01.04.2019

Checklist for Real Estate Deals

Housing shortages in many German regions, rising rental and purchase prices: The demand for new government instruments for the promotion of residential real estate is becoming increasingly important due to the ongoing situation.

 

Real estate markets are divided into sub-markets, which are characterized, among other things, by the geographic location, the demographic composition of the population, the existing infrastructure and the type of use of the property. A real estate specialist can therefore only have extensive market knowledge of a limited region

 

With the purchase of a house, many people fulfill their long-cherished living dreams. But unfortunately many inexperienced buyers of a house or apartment already stumble before moving in via one or more of the many pitfalls. We think: That does not have to be. Therefore, we will clarify you about the ten biggest mistakes when buying a property.

 

Mistake 1: Documents not read exactly

Mistake 2: Property not well enough tested

Mistake 3: Calculated at the purchase price with the loan

Mistake 4: The first best property bought

Mistake 5: Calculated with the current interest

Mistake 6: No references from the construction partner obtained

Mistake 7: Not deposited in a blocked account

Mistake 8: No cost roof agreed

Mistake 9: No warranty in case of defects

Mistake 10: Tripped over the mortgage

 

Real Estate : An investment worthwhile!

You should carefully work through this checklist to limit the risks involved in buying a returnable property. It would be very annoying, for example, if you acquire a really beautiful, yielding object, on the unknown contaminated sites are, what you would have found at the check of all documents. But the reverse case is more common:

Many acquirers deal with the documents with great care, but acquire an object that can not become a yield object in terms of location or condition or that is simply too expensive to make a profit.

Do not take any unnecessary risks and get competent advice!

 

Benefits of a return property

If you are interested in a returnable property, you should consider whether it generates the following benefits. Only then is it worth thinking about the investment.

Buying criteria:

 The property is affordable for you, because at a moderate purchase price – such as a flat or small family home – immediately generated rental income and probably generated from the stand profit. There is no risk of completion.

 

 Tax depreciation options are possible.

 The object is judged realistically.

 The financing can also be up to just over 100%.

 The rental loss risk must be hedged.

 The administration is secured.

Value enhancement or value stability is to be expected in all probability.