Nick Mulder
Nick Mulder is an Influencer
Founder of Hypofriend & Pensionfriend | Helping 300K+ people make smarter financial decisions in Germany
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๐ First Property in Germany: Own-use or Investment? ๐ For people in Germany, buying your first property comes with a significant decision: Should it be a home to live in or an investment to rent out? Each option carries unique financial advantages:๐๐๐ง๐ญ ๐ฏ๐ฌ. ๐๐ฎ๐ฒ ๐๐ซ๐๐ข๐ญ๐ซ๐๐ ๐:Consider the cost of renting versus buying in your area. If you're paying high rent, it might be financially advantageous to buy a similar property to live in. Conversely, if rental prices are low, buying to rent in a high-demand area could be a better investment.๐๐๐ฑ-๐ ๐ซ๐๐ ๐๐๐ฅ๐ ๐๐ฉ๐ฉ๐จ๐ซ๐ญ๐ฎ๐ง๐ข๐ญ๐ข๐๐ฌ:Living in your property for at least three calendar years allows you to sell it tax-free, a considerable advantage. If you choose to rent it out, the property can be sold tax-free after holding it for ten years.๐ ๐ฅ๐๐ฑ๐ข๐๐ข๐ฅ๐ข๐ญ๐ฒ:The choice isn't set in stone; many opt to live in their property initially and later rent it out, maintaining flexibility in their investment strategy.๐ ๐๐ฏ๐จ๐ซ๐๐๐ฅ๐ ๐๐ฎ๐ฒ๐ข๐ง๐ ๐๐ฉ๐ญ๐ข๐จ๐ง๐ฌ:For first-time buyers, programs like KfW (Kreditanstalt fรผr Wiederaufbau) offer slightly more favorable conditions, making the purchase more accessible and financially appealing, especially for energy-efficient properties.๐๐๐ฑ ๐๐๐ง๐๐๐ข๐ญ๐ฌ ๐๐จ๐ซ ๐๐๐ง๐๐ฅ๐จ๐ซ๐๐ฌ:The recent changes in tax laws make owning rental properties particularly appealing. Landlords benefit from depreciation, which can significantly reduce taxable income.๐๐ง๐ฏ๐๐ฌ๐ญ๐ข๐ง๐ ๐ข๐ง ๐๐จ๐ฎ๐ซ ๐๐ฐ๐ง ๐๐จ๐ฆ๐:Beyond financials, consider the emotional value of owning your home. It's a place to express your style and create a personal sanctuaryโyour own nest. This emotional connection can profoundly impact your quality of life and is often just as important as the financial return.With these points in mind, becoming a landlord or choosing an energy-efficient property can be particularly lucrative due to the recent tax depreciation changes. Keen to dive deeper into these topics? Join my Telegram group to find out more about maximizing your investment in the German real estate market.#RealEstateGermany #InvestmentProperty #HomeBuyingTips #PropertyMarket
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Rodd Messent
Director of Product | Product and Service Design | Proptech
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How do I join?
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Jason Villagomez
Professional Athlete | Business Owner | Sales Manager DACH/Europe at Sophion Bioscience | Faith Driven - Psalm 23 โ๏ธ
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โฆif one moves to a newly self-bought property for self use, does the tax-free sale period clock for the initial property restart (if one were to sunsequently rent the property?)Nick Mulder insight?
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Sven Gehle
Senior Mortgage and Pension Expert at Hypofriend
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Very good overview and summary!
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Luka Zigic
Mortgage Expert and CSM Lead at Hypofriend
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Love this
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Sam Rim
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Negative gearing, a financial strategy where losses from rental properties are used to offset other income sources, isn't unique to Australia. Several other countries, including Germany, Japan, Canada, Norway, France, the United States, Ireland, and Finland, also employ similar mechanisms. This strategy can be advantageous for individuals with higher incomes and substantial tax rates.In Australia, negative gearing is prevalent, with $27.1 billion in deductions claimed for property interests in 2023-24. However, it's projected to cost nearly $100 billion over the next decade, with one million Australians utilizing this strategy.Interestingly, historical data from Australia between 1985 and 1987 suggests that when negative gearing was less prevalent, property values didn't plummet as expected. Instead, factors like rising interest rates played a more significant role in shaping rental growth and the housing market.If you're intrigued by the interplay between taxes and real estate, there's much more to explore. Let's delve deeper into this topic together. Feel free to share your thoughts here or reach out to me directly for a more detailed discussion.#RealEstateInsights #PropertyTalk #QuarterAcreSydney #MarketExperts #InvestorsinSydneyVishal Gupta Swati Arora Pankaj Lalwani Rahul Bakaya Chirag Balani Gina Fernandez Rupinder N. Suminder Narula Vibhor Garg Keith Smith Ofa Wright Mohit Gupta Liz Angeles Quarter Acre
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Christian Schรถnfelder, Commercial Real Estate Agent
Mit Leidenschaft fรผr Gewerbeimmobilien, Fokus auf Rendite: Gemeinsam erschlieรen wir Immobilienopportunitรคten !
