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