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

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

What is Fix & Flip?

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

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

So Fix & Flip is:

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

Buy Fix & Flip property

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

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

Search undervalued real estate

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

Use of online platforms

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

Build a network: Brokers, craftsmen & Co.

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

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

Secure funding & capital

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

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

• Fix & Flip Financing

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

Fix & Flip property upgrade

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

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

• Fix & Flip property upgrade

Fix & Flip property for sale

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

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

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

• Fix & Flip Cost Accounting

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

Conclusion. Fix & Flip & Capital Increase

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

High risk but high reward

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

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

• Fix & Flip Real Estate

Rent, buy, live in Stuttgart

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

This is Stuttgart in Germany:

Stuttgart from close up:

Rent: Contract & Settlement

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

Buy: Return on investment through real estate

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

Real estate agent interview about real estate in Stuttgart

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

Maile Immobilien: Interview Partner

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

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

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

Interview partner Michael Maile:

Single family home or townhouse? Favorite properties

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

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

Rents in Stuttgart: Neighborhoods with a future

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

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

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

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

Development of the real estate market: rent stagnation

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

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

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

Modern apartments in Stuttgart-Vaihingen:

Recommendations for beginners: rent or buy?

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

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

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

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

Buying the first condominium in the city

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

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

The perfect property simply does not exist.

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

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

Real estate transfer tax and incidental purchase costs

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

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

Stuttgart at a glance:

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

Real estate as an investment – city proximity & old buildings

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

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

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

Types of real estate with a future – optics and efficiency

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

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

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

Attic room of a family house:

Selling a property – quality check

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

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

Renovation and modernization are always worthwhile!

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

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

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

FIV: Thanks to Maile Immobilien for the interview!

Buying your first apartment: Owner occupation or capital investment

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

• Buy first apartment

Rent, buy, live in Stuttgart

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

• Real estate agent in Stuttgart

First condominium in Duisburg

A good start in the real estate world is always the purchase of the first apartment. Manuela Ceresa explains in his interview with FIV Magazine his experience with real estate in a good B 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 Buchholz, Wedau and other districts such as Meiderich/Beeck and Hamborn.

Here Duisburg is located in Germany:

Duisburg 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 freshly 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 in Duisburg

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

Real estate agent interview about real estate in Duisburg

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

MC Immo Service: Interview Partner

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

Manuela Ceresa: My goal in principle (and I mean it exactly as I say) is that both sides, i.e. buyer and seller, are really satisfied and happy in the end. This is our top priority and starts already with the contact to the customer. To be open and honest and never lose the charm – is the basis for a trustful cooperation and very important to us.

Offers of MC Immo Service Agency

Manuela Ceresa: We mainly sell single-family houses, apartments and investments, so we have quite a large target group. We are very well positioned through our business partner Magnu GmbH because they cover insurance and finance, so the customer doesn’t have to go far.

In addition, we offer a pool of craftsmen of all kinds, moving companies, banks, etc. so that we can cover any area very well and recommend.

Service is everything in the end and with us the customer is indeed still king. We also work with great cooperation partners and have a good network. Commitment and many years of market experience are a prerequisite for us to keep the right perspective in a real estate market that is very complex and constantly changing.

Favorite properties: special youth villas

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

Manuela Ceresa: Personally, I have an absolute soft spot for charming old buildings. I love high ceilings, the charm of the youth villas, the old creaky parquet and wooden floors… I could list a lot more. In principle, however, I rent and sell all types of real estate and I have no tendencies to do so, because each property has its specificity and is valued.

Modern bathroom in an apartment in Duisburg:

Neighborhoods with a future: Südstadt trend

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

Manuela Ceresa: I clearly recommend the south of Duisburg, because it has a lot to offer, such as the Sechs-Seen-Platte, a lot of “green”, the Kletterwald, the proximity to the city, but it is also a stone’s throw to Düsseldorf. An excellent connection and also with public transport no problem.

Real Estate Market Development: Rents & Yields

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

The rent prices have generally increased, some major cities are now unaffordable, I can absolutely confirm this

Manuela Ceresa: Especially in the south of Duisburg, which is very popular with Düsseldorfers because of the short distance to Düsseldorf. Here, Duisburg has absolutely benefited, but I think at least currently due to the crisis that rental prices will not continue to rise at the moment.

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 Duisburg?

Manuela Ceresa: A mobile home, so you always have your home with you! Joking aside, in principle it makes sense to own property, which in my view many young people have also taken advantage of due to the low interest rates. Depending on what demands you have, renting can also be quite expensive, especially over the years.

