With savings rates in Belgium at such low levels, more and more people are open to investing in German bricks. The reason is easy to give: the highest savings rate in Belgium (base + fidelity premium) is around 0.60%. An investment in German real estate can yield around 5%. This is therefore the reason why German bricks are affectionately called "German concrete gold" by many people.
Increasing interest in German real estate
Interest in investing in foreign property has risen sharply in recent years. This increasing interest in this is mainly due to the reasons why this choice is made. In the past, a Fleming would buy a property on one of the Spanish coasts or in the south of France as a second home with the intention of moving here permanently later. Nowadays, the focus is increasingly on real estate closer to home and many people are interested in investing in German real estate. This purchase of property on land from our eastern neighbours is not done to provide a second home or permanent residence. The purchase of German bricks prove to be a profitable investment that can yield returns much higher than the savings bank account.
Attractive rental income from German flats
For many Flemish investors, the main concern is the attractive rental income from German flats. Investing in German real estate is seen as a very high-yielding and safe alternative to the savings bank account. This is because Germany has a very large rental market. This market is many times larger than in Belgium. More than half of Germans rent a home while this is the case with us in only 25%. The demand for rental housing is therefore huge. This even exceeds the supply, causing rents to soar in recent years. A trend that seems to have no end in sight for the time being.
The attractive rental income of German flats explains the growing interest in this property. The tax rate levied on the investment and the costs associated with the investment work out favourably for the Flemish investor. In almost no case are these costs seen as hindering factors.
Good protection against defaulters
Another great advantage of investing in German real estate is that landlords in Germany are very well protected against defaulters. This is handled in a very "gründliche" way because defaulters are registered in a database. An entry in this database results in the fact that it is no longer possible for the person in question to rent a property elsewhere. While a question mark can be raised as to whether this is socially responsible, it does provide a certain form of security for investors.
Investing in German real estate as passive income
Flemings bought around 10 million euros worth of real estate in Germany in recent years. An area like North Rhine-Westphalia is particularly interesting in this respect. North Rhine-Westphalia is not only one of the largest federal states of Germany, but also the most important economic region of our eastern neighbours. This is also why Momo Estates mainly focuses on this area. With this, we are happy to contribute to a profitable investment in a passive income that you will not have to worry about. Please feel free to contact us to discuss your options.
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