Real estate in Germany as investment can be interesting under certain conditions.
This offer comes with a notarised rental guarantee (and thus secure rental income and return).
As the icing on the cake, you can enjoy a complete worry-free and all-in rental service through a professional steward.
Passive investing is in order here, which makes this German investment property a valuable alternative to other passive savings products with weak returns.
This German investment property is perfect for foreign investors who want to take advantage of the rising real estate market in North Rhine-Westphalia without any worries!
Table of Contents
- 1 Real estate in Germany as investment: Summary
- 2 German real estate as investment with full service
- 3 Why choose real estate in Germany as investment?
- 4 Real estate in North Rhine-Westphalia
- 5 Essen as a location for real estate in Germany as investment
- 6 Return components of real estate in Germany as investment
- 7 Unique investment product for passive income
- 8 Financing real estate in Germany as investment
- 9 Are you interested in this real estate in Germany as investment?
- 10 Other investment offers in Germany
Real estate in Germany as investment: Summary
- Renovated flats for sale as buy-to-let properties including stewardship
- Investment in full ownership (no leasehold, no building rights, no bonds, no shares)
- Full management, maintenance, stewardship and income
- Secure rental income through notarised rental guarantee. So you are 100% covered against vacancy, non-payment and damage
- Guaranteed return thanks to guaranteed rental income:
- Without a loan and without financial leverage: 5.5% return per year calculated on the purchase value
- With loan and with financial leverage: More than 10% return per year calculated on your own contribution
- Do not hesitate to request a yield simulation tailored to your situation and requirements, without obligation
- Minimum required own funds to buy a flat in this building: EUR 33 000
- Borrowing for these German buy-to-let properties to finance part of the purchase price is possible in two ways
- Attractive location (university town of Essen) with high appreciation potential
- Perfect for foreign investors who do not live in the area and are looking for a high, guaranteed and passive return
- Favourable German tax regime, so that your net yield is close to the gross yield
- Fully English-speaking support from A to Z (including yield simulations, on-site viewings, support with the purchase procedure and finding suitable financing, after-sales service, etc.)
German real estate as investment with full service
Real estate in Germany as investment, totally carefree
Investing in real estate abroad is not as obvious as it seems.
Investing in buy-to-let property in Germany comes with various practical problems that require a sound solution.
Through these flats for sale in Essen, you can invest your savings in German real estate without any problems.
Without any obligations or requirements regarding the tasks and follow-up of tenants. In other words, you should not function as a landlord yourself.
The promoter of these renovated flats for sale takes a holistic approach to this German investment property.
Everything is thought of to make the lives of foreign owners/investors as comfortable and carefree as possible.
Including management and stewardship
Investing in German real estate is one thing. Carefree and passive investment in German real estate is another matter…
Do you live abroad and are you looking for a profitable real estate investment without worries and with guarantees?
Then you should look for a property investment that comes with an additional service package and an all-in rental service.
These renovated flats for sale in Essen are effectively offered as such an investment, including service package and all-in rental service.
As the icing on the cake, you can also enjoy security of rental income:
Notarised rental guarantee
If you acquire full ownership of a flat in this building, you can count on guaranteed rental income.
Your rental income is recorded via a notarial deed and it is the promoter who guarantees your income.
In other words, you can invest in real estate with a rental guarantee.
Why choose real estate in Germany as investment?
Investing money in real estate is possible in Germany under conditions that are no longer possible in other countries.
High occupancy thanks to high tenant demand
Germans are a breed apart, also in terms of attitude and outlook on life.
They love fine dining, enjoy quality time with family and/or friends, love to travel and are proud of their car industry.
And unlike other Western Europeans who usually have a brick in their stomach, Germans are much less interested in owning real estate.
In other words, a real tenant mentality prevails in Germany. The average German would rather rent than buy.
It is estimated that 6 out of 10 Germans rent and do not own their own house or flat.
Naturally, this offers opportunities for investors, as such a tenant market results in high demand and ditto occupancy!
Solid protection for landlords
As the owner of a buy-to-let property in Germany, you have rights and obligations.
As far as protection against non-payment is concerned, you are in the right place in Germany.
A tenant who fails to pay the rent on time and in full gets into trouble pretty quickly.
In Germany, a tenant can be evicted quite easily if they cause problems through misbehaviour in the building or through bad, unreliable and disrespectful payment behaviour.
Apart from the legislation, this investment in Essen also allows you to benefit from the notarially established rental guarantee.
So, in any case, you as the owner will not have any problems with non-payment or vacancy.
Low threshold in terms of investment requirement
Income properties in Germany are very accessible in terms of capital requirement.