First condominium in Duisburg: costs & financing

FIV: Anyone who rents in Duisburg 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?

Manuela Ceresa: Many people (so my observations) is not always clear when buying a property that these are then also first bound to their loan agreement and in the event of premature sale or exit from the contract must pay significant prepayments to the bank, these sums are of course based on the financing and are not without!

The rent is then omitted, however, one must include several other expenses in the budget. This includes the maintenance of the property, the administration, the running costs, possible follow-up financing etc. With the purchase itself, the land transfer tax, the brokerage for the broker and the fees for the notary, this must not remain unconsidered and must be included in the calculation.

Real estate transfer tax and incidental purchase costs

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

Manuela Ceresa: The purchase is subject to real estate transfer tax, which is currently 6.5%, notary fees (fee table) and the broker’s commission.

Apartments in Duisburg:

Good capital investments: which districts?

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

Manuela Ceresa: Buchholz, Wedau – directly at the Sechs-Seen-Platte and Wanheim-Angerhausen, but for investors the districts like Meiderich/Beeck and Hamborn are also very interesting. These districts are developing very positively.

The districts summarized:

• Buchholz
• Wedau
• Wanheim-Angerhausen
• Meiderich/Beeck
• Hamborn

Invest: Real estate return

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

Manuela Ceresa: The decisive factor is the location. Would you rather live in the city or in the country? Can you imagine growing old here? What are the conditions, etc., and all the rest of course corresponds to the need. In the case of capital investments, of course, the return plays a major role, and capital investors can assess that very well.

Selling an apartment in Duisburg: Documents for notary

FIV: Finally, one more question: You had mentioned the typical mistakes buying a property. Many buy, but some also want to sell. As an experienced broker in Duisburg, 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 Duisburg?

A sale not only costs time but is also associated with some challenges.

Manuela Ceresa: First of all, sellers, i.e. owners, should know what their property is realistically worth, clarify the ownership situation in advance (in the case of married couples or communities of heirs), check any encumbrances on the property, take a look at the building encumbrance register, a possible right of residence or right of first refusal, would you like to work with or without a broker, involve a notary, at the latest when selling, plan the move in good time etc.

What is also very important, are various documents that must be provided to the buyer such as a current land register extract, floor plans, living space calculation, etc..

In my opinion, a property can be sold successfuly if it is dealt with openly and honestly. Damages and defects must not be concealed, the purchase price should correspond to the current market value, create a trusting basis between the seller and buyer and in the end the property must please!

FIV: Thanks to MC Immo Service 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 Duisburg

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

• Real estate agent in Duisburg

Rent, buy, live in Kassel

Our interview partner, for the topic of real estate has specialized in the mediation, selling and renting of real estate in Kassel. FIV Magazine has talked to the real estate agent team in an interview about attractive districts, financing options and the real estate market in Kassel. Here you can learn everything about buying your first home, different types of houses and apartments.

Overview of Kassel and surrounding cities:

Kassel from the microlocation:

Rent: Service charges

You have decided to rent or even rent a house or apartment? Then you should definitely know more about bedroom furnishing and exclusive terrace design.

Buy: Investment

Find your new home in attractive neighborhoods of Kassel and avoid serious mistakes in your purchase! Find out what you should know before you buy in this article! Are you also interested in other cities? We have selected other interesting cities for you, such as Düsseldorf, Aachen and Duisburg.

Interview about the current real estate market in Kassel

Are you looking for a suitable property in Kassel? But are you wondering which are the most popular districts to live in, whether it is better to rent or to buy, or how high the ancillary costs and taxes are in Kassel? Then you have come to the right place. Because we have talked to a real estate agent from the region, who will answer all your questions about real estate in Nuremberg.

Immoperlen: Broker team in the area Hessen

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

Immoperlen: We specialize in the sale of single-family houses, apartment houses and apartments. Rentals of houses and apartments, accompaniment of new construction and valuations of real estate.

Team photo Immoperlen:

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

Immoperlen: single-family houses, apartment houses, apartments

Live beautifuly in the Kassel area

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

Immoperlen: For young people, the Vordere Westen is very popular, due to its beautiful infrastructure. For families it is nice to live in Kirchditmold, Harleshausen, Wilhelmshöhe, Niederzwehren and also the district of Kassel.

Kirchditmold district

Rent development & recommendations

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

Immoperlen: Rents have already risen, and will certainly continue to do so. The favorable rents get one unfortunately only in the situations which are not very popular. Even when selling a property if it is in a good location and also maintained, the sales price is higher than a few years ago. We think that will continue to exist so.

