Property

Property as a secure capital investment and retirement provision

The popularity of property as a long-term investment is unfailing. This fact cannot just be based on the healthy returns of a property, but also due to fiscal aspects and secure income. Compared to shares and other products on the capital market, investment property provides the crucial advantage of low risk of loss and the fact that the property and its value actually exists in a specific location. Many investors have more confidence in an investment which is not purely speculative and which endures even in periods of crisis. Irrespective of whether you use the property yourself or wish to lease it, you should closely examine the criteria for purchasing property and above all plan the source of finance carefully before you purchase.

Finding a suitable property on the market

The offer on the property market is diverse and ranges from construction projects to existing refurbishments and commercial properties through to listed property. In any case, take the time to carry out in-depth research before making a purchase. Every type of property has its own specific advantages and disadvantages in investment which cannot be judged across the board. Rather, it depends on what aims are to be pursued with the capital investment and what aspects are important to the investor. Also draw on the advice of qualified experts to find the best option for your individual needs. Investment in property is a project that generally covers a period of several decades. Proportionate preparation should also be made for the decision.
When searching for a suitable property, brokers who know what is available locally and who have access to a variety of real estate can also provide support. It is also recommended that you use advertising supplements and property portals on the internet. As a result, you will create for yourself an overview of which categories of houses and flats fit your budget and whether your previous expectations were realistic. Do not let it bother you if your purchasing criteria change while searching. You can also make a clearer decision if you look at several properties and compare them to each other. In the past, purchases without viewing beforehand were mostly carried out by large-scale investors who then had to experience the adverse consequences of such negligent activity. Even if the potential object of purchase requires a long trip to visit it, this should not be forgone. It is advisable to have an independent building surveyor with you at the appointment to look at the property closely.

Selecting and financing the right property

One of the most essential criteria when purchasing is the long-term value of the property. This is primarily due to the property’s location. Properties in popular locations can expect a value that is stable to slightly increasing. Thus not only is value retention secured, the property can also be sold more easily later on if necessary. On the other hand, properties in structurally weak areas are not recommended because the risk of a loss in value is classed as too high. Therefore, find information on the economic situation of the location using meaningful indicators. These include employment rates, purchasing power and population development. It should also be noted how the infrastructure is developed, what reputation the area has and what residential value the location offers. Also have a look to see how rents and buying prices for properties in the neighbourhood have developed over time.

Once you have found the property you desire, an appropriate source of financing is used. For many, investment in a property is the most cost-intensive task of their life. For this reason, there is generally insufficient liquid funds available meaning that a property loan is taken out. Conditions and the effective interest offered differ considerably among banks. Comparison and a consultation are generally appropriate in order to find the best source of property finance.