Real estate endures: it is home, the centre of life, a personal retreat and a space for personal development. It can be all that and more: Retirement provision, provider of income, and a clever investment for yourself but also for future generations. In this blog post, we show you why it is worth investing in real estate - and how we can help you.
People always need homes - especially in conurbations, large cities and regions that promise a high quality of life. Having your own property means you can participate in this without having to rely on the economic activities of other people. You can always find a use for a property, and as an investment it historically also always provides excellent returns. It is not surprising: After all, space is naturally limited, so there cannot be an infinite amount of real estate - especially since it requires a high level of investment. In a free market, this limitation or shortage promotes excess demand - and results in the financial return that the investment of real estate yields.
From an investor’s point of view, a property also has further benefits:
The current interest rate environment is another special feature in favour of capital investors. For several years, interest rates have been at a historic low. As a result, real estate and building loans are also reasonably priced, since the lending banks set much lower interest rates for loans than they did, for example, 20 years ago. The low level of interest rates ensures that borrowers are not financially burdened by high ancillary interest costs and thus makes the loan or the externally financed property more affordable overall.
Real estate and modernisation or refurbishment measures are regularly supported by various funding programmes and grants. As the owner of a property, you can claim these, use them in line with regulations and thus maintain or increase the value of the property, while you either save money through the grant or secure attractive financing through low-interest loans.
Under certain conditions, the property also offers tax advantages. This is especially true for property that is rented out. Expenditure for maintenance or modernisation, for example, is tax-deductible which in turn reduces the amount of income tax payable.
As estate agents in Bavaria, we are active in South Tyrol, Lake Garda, and Sardinia, among other places, and offer prospective buyers and investors access to attractive properties with appreciation potential - and at the same time provide transparent, honest, and forward-looking advice. Contact us!