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 Kassel?

Immoperlen: If one looks at the long-term and the stability quite clearly we recommend a purchase of a real estate. It is also a good capital investment.

Single family house in Kassel:

Long-term commitment through financing and loans

FIV: Anyone who rents in Kassel 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?

Immoperlen: Too little equity, repayment rate not chosen correctly. No inventory by expert or appraiser.

Taxes and incidental expenses incurred

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

Immoperlen: 6% land transfer tax, 2% notary fees, for single-family houses and condominiums 2.975% brokerage incl. VAT. From two-family houses the usual local brokerage fee of 5.95% incl. VAT on the sales price.

Incidental expenses:

• 6% land transfer tax
• 2% Notary fees
• 2.975% for single family houses
• 5.95% for two-family houses

Living and dining room area:

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

Immoperlen: Clearly the Vordere Westen, Harleshausen, Kirchditmold, Wilhelmshöhe and Niederzwehren.

Sought-after district Harleshausen:

Real estate with a future

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

Immoperlen: Existing properties such as apartment buildings and apartments up to 80m².

Avoid typical mistakes – instructions

FIV: Finally, one more question: You had mentioned the typical mistakes buying a property. Many buy, but some also want to sell. As an experienced broker in Kassel, 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 Kassel?

Immoperlen: The first step is to determine the value of the property. Many sellers have a completely wrong view of what their property is worth on the real estate market. Some sellers are quite surprised that you can achieve a higher sales price, and some have ideas that are not feasible. A property in Kassel should be sold within 3 months, this is feasible if you do every step right. Our goal is to accompany sellers and buyers well on your way, because real estate is our passion, and the satisfaction of our customers has top priority.

3-step guide:

1. Valuation of the property
2. Within 3 months should be conveyed
3. Get experts on your side

Rent, buy, live in Kassel

The real estate market in Kassel is large and for this reason it is important to find the best real estate agent for you. In our overview you will find the best real estate agents from Kassel, who can make your dream of your property possible.

• Real estate agent Kassel

First apartment? Step by step to capital investment

Buy your own apartment – As soon as you move into your first own apartment, for most people it’s rent, rent, rent. Every month you go to work many hours, to spend the largest part ultimately for the next rent due at the beginning of the month. It’s no wonder that many young people are considering buying a condominium as soon as possible.

• Buy first apartment

Rent, buy, live in Wuppertal

A good start in the real estate world is always the purchase of the first apartment. Daniel von Baum explains in his interview with FIV Magazine his experience with real estate in a good C-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 Elberfeld, Vohwinkel and other districts such as Cronenberg and Uellendahl-Katernberg.

This is Wuppertal in Germany:

Wuppertal 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 freshly 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 can find out everything about real estate and returns in Wuppertal. Should you buy a property in Wuppertal or is it more worthwhile to buy nearby, for example in Solingen and Hagen?

Real estate agent interview about real estate in Wuppertal

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

Daniel von Baum Immobilien: Interview Partner

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

Daniel von Baum: Dear readers, we specialize in the marketing of private real estate. In particular, single-family homes, duplexes and townhouses. And, of course, apartments, which are also increasingly being brokered to capital investors and not just owner-occupiers.

Favorite properties in the city

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

Daniel von Baum: I prefer to broker special properties, because it’s simply something special. I currently have a carpenter on offer and am looking for a successor there. Tragically, the owner’s wife suddenly became a widow, and I was asked to help out through recommendations. I do that of course gladly and also completely unselfishly. If I find a buyer, then I am happy for the heirs or young family.

Old building in the center of Wuppertal:

Neighborhoods with a future: The Briller Viertel

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

Daniel von Baum: The Briller Viertel, which has the largest contiguous villa district in Germany, is definitely a classic. I, too, am lucky to work in such great locations. Young people prefer the Nordstadt or the Ölberg, also called the “Kreuzberg of Wuppertal”.

Development of the real estate market: rising rents

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

Daniel von Baum: Rents are also continuing to rise in Wuppertal. In contrast to Düsseldorf and Cologne, rents are still affordable, but they are on the rise.

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 Wuppertal?

Daniel von Baum: Definitely buy! You should not miss the start of the purchase, otherwise the redemption period will be shorter and shorter and you will have to raise more equity. I have the feeling that Wuppertal still has room to maneuver in terms of square meter prices, even if you notice that interest rates have already risen.

