Renting a property: A special capital investment

Renting as an investment: Why does it make sense?

Real estate continues to enjoy increasing popularity.
This is mainly due to the fact that there are no fluctuating stock market prices or large price losses here.

Therefore, apartments and houses are considered long-term investments. When renting as an investment, we sometimes talk about apartments, but we always mean houses. Because the rules and tips are the same for both.

Advantages of renting as an investment

The goal of any real estate investment is long-term profit. The first thing that comes to mind here is the rental income, but on the other hand you should also consider the increase in value of the property. Because in the Munich area in particular, this is a not insignificant factor. After all, with a property you acquire a capital investment of stable value that you can bequeath or resell at some point in the future.

Nevertheless, you should give some thought to the purchase of the apartment or house. After all, for a sensible investment, it is important to check the return on investment. Disregard your personal preferences, think objectively and without emotion. After all, the decisive factor is how well an apartment can be conveyed to the desired tenant.
Decisive – besides the location – is the condition and the equipment of the apartment. Consequently, an apartment with good fundamentals will still be interesting and easy to rent many years from now. Thus, nothing stands in the way of long-term enjoyment of your rental as an investment.

The requirements for the purchase of an apartment

Anyone who buys an apartment normally expects a long-term financial burden. For rental as an investment, this represents a desirable tax savings opportunity. Create an accurate analysis of the financial circumstances to calculate the profitability of the investment. In addition, it is worthwhile to examine subsidy programs and various financing models. It is best to consult a professional, because the wrong apartment means unnecessary trouble and worry in the long run. We will be happy to advise you on this.

The purchase agreement – also for a property as an investment

You have found the right apartment and were able to clarify the financing? Congratulations! The next step is the purchase contract. Signing a purchase agreement is a special experience; after all, it has far-reaching financial and legal implications. Therefore, the review of the draft contract is very important. Read the contract at your leisure and it is best to have it reviewed by a lawyer or expert.

About the practice: how does the rental work?

Once you own the property, it’s a matter of finding the right tenant. If you do not have experience in this field, we recommend that you hire a professional to do it for you. The subject matter is very extensive and requires professional assessment and implementation.

What documents are needed for renting as an investment?

• Attractive photos, floor plan and detailed property description
• Energy certificate (mandatory, with a few exceptions)
• Tenant self-disclosure form
• Legally secure rental agreement

We will be very happy to take care of the rental of your property. We offer you many years of experience, a Germany-wide customer database and excellent service. Together we will find the right tenant for your property, so that your capital investment develops into a lucrative investment!

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