Current TrendReal Estate
- Your own Property
What’s your credit ranking?
Whether employee or self-employed, the figures have to be right.
- If you want to buy or build your own property, a good credit ranking is key.
- The less equity capital you have or want to use, the more important is your personal credit ranking.
- You are married, have kids, but nevertheless you don’t spend a lot? The per-capita costs that banks charge can be higher than your actual spendings. This per capita calculation can vary from bank to bank. The right preparation helps.
- You want to increase your monthly income without getting a raise before submitting a mortale application? We show you how to use tax credits correctly.
Staying in balance
Your Financial health is always a top priority.
- Only if you are protected against the greatest risks, you will be able to enjoy your own house or apartment. What happens if you get unemployed or you are challenged by an unexpected situation? Let’s have a look at worst case scenarios and be prepared.
- Certain people and families can profit from state subsidies and funding options. For instance you might profit from the German “Baukindergeld” (a state subsidy for families with children) or might be able to use some of your “Riester”-savings for financing. Do you know your rights and your obligations?
- Get our support. Let us ask you critical questions and making use of the method “How much house am I able to afford?” We definitely do not scare you away from your project. Our experience shows that sometimes a second opinion can take away the (emotional) pressure and can help you see things more clearly.
- Profit from our exclusive real estate checklists.
- Talk to our real estate experts.
Make An Appointment
- Capital Investment
The right strategy makes all the difference.
- Quick decisions in real estate are today’s gold. Finalising a purchase or showing real interest before anyone else does. We will share our insights with you how to sort out the sheep from the goats when scanning current real estate offers. We also tell you how high the rental yield should be for your individual situation.
- Try to keep your emotions low. Purchasing property can be quite emotional – especially if you are under buying pressure. Nevertheless, always get all the necessary information! You can only afford to have knowledge gaps if you have enough financial resources to make you prepared for any contingencies like any bigger unforeseen renovation project. Yet, which information is important? And at what time? Once you know the facts, it should be easy to make the right decision.
- Offers from real estate agents are not at all a bad choice. In terms of information and security, the additional costs can pay off. Just decide for yourself. If you are looking for trustworthy, caring real estate agent who knows the ins and outs of the market, please ask us for recommendations.
Keep it light and fun!
Proceed in targeted steps and follow the exclusion principle.
Step 1: Is the location desirable?
Location, location, location. Yes, it’s that important. If you are not sure if your assessment of the location of your desired real estate deal is right, don’t hesitate to contact us. However, we assume that you already know all the details about infrastructure, existing and planned construction projects, etc. and that the location where you want to buy property is attractive and worthwhile buying.
Step 2: Always ask the same questions
If you follow the same pattern in asking questions, you will soon become more self-confident. After little time you will be able to compare existing offers like a pro. For instance make sure to always ask the seller or the real estate agent the following questions:
- How much is the rent and did the tenants always pay in time?
- When did the rent get raised last?
- How long has the tenant been renting the apartement?
- Are there plans for any renovation or construction projects in the house?
- Does the apartment need to be renovated?
Do you like the answers you got? Then please precede to step 3.
Step 3: Be prepared when viewing a selected home
Fully prepare for your appointment and take a checklist to follow along. Prioritize according to K.O. criteria and potentials.
Who is your tenant target group? Students, families, do you care at all? A change in perspectives can be quite rewarding! An apartment might for instance turn into a real bargain, if little renovation or construction measures make it more attractive to a wider target group, and greater demand raises the rental income. Let’s take apartments with a connecting room as an example. They are probably not very appealing to students and other potential tenants. So ask right away which walls are load-bearing walls and where cables etc. are located behind the walls.
Step 4: Sort out and make a decision
If a property makes it to the final round, it’s about time to have a detailed look at financing. Please consider the following two scenarios, when making your calculations:
Immediate costs: What needs to be taken into account? For instance renovation measures that have already been approved of or defects that the tenant has already complained about and which need to be fixed.
Costs when changing tenants: Make your calculations for the day on which your first tenant will move out. For example, plan the renovation of the kitchen. If your new property is empty at the moment, plan for the time when the apartment should be modernized.
Step 5: Get real on financing
Get your figures ready: What is left of the rent each month after the monthly mortage and property maintenance payments? What reserves do you have in case of rental loss? Which monthly costs do you have for yourself?
With these facts and figures, the property documents and the following important personal documents you can submit your financing request:
- Payrolls (at least of the last three months)
- Documents proving other regular income (e.g. rental income)
- Last year’s tax assessment (or tax declaration if the tax assessment is not available yet)
- All existing loans and loan agreements/mortgages
And please: do not send your request to each and every bank right away. Each bank has its own acceptance criteria. We are happy to help you find the right financing partners and to make key inquiries for you.
Property is not a supermarket product
Anyone who is interested in buying a house or apartment – whether as an investment or as property – should be well prepared. Currently the market is overvalued, offers are often not easy to evaluate and the demand is at an all-time high. Yet if one says: “Everything is too expensive, it’s not worth buying at the moment”, we will disagree. Even if the market is tight at the moment, there are still very positive examples. If one makes a decision there’s always multiple criteria to look at. Don’t let anyone rush you into buying – instead: take your time and please consider asking an expert for advice.