Buying your first home: Mistakes & Safety

FIV: Anyone who rents in Wuppertal 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?

Daniel von Baum: It is certainly important that the monthly burden is not too high. Also one should read into the minutes of the owner meetings, since one is finally “married” with such then and if there is already dispute, then better not say “yes”.

Real estate transfer tax and incidental purchase costs

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

Daniel von Baum: A very big issue at the moment is the property tax, which is being reformed. It will certainly not become cheaper with the reformation, which is why it can then also become much more expensive in good locations. How a building is heated or what energy standard it has is also important – of course. A good value to calculate the current burden (tax and ancillary costs) of a property is: 3 EUR/sqm.

Suspension railroad in Wuppertal:

Tips for All: Real Estate as an Investment

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

Daniel von Baum: In the meantime, some districts in Wuppertal have really become very expensive. You can hardly find anything for less than 20 times the annual net cold rent, and I suspect that prices will not continue to rise much further. Along the valley axis, there are cheaper properties here and there with corresponding returns. Furthermore, the Nordstadt is of course a good investment, as it is still very popular for living.

The best types of real estate: renovate factory building?

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

Daniel von Baum: I would invest in the existing stock. There are great old factory buildings that can be converted and re-rented. There are also a lot of listed properties that want to be brought back up to today’s standards and re-rented. Unfortunately, another issue is problem properties where the owners can no longer be located. These properties fall into disrepair and the city’s hands are tied. I think such properties should be able to change owners more quickly so that they are restored to a good condition!

Experience selling in Wuppertal

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 broker in Wuppertal, 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 Wuppertal?

Daniel von Baum: Experience has taught me that the thorough processing of property-related data/information is essential for marketing success. It is better to take a little time with the thorough processing of the object than to start directly with the marketing!

Thanks to Daniel from Baum Immobilien for the interview!

Buying your first apartment: Owner occupation or capital investment

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

• Buy first apartment

Rent, buy, live in Wuppertal

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

• Real estate agent in Wuppertal

Rent, buy, live in Freiburg

A good start in the real estate world is always the purchase of the first apartment. Pierre Bruns of Brumani Immobilien explains in his interview with FIV Magazine his experience with properties in a good C-location. The return on investment 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 Betzenhausen, Ebnet and other districts such as Haslach and Günterstal.

Here is Freiburg in Germany:

Freiburg seen 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 freshly 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.

Buying: Return on the property

In our interview, you will learn everything about real estate and returns in Freiburg. Should you buy a property in Freiburg or is it more worthwhile to buy nearby, for example in Denzlingen or Kirchzarten? Or you may find what you are looking for in another city in Baden-Württemberg.

Real estate agent interview about real estate in Freiburg

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

Brumani Real Estate: Interview Partner

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

Pierre Bruns: The company was founded in 2017 by Pierre Bruns and Joachim Niehaus. Thanks to the entrepreneurial experience of Joachim Niehaus and the sales and marketing experience of Pierre Brun, the two founders were able to complement each other well. This is how the vision to change the real estate market in Freiburg was born. We work for this with a unique and innovative concept.

Our mission is to help property owners sell their property and achieve the best possible result for him. At the same time, we are always looking to find the ideal buyer for the seller, who brings the maximum appreciation for the property and is a perfect match for the property. Through this concept, we have already made many buyers happy and even more sellers.

Favorite properties: apartment & generation house

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

Pierre Bruns: Preferably all of them! From large multi-generation houses to cozy 1-room apartments. As a real estate agent, it is simply the nicest thing to look into two happy faces at the notary appointment. Of course, demand is particularly high for upscale properties, especially in the popular districts of Freiburg, such as Herdern or Wiehre, and it is always nice to see how prospective buyers fall in love with the property and can’t get out of their amazement. Which makes the rejections all the more difficult for us.

But even our smaller objects have their own charm, so that in the end the new owners are happy with their purchase.

The team of Brumani Real Estate:

Neighborhoods with a future in Freiburg: Littenweiler & Wiehre

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

Pierre Bruns: Freiburg has a lot to offer and no matter which of the 28 districts someone moves to, it is always beautiful! We are also noticing that more and more people want to combine city life with proximity to nature.

Every district of Freiburg is special and unique.

Even if you know them all and have lived here for a long time, it’s hard to make a decision. Littenweiler, Wiehre, Zähringen and Herdern are of course in vogue with families. The fact that these districts have quasi direct access to nature is very attractive. For students and singles, the districts of Altstadt, Oberau, Stühlingen or Betzenhausen can be interesting. There is definitely something going on here day and night. A small tip for the future is the district Brühl at the old customs hall.

