us and our clients, because every property and the associated development projects are always different.

Condominium: A popular capital investment

FIV: As a real estate agent in Halle (Saale), which properties do you personally prefer to broker?

Answer: We prefer to broker commercial real estate, condominiums and apartment buildings. Why? Behind all this marketing are people who invest to “create” and make a difference. These people have values and high goals. Whether it’s an early twentysomething buying their first condo or an established investor planning the next step to buy their first multi-family home, these people are highly motivated. It’s just fun to support these people and accompany them on this journey.

Increasing returns is fun

But the seller’s side is also fun. Let’s take the seller of a condominium again, for example. They had been working with us for years because we were managing the condominium. We modernized, optimized and increased the return. The goal was achieved, the strategy worked and now these apartments are being sold at a profit. It is not uncommon that you have built up a good relationship with the seller during this time and you are almost sad to sell the condominium because it and the seller have grown close to you over time and you have had a good time with them.

Kitchen of a family house in Halle (Saale):

Rather rent or buy in Halle (Saale)

Which districts have potential in the future? How are rents developing in Halle (Saale)? Location and rental price trends are important factors that influence your decision whether to rent or buy in Halle.

Living downtown vs. further south?

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

Answer: I think that especially for families, but also for singles, the city center, as well as the southern and northern city center are the most beautiful. Short distances, playgrounds, good infrastructure and social activities can be found right here. We are experiencing a huge increase in students and families in the southern downtown. Both in the purchase and rental market. A lot has been done here by the city of Halle in recent years and many beautiful old buildings have been renovated by owners and ownership associations. So if you don’t want to afford the prime location Paulusviertel or Mühlwegviertel, invest or buy in the southern city center.

This is how rents are developing in Halle

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

Answer: Rents will continue to rise despite the rent index. This is simply due to the high demand and the relatively low supply. Halle is not only a student city, but also well located thanks to the A14, A9 and A38 freeway connections. You can be in Leipzig in 40 minutes. Halle has a lot to offer and is constantly developing. In my opinion, the prices per square meter for both sales and rentals are below expectations.

Tip. Real estate as equity and security

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 Halle (Saale)?

Answer: It depends on what the couple’s life goals are. For example, we always ask our clients what the optimal state should be. What is the goal? The strategy depends on that and the path associated with it.

If, for example, the goal is to start a family and buy a house in Halle Kröllwitz or Dölau and live there with dog and children, then I would definitely recommend a rental apartment for the couple and develop a strategy to finance one, two, three or more condominiums in parallel to rent them out. These properties then serve as equity and collateral. It always depends on people’s individual goals. In principle, anything is possible if it is sensibly planned.

Old building with bay window in Haale (Saale):

Avoid first-time buyer mistakes: Buy in Hall

FIV: Anyone who rents in Halle (Saale) 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 in 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?

Have conscious goals for the future – Tip 1

Answer: In principle, we see most first-time buyer mistakes in the first conversation when we ask the questions “Where do you want to go? What is the goal?” many are not really aware of this and make the wrong decisions here.

There are different approaches to achieve goals.

As in the example above with our pair. Furthermore, there are some points to consider in a strategy chain. For example, if you want to buy an owner-occupied property first and then buy an income property later, this is possible, but much more difficult than the other way around. If wealth accumulation or financial independence is the goal, you have to consider different criteria than if you “only” want to finance an owner-occupied property. It all depends on the goal and then you develop the right strategy for it.

Collect real estate knowledge – Tip 2

Since real estate is not part of most people’s core business, knowledge and experience are often lacking here. What do I have to consider regarding financing with banks, how much can I afford, what purchase criteria should my property meet, when do I want to sell it again, etc.?

Allow time or hire expert – Tip 3

Another mistake is to underestimate the time involved. There are things you need to know and understand, but not implement alone. For this, you can turn to a professional who will avoid mistakes, be faster in the end and also save you money. Rather, you should continue to focus on your goal. There are many people who want to do everything themselves in order to save money. Unfortunately, we see very often that expensive mistakes are then made and the most important and expensive asset, namely time, is wasted on things that should rather have been handed over.

