Real estate boom: How small investors can benefit

One word: Crowdinvesting.

Crowdinvesting already allows small amounts to be invested in the lucrative real estate market.

The Austrian and German property market for example is very popular with investors because all big cities are growing steadily.

That’s due to the fact that more and more people are moving to big cities. In Vienna as an example, it is estimated that in 2029, more than two million inhabitants will live there. However, this is associated with major logistical challenges, most important of all: new housing is needed urgently.

This has triggered a real estate boom in the Austrian capital in recent years. The only problem with this was that without a large sum of money in your hands, participation in this lucrative market was impossible.

Now, however, small investors also have the opportunity to earn money from the real estate boom through crowdinvesting.

The idea behind it: The necessary amount for a housing project is not raised by a single large investor. Rather many investors provide the capital through smaller amounts. In return, the small investors receive high returns.

In order to keep track as an investor, several websites provide a good overview and this as a good source for developments and trends, including for the real estate market. The crowdfunding platforms provide clues and ideas for future investment decisions without spending much time on research and analysis.

This could be interesting for those who want to invest in this market for the first time and have not yet had the overview or the necessary capital.

Passive income through crowdinvesting

Crowdinvesting means that smaller investments in the real estate market can also be made. With some Austrian and German platforms one can already invest  small amounts of 100 to 1000 euro.

Here are 2 examples:

Austia – www.rendity.com
Germany – www.exporo.de

In Austria there is no limit for individual investments and in Germany, you can invest up to € 10,000 in a project according to law.
What sounds very simple in theory is not child’s play in practice. The Internet offers a sheer infinite choice of possible investment platforms.

Only a few mouse clicks to the first investment

Once you find an exciting project, it usually only takes a few mouse clicks to complete the investment.

Even though initially only little capital is available, this increases rapidly due to the compounding effect, so you can save a decent amount in just a few years. Also, due to the short maturities, the money still remains available at short notice.

Include total failure of a project

Most crowdinvesting investment properties have a short maturity and carry an annual payout.

At the same time, however, it must also be clear that in the worst case, a total failure of a project can occur. You lost your investment. To avoid this it pays to scatter, so to invest in several objects at the same time.

However, crowdfunding platforms seek to minimize investor risk when complying with the Small Investor Protection Act or Alternative Financing Act (“AltFG”).

Still wanting to prefer to invest in your very own project? Why not start with a small project abroad? Here you can find properties for less than 20,000 EUR: www.propertyunder20k.com

New Website Release: Ready to take off!

Our new and improved website is going online tonight (15.05.2018)!

We are excited to announce the release of our new and improved property website.

Therefore, if you’re a regular visitor to our website, you will notice not only that it looks better, but new features will be there as well. Continue reading New Website Release: Ready to take off!

Houses and apartments get more expensive in Germany – even in the countryside

Low interest rates and not enough sites to build on have been increasing real estate prices in Germany for years.

Also in 2018, but now it is not just happening in the big cities.

In 2017, Germans also had to spend significantly more money to fulfill their dream of owning their own home. “The prices continue to rise,” said Peter Ache, branch manager of the working group of the expert committees of the German Press Agency.

In the working group the reports of the local expert committees come together. Unlike many market studies, they gain their insights from the actual sales contracts. The working group will present its next nationwide report at the end of 2019.  Continue reading Houses and apartments get more expensive in Germany – even in the countryside

Generation rent

Generation rent is a generation of young adults who, because of high house prices, live in rented accommodation and are regarded as having little chance of becoming homeowners.

Doesn’t this feel like flushing money down the toilet?

First time buyers in England are not having it easy.

Before they can get a foot on the property ladder they may spend many years renting and end up spending more than 50,000 Pounds in rent.

Figures from the Association of Residential Letting Agents show that tenants will be renting for an average of 13 years and in 2015 spent 22% of their wages in rent. Continue reading Generation rent

Property viewing – what to look out for when buying a home?

Property viewing is vital to check on the construction quality, property boundaries, and energetic condition. When you like to buy a house there are a lot of things to check and consider.

Quality of life is the most important goal when buying a home. To make buying a home a worthwhile investment in the future, you need a cool mind and ideally the advice of an expert.

Property viewing is of immense importance.

You get a first impression of the property already when seeing some photos of it. But this can never replace a real property viewing. You would not be able to see the smell or see the noise of a nearby road on the photos. Continue reading Property viewing – what to look out for when buying a home?

Should I become a Landlord?

After writing many blogs stating the advantages and disadvantages of being a Landlord it seemed natural to talk a little about whether it is a good idea or not to become one in the first place.

There are several factors that this depends on.

The first might seem a surprise but I think it so important: your age! Why might you ask? Well in my opinion the job of a Landlord needs energy. As a younger man I loved the challenges associated with it: fix this, write a reference, unblock a drain…. all the usual things. Continue reading Should I become a Landlord?

The best time of the year to sell your house

Does it matter when do you put your house for sale? Actually yes.

Property sales vary along the year usually peaking during June, July and August.

The same way birds nest during spring time it seems we are more likely to think about finding a home as days get longer and daffodils start to bloom.

Quoting Leo Tolstoy – “Spring is the time of plans and projects”.

Continue reading The best time of the year to sell your house

Moving back with the parents to save up for a deposit

There is really no way around it, if you are planning to buy a home you will need to have enough for a 10% deposit.

The way things go, you will need to save at least 20k to 30k before you can dream of getting a place you can call your own.

Now the tricky part, unless you have a good “parents bank” to back you up, this sum may take years and years to put together.

In the meantime, you need to live somewhere and as we all know, rents can be quite hefty. Continue reading Moving back with the parents to save up for a deposit

Can’t afford to buy a home? What about Shared ownership?

If you are thinking about buying a home, the first thing you need to do is to put together enough money for a deposit – typically 10% of the selling price and them be able to demonstrate that you can pay your mortgage.

Easier said than done; it may take many years of savings to come up with enough money for a deposit…and as property prices continue to raise the chances to borrow the amount you need may get slimmer and slimmer.

Here is an idea: What about Shared ownership?

Continue reading Can’t afford to buy a home? What about Shared ownership?

Buying a home with a friend

High property prices and hefty deposits meant, for many first-time buyers, putting off the dream of owning their first home. But here is an idea – why not to join forces with a friend or two to get your foot on the property ladder?

That’s exactly what more and more young professionals are doing.

Soaring property prices and stagnant wages meant that just over a quarter of those aged between their mid-twenties and mid-thirties can manage to own their own places. Continue reading Buying a home with a friend