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Real Estate in Germany: What Foreign Investors Need to Know โ Germany has long been an attractive destination for foreign real estate investors. With a strong economy, political stability, and a growing population, it's easy to see the appeal. However, there are some key things investors should know before buying property in Germany.First, the German real estate market is very regulated. There are strict rules around rent control, tenant rights, zoning, and more. Make sure you understand these regulations before investing, as they can impact returns.Additionally, financing can be more complex for foreign buyers. German banks often require larger down payments and localized credit histories. Having financing lined up beforehand is essential.Taxes are another consideration. While property taxes are reasonable, capital gains taxes on real estate sales are high at 25-28%. Factoring taxes into your investment strategy is a must.Finally, work through experienced real estate professionals. They can help navigate language barriers, paperwork, and cultural nuances. Finding the right partner is key for foreign investors.The bottom line is Germany offers stability and strong fundamentals that make real estate investing attractive. However, proper planning around regulations, taxes, financing, and working with locals is essential for success. Do your homework and you can profit from this growing market.๐So what do you think? Does investing in German real estate make sense for you? I'd love to hear your thoughts and questions! ๐ฌBild von <a href="https://lnkd.in/egAxth3e">Eglantin Cenolli</a> auf <a href="https://lnkd.in/eXEFZViX">Pixabay</a>
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Tarsi Taylor
Empowering Real Estate Leaders with 26+ years of expertise and advocate for business excellence. Rent Roll Valuations, Rent Roll Due Diligence, Consultancy and Rent Roll Business Brokerage.
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Let's dive ๐ right in and get started!Why Invest in Property?Real estate is a stable, long-term investment. Property values often appreciate over time, providing both capital growth and rental income. ๐ผ๐ Positive vs. Negative GearingPositive Gearing: Your rental income is higher than your expensesโgiving you immediate profit.Negative Gearing: Your expenses exceed rental incomeโbut you may benefit from tax deductions. Both can be smart strategies, depending on your financial goals. ๐Rental YieldsThis measures the return on your investment. The higher the yield, the better the income compared to property value. Look for properties in high-demand rental areas to maximise this. ๐Property AppreciationOver time, property values typically increase. Invest in areas with strong growth potential to build long-term wealth. ๐ก๐ฐWhat to look for in a rental propertyLocation is keyโlook for areas with growing infrastructure, good amenities, and strong rental demand. Also, consider the propertyโs condition and how much maintenance it may require. ๐๏ธSign Up Todayhttps://lnkd.in/gU_ChHVe#PropertyInvestment #InvestorTips #RealEstateInvesting #PropertyRent
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Rent your way to riches (maybe): A quick look at rental propertiesImagine earning money while you sleep! Rental properties can be a powerful tool for building wealth, but are they all sunshine and rainbows? Let's break it down:PROS:โ Passive income: Renters pay you, putting money in your pocket even when you're chilling.โ Growing wealth: Property value can go up over time, adding to your riches.โ Diversify your investments: Don't put all your eggs in one basket โ rental properties spread your risk.โ Tax breaks: Uncle Sam might give you a break on your taxes for owning rental property.โ Tangible asset: You can see and touch your investment, unlike some fancy financial stuff.CONS:โญ Being a landlord: It's not always easy. Dealing with tenants, repairs, and evictions can be a hassle.โญ Big upfront cost: Buying a property takes serious cash โ down payment, closing costs, maybe even fixing things up.โญ Market ups and downs: Sometimes the market dips, affecting your income and property value.โญ Empty spaces: No tenant, no rent! Finding good tenants and avoiding vacancies is key.โญ Time commitment: Managing a property takes time and effort. Consider if you're up for it.THE BOTTOM LINE:Rental properties can be great for building wealth, but they're not for everyone. Do your research, understand the risks, and make sure it fits your financial goals and lifestyle. Talk to experts like us (RAD)and make an informed decision before you jump in!Remember, investing in your future is awesome, but do it smart!Book a free consultation call to learn more about real estate investment.#rentalpropertyinvestment#buildwealth#passiveincome#realestateinvesting#financialfreedom#landlordlife#futuregoals
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Nick Mulder
Nick Mulder is an Influencer
Founder of Hypofriend & Pensionfriend | Helping 300K+ people make smarter financial decisions in Germany