Real estate agent Jens Lehmann:

Preventing mistakes when buying at a glance

The tips for buying real estate for the first time in brief. In summary, you should remember the following:

• Have clear goals
• Buy investment property before owner-occupied property
• Develop suitable strategy
• Collect knowledge
• Allow time

You should also be aware of the incidental costs of buying real estate.

Incidental costs when buying real estate in Saale

FIV: The purchase price of a property is one thing, but what additional costs and taxes must buyers in Halle (Saale) expect?

Answer: To the additional costs of a real estate purchase one should include the notary (1.5%), the land transfer tax (5.0%) and optionally the brokerage (3.57%). So if you buy a property for 100T€, you should calculate around 11% with broker and 7% without broker on the purchase price. If a broker is involved in the purchase, it is right and important to claim these costs for tax purposes. Here a good tax advisor (not a tax clerk!) is needed, who is familiar with the matter.

The costs summarized

When you buy a property in Halle (Saale), these are the incidental costs of purchase that come your way:

• Notary (1.5%)
• Real estate transfer tax (5.0%)
• Brokerage fee (3.57%)

Example: Purchase price 100.000€

With a purchase price of 100.000€ you pay:

• 11% with broker
• 7% without broker

New construction unit in Halle (Saale):

Expert recommendation: Real estate as an investment

FIV: Halle (Saale) neighborhoods for real estate investment – Let’s move on to real estate as a capital investment in Halle (Saale), for those who want to buy and rent. If our*r reader*in decides for the purchase, with following letting: Which 2 districts or satellites around Halle (Saale) would you recommend to a buyer for their capital investment in Halle (Saale)? In your opinion as an expert, where do the most future opportunities lie?

Answer: Even if I repeat myself, it always depends on the goal of the capital investor. I continue to see good investment opportunities in the south downtown (the profit is made on the purchase) and also in the north downtown. Both districts serve as good investments for different pockets.

Existing real estate or new construction: investing the right way

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

Answer: In principle, you should have every type of real estate on the screen. All types have advantages and disadvantages and, as always, it depends on your goals. When building a new building, for example, the margin is highest if you build properly and have a good network of service providers that you already know and trust. For newcomers to real estate, existing properties are a good place to start.

Selling real estate in Halle: Hiring a real estate agent?

FIV: Finally, one more question: You mentioned the typical mistakes when buying a property. Many buy, but some also want to sell. As an experienced real estate agent in Halle (Saale), 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 Halle (Saale)?

Answer: I am actually asked this very often. Anyone can sell a property. Somehow. Some do it better than others. Again, it’s a question of how involved you are and how often you will handle a sale. My own advice to anyone who wants to sell their property in the best possible way, who does not have the necessary expertise, who has no experience with authorities and notaries, and who does not have the time for marketing, is to hire a well-chosen real estate agent. As a counter-argument I sometimes hear that this is quite expensive. However, the past has shown in numerous cases that a broker can save costs, effort and a lot of trouble in the end.

Achieve a high sales price: Here’s how

In addition, sellers with brokers in most cases achieve a higher sales price and the sale is also much faster. Mind you, if you put a little time into choosing the right broker. Another mistake is getting too emotionally attached to the property and seeing a value that is not there. For some sellers, it is also the other way around and they value the property for less. That’s why a seller needs to take a hard look at value and how to calculate value, or hire someone who knows about it.

Thanks to Immobilienagentur Lehmann for the interview!

Buying your first apartment: Owner occupation or capital investment

You want to realize the dream of your 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 Halle (Saale)

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

• Broker recommendation in Halle (Saale)

Rent, buy, live in Bochum

Real Estate Urban lead a dynamic and experienced company that specializes in brokering, selling and renting real estate in Bochum. FIV Magazine has talked to the real estate agent team from Bochum in an interview about attractive districts, financing options and the Bochum real estate market. Here you can learn everything about buying your first home, different types of houses and apartments.