There has been a very great development here in recent years with many new buildings. This could become a new place-to-be in the future. Of course, this is also a matter of taste. As real estate agents in Freiburg, we are sure that the districts that are particularly in demand in Freiburg will remain in demand in the future.

On our website brumani.de we have also created a small subpage for each district, where everyone can get detailed information about the respective district.

Development of the real estate market: rising purchase prices

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

Pierre Bruns: It is probably no secret that purchase and rental prices in Freiburg have risen rapidly. The market value development over the last ten years in Freiburg is between +96.1% and 108%. Forecasts predict that there will be a small dip next year. By the end of 2023, market values will be back at current real estate prices. Which forecast will ultimately come to pass remains to be seen; no one can look into the future.

Regarding rents. Due to the constantly rising purchase prices, it is also no wonder that rents are increasing. In 2017, the average price per square meter for a 40m² apartment was €14.20. In 2019, the average rental price in Freiburg was then already at 15.40€. We assume that rents will continue to rise in the future. Please visit our website to learn more about the price developments in the individual districts of Freiburg.

Buying or renting real estate: Risks with the loan

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

Pierre Bruns: With current interest rates, it is of course very lucrative to buy a condominium. Provided the property is in good condition and is bought at a fair market price. If you are considering buying an apartment or even a house in Freiburg, you should basically consider how much equity you bring with you and what risks you are taking on with a real estate loan.

In addition, you should definitely prepare a profit and loss account. This way you will definitely make sure that the purchased property does not only cause expenses. A real estate purchase is always a very individual and should be very well thought out.

The first home of one’s own in Freiburg: Opportunities for financing

FIV: Anyone who rents in Freiburg im Breisgau 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?

Pierre Bruns: You raise an important point there! The long-term burden of a real estate loan should not be underestimated. Especially with the first condominium, it is important to contact several financial advisors and to look closely at the current interest rates. Another typical mistake made by first-time buyers is not informing themselves extensively about the location and the living experience of the purchased property.

In any case, look at several different properties. Find out about the location, transport connections, public facilities and the quality of life in the respective region. Although Freiburg is a very green and lively city, each district has its own charm. Perhaps you would prefer to get out of the city life and move to one of the communities bordering Freiburg.

Incidental purchase costs and land transfer tax

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

Pierre Bruns: When selling real estate in Freiburg, which is part of the state of Baden-Württemberg, a real estate transfer tax of 5% must be paid by the buyer. In addition, there are the notary fees and the broker’s commission. Since the end of 2020, both buyer and seller bear the brokerage costs equally. If the real estate agent and the owner consequently agree on a commission of 3 percent, the agent may also demand up to 3 percent from the buyer.

The costs for the notary and the land registry are borne by the buyer alone, which is about 1.5% of the purchase price. In total, the buyer can add another 10% to the purchase price when buying a property.

The purchase costs at a glance:

• Real estate transfer tax: 5%
• Brokerage costs 50/50
• Notary & land registry fees: 1.5%

Freiburg’s cemetery:

Tips for investors in Freiburg im Breisgau

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

Pierre Bruns: Freiburg is currently a paradise for investors, because constant rental income is very secure here. The vacancy rate is 0.4 percent and the city of Freiburg is actively combating misuse and vacancies, because demand is high! We firmly believe that real estate investors will have no problem finding a suitable tenant in all of Freiburg’s districts in the future.

The Brühl district could be particularly interesting for the future.

As mentioned earlier, the infrastructure in Brühl is being expanded further and further and many new construction projects are being built. In February 2019, 60 percent of Freiburg residents voted in a referendum for the construction of the new Dietenbach district. Here, living space
for 16,000 people will be built, which naturally offers a lot of potential for real estate investors. The new district is located in the west of Freiburg, adjacent to the Rieselfeld district.

Types of real estate with a future – new buildings as capital investment

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

Pierre Bruns: There is no standard formula for this, because there are always several factors that play a role in a real estate investment. Ultimately, it always depends on one’s own purchasing power and the interests that a real estate investor brings with him. Both small and large properties can be interesting for investors. Due to Freiburg’s reputation as a student city, smaller properties will always be in high demand.

However, the larger properties are very popular with families. Pay close attention to the condition of the object in the case of existing properties. The big advantage is the lower purchase price compared to newly built properties. Usually there are already tenants in the property, so the rental income is already ongoing. New buildings are interesting for capital investments, because you can deduct a part of the acquisition, production and maintenance costs for the purchased property from your taxes.

