For centuries property ownership has been the foundation for financial security and expansion over generations. This line of investment has been open to all sections of the public, not just the gentry and industrial families, for some time already.
There are times when funds are low-yielding and high-risk, where the investor is the last to participate; when stock markets fluctuate based on international events, and when credit interest rates are low due to inflation adjustments. This is when the concept of commonhold property ownership becomes more tempting to investors looking to safely develop and expand on their portfolio over the long term, particularly when taking into account the low interest rates for long-term mortgage loans.
We work closely with a network of project developers and privatisation companies, which we have been cultivating for more than a decade, so that we can continue to offer you sustainable and secure property and investment options.
We deliberately choose projects in specific micro-locations and with set attributes so as to offer you the very best investment and development potential.
There are different strategies for investing in commonhold properties as a capital investment. We would be happy to discuss these with you so that we can come up with the ideal solution for your individual circumstances.
Put simply, you could purchase an empty property and rent it out, which would give you a high rent based on local rent prices. This immediately gives you a favourable income, which generates a stable interest yield and exceeds any incurred borrowing costs.
Alternatively, you could purchase an already rented property with long-term protection against eviction and a significantly lower rent level compared to new tenancies. The advantage of this option is that it entails a lower purchase price and offers considerable potential for appreciation over the long term. As such, properties are generally around 1,000 to 1,500 euros cheaper per m² when already rented. As a result of tax considerations, e.g. tax depreciation, you as property owner would generally only be responsible for the amortisation were you to receive 100% financing based on the current interest level. Future rent increases that gradually conform to local rent prices optimise this investment even further.
Find out about your options for sustainable investments in Hamburg and Berlin. If you are not local to the area, we would be happy to act as your partner on location so that physical distance doesn’t come between you and your investment.
Are you interested in investing in apartment buildings or commercial projects? Please get in touch with us to discuss an individual investment that’s right for you.
According to the Global Wealth Report of the Swiss bank UBS (2014), Hamburg is the “richest city” in Germany. In relation to the total population Hamburg is ranked in first place of the list with 42,000 millionaires and 18 billionaires. However, even beyond the wealthy private households, Hamburgs diversified economy is ranked in top position within Europe.
Hamburg is a flourishing business location, a worldwide major harbor city, headquarter of the International Tribunal for the Law of the Sea, cradle of Nivea and Montblanc, production facility of Airbus, and home of big insurance and media companies.
In European comparison, Hamburg was prognosed by multiple institutes, to continue to have the highest rate of population influx until 2050. The metropolitan region of Hamburg already inhabits a population of five million residents. The city itself has a population of roughly 1,8 millions - with an ascending trend.
Yet Hamburg's property market is still at a very moderate price level in the nationwide comparison, and offers lots of potential for a "stable" and sustainable growth - Hamburg, a safe "real estate-port".
The capital of the fourth largest advanced economy in the world is heavily underrated by European comparisons. Little by little, numerous national, international private and institutional Berlin investors with their continuous acquisitions are shaking at this status. Some micro locations like some parts of “Mitte”, “Kreuzberg” and “Charlottenburg” are recording annual price rises in the two-figure percent ranges. In view of a potential bubble, Elbe and Spree, however, are seeing the best possible price stability in the case of a potential negative movement in the market, particularly in these special micro locations. Based on numerous studies, the predicted rate of influx up to 2050 and the continuously growing demand however promise a long-term intrinsic value of the Berlin real estate market, regardless of potential temporary fluctuations.
Berlin, as a capital of the strongest advanced economies in Europe, remains a city with plenty of potential for growth.