Overview of Bochum and surrounding cities:

Bochum 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 Bochum. Should you buy a property in Bochum or is it more worthwhile to buy nearby, for example in Witten or Herne?

Real estate agent interview about real estate in Bochum

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

Urban real estate: Real estate agent in Bochum

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

Immobilien Urban: I founded Immobilien Urban GmbH almost five years ago as a young and innovative real estate agency. We have specialized in the sale of residential real estate. We would like to set ourselves apart from old-established brokers in Bochum and the surrounding area with our service and our open and communicative manner. Technical means, such as drone photography, professional object photos, visualizations of exterior and interior spaces, as well as homestaging raise the brokering to a new level. It is our claim to inspire not only the seller, but also the prospective buyer.

Buying a property: emotional decision

Despite all the possibilities offered by technology, the purchase of a future home is “fortunately” still a very emotional decision. The communication with prospective buyers and a personal inspection as well as consultation are therefore essential. Our greatest ambition is to present the property perfectly and to accompany buyers as well as sellers in the best possible way during the buying or selling process.

Hallway in a luxury property in Bochum:

Real estate mediation

FIV: As an agent in Bochum, which properties do you personally prefer to broker?

Urban Real Estate: I prefer to broker the classic single-family home. Here it is primarily about emotional decisions and not about a rational return. On the one hand, I try to pick up on the seller’s personal connection to the property and incorporate it into our exposé. It is often an emotional moment for our clients to decide to sell their home.

The only thing that helps is a close exchange of ideas and a response to the seller’s personal wishes. On the other hand, prospective buyers are in the process of fulfilling their dream of owning their own home, and it is a pleasure to be able to accompany this process in most cases. Especially the handing over of the keys and the anticipation of the buyers for the object motivate me for further tasks. I help people with an important step in their lives and this task I take very seriously with pleasure.

Districts with future opportunities: Stiepel & Altenbochum

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

Urban real estate: Bochum is on the whole a very beautiful and green city. Often as a gray mouse in the shadow of the big ones, Essen as well as Dortmund, Bochum offers singles and families very much quality of life. The complete south over Weitmar, Altenbochum as well as Stiepel, in order to name only the largest districts, offers families short ways and a large leisure offer. As a university city, it also offers singles many small apartments in and around the city center.

Real estate agent Peter Urban:

Ehrenfeld as a popular district

Especially the Ehrenfeld district, south of the city center, has grown in recent years into a very popular hotspot for young people on the one hand, but also for wealthy families for whom the short distance to the city center is important. This continues to spread in the direction of Springerplatz. Every Friday afternoon, for example, the Moltkemarkt takes place on Springerplatz, this offers special culinary experiences from merchants from the Bochum area. Here, especially in nice weather, many families with children meet and start the weekend with pleasure.

Young people and singles of all ages then find their way to the Bermuda Triangle. There are countless restaurants and pubs there.
But Bochum also has many beautiful neighborhoods to offer for families with lower incomes. It is particularly pleasing that there are no social hotspots in Bochum. Most of the neighborhoods have a very balanced population and that is what makes Bochum so special.

Development of rental prices in Bochum

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

Urban real estate: In Bochum, too, purchase prices and rents have risen sharply in recent years, to be honest. However, with the exception of a few districts, we are still far from the prices in Düsseldorf, Cologne or Münster. Bochum offers sufficient living space for families of all income levels, even if the search for a single-family home is becoming more and more of a waiting game. Due to the many former miners’ settlements, however, there are also many alternatives to new construction.

The houses are somewhat older, but have large garden plots and offer a lot of potential. The purchase prices are much more affordable than a new construction project. In the future, the market will remain tight and will depend on interest rate policies. If these remain at the current level, owning a home is a perfect alternative to renting. For an investor, the investment in multi-family housing remains a perfect alternative to a savings account.

