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Charlottenburg, Wilmersdorf, Prenzlauer Berg and Mitte. With low interest
rates on property loans and, as always, realistic prices here in Berlin, it now
pays to invest in real estate.
For buy-to-rent properties to be a safe and lucrative investment many factors
need to be taken into account: purchase price, financing, long-term letting prospects
(location), the property's long-term structural condition and economic trends.
Real estate performance and returns
Purchasing investment real estate should bring about a long-term increase
in rental income and maintain the property's value - or better still increase the
value and make it a highly desirable property to let. Suitable properties can be
pinpointed in advance. That's why investors should take comprehensive advice from
a qualified source - experienced estate agents with local expertise.
- The property must be attractive for as many tenants as possible.
- Flexibility: Could two small rooms easily be converted into one big room
- and vice versa? Can a flat also be used as a commercial property? Is the flat
suitable for the disabled and the elderly?
- Promising local infrastructure: Companies investing nearby, new housing developments
and good transport connections point to it being a lucrative investment even
in 20 or 30 years' time.
Do you have any questions or would you like a personal consultation with a member
of our staff who has the right local expertise? Just give us a call!
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Properties for redevelopment - before and after: a worthwhile investment
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- A good location: both the surroundings and the place itself should be attractive;
a weak local economy and unemployment can lead to the residents moving away and
thus a glut of properties on the market.
- General condition of the property: the costs for redevelopment properties
in need of renovation must be foreseeable: hazardous waste and hidden building defects
can drive costs up and have a negative impact on financing and returns.
- Housing quality: Layout, division of space, the amount of light and noise;
small rooms, bathrooms and kitchens, and long, narrow hallways are acceptable if
these features can be easily altered during redevelopment. The amount of light is
one of the most important factors for long-term letting prospects even in times
of high market saturation. Noise is relatively simple to deal with, with new windows
and tightly-fitting outer doors leading onto the staircase.
- Running costs - often disregarded: Although the tenant pays these, the higher
they are, the more difficult it is to rent a property, since the tenant is interested
in the overall cost. Poor insulation and outdated heating systems push costs up.
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