1. Houses as investment properties
Since single-family and semi-detached houses in particular have a high proportion of land, the return there is usually slightly lower. This disadvantage when renting can quickly turn out to be an advantage when selling, as land is considered a valuable investment and increases the resale value - provided the location of the house is advantageous. In principle, a higher return can be achieved with multi-family houses than with individual houses or condominiums, but vacancies can occur and problematic tenants can be attracted.
If the financial situation allows it, an entire residential building should be purchased directly as an investment property. In most cases, however, individual apartments are rented out as part ownership. This has the disadvantage that the agreement and coordination with the community of owners of the residential building must be successful and problems lurk here - for example if the community shows no interest in resolving a renovation backlog. Overall, the investment income is of course lower than on a house
Commercial real estate offers high return opportunities, but at the same time it carries a high risk due to strong market fluctuations. The need for vacant commercial space is difficult to predict, and new trends such as home offices or alternative office structures sometimes lead to high vacancies. Private individuals should therefore avoid this investment property.
In addition to the direct investment options, shares in real estate can also be purchased through real estate funds. These are called indirect investments and involve a high level of risk and a high capital requirement. The initial sum is usually in the five-figure range, and since the outbreak of the financial market crisis in 2008, numerous real estate funds have run into difficulties or gone bankrupt. The advantage of real estate funds: The administrators take over the management, the investor doesn't have to worry about anything. However, the colorful sales brochures are difficult to understand and should be checked by competent tax advisors and auditors. This investment property is more suitable for professionals and connoisseurs of the subject.
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