The office of Urban Real Estate:

Rent or buy as a young couple/ single person

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 Bochum?

Immobilien Urban: This is not an easy question to answer, because many personal factors of the seekers play a big role here. How flexible do I want to remain, how do I envision my future. Quitting a rented apartment often doesn’t require an emotional decision, which is likely to be much more difficult with a home of one’s own. We recommend taking one step at a time. Real estate has always been a stable value investment, so we always tend to buy, but it must fit into the life situation of the seeker.

Typical mistakes when buying real estate: tips for first-time buyers

FIV: Anyone who rents in Bochum 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 in 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?

Immobilien Urban: Many first-time buyers are inexperienced in terms of the buying process and the liabilities that a property entails. We can only recommend to everyone to get many opinions, to compare the market and not to make any hasty actions. The purchase should be well considered and fit into the medium-term life planning. In recent years, however, a purchase has rarely turned out to be a mistake, because even if your own use is no longer an option, an apartment or even a house can be rented out well.

The long-term nature of financing a property should, of course, always be linked to life planning. If you are planning to buy or even build something, always seek advice from an external expert. Both in terms of the condition of the property, but also on the financing of the object and on tax issues.

• Get many opinions
• No rash purchases
• Linking financing to life planning
• Broker advice the be-all and end-all
• Condition check of the object
• Financing & Taxes

Incidental expenses and taxes of a real estate

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

Urban real estate: In addition to the purchase price, the buyer has to pay the so-called ancillary purchase costs. First and foremost and the largest part is the land transfer tax. Here relatively briskly after the notarial authentication 6.5% of the purchase price become due to the tax office. Furthermore, the buyer bears the costs of the notarization at the notary, about 1% of the purchase price, as well as all costs that have to do with the processing of the purchase contract, for example, all entries in the land register. Here, too, you have to calculate with about one percent. Thus, the incidental purchase costs amount to about 8.5%.

Incidental costs at a glance:

• 6.5% of the purchase price to the tax office
• 1% Notary
• 1% Land register
• 8.5% Incidental purchase costs

Another important point is the brokerage fees. Here, the federal government has created a novelty. The buyer’s costs may not exceed the seller’s costs. This means nothing other than that the seller must either pay the entire brokerage fee or can pass on a maximum of half of it to the buyer. This must be clearly evident in the exposé for the prospective buyer. However, this regulation only applies to the purchase of condominiums as well as detached and semi-detached houses.

The modern office building from the inside:

Capital investment Bochum: Most future opportunities

FIV: Bochum neighborhoods for real estate investment – Let’s move on to real estate as an investment in Bochum, for those who want to buy and rent. If our*r reader*in decides for the purchase, with following letting: Which 2 districts or satellites around Bochum would you recommend to a buyer for their capital investment in Bochum? In your opinion as an expert, where do the most future opportunities lie?

Urban real estate: When investing in real estate, I would always recommend paying attention to the infrastructure. Apartment sizes must fit the location of the building. There is no point in owning small apartments outside the city, it will be just as difficult to rent out family-sized apartments in the city center. A good investment is also characterized by the ratio of the purchase price and the rental income, this should be balanced and be able to guarantee a long-term planned rent. The choice of the district depends solely on the willingness of the buyer to take risks. For the beginning with a manageable risk, districts such as Altenbochum, Weitmar or Riemke are perfectly suitable.

Objects in which to invest

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

Urban real estate: This question cannot be answered so sweepingly. Bochum is a university town, small apartments for students are essential. The campus around the university continues to expand every year and there is a need for more housing for students and university employees. Small age-appropriate apartments are also needed and built for older city residents. On the other hand, Bochum has a great need for family-friendly apartments that are affordable for everyone. We often have well over one hundred inquiries for an advertised 4.5 room apartment, which speaks for little choice in the area. I prefer a healthy mix.

What’s wrong with building houses with different apartment sizes, mixing families with students and seniors?