This is not the only reason why new buildings are very popular with investors; they usually retain their value very well and are equipped with modern facilities. However, the price and location are also decisive here. It is no secret that the location of a property is a central factor in any purchase.

Sell house or apartment in Freiburg im Breisgau

FIV: Finally, one more question. You had mentioned the typical mistakes buying a property. Many buy, but some also want to sell. As an experienced real estate agent in Freiburg im Breisgau, 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 Freiburg im Breisgau?

Pierre Bruns: To provide sellers with the best possible support when selling their property, we have compiled guides and checklists for a successful property sale. By these private owners receive detailed pieces of advice and practical Tipps. The councellors and check lists can download themselves everyone free of charge on our web page brumani.de.

Thanks to Brumani Real Estate 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 Freiburg

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

• Real estate agent in Freiburg

Rent, buy, live in Oldenburg

A good start in the real estate world is always the purchase of the first apartment. Ingo Eden of Eden-Ehbrecht Immobilien explains in his interview with FIV Magazine his experiences with real estate in a good D-location. The return on investment 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 Eversten, Thomasburg and other districts such as Haarentor and Wechloy.

This is Oldenburg in Germany:

Oldenburg again 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 can find out everything about real estate and returns in Freiburg. Should you buy a property in Oldenburg or is it more worthwhile to buy nearby, for example in Rastede or Wardenburg? Or you can find a property in another city in Lower Saxony.

Real estate agent interview about real estate in Oldenburg

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

Eden-Ehbrecht Immobilien: Interview Partner

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

Ingo Eden: When we founded our real estate agency in 1999, we started with the slogan “Oldenburg’s new first address for real estate”. In the meantime we stand for nearly 23 years for trustful and reliable service approximately around the sales and the letting of high-quality living real estates and trade real estates in Oldenburg and environment.

Our customers and partners entrust us with high assets. Naturally, a high standard of service is particularly important to us. Confidentiality, reliability and intensive and personal communication are therefore the basis for a long-term and successful cooperation.

We are happy to be measured against this maxim every day.

Our claim is now underlined by the numerous awards and customer reviews we have received over the years. Most recently, Eden-Ehbrecht Immobilien was awarded the IDA Award 2022 for the second time. The Real Estate Service Provider Award is presented annually as an industry award by a jury of experts from BVFI, the Federal Association for the Real Estate Industry, together with the German Real Estate Fair.

Special attention is paid to reliability, service, appealing and versatile offer, trustworthiness, accessibility, communication and transparency of processes. Already in 2017, we received the coveted award and were even named one of the top 50 real estate agents in Germany in this context!

In addition to the industry awards, we are also particularly proud of our now 500 customer reviews with an average of 4.6 out of 5 stars, which confirm and motivate us every day in what we do.

The best real estate in Oldenburg

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

Ingo Eden: Of course, it is a special honor and pleasure for us when we are entrusted with so-called lighthouse projects or projects that shape neighborhoods for marketing. Such properties are always an exciting challenge, as they are often complex in structure and very long-term in marketing. It takes a lot of know-how, experience and stamina, things that we have proven to have after all this time.

The DREI HÖFE, for example, are one of these special projects that set new standards and will develop their appeal far beyond the city limits of Oldenburg. The Drei Höfe are being realized by four renowned companies that have already been responsible for a large number of projects in and around Oldenburg.

The trend-setting mixed concept combines hotel, gastronomy, retail, urban living and working on a total of 9,500 m² on five floors and a high level.

Eden-Ehbrecht Immobilien has successfuly marketed a large number of such projects in the past. This proves to us again and again that we can always prevail over other market participants with personality, expertise, reliability and many years of experience!

The Eden-Ehbrecht Real Estate Team:

Neighborhoods with a future: leisure and families

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

Ingo Eden: Which district is the right one is, of course, a very individual decision. For singles and couples, the area around the Old City Harbor could be interesting. In recent years, an attractive neighborhood close to the city center has developed there in a prime waterfront location. Modern architecture, a good infrastructure paired with the proximity to various restaurants, cinemas, theaters, museums and the offers of the city are certainly very exciting for younger new Oldenburger.

Families who are looking for a house with a garden naturally have other requirements. Proximity to nature, schools and the like are more important here. They often opt for the outskirts of the city. Here, the development area on the former air base site is a possibility if you are still looking for land for a new building.

People like to live closer to the city center in Bloherfelde or Eversten.