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๐ก ๐ช๐ต๐ฎ๐ ๐ ๐ฎ๐ธ๐ฒ๐ ๐๐ฒ๐ฟ๐บ๐ฎ๐ป๐'๐ ๐๐ผ๐บ๐ฒ๐ผ๐๐ป๐ฒ๐ฟ๐๐ต๐ถ๐ฝ ๐ฅ๐ฎ๐๐ฒ ๐ฆ๐ผ ๐๐ผ๐? A Deep Dive into Europe's Housing Puzzle ๐กGermany's homeownership rate stands at a surprising 49%, one of the lowest in Europe. This figure is not just a statistic but a reflection of a deeper, multifaceted issue rooted in cultural, economic, and political landscapes.๐ ๐ง๐ต๐ฒ ๐๐ต๐ฎ๐น๐น๐ฒ๐ป๐ด๐ฒ๐:High Additional Costs: Buying a home in Germany entails not just the property price but also significant extra fees - land transfer tax, notary fees, and real estate commissions, which can total more than 10% of the purchase price. These costs discourage the property flipping culture, prompting many to wait for their "forever home."Cultural Aversion to Debt: The German word "Schulden" illustrates the deep-seated aversion to debt, influencing many to avoid borrowing.Tenant-Friendly Policies: Germany's rental market is robust, supported by tenant-friendly laws and a lack of incentives for homeownership, making renting often more attractive than buying.Regulatory and Financial Barriers: From stringent building regulations and high standards for energy efficiency to the requirement for significant down payments, numerous hurdles make homeownership less accessible.Economic Discrepancies: The stark rise in property prices, coupled with lagging wages and inflation, has widened the gap between property costs and affordability.๐ ๐ง๐ต๐ฒ ๐ฃ๐ผ๐น๐ถ๐๐ถ๐ฐ๐ฎ๐น ๐ฎ๐ป๐ฑ ๐ฆ๐๐ฟ๐๐ฐ๐๐๐ฟ๐ฎ๐น ๐๐ฎ๐ฐ๐๐ผ๐ฟ๐:Despite ambitious government targets to increase housing construction, Germany continues to fall short, exacerbating the housing crisis. The focus has traditionally been on fostering a rental market rather than encouraging homeownership, a policy stance that needs reevaluation.๐ก ๐ง๐ต๐ฒ ๐ช๐ฎ๐ ๐๐ผ๐ฟ๐๐ฎ๐ฟ๐ฑ:It's crucial to challenge existing frameworks and explore innovative solutions to make homeownership more attainable. Adjusting policy focus towards purchase support, simplifying bureaucracy, and emphasizing new construction could be key steps toward addressing the homeownership crisis in Germany.In the face of these challenges, it's time for a concerted effort towards innovative policy-making and market adjustments to ensure that homeownership becomes a reachable dream for more Germans, contributing to a stronger economy and a more stable society.#Homeownership #GermanHousingMarket #RealEstate #PolicyReform #EconomicInsights #HousingCrisis
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Raphael E.
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Anthony Joseph Abou-Jaoude
CEO |Entrepreneur |Author of Amazon best sellers Take Charge & Take Action
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Bukunmi Baker
Chief Executive Officer at ANTON & PEARL
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To Flip or to Hold ?Let's dive deep into this fascinating real estate debate: flipping properties for quick profits vs. holding them for steady rental income. Each strategy has its own set of pros and cons that can significantly impact your real estate investment journey. Let's weigh them out together!Flipping PropertiesPros:1. Quick Returns: Flipping allows for rapid profit realization within a short period.2. Tangible Gains: The satisfaction of transforming a property and seeing the results firsthand is unmatched.3. Low Long-Term Commitment: You're not tied up with ongoing maintenance and tenant issues.Cons:1. High Risk: Market fluctuations and unexpected costs can eat into your profits.2. Time-Intensive: Requires significant time and effort to manage renovations and the selling process.3. Tax Implications: Short-term capital gains are generally taxed at a higher rate than long-term investments.Holding Properties for Rental IncomePros:1. Steady Cash Flow: Provides a consistent source of passive income over time.2. Long-Term Appreciation: Property values tend to increase over the years, potentially resulting in substantial gains.3. Tax Benefits: Deductions, depreciation, and other tax advantages can help optimize your returns.Cons:1. Management Challenges: Dealing with tenants, maintenance, and property management can be demanding.2. Market Risks: Economic downturns or shifts in the rental market can affect your rental income.3. Liquidity Issues: Your investment is tied up in the property, limiting immediate access to funds.๐ก Discussion Time: What's your take on the flip vs. hold debate? Do you prefer the thrill of flipping properties or the stability of rental income? Share your thoughts and experiences in the comment below!Let's engage and learn from each other's perspectives!#realestatedebate #flipping #rental #linkedinlearning
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Aria Haghparast, Windsor/Essex Real Estate Agent, Jump Realty Inc, Brokerage
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๐ก Renting vs. Owning: Know the Difference!Making the choice between renting and owning a home is a significant decision that depends on your lifestyle, financial situation, and long-term goals. Renting offers flexibility, predictable expenses, and less upfront costs, while owning provides stability, potential tax benefits, and the opportunity for long-term investment.Which option aligns best with your current needs? Let's discuss your real estate goals and find the right fit for you! ๐ผโจAria HaghparastC: 226-260-0320E:aria.h@jumprealty.ca#RealEstate #RentingVsOwning #HomeOwnership #WindsorRealEstate #PropertyInvestment #RealEstateAdvice
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