Private investors are very important for the real estate industry in Germany. In addition to looking at returns, they must also look at the efficiency of buildings. CO2-neutral construction will certainly be a major topic in the future. It is important that the higher construction costs are offset by subsidies and support from the state and do not necessarily have to have an impact on rents. Real estate must remain an attractive investment in order to create more living space for all age groups and social classes.

Sell house or apartment in Bochum

FIV: Lastly, 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 Bochum, what tips can you give to those who are selling a property for the first time? What are the first steps and how to sell a property in Bochum successfuly?

Immobilien Urban: Of course, we can only advise every seller to hire a real estate expert. It starts with the determination of the selling price, continues with the compilation of all necessary documents and the preparation of suitable photographs as well as an exposé. Often, these things are underestimated and the search begins after the first visits. We offer a property only when all the necessary documents have been compiled. As a more experienced real estate agent, I have a good eye for a possible target group of interested parties.

This is important for the presentation of the property in the exposé. Our real estate agency also has a large database of searchers. This has the advantage that specifically selected interested parties can be adressed directly. We have enormous success with this and often find the suitable buyer after only a few viewing appointments. Also in negotiations about the purchase price, it is always easier if you can communicate your ideas to a third party, without a lot of emotion. It is then my task to implement these in the sense of the seller. Bochum has the advantage that there are many good real estate agencies, but to stand out from many others is a task that I gladly accept.

Avoid mistakes with these steps:

• Determination of the sales price
• Compilation of all documents
• Creation of suitable photographs
• Council: to hire a real estate agent

Thanks to Immobilien Urban 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 Bochum

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

• Real estate agent in Bochum

Rent, buy, live in Frankfurt

A good start in the real estate world is always the purchase of the first apartment. Rainer Ballwanz explains in his interview with us their experiences 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 Hausen, Bockenheim and other districts such as the Gutleutviertel or Eschersheim.

Here Frankfurt is located in Germany:

Frankfurt up close:

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 Frankfurt. Should you buy a property in Frankfurt or is it more worthwhile to buy nearby, for example in Offenbach or Wiesbaden?

Real estate agent interview about real estate in Frankfurt

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

The real estate agent team from Frankfurt: Ballwanz Immobilien

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

Rainer M. Ballwanz: Ballwanz Immobilien has been specializing in residential tasks and challenges in Frankfurt-Rhine-Main for 30 years. With a highly specialized team, we advise cities and municipalities on concepts for planned construction areas as well as property developers and project developers on product concepts for new construction projects. Of course, we also handle the marketing of these new construction projects on the basis of marketing and communication strategies developed in-house.

We are just as happy to advise private sellers and landlords of residential real estate and to broker purchase and rental agreements. In all our activities, the focus is on the individual. Our aim is to meet their wishes and requirements.

Rainer M. Ballwanz and his real estate agent team from Frankfurt in the meeting:

Real estate with potential in Frankfurt

FIV: As a broker in Frankfurt, which properties do you personally prefer to broker?

Rainer M. Ballwanz: We prefer to broker properties where the price/performance ratio is right from the point of view of demand. In the case of new construction projects, there is also the requirement that the buildings integrate organically into the urban development through their architecture and quality and fulfill their responsibility for the public space.

Popular districts with a future: Rents in Frankfurt

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

Rainer M. Ballwanz: Frankfurt is rather small in terms of its geographic extent compared to other major German cities, so that actually all districts have a very good infrastructure and good connections to the core city.

Property in Sachsenhausen, Bockenheim or Frankfurt Ostend?

There are the established residential locations such as Westend, Nordend or Sachsenhausen, where it is somewhat more expensive, but fully satisfactory to live. Those who prefer more urbanity should look around in Bornheim, Bockenheim, for example. In addition to the Gallus and Gutleutviertel districts, Frankfurt’s Ostend district has been one of the most up-and-coming in recent years. If you are moving to Frankfurt with your family, you should definitely check out the new construction areas of Rebstock, Riedberg or the Lyon Quarter.