Here, however, it is currently rather multi-family houses that are being built by densification of the older structure. It will be difficult or expensive to get hold of a plot of land for a new single-family house. If you are looking for the typical Oldenburg doghouse, you will of course be happy to look for opportunities in the Dobbenviertel or the Gerichtsviertel.

In general, however, the demand in Oldenburg has been so high in all areas for years that one has to be quite patient to find or build the house of one’s dreams.

Development of the market: rising rents

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

Ingo Eden: Demand for rental apartments in Oldenburg has been above average for years. Oldenburg is one of the few cities of its size that has grown continuously and will continue to do so for some years to come. Despite high construction activity, especially in the smaller residential segment, supply is lower than it has been for a long time. This is likely to remain the case for some years to come.

The effects of the pandemic have certainly eased the situation somewhat. Nevertheless, you should start looking early enough to find something suitable.

In terms of prices, the trend means that rents are rising steadily in both existing and new buildings. Particularly in preferred locations and in the new-build segment, we have now definitely reached big-city level in Oldenburg.

Recommendations in Oldenburg: long-term orientation

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 Oldenburg?

Answer: Since the situation in Oldenburg, as described above, is currently not quite easy and prices are relatively high, this is certainly a question of long-term orientation. If you plan to find your new home in Oldenburg, a purchase can of course make sense. For a limited time, renting certainly makes sense. If you are new to Oldenburg and don’t know your way around yet, we like to advise you to first look for a rental apartment, get to know Oldenburg and the various districts, and then get a picture of the city on the spot.

This certainly also facilitates the search, as one can then react to offers accordingly at short notice. The dream properties at reasonable prices are rare and accordingly quickly allocated.

The first home: mistakes in the purchase

FIV: Anyone who rents in Oldenburg 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?

Ingo Eden: A typical first-time buyer mistake would of course be to purchase property without the support of a professional, such as an experienced real estate agent. The assessment of a property, whether new or existing, is relatively extensive and complex. If you do not know exactly what you should pay attention to, you can of course quickly make decisions that you may later regret or pay dearly. Especially in a tight market like Oldenburg, where quick decision-making is often the key to being able to buy a property at all.

As the saying goes, he who commits himself for eternity will be tested.

You should consult a specialist and not let the seller put you under pressure. Only when you are sure that the location, condition and price match your expectations should you make a decision. If any of this is still unclear, perhaps it was not yet the right object.

Incidental purchase costs and land transfer tax

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

Ingo Eden: The standard items here are, on the one hand, of course the land transfer tax, with currently 5% of the purchase price in Lower Saxony. Then approx. 1.5 – 2% for the notary and all necessary formalities must be calculated in. Depending on whether you buy the property through a real estate agent, you usually have to calculate up to 5.95% commission. According to the new legal situation, the seller and the buyer share the commission half each in the case of real estate for own use.

An overview of ancillary purchase costs:

• Real estate transfer tax: 5%
• Notary & land registry costs: 1.5-2%.
• Brokerage commission 50/50: 5.95%

Oldenburg from the bird’s eye view:

Real estate in Oldenburg as an investment

FIV: Oldenburg neighborhoods for real estate investment – Let’s move on to real estate as an investment in Oldenburg, 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 Oldenburg would you recommend to a buyer for their capital investment in Oldenburg? In your opinion as an expert, where do the most future opportunities lie?

Ingo Eden: First of all, you would have to talk about whether it should be a residential property, commercial property or mixed property for investment. Since Eden-Ehbrecht Immobilien is now definitely one of, if not the largest commercial broker in Oldenburg, there is definitely a lot of potential here for experienced investors.

The very high demand for properties of all kinds certainly does not make it easy for new investors to enter the market in Oldenburg at the moment. Project developers are currently prepared to pay above-average prices per square meter. There is a lot of competition with other investors. Experience, speed and liquidity are often the decisive factors here.

Interesting places for investments: security and sustainability

In principle, you can certainly say that any options within the beltway are very interesting and certainly sustainable in the long term. But you certainly can’t go wrong in any urban area with a good, established infrastructure at the moment. New buildings with reasonable amenities and a price level in line with the market are currently not vacant for long in any urban area.

Interesting satellites have certainly always been Bad Zwischenahn and Rastede. But also the areas between the satellites and the urban area have become very interesting in the meantime.

What is certainly important in the long term is above all sensible financing, control of construction costs and price expectations in marketing. If an owner is dependent on having to rent out his property at very high prices per square meter for over 30 years, this can become problematic at some point in the face of demographic change and declining demand.

