Real estate investment for beginners: how to do it on a budget

Geld anlegen?

In conversation with Lukinski / Kapitalanlagen (Stephan M. Czaja) – Buying your first condominium (as an investment) without risking everything right away – it’s possible. Small apartments around 25,000 euros are the perfect place to start. In many German cities, you can find small properties near the university or in peripheral locations that can be transformed into modern micro-apartments with a little skill.

Invest cheaply: Small apartment, big style & clever returns

Why is that?

Why 5,000 euros can be enough

For many first-time buyers, this sounds too good to be true. But: if you can raise around 20% equity – i.e. around 5,000 euros for a purchase price of 25,000 euros – and the bank finances the rest, you have already laid the foundation. In addition, there is a small buffer for modernization – and this is exactly where your leeway lies.

• Only 20 % equity required
• Low entry hurdle for your first investment

Upgrading with style: color, kitchen, charm

What you can get out of a nondescript apartment with a small budget is enormous. A new wall color immediately creates a fresh atmosphere. A laminate floor from the DIY store enhances the feeling of living. And with an inexpensive fitted kitchen, you not only add function, but also real added value – especially for potential tenants.

Achieve more rent with little effort

Those who invest in simple furnishings often get significantly more per square meter. Especially for students, young professionals or single travelers, it’s not the size that counts – but whether everything you need is there. Renting out furnished means you can charge a premium and appeal to a target group that is looking for exactly that.

• Fitted kitchen increases the rental value
• Furnished apartments generate more income

Who you rent to: Students, Singles, Mobile

Your small, cleverly furnished apartment is in tune with the times. More and more people are living alone – and they don’t want to live in huge apartments. Whether student or digital nomad: An apartment with 25 m², furnished and in good condition, is quickly rented out. Especially in cities with universities or good public transport connections, the vacancy rate is often zero.

High demand for small apartments

So why spend more or opt for large properties? Small apartments are not only easier to finance – they are also back on the market more quickly. And with a property management company, you don’t have to worry about almost anything.

• Stable demand for small units
• Property management takes over letting & administration

Less risk, more control

A small start also means: you risk less, but learn just as much. You build up initial experience, benefit from monthly rental income and can sell again at any time. Thanks to the compact size, you have lower operating costs, less maintenance – and a very clear calculation.

More overview with a small area

Instead of renting out a 4-room apartment, where you might end up with three empty rooms, you invest in a single small unit – with a clear target group. Your fixed costs remain manageable and you have full control over your income.

• Less effort, more overview
• Lower operating costs

Start with little capital – but a lot of impact

You don’t need millions to start investing in real estate. Just 5,000 euros is enough to buy a small apartment, upgrade it a little – and turn it into a real source of income. And best of all, you’ll learn everything you need for your future portfolio.

Micro-apartment as a capital investment: advantages for you

Small apartment with 25 m² instead of a large 4-room apartment. Why? More and more people are living alone in single households. Students, singles, holidaymakers, but also professional groups such as fitters, who are often in different cities. Learn more about investing in small condominiums, so-called micro-apartments, here.

• Micro-apartment as a capital investment

Buying Real Estate: Tips, Checklists & Investments

Here you will find everything you need to know about buying real estate. From the search to the resale, we accompany you with our checklists and plans. The following books will certainly help you with your first or next real estate purchase. It can be about different types of real estate such as detached house, semi-detached house, zero energy house or even maisonette apartment, old building apartment or apartment. Have fun reading!

Tip! Overview Real Estate XXL

The world of real estate is complex and multifaceted. If you want to keep an overview and avoid making mistakes, you should prepare well and clarify as many open questions as possible in good time. No matter whether you want to build, buy and rent out a property or live in it yourself, or even use a property as an investment to generate passive income: The preparation is the A&O. Here you will find articles, as well as book and video tips with successful and helpful books and videos on the subject of real estate – including tips and tricks from professionals and experts.

• Book & Video Tips Overview: Real Estate

Used real estate: Checklist!

Rating: 4,6 / 5,0 ( 8 Reviews )

Those who want to buy a used property often have to search for a long time and visit many things until they find a suitable object. The main thing is to evaluate the building fabric and estimate the renovation costs. This guidebook helps here.

It contains checklists that are used to determine the structural condition during the inspection. Using cost tables, you can quickly calculate how expensive the renovation could be. Overviews based on the year of construction point out possible critical points in the building fabric.