Rent: Is it worth it? Frankfurt rents

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

Rainer M. Ballwanz: Supply and demand naturally also regulate rents in the city of Frankfurt, which has been growing demographically by around 5,000 to 10,000 residents for years. Residential rents are rising sustainably and are already at a high level when measured against the national average. For existing apartments, average rents of €11 to €13 per square meter can be expected, but for new buildings, depending on location and quality, rents range from €16 to €20 per square meter. If you want to live in one of the modern and exposed high-rises in a central location, you have to calculate a bit more.

Rental prices in Frankfurt at a glance:

In summary, you can expect the following average rents in Frankfurt and the surrounding area:

• Existing apartments: Average rent from € 11,- to 13,-/sqm
• New buildings: Average rent from € 16,- to 20,-/sqm
• High-rise buildings in central locations: average rent over € 20/sqm

Rising prices for new construction rental apartments: Alternatives?

Rainer M. Ballwanz: Due to the fact that the space reserves for new buildings in the Frankfurt urban area are very limited, it can be assumed that there will continue to be an undersupply on the market and that prices for rental apartments will therefore continue to rise.

We should learn that Frankfurt does not only consist of the actual city area, but that there are a large number of towns and surrounding communities directly adjacent and excellently connected, which “feel” as if they belong to the city of Frankfurt. These locations in Frankfurt-Rhine-Main, such as Bad Vilbel, Neu-Isenburg or Offenbach, certainly represent a good alternative for those looking for a home. And usually at a more favorable price level.

Manageable risk for capital investors in Frankfurt

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 Frankfurt?

Rainer M. Ballwanz: That depends on personal circumstances and financial feasibility. To answer this question, it always requires an individual consideration. Anyone who basically wants to invest in real estate, whether for personal use or as a capital investment, can do so quite safely with the right property in Frankfurt with a very manageable risk.

The probability of losing money on a residential property with an investment period greater than 10 years is rather unrealistic. Those who come to Frankfurt for work and know that they will probably only stay in the city for one to three years should rather look for a rental property that suits this current stage of life.

Dining room and living room area in a penthouse:

Photo: XOXO Studios

Home & condominium: avoiding buying mistakes

FIV: Anyone who rents in Frankfurt 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?

Rainer M. Ballwanz: The biggest mistake is to believe that real estate prices in the Rhine-Main region will fall again on a sustained basis. Assuming that the world remains more or less the same as we know it, prices will move sideways at most as a result of temporary external influences. It is unlikely to get any more favorable.

Tip. Assess investment risk correctly

Contrary to common practice, we recommend not only evaluating the current purchase price, which is often perceived as too high, when making an investment. In our opinion, it is more important to estimate the price that the property is likely to achieve at a later resale and with what probability. Only in this way can the buyer assess the risk or the possible success of his investment.

Attention: Take a long-term view of construction interest rates

Construction interest rates have been at a historically low level for some time, even though they are currently slowly starting to rise. This sometimes tempts potential buyers to underestimate the potentially significantly higher burden when the first fixed interest rate period expires. Financing should also fit the buyers’ individual circumstances and life plans in the long term. We recommend seeking advice from independent financing experts in good time.

Apartment for rent in Omni Tower:

Do not do without expert knowledge

One big mistake is to believe that when buying a residential property, it is best to do everything yourself, without the expertise of a lawyer, financial broker or real estate agent, and thus save money. Digitalization has supposedly made the markets more transparent, at least on the supply side. We do not believe this and advise first-time buyers in particular to seek out trusted advisors who can provide expert guidance through the complex process of a purchase. The decision to buy a property is often rather emotionally driven. Assessing the expected value development, setting up individual financing or evaluating purchase contracts are certainly tasks for experts.

