That investing in German residential real estate is a very profitable investment, we have already brought to your attention elsewhere on this website. The literal value of these words, have been validated by the situation we live in. The coronavirus outbreak highlights the vulnerability of many investments. However, this is not the case for managed residential real estate in Germany. This sector stands firm even in these times of crisis and shows its resilience. Therefore, as experts in this field, we can certainly answer the question of whether investing in German real estate is crisis-proof in the affirmative. On the contrary, this investment is a safe choice in these uncertain times.
Investment in German real estate
The benefits of investing in German real estate exceed those of investing at home in several areas. We can make this clear for you with three simple comparisons:
- The purchase price of German real estate is on average 62% lower than in Belgium. This is mainly due to the cheaper labour force in Germany. The minimum wage is a lot lower with our eastern neighbours, which reduces construction costs.
- Germany is a lot friendlier fiscally than Belgium. You pay about 65% less taxes with our eastern neighbours than with us.
- In Germany, proportionally, many more people rent their property than in Belgium. We have calculated that by investing in German property, you will have some 55% more return than for a similar investment in Belgium.
We have already clearly seen increased Belgian interest in German real estate in recent years. This is expected to continue to rise in the coming period despite the uncertainty caused by the corona virus outbreak. This outbreak makes investing in German real estate even more attractive because it is a safe choice in times of crisis. Therefore, now is the time to take advantage of the advance of German real estate. A sustainable business model (with a guaranteed return) is the important basis for this safe real estate investment. Momo Estates can provide you with this.
Why investing in German real estate is crisis-proof
It is easy to explain why we are convinced an investment in German real estate is crisis-proof. It will not have escaped anyone's notice that this corona time is deeply affecting equity investors' portfolios. Bond markets are also sharing in the blows and mutual funds offer no solace. The hard numbers make the free fall of stock prices transparent. Corporate bonds can only be sold at a steep discount. Will the issuing companies remain straight and can they still pay interest rates tomorrow?
The impact of the corona crisis affects every sector. Very few exceptions can be named. Therefore, it is good to also look across the border for opportunities and we don't have to go far to do so. After all, even the corona time is still the right time to invest in real estate in Germany. After all, carefully selected German real estate has a stable value and protective character in an investment portfolio. Therefore, the corona crisis is certainly not expected to change this as there are provisions in Germany that tenants can fall back on if they are no longer able to pay the rent due to circumstances.
Investment in German property with high rental yields
Momo Estates is selling more and more German properties to Flemish investors. An investment in German real estate is attractive because even in this day and age, a high rental yield is certainly still a possibility. After all, a German occupant of a rental flat will always be able to continue paying his or her rent. If he or she falls ill or becomes unemployed, the municipal authorities in Germany have been available for years. These financial support measures are unprecedented with us. There are also constructions where the owner of a property can use insurance to be extra covered against non-paying tenants. However, such situations are rare. This makes investing in German real estate not only attractive but also a crisis-proof choice. The certainty of a return on investment of an investment in German real estate and its amount compares sharply with the opportunities in our country.
Attractive property investments in Germany
The projects we offer on our website are mostly located in North Rhine-Westphalia, just across the border with Belgium. 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 makes investing in real estate in Germany even more attractive. So we make a conscious choice in this respect.
Industry in North Rhine-Westphalia provides many jobs, resulting in a high demand for available rental properties. The demand for rental properties in Germany exceeds in supply, driving up prices and giving landlords almost absolute certainty about getting their property rented out. If you know that Germany (unlike Belgium) is a true rental market and as many as 70% of all Germans rent rather than buy a property, you will no doubt understand why we put our focus on the rental sector in North Rhine-Westphalia.
Momo Estates for personal advice on your safe investment in times of crisis
Germany's strong economic strength and tenant policy, combined with the ability to invest in a sustainable business model, form the basis of a safe investment in residential real estate in this country. Practice has already shown that the coronavirus outbreak will not change this.
Feel free to contact Momo Estates for personal advice on your safe investment in times of crisis. We will be happy to explain the business model and show you that investing in German real estate is an excellent and safe choice in times of crisis.
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