Real estate is currently particularly attractive in this country for a very simple reason: Interest rates are low. You are currently paying an average interest rate of around 3% on long-term loans. You can visit https://meridianidhouses.com/ to have the best deals.
Safe investment alternatives unattractive
In addition, there are hardly any alternatives for investors, as savings books and cash accounts only payout minimal interest. Life insurance companies now only pay small bonuses and threaten to cut them further in the coming years. The state has also reduced the required guarantee interest for new contracts to 1.25%.
Bonds with falling yields are also unsuitable for most investors. With sufficient security, government bonds often only yield 1% to 2%, well-known corporate bonds also only generate returns of around 2.5%.
In contrast, shares are an alternative at record highs with 10,000 points, but for security reasons, they do not makeup 100% of the investments in many custody accounts and asset distributions.
Real estate demand continues to rise
Therefore, the demand for real estate is increasing not only in metropolitan areas such as Munich, Stuttgart or in the Rhineland, but also in the so-called second row.
Only 43% of all households in this country have invested in real estate like property. In comparison to other developed western nations France, Great Britain, USA)\, this means that there are up to 20 percentage points of the headroom.
Demographic development
Demographic development also speaks in favor of the real estate. According to all available statistics, the original population of this country will decrease, but the need for real estate for immigrants will increase and due to the changed living conditions.
There is reliable data on this: in the meantime, only about 75% of all households are made up of 2 people. According to the Federal Statistical Office, this was less than 64% 20 years ago. In addition, single-person households now have a share of 41%, compared to 34% in 1991.
Larger households with 3 people only have a share of 12% instead of 17% in 1991. That means: We need more living space because the real estate cannot be divided up arbitrarily.
Real estate is still relatively inexpensive
After all, you have to expect that the tax and legal burden for buyers will increase in the coming years. On the one hand, this affects the costs of new energy-saving regulations and similar regulations. Previous owners will have to invest again and allocate this to the purchase prices.
On the other hand, the real estate transfer tax in this country is constantly increasing across the country. You now pay around 5% on average; this contribution should increase again in the coming years by up to 2 percentage points.
Other real estate investments have disadvantages
Therefore, if you do not already own it, the owner-occupied living space will become a real investment object in the coming years. According to current estimates, you can assume that you cannot only benefit from rent savings but can also expect rising property prices.
This expectation should lead to investing or leasing in open or even closed real estate funds. However, landlords will continue to struggle with government regulations in the coming years, making commercial calculations much more difficult.
Real estate funds
Open-ended real estate funds are in demand like never before but caution is required Excessive demand: Open-ended real estate funds closed due to overcrowding what investors need to know now.