Why this blog?


Hi dear reader,

after already having started a German real estate blog under immoprentice.blogspot.com, I also wanted to start an English blog to reach non-German-speaking people that are interested in investing into real estate in Germany.

On this blog, you therefore will find very similar content to the German blog, but just in English.

So this blog still focuses on all things relevant for investing into real estate in Germany, but will especially cater to all you English-speaking people out there ;)

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What is the gross initial yield in real estate?

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Source: Money icons von monkik - Flaticon The gross initial yield is a yield measure for real estate that reflects the return on a property as a percentage of the purchase price (or the current market value). It indicates what percentage of the purchase price is generated annually as rental income. You get the gross initial yield by dividing the annual net rent by the purchase price of the property. Let's illustrate this with an example. Let's say you buy a property for €300.000, which is rented for a net rent of €1000 per month. With this property you achieve a rental income of €12.000 per year. The gross initial yield of this property is therefore €12000 / €300.000 = 0,04 = 4 % Is the gross initial yield a meaningful indicator of the quality of an investment? While the gross initial yield is an important factor in evaluating a property, it does not tell the whole story about the quality of the property. Much more significant factors for the quality of a property a...
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What you should know about the risks of real estate investing before doing your first investment

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A real estate as an investment can be very rewarding, but also has some risks. In this article, I therefore explicitly want to have a look at some of the risks of real estate as an investment. Investing in real estate is a popular way to increase your capital. But there are also some risks that should be considered. So in this blog post, we will look at the disadvantages of real estate compared to other forms of investment, such as stocks. What are the risks of investing in real estate? In my opinion, there are two major risks with real estate: the risk of rising interest rates and the risk that the property will lose value over time The risk of rising interest rates: higher costs Real estate that you buy with little money down a lot of financing carries a high interest rate risk. That's the risk that interest rates on your financing will rise. Although you lock in interest rates for a few years when you take out a loan for your real estate investment, at some point, those fixed ra...
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Why do so many people buy overpriced real estate?

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