• Buy at Amazon

I am buying a property: financing, repayment and taxes

Rating: 3.5 / 5.0 (6 ratings)

Experts or the clueless: These are the two types of advisors that those seeking help with construction financing usually have to deal with. Some shower the advice-seeker with long and complicated explanations of forward loans, repayment rates and land transfer tax rates, while others only explain a lot of half-truths.

The person who wants to build or buy has his hands full with his new home. How can he pick out what is really important from the jumble of information? “HELP! I buy a property” offers the most important questions and answers – and only those. With the facts that are really crucial.

• What do I need to know about construction financing?
• What are the additional costs and taxes?
• “First aid” for emergencies
• Buy at Amazon

Buying real estate: capital investment and retirement provision

Rating: 4.9 / 5.0 (85 ratings)

Written in an easy-to-understand way, this compact guide takes you through the stages of buying a property. You’ll go through the process in your mind, be more confident as a buyer, learn to ask “good questions”, avoid common mistakes and make effective buying, investing and financing decisions. You’ll invest intelligently, save unnecessary costs, and work with your own team of experts (real estate agent, notary, bank, etc.) on equal footing. The book assumes no prior knowledge and is particularly suitable for interested parties who dare the step to buy a house or apartment, or even already want to invest in a second or third property.

This book answers questions such as:

• Buying or renting your own home: At what level of rent does it pay to buy a house or apartment?
• Financial advantages of home ownership
• Real estate market: How and where do I find the right property?
• Typical incidental costs when buying a property
• Real estate loan: At what point do I qualify for real estate financing?
• Team of experts: Which experts do I bring into the team?
• Common mistakes to avoid when buying real estate: What should I look out for when buying?
• Purchase price determination: How do I find a realistic purchase price?
• From the search to the offer, to the purchase and the transfer of ownership to the move in
• Timeline: Approximately how long will it take me to own the property? When should I terminate any lease I may have?
• Buy at Amazon

Real estate: buy, renovate and resell at a profit

Rating: 4.7 / 5.0 (16 ratings)

Fix & flip is all about finding properties in need of refurbishment, upgrading them and selling them back quickly for a profit. If you know how to do it, this is a very lucrative business that can make you a lot of money. In this book, you’ll get step-by-step instructions and get the know-how you need to build a profitable real estate business as a full-time or part-time fix & flip investor.

• All about taxes and additional costs at the Fix & Flip
• How to get credit for a fix & flip
• What kind of real estate you should buy
• Where to find the right properties
• How to get off-market deals
• How to generate tons of leads
• How to calculate, plan and carry out a major refurbishment project
• How to build your Fix & Flip team
• How to sell the property quickly and at the highest price
  …and much more!
• Buy at Amazon

Buy real estate, rent it out and earn money

Rating: 4.5 / 5.0 (Reviews: 147)

Real estate investments are not subject to fluctuations in the stock market or inflation. You can start wonderfully now due to the low interest rates:

• Real insider knowledge: No one in the real estate industry has ever shared his knowledge with the public as honestly as Bernd Ebersbach.
• How to choose and value real estate correctly. Learn how to choose a city and neighborhood and how to analyze the micro, macro and meso situation.
• Prepare yourself optimally for viewings with this book. With the right knowledge of floor plan, energy-saving class, defect assessment and building age class, you will be able to acquire a high-yield property.
• How to minimize your risk and use the book to arrive at a financial plan that has no loopholes.
• Administration and insurance – you need to master these basics for your success!
• With this concept you will find the perfect tenants – proven many times over!
• Is there a way to increase your rental income? Profit from the tips of a full professional!
• Special types of rentals: Whether you are renting a listed building, a holiday or trade fair apartment, renting as a sun roof or film location – this is how you get the most out of your property!
• Buy at Amazon

The condominium manual

Rating: 4.6 / 5.0 (30 ratings)

Stiftung Warentest’s Condominium Handbook is a comprehensive guide for owner-occupiers and landlords. You want to buy a flat as a building block for retirement provision or to fulfil a long-cherished dream of living? This reliable guide provides you with the necessary practical knowledge about your own four walls. Find a property, work out individual, solid financing, organize the management sensibly, maintain and modernize the property.

