Majorca Property News

Getting rich with its own four walls?

A real estate - that is what Safe. So the widespread opinion. Who only wants to invest his money to live without, for this is only true conditionally, says Christian Jaspreneite, economist at the banking house MM Warburg: "It is indeed terribly much go wrong: A residential area, can significantly in value, you can pitch with his tenants, the housing as such may contain certain structural defects that lead to repeatedly nachbessern, needs renovation."

Never buy unseen
Particularly, the real estate prices in some countries, notably the United States or Spain, the rate of descent. Entry is now in many cases effective, but not for beginners, says Michael Feigl, investment expert at the Institute of Financial Services in Hamburg: "It takes a lot of expertise, in order not to run schief (...). We end the 90s the problem of scrap property held. People have already tried their retirement through real estate and hedge are a massive failure. " Therefore, always apply: An unseen never buy a property before the contract and inspect the records of the owners require. At the same time we must be prepared to a high debt to be accepted. Or bring a lot of capital. At the moment, even both, Feigl says, because the banks are currently required a comparatively high level of self: 25 to 30 per cent equity will in most cases it's his. The ideal target is therefore rather small: "The classic case: both earn money and live where this property is - that is, they could also at any time to convince as to the condition of the property looks (...).

Protection against loss of value
This one is largely a property with a value against loss. How well, however, depends on the location. Almost fully applies only to the urban centers like Hamburg, Frankfurt or Munich: This is the real estate investment actually to remove because the value of the property to the value of money adjusts. This makes it but only if the value of the property at a market, where demand is. "

Investment in real estate
Among the criteria for a good location are easy access to public transport, extensive shopping facilities and the proximity to schools and kindergartens. In rural areas, however, the houses would be long term, prices fall, so Jasperneite Economist: "Who now outside of urban centers to buy, must actually assume that the prices in the next few years will fall." Who is currently on the relative safety of four walls studied, the advice was good, to spread risks and in many houses at the same time to invest - on paper. For example, with open real estate: "Experience shows that there are then returns achieved in the long run slightly above the money market rate, and the variability is also very low - comparable to the money. If you have a slightly longer investment horizon brings can then also the security expect that one of the subject property, and is much higher than the investment in a single property. "

The price for this relative safety is then: When the yield - an average of the past four to five percent are not expecting big jumps too.