In short – so what you should consider

All tips on the subject of home ownership and condominiums from the expert at a glance:

• Real estate prices in the Rhine-Main region will not fall again on a sustained basis
• Assess investment risk in the long term
• Construction interest rates slowly starting to rise
• Financing must be considered in the long term
• Do not do without expert knowledge

Buying in Frankfurt: Factoring in ancillary costs

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

Rainer M. Ballwanz: In Hesse, the purchase of real estate is subject to 6% land transfer tax, notary fees for the notarization of the purchase contract and, if applicable, the creation of a land charge, as well as fees for the land registry. If one adds the brokerage costs of up to 3.57% of the purchase price, which are to be paid in half by the buyer, for existing properties, ancillary purchase costs of 10 – 12% can arise.

However, the price trend for residential real estate in Frankfurt should also be taken into account here, which has risen by around 8% on average over the past 10 years for existing apartments and by around 9.5% for new apartments. This means that with a similar price development forecast for the coming years, the relatively high ancillary costs of acquisition would be compensated for relatively quickly.

Costs in the purchase of real estate summarized

Incidental purchase costs in Frankfurt and the surrounding area at a glance:

• Real estate transfer tax –> 6
• Brokerage costs –> up to 3,57 %
• Notary fees

Total incidental purchase costs = 10 – 12 %.

Bedroom in the rental apartment Omniturm:

Buy and rent in Frankfurt: Tips

FIV: Frankfurt districts for real estate investment – we come still to real estates as capital investment in Frankfurt, 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 satelites around Frankfurt, would you recommend to a buyer for their capital investment in Frankfurt? In your opinion as an expert, where do the most future opportunities lie?

Have clear goals as an investor – Tip 1

Answer: As in the stock market, this depends significantly on the investor’s profile. What does he want to achieve? Is he prepared to take a certain speculative risk with perhaps a higher increase in value, or does he prefer to “sleep soundly” and go for a lower increase in value with the highest possible value stability at the same time? What time horizon is the buyer planning for his investment?

Priority Safety: Investing Westend & Nordend – Tip 2

A large or metropolitan city like Frankfurt always develops from the inside out. Those who tend to seek security are excellently invested in the established locations close to the city center, such as the Westend or Nordend. The city center and the Ostend of Frankfurt have developed exceptionally positively in recent years and have the potential to remain quite exciting for capital investors in the future.

District of Frankfurt with potential: Offenbach – Tip 3

If you are a bit more of a visionary and have some time to spare, you should take a close look at Offenbach, which is separated from Frankfurt only by the Main River. We assume that Offenbach could be one of the biggest winners in the Rhine-Main region in the coming decades.

All tips at a glance:

• Have clear goals as an investor
• With safety a priority: investing in Westend & Nordend
• District of Frankfurt with future potential: Offenbach

These types of real estate have a future: new construction & apartments

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

Real estate trend: micro apartments, student rooms & one-bedroom apartment

Answer: Investing in residential real estate will generally be a good decision in Frankfurt for the foreseeable future. Those who want to diversify their risk and are not looking for self-interest should perhaps rather buy two small apartments instead of one large apartment.

New construction, condominium or existing property?

New construction has the advantage that the buildings are built to the current state of the art and building regulations and one does not have to expect any subsequent investments in the first few years. If the location of the property is more important to you, you will find a broader offer in existing apartments. When investing in existing properties, however, we recommend checking in advance whether the legal requirements to be expected in the medium term with regard to energy efficiency upgrades will be feasible in principle.

Last but not least: Prices for condominiums in exclusive high-rise buildings have developed disproportionately well in Frankfurt and also represent an exciting sub-segment of the investment market for the future.

Selling real estate: Advisor for help

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 Frankfurt, 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 Frankfurt?

Answer: We recommend to the private seller of a property to take an expert advisor to the side, who understands the market/price mechanisms analytically and knows how to estimate the value of the property well-founded. Only in this way can the best possible price be realized in the time frame in which the seller would like to dispose of the proceeds.

Many thanks to Rainer M. Ballwanz for the interview!

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