The purchase prices of flats and houses are extremely accessible and low compared to other countries in Western Europe.
This investment opportunity in Essen, for example, requires only a contribution of EUR 33 000.
This is sufficient to acquire full ownership of a flat for rent in combination with a favourable mortgage loan.
The rental units of this project were recently renovated (see photos at the bottom of this page for a first impression).
Consequently, they provide immediate rental income, cash flow and returns.
The location of these residential units in Essen is excellent.
These are flats that are readily accessible and affordable in terms of monthly rent for the local inhabitants of Essen.
In other words, these flats for sale are easy to rent out.
Moreover, this rental is not your concern, thanks to the all-inclusive rental service including stewardship and rental guarantee.
Suitable for beginners and advanced investors
This property for sale in Germany is an excellent investment opportunity for various types of investors.
Are you about to take your first steps into the world of investment property?
Then this carefree property in Germany with guaranteed rental income is an interesting option to start with real estate.
But also for experienced investors, these renovated flats with rental guarantee in Essen are an interesting way to further build up and diversify a real estate portfolio.
Favourable, mild German tax burden
- The German tax on locally earned rental income is mild (other countries have to exempt this income for tax purposes as stipulated in the double taxation treaties and it is Germany that has the right to levy tax)
- The capital gain is tax exempt if you keep the German buy-to-let property(ies) in your portfolio for at least 10 years and only sell it afterwards with a capital gain
- Feel free to ask for more information and get a no-obligation yield simulation that also takes into account the tax burden in Germany
Attractive rental yields on B and C locations
In Germany, you can claim rental yields that are unattainable in other countries.
Especially in B and C locations and therefore not in the largest central cities, you can achieve a good annual rental yield.
In addition, you will be able to ride the wave of German economic growth and, in the future, you may even be able to achieve a bonus return by selling with a capital gain (tax-free if you sell after 10 years of ownership).
Real estate in North Rhine-Westphalia
Germany is the economic powerhouse of the European Union.
And Germany’s main engine is the state of North Rhine-Westphalia.
Real estate in Germany: Appreciation realistic
North Rhine-Westphalia is the beating heart of the German economy and industry.
This German region is densely populated and in terms of economy and jobs it is the most powerful region in all of Germany.
What is also interesting is that property prices in this region have not yet risen as heavily and violently as in the A locations such as Frankfurt, Berlin or Munich.
So there is a huge potential for appreciation in this region.
Value investing in German real estate
Germany suffered greatly in the aftermath of the Second World War and after the fall of the Wall in 1989.
In the aftermath, Germany was Europe’s weakest child and actually quite a poor country as the inhabitants had only limited purchasing power.
The effect of this is reflected in German property prices to this day.
In German B and C locations, property prices have not yet reached at all the valuation levels of elsewhere in Western Europe.
In this context, it is particularly interesting to consider real estate in Germany as investment.
In view of the region’s strong economic growth, the local real estate market is also growing along with it.
This makes the real estate in North Rhine-Westphalia extremely suitable for individuals who want to invest in real estate.
The growth and economic prosperity of this region is undeniably considerable.
Property prices move with this evolution and, as a result, smart investors can enjoy an annual increase in the value of their property.
Essen as a location for real estate in Germany as investment
Essen is the second largest city in the Ruhr area.
This city has a population of just under 600 000 and is home to 8 of the 100 largest listed companies in Germany.
So Essen has a lot to offer in terms of location for property investments…
Several large companies are active in Essen, which is a positive sign for real estate investors looking for a thriving region with sufficient purchasing power.
Some examples of these large employers in Essen are the following companies:
- RWE AG (energy)
- E.ON (energy)
- Schenker AG (Logistics)
- Hochtief (largest construction company in Germany)
- Aldi Nord (discount supermarket chain)
- Brenntag (distribution company in the chemical sector)
- Evonik Industries (chemicals)
- Karstadt (department store chain)
- Medion AG
- Deichmann (largest shoe retailer in Europe)
All these companies provide a huge number of jobs in Essen and the surrounding area. Of course, there are thousands of other companies that also provide jobs in Essen.
For investors in buy-to-let property, this local economic activity in Essen is worth its weight in gold!
Capital of energy in Germany
Essen is known in Germany as the capital of energy. But why exactly?
Because Germany’s two largest energy suppliers (RWE AG and E.ON) have both set up their headquarters in Essen.
Flourishing university town
Essen is known for its influence on the art world through the respected Folkwang University of Arts that is located there.
The University of Duisburg-Essen also has campuses in Essen. There is also a university hospital in Essen.