• Search, select and buy: Our roadmap for condo buyers
• The solid financing: Individually adapt and calculate sustainable in the long term
• House and apartment management: Organize sensibly and manage professionally
• Maintain and modernise: Maintaining and increasing the value of your own property
• Buy at Amazon

Buying real estate for dummies

Ratings: 4.3 / 5.0 (22 ratings)

The dream of your own four walls – this book can help you make it come true! The authors accompany you from the search for a suitable property for own use, renting or as a holiday home, through financing to the conclusion of the contract. With tangible tips, they support you in taking stock of your finances and compiling all the costs incurred, and give you valuable help for negotiating contracts and dealing with estate agents, notaries or lenders.

• Buy at Amazon

Further links on the subject of real estate

Are you interested in everything that has to do with real estate? You already have a property, or want to buy one, but do not know how to finance it? Here you will find more tips, tricks and book recommendations on the subject of real estate.

Real estate financing

Real estate financing – You want to buy a property, but do not know how you can finance your dream? Terms like loan, interest, credit, repayment or building society contract only raise more questions for you? Here you will find all the important information on the subject of real estate financing: from financing with equity to financing without equity to applying for a loan, we cover all the important topics!

• Video Tips: Real estate financing
• Book recommendations: Real Estate Finance

Build property

To build or to buy a house? This question is on the minds of many prospective buyers. Here we show you the advantages and disadvantages of both options and offer interesting tips on financing. Both options have their advantages. A new build has the great advantage that you can determine the layout of the rooms according to your wishes. In an already existing property you don’t have to deal with the complicated construction phases and you can live in your own home much faster. Here you will find books that will help you to finance your dream home and show you what you should definitely pay attention to.

• Video Tips: Build property
• Book Recommendations: Building real estate

Overview real estate XXL: Investment, broker, renting & Co.

Here you get back to the overview of book and video recommendations on the subject of real estate in Germany. Investment cases, capital investment, passive income, house or apartment buy and rent and much more is explained to you here by experts and understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of real estate.

• Back to Book & Video Tips Overview: Real Estate

Buying real estate – tips and tricks for buying a house

Here you will find everything you need to know about buying real estate. From the search to the resale, we accompany you with our checklists and plans. Whether you are buying a house or an apartment, here you will find the information that will prepare you perfectly. The following books will surely help you with your first or next real estate purchase. Enjoy reading.

Tip! Overview Real Estate XXL

The world of real estate is complex and multifaceted. If you want to keep an overview and avoid making mistakes, you should prepare well and clarify as many open questions as possible in good time. No matter whether you want to build, buy and rent out a property or live in it yourself, or even use a property as an investment to generate passive income: The preparation is the A&O. Here you will find articles, as well as book and video tips with successful and helpful books and videos on the subject of real estate – including tips and tricks from professionals and experts.

• Book & Video Tips Overview: Real Estate

Buying mistakes

Buying or investing in a property is a big step. In the process, you can make a lot of small mistakes, but also bigger ones that can potentially cost you a lot of money. In these videos you will learn which mistakes are most often made when buying real estate and how you can avoid them to save as much money as possible on your real estate purchase!

That’s what you have to watch out for!

You want to buy a property but don’t want to make any mistakes when investing? The following video explains what you need to pay attention to when financing real estate, the location, type and size of the apartment, etc., and which rules you should absolutely follow for both owner-occupied real estate and capital investments! In addition, you will learn more about the risks of special real estate, how important the amount of the contractually fixed repayment and the consideration of your own future planning is!

9 typical mistakes when buying real estate

Making mistakes when buying real estate can have serious consequences. “What to look out for” is therefore a central question when buying real estate. How you can avoid mistakes is shown in this video.

• The first of many real estate mistakes is certainly that you are not purposeful in your site selection.
• Calculating correctly before buying is another point you should definitely take a closer look at.
• Have you found the right rental model?
• Do you consider interest rate risk before you buy?
• And have you found the ideal financing for you? A financing broker can help you with this question.
• The worst mistake we made when buying a property was not having any money in our bank account after the purchase. Reserves only build up after a certain time.

Buying your first own property

Have you been thinking about buying a house or an apartment for a while? Then you’ve come to the right place. However, buying a property is not as easy as it seems. Many things must be considered to really find the perfect property for you. Here you will find everything important about buying real estate. Our tips and tricks will help you get started with your first property.