The best types of real estate in the city

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

Ingo Eden: The most popular form of investment at the moment is certainly the new multi-family house. 4-family, 6-family, 8-family, 12-family, depending on the property and the available liquidity. Especially the densified properties in popular urban areas are certainly attractive in the long term. With possible proximity to university, police academy or even clinics, smaller residential units are probably the right choice.

In structurally more mixed areas, a reasonable mix of smaller, medium and larger units will ensure long-term rentability. If you’re lucky, you can certainly buy an existing property with several parties in areas close to the city center, such as the Dobbenviertel or Gerichtsviertel. In the recent past, however, these have tended to be lucky cases.

The market for commercial real estate is certainly even more specialized. The opportunities to invest here are mainly used by expanding companies or strong project developers.

Living room of an apartment in Oldenburg:

Tips for selling real estate: expertise & experience

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

Ingo Eden: The first and best step would of course be to call or email Eden-Ehbrecht Immobilien. We have the expertise and experience to accompany the entire process from the first to the last step and to lead it to success together. As a seller, you certainly don’t do anything wrong, but everything right.

But seriously. If you want to sell a property in Oldenburg, we would recommend doing it together with a “professional” such as a real estate agent like us. Assessing the condition, market value and chances of selling are a bouquet of challenges that you don’t necessarily get right the first time. This is where experience will make a significant contribution to success.

Many owners think, if you carry out a free real estate evaluation on the Internet at one of the popular portals “evenly”, that they are then already well positioned. Here often only data are queried, in order to sell these then further to a broker. These companies act first of all in their own interest.

With real estate agent to successful sale

So recommendation would be to find out who are the best local real estate agents that can help you sell. After all, they still know the market the best. Look for customer reviews, experience, references as well as prompt communication once you have made contact. Invite a selection of 1, 2 or a maximum of three agents to meet them in person and show the property.

You will then usually receive appropriate estimates and valuations for the sale of the property. When making the comparison, it is especially important not to go by who gives them the highest selling price. That would be too easy.

In a hotly contested market like Oldenburg, some sellers like to use this method to get orders quickly. Because owners would naturally like to sell at the best possible price. But if the stated selling price is 20-30 percent above market value, disappointment quickly follows, with a reduction in the selling price.

Cooperation in the sale: important documents

Above all, sellers should listen to their gut feeling as to who they could imagine working with, regardless of the final price. The sale requires quite intensive assistance in terms of documents, appointments and so on. Above all, the “chemistry” should be right.

Some sellers use the information of the brokers, in order to sell the real estate then nevertheless themselves, because you shun perhaps the meanwhile half commission. That must know then everyone itself.

As one of the most and best rated real estate agents in Oldenburg, with over 20 years of experience and countless references in all areas, we are of course convinced that it definitely makes sense to sell a property with a professional at your side. The result will usually always be better than if you try it alone.

Thanks to Eden-Ehbrecht Immobilien for the interview!

Buying your first apartment: Owner occupation or capital investment

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

• Buy first apartment

Rent, buy, live in Oldenburg

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

• Real estate agent in Oldenburg

Social binding: What is it anyway?

For housing construction, social binding means that low-cost housing is subsidized by public funds. This means that there are low-interest loans or subsidies for investors in exchange for committing to affordable rents. The catch? Only people with a housing entitlement certificate are allowed to rent these apartments.

• Affordable housing through public funding
• Very good conditions for loans or grants
• Rent for persons with a certificate of eligibility for housing

Rebinding

Buyers are tied to social housing until the public loans have been repaid. However, due to the post-commitment period, one has to wait 10 more years after repayment until the social commitment ends.

• Commitment to social housing until loan is repaid

Limited rent

The cost rent slows down the maximum rental price of the apartments. The housing construction is therefore price-linked, which guarantees that only the cost rent can be demanded from the tenants. The rent may be increased in this period only every 3 years, according to the consumer price index.

• Maximum rental price limited by “cost rent

Social bond summarized

Here again everything you need to know about social binding!

• Affordable housing through public funding
• Very good conditions for loans or grants
• Obligation to rent to low-income persons
• Maximum rental price limited by “cost rent
• Post-commitment period ends only 10 years after full repayment of public loans

The next step: equity

Regardless of whether it is for personal use or as a capital investment, the first thing to think about for any type of real estate is the financing. Here, equity capital is an important topic, from the use of equity capital to the difference due to tax deductibility of the interest on the loan. The big question here is, how much equity do you need if you include all costs from the purchase price to the ancillary purchase costs? Here you will learn everything about financing and equity.