Become a
savvy investor.
Here are helpful articles for your real estate investment.
Investing in real estate is easier than you think
The foundation for a solid real estate investment is proper planning. In the following articles, we want to highlight the most important aspects — and give you some helpful tips along the way. With this knowledge, you'll be ready to go for your meeting with our financing pros. It's all very easy once you've had a chance to learn, we promise.
We'll explain what's important when buying a property as an investment, how a property can serve as a retirement plan, how you can best approach the location analysis for your property, and more.Â
By the way, we also have articles on buying, selling, financing and managing, so feel free to check those out, too!
Opportunities of A-cities
Examples: Hamburg, Munich, Berlin, Frankfurt am Main, Cologne, Stuttgart, Düsseldorf
Very low vacancy risk due to high demand, a large number of residents, and a high immigration rate
High value development
High rents
High security & predictability
Internationally important business locations
Excellent sales opportunities
Risks of A-cities
High purchase prices
Low return and often negative cash flow despite above-average rents
Opportunities of B-cities
e.g. Leipzig, Dortmund, Hanover, Dresden, Nuremberg, Bonn, Bochum, Duisburg, Essen, Karlsruhe, Münster, Wiesbaden, Bremen, Mannheim
Lower purchase prices than in A-cities
Higher yields and better cash flow than in A-cities
Rising rents
Value development
Low vacancy risk
Nationally important business locations
Good security & predictability
Rising relocation rates
Good sales opportunities
Potentially increasing relevance due to remote work capabilities etc.
Risks of B-cities
High competition due to increasing demand
Opportunities of C-cities
e.g. Magdeburg, Aachen, Erfurt, Bielefeld, Darmstadt, Heidelberg, Kiel, Erlangen, Regensburg, Rostock, Wuppertal, Braunschweig, Augsburg, Lübeck, Constance
Relatively low purchase prices possible compared to A- and B-cities
Regionally significant business locations
High yield and good cash flow possible
Moderate sales opportunities
Increasing relevance due to remote work options and the like
Risks of C-cities
Higher vacancy and general investment risk
Lower performance than in A and B cities
Low move-in rates
Less certainty/plannability than in A or B cities, more research required
Less reliable data & metrics than A-cities
Success depends on individual property
Opportunities of D-cities
e.g. Coburg, Ingolstadt, Bamberg, Schwerin, Schweinfurt, Eisenach, Chemnitz, Lüneburg, Aschaffenburg, Trier, Ulm, Wolfsburg, Zwickau, Bremerhaven, Heilbronn, Jena, Hildesheim
Relatively lower purchase prices possible compared to other categories
Moderate regional significance
High yield and good cash flow possible
Moderate sales opportunities
Increasing relevance due to remote work opportunities and the like
Risks of D-cities
High vacancy and general investment risk
Lower value development
Low move-in rates, smaller (to shrinking) populations
Less certainty/plannability than in A-, B-, and C-cities, more research required
Success strongly dependent on individual property