Getting started with your first own property

Here we give you tips on what you need to buy a property in the first place. How much equity should you have for the planned investment? What does the bank expect from you as an investor? And how do I behave towards my bank advisor? You will learn all this and much more about this topic in this video!

Buying real estate step by step

In this video, the most important steps in buying real estate are explained to you. This will give you more clarity and allow you to go full throttle with real estate! Here you will be shown in which order the individual steps are to be carried out and what priority they have. Plus, you’ll be given some real-world tips for each step that will give you more confidence. Have fun with this video.

Procedure when buying a house

With the following video we would like to answer your questions about buying a house and give you a little guidance on what to do if you want to buy a property that you have viewed.

• What happens after the tour
• What do I have to do if I like the house
• How often can I visit the property
• What documents do I need for the bank and where to get them
• When do I get the key
• … and much more!

How to buy your first apartment

Becoming a real estate investor, buying and renting out apartments and living off the returns – that’s it! But how do you actually get started? How do you buy your first apartment? How you can take your first steps into the real estate business, tells you in this video real estate professional investor Gerald Hörhan.

Identifying the right purchase price of a property

In this video, you will learn what options you have to quickly value real estate, how to recognize the correct purchase price of a property and what special features there are so that you don’t pay too much for your property!

The right time to buy real estate

Buying a property is basically a good idea – but when is actually the right time? Does it make sense to buy a property as a trainee or student, or would it be better to wait? And is the real estate boom perhaps over again? Find answers to these questions here.

Buy property as a student or trainee

Is it possible to get a real estate financing as a student/pupil? Surely it will be difficult if you want to convince the bank as a student or trainee. Especially if your credit rating with these starting conditions is not yet so good and you want to approach a real estate financing with little equity or even completely without equity. Without the guarantee of a parent or relative, we say that it is even simply impossible. If you want to be successful with residential real estate, you need a lot of information, you need to know where and how to look later. Experiences and exchange offer you the optimal entrance into the real estate.

Still buying real estate now?

All of the studies conclude that the real estate market weathered the Corona Lockdown very well – except for one. In the video, we talk about how new evidence shows that there was definitely a price collapse in the market. Still, there are positive signs going forward that the German real estate market could continue to pick up. You can find all the details in the video.

Real estate financing

How do you finance your property in the best possible way? And ideally without equity? Should you buy or rather rent? Find answers to important questions on the topic of im

Buy property without equity

We usually recommend 100% financing or full financing. In principle, a real estate financing without equity. However, a full financing without equity or buy property without equity also includes that the incidental costs are financed. Since these are no countervalue, we see this approach, however, as critical if you do not buy particularly cheap. Such a property financing without equity has a significant impact on the return on equity of real estate. In this way you make optimal use of the leverage effect. That’s why we recommend financing no less than 80% of the purchase price as a rule.

Buy or rent?

Paying rent is money wasted. Whether there is any truth in this statement and what makes more sense from a purely financial point of view – buying or renting a property – is explained in the following video.

Related links around the topic Real Estate

Haven’t learned enough yet? We’ve covered many areas of real estate for you with our video tips. For example, areas such as: Real Estate Financing, Renting Property, Finding the Right Realtor, Passive Income through Real Estate and much more. Take a look and become a real estate professional!

Real estate investment

Real estate is considered a safe and profitable investment. But what is the best way to invest in houses or apartments? Whatever drives you to make a lot of money: Buying an apartment as an investment is the best idea you will ever make. If you want to invest successfuly in real estate, you need a good strategy.

• Video Tips: Real Estate Investment
• Book Recommendations: Real Estate Investment

Build property

To build or to buy a house? This question is on the minds of many prospective buyers. Here we show you the advantages and disadvantages of both options and offer interesting tips on financing. Both options have their advantages. A new building has the great advantage that you can determine the layout of the rooms according to your wishes. With an existing property, you don’t have to deal with the complicated construction phases and you can live in your own home much more quickly. Here you will find videos that will help you to finance your dream home and show you what you should pay attention to.

• Video Tips: Build property
• Book Recommendations: Building real estate

Overview Real Estate XXL: Investment & Co.

Here you get back to the overview of book and video recommendations on the subject of real estate in Germany. Investment cases, capital investment, passive income, house or apartment buy and rent and much more is explained to you here by experts and understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of real estate.

• Back to Book & Video Tips Overview: Real Estate