Those who are in the fortunate position of having a larger amount of equity should not ignore the signals of the economy and the market.
In fact, savings are no longer tied to a value guarantee. Even banks that are willing to take on customers can no longer guarantee everything. Nevertheless, there are opportunities to integrate capital into safe investments and thus ensure its value in the long term. The speech is here of investments of funds in real estate values. With real estates it concerns generally a safe investment type (apart from special forms, like for example the apartment house, which can be hochspekulativ). Naturally it is obvious that it is not affordable for everyone to acquire a complete real estate as precaution or investment. Alternative possibilities are to participate in companies that invest in real estate.
It is important to diversify your personal portfolio, depending on your personal risk appetite. The additional questions you need to answer yourself are as follows: How much money do I want or can I invest at all? Do I want to invest short-term or long-term? Banks recommend holding about 5 – 15 % of the portfolio in the form of real estate shares. Once the magnitude of the investment has been determined, you can already realise your retirement provision with the right investment plan. A sensible and secure investment can certainly be combined with additional financing.
Investment: Contributing your own funds
As a general rule, 30 % own funds are the absolute lower limit. 40 – 50 % own funds guarantee relative freedom from risk. The lower the proportion of borrowed capital, the lower the interest rate. An indispensable requirement for a retirement home is rentability. The apartment must meet the needs of the market in terms of location, infrastructure and equipment. This is the only way to avoid vacancies.
What you should keep in mind when buying real estate
Those who secure their finances in the form of real estate can look forward to future economic developments much more calmly. The property is also unbeatable when it comes to retirement provision. Although the acquired property must first be paid off, a thrifty lifestyle has positive consequences: In old age, owners not only finance the property, but also have more financial assets than tenant households. So that the investment is worthwhile and the real estate keeps its value over decades and increases, a few points must be considered:
The regional environment is the most important selection criterion. Despite demographic changes, there will not be less demand, but rather a different type of demand for owner-occupied homes. Where there is still an active market today, it will also be possible to sell owner-occupied homes in the future. A property in a conurbation will retain or increase its value. The forecast is worse for rural regions. Caution is also advised in regions where the economy is dependent on only a few companies. If things go downhill there, one cannot necessarily rely on the resale value.
In the case of a resale, the equipment of the property should fit particularly well for a target group. For example, gardens and the affordability of the property are important for families. Older semesters tend to pay more attention to spacious bathrooms, which can be easily converted for those in need of care. Also to consider: The more timeless and the less fashionable the design of tiles and sanitary facilities is, the more stable the value will be for the homeowner.
If you are building or buying, you should pay attention to the immediate surroundings of your future home. The more attractive the location, the more stable the value of the property. In addition, the following questions are important: Where can I shop? Could this also be done on foot? How far is it to doctors and hospitals? And where are there entertainment facilities such as theatres, cinemas and restaurants?
Investments all over Europe
The opening of the European markets affects naturally also the real estate market, here very interesting offers can be gotten Europe-wide, which can be used for example as a financial investment for a small vacation home or for a small holiday house. This form of the plant guarantees a considerable yield potential particularly in the main vacation time and offers you besides still the possibility of the own use, during own vacation stays. So it is also quite worthwhile to look for suitable objects in the European metropolises.
If you have made the right choice here, it is perhaps an interesting alternative for city holidaymakers, as well as possibly for business travellers as a suitable overnight accommodation. Thus a continuous renting extent of utilization is guaranteed, which increases the financial increase in value in contrast to the pure vacation home, which yields only a seasonal yield. You will find properties that fit into the aforementioned framework in Vienna. Let us convince you personally of a suitable property offer for you during a visit on site. Accommodations in Vienna that are suitable for such a city trip can be found online. Booking is completely uncomplicated and can also be done online.
Letting the property as a secure source of income
If the purchased property can be leased profitably, this pays for itself over the years in terms of possibilities for financing rates. This way you will have a debt-free property at your disposal for the rest of your life, which will generate important additional monthly income for you in the form of rental income. There are worthwhile objects everywhere. From a house to a condominium, it is up to you to decide how much you want to buy.
Renting a condo
In principle, the more central the location and the better the infrastructure, the better the rentability of an apartment. However, it should be borne in mind that the acquisition costs for apartments in above-average locations are correspondingly high. However, it is often doubtful whether a higher rent can be achieved to the same extent. What is lower in this case, however, is the risk: a good apartment in a good location always finds a tenant (with a corresponding rent).
Success factors include proximity to the city centre, transport connections and shopping facilities, but also a quiet location, recreational areas and a residential area. Although a property in an average location is cheaper to buy, it also entails a higher risk of vacancy. Any sugars, such as a balcony, a sun terrace or a bathroom with tub, can turn out to be an important decision criterion. Apartments with these “features” stand out clearly from the point of view of the future tenant from competitive offers and are therefore absolutely advantageous.
It should also be noted that the apartment is affordable for as large a target group as possible. The cost of the apartment should not exceed 30-35% of the net income. An apartment should therefore cost on average € 500-800,- gross. Attention! As landlord you calculate in net amounts, as tenant in gross amounts (i.e. including BK, VAT). Optimal for the tenant is a dwelling, into which he can move immediately, without having to invest before (freshly painted, kitchen + bath furnished). With the kitchen it is important that it concerns if possible a complete kitchen. This means that all usual kitchen appliances (refrigerator, stove, possibly dishwasher, microwave) are present. Any “additional functions” that the apartment may have, such as a balcony/terrace, a bathroom with bathtub, etc., are advantageous and set the apartment apart from the competition from the point of view of future tenants. If the apartment is on a higher floor, there should be a lift in the house.