Residential property, apartment houses and apartment buildings to buy or sell, which should be considered for an investment in apartment buildings
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The reason for commercial acquisition of a real estate deal (also known as investment property) is not self-use of the property, but to gain returns on invested capital.
The real market value of your property is immensely important. In terms of real estate valuation, we stand out as experts in awareness of the competition.
The category of classical apartment buildings in Germany is not well defined. Apartment buildings are investment properties that are bought for the purpose of investment and not for self-use. All residential units and commercial units are made available for consideration if tenants are available to occupy. In generic terms, the apartment buildings can be multi-family houses, and residential and commercial properties with a combined commercial share of up to 50% can be considered as well. The classical apartment house must always preserve the character of a residential building. Houses with interest can facilitate concepts of investment and investment-related strategies. A multi-family house or a mixed residential and commercial building can be upgraded as part of a sustainable investment through renovation and modernization. Additional funds can also be invested in the buying price for the apartment building to enhance its value and to generate higher cash flows (income from rented properties). When considering investment, however, the focus is to achieve a return that does not require continuous upgrading and maintenance work for the rental properties. Investors purchase multi-family houses, apartment houses or mixed residential and commercial buildings in well-established locations without capital funding requirements. These buyers avoid the risk and accept a lower return. The decision for an investment or investment in an apartment building or mixed residential and commercial building is generally associated with the investment horizon, whether short-, medium- or long-term. For private investors, mostly in apartment buildings, the age of the property is very important. In the advanced era of investment strategy, the proceeds are realized only at a later date. The buyers of apartment buildings, condominiums, apartment houses or mixed residential and commercial buildings are private and institutional investors. The smaller the volume (purchase price) of the apartment building, apartment building or mixed residential and commercial building, the more individuals act as buyers. Where higher volume is concerned, the more institutional investors buy apartment buildings for such as life insurance and re-insurance companies, housing associations, property companies, banks and investment companies. Individuals are often faced with the question of whether to invest in a condominium or an apartment building. From an economic point of view, an apartment building yields better results and these are definitely preferable. Due to the number of rentals, there is also a risk of diversification. As part of a new lease, if a condominium has only one vacancy it directly relates to loss in terms of cash flow. In apartment buildings or mixed residential and commercial buildings, this is not the case. It is highly unlikely that all tenants would terminate their agreements at the same time, so that cash flow ceases for a single unit. In addition, the purchase prices are based on the price per square meter in apartment buildings, and are significantly lower than in the condominium. In cities where tenancy has strong demand for housing, it can be accommodated in multi-family houses, apartment buildings and mixed residential and commercial buildings, which are being sold at better prices than single condominiums. In many cities there is a shortage of apartment buildings. Real estate investment guards against economic downturns. If stocks are very weak and inflation is rising steadily, investors look to real estate to protect their capital. Real estate properties such as apartment buildings provide an excellent protection against inflation. When inflation rises if affects increments in the rent of the apartment buildings and also increases the value of the properties. For private gains the income from the sale of the apartment buildings is tax-free after a holding period of ten years. The purchase or sale of an apartment building or mixed residential and commercial building is more complex than a buyer or seller may think, at least if you think about maximum price, and how return on sales can be achieved. A professional sale requires not only the assessment of the fair value of investment property, but also a detailed analysis. This is not limited solely to the property itself, but must consider market conditions and trends such as demographics. Buying a property is a long-term investment, so the market must be studied with long-term perspectives. The value of an apartment building is based on the amount of annual rent. A strong demand for a property for rent increases the value of investment property; weak demand lowers the value of the property. During the analysis, strengths and weaknesses of the apartment buildings have to be identified, and consider the possibility of creating added value. All opportunities for the investor must be determined and projected, so that his or her returns may be maximized on leaving. The cash flow as the main criterion in the context of apartment houses and apartment buildings should be carefully investigated. Individual characteristics such as gross multiplier, gross initial income, and net operating income must be compared as well. For these reasons, it is essential for buyers or sellers to hire a real estate expert like KARODI in Germany, with interests in multi-family houses, apartment houses or mixed residential and commercial buildings.
KARODI - the investment property specialist and your reliable and trustworthy real estate agent from Germany is ready to help in the sale or purchase of apartment buildings, apartment houses or mixed residential and commercial buildings nationwide in Germany. In particular, we are active in the cities of Aachen, Bergisch Gladbach, Berlin, Bonn, Dortmund, Dusseldorf, Essen, Hamburg, Frankfurt, Koblenz, Cologne, Leverkusen, Mainz, Munich, Munster, Neuss, Stuttgart, Solingen, Wiesbaden, and Wuppertal, or in the territory of the federal states of North Rhine-Westphalia (NRW), Hessen and Rhineland-Palatinate.