So apart from the economic activity in the city, there is also an ecosystem of higher education.
Naturally, this also has positive effects on the demand for affordable studios, flats and houses for rent in Essen.
Return components of real estate in Germany as investment
By investing in this residential buy-to-let property in Essen, Germany, you can enjoy a carefree and secure annual return.
Specifically, this German investment property provides a return in two ways:
Rental yield of German property in Essen
Firstly, you can count on contractually (notarially) guaranteed rental income. This means that you are certain of your annual rental return.
Vacancy, non-payment and damage do not affect your annual rental income in any way.
In practice, your rental yield will depend on how you finance the buy-to-let property.
If you buy a German buy-to-let property here entirely with your own funds without a loan, the rental yield is +/- 5.5% per year (calculated on the purchase price).
However, if you are going to partially finance the buy-to-let property with a loan, the annual return on your invested equity can be more than 10%.
You can obtain a financial plan and a customised return simulation without any obligation. Do not hesitate and ask for more information without obligation.
Bonus return: appreciation potential
Given the excellent location of these renovated flats, it is realistic to expect an increase in property value, along with the normal market growth.
Of course, you do not want to count yourself rich, as a surplus value may occur in the future (but it is not a certainty).
So keep the principles of defensive investing in real estate in mind and work with a conservative but realistic increase in value per year in your return simulation and financial plan.
Unique investment product for passive income
Not suitable for control freaks
This real estate in Germany as investment is not suitable for control freaks.
Leave your urge for control behind for these buy-to-let properties.
It is a completely passive real estate investment where everything is arranged for you by a professional rental service and steward.
As the owner of a flat in this building, you will have everything handled by a professional steward from the region.
You don’t experience any stress or headaches and every month you get the rental income punctually deposited into your account.
Everything here revolves around passive investment in real estate and earning a passive income from real estate.
Extra income from this real estate in Germany as investment
Given the rather limited required minimum equity of EUR 33 000, this is an accessible real estate investment in Germany.
With a rather limited amount of money, you can already acquire full ownership of a beautifully renovated flat in this residence in Essen.
Given the notarially established rental guarantee, you can count on punctually paid rent, month in, month out.
And thus, with these flats for sale for rent, you can earn a passive income from real estate.
Even in the context of retirement savings with real estate, this investment property is interesting.
It is an alternative form of retirement savings for additional monthly income.
Thanks to the rental guarantee, you are guaranteed additional monthly income.
In other words, this German buy-to-let real estate property is an attractive alternative to classical savings products (savings accounts, bonds, government bonds and savings certificates), which currently offer very low yields.
Financing real estate in Germany as investment
You can easily finance these renovated flats with a loan. Moreover, this can be done in two different ways:
Mortgage in Germany
Do you have at least EUR 33 000 in liquid assets to invest in real estate?
Then you can take out a mortgage loan with a German bank.
The promoter works closely with various banks and consequently foreign investors can approach these banks for competitive financing.
The German bank will then establish a mortgage on the flat that you will acquire in full ownership.
In other words, you can take out a mortgage loan from a German bank if you can invest at least EUR 33 000 of your own funds and can prove sufficient professional income.
If you are interested in a mortgage loan in Germany to finance this property, please do not hesitate to request more information.
Mortgage in another country
A second way to finance this rental property in Germany is to take out a loan locally in your home country.
This can be done by pledging something as collateral (such as a property) and then taking out a mortgage loan (the local bank will establish a mortgage on the local collateral).
Please note: You do not necessarily have to use real estate as collateral. There are several other ways to borrow for income-producing property!
Feel free to ask for more information about alternative forms of financing German real estate!
Are you interested in this real estate in Germany as investment?
Are you interested in investing in this renovated property in Germany?
Then don’t hesitate and ask for more information without any obligation. You can count on a complete English-language guidance!
You can obtain a return simulation tailored to your situation and requirements without obligation. Investing money in real estate through this German investment option can provide a nice real estate return.
Moreover, you are welcome to visit these buy-to-let flats on site in Essen.
You can count on a full tour and viewing in English.
So, are you interested in buying and renting out real estate in Germany with a full service package?
Then feel free to ask for more information without obligation.
Other investment offers in Germany
- Investment properties in Germany for residential letting including rental guarantee – Investment properties with passive rental yield of at least 5.2% net/year
- German real estate as investment in Gelsenkirchen for higher returns without additional risk, hassle-free with rental guarantee, from 41,000 Euros equity in combination with a loan
- Apartment block for sale in Germany in Waldbröl with 4-year rental guarantee and 12 rental units