Investing in Listed Properties Is Still Attractive

Properties have proven to be the most durable asset investment. More and more private investors are buying one or even several apartments for rent. In recent years many have turned their focus towards listed real estate.

(Source: Listed real estate is one of the most popular investment for private investors. The refurbishment costs can be depreciated up to 100 percent.

When choosing a real estate investment, not only the choice of the right location is important, but also the incentive of the investment. Especially people with high incomes profit from an investment in listed real estate as they can lower their tax dues and “keep” more of their wages. Objects under preservation order offer considerable tax advantages to their buyers, as the refurbishment costs are fully tax-deductible under certain conditions over 10-12 years. Even if a complete refurbishment is more expensive than a simple renovation at first sight, it will pay off by achieving a high increase of value.

Experts recommend that buyers of a listed property should have at least 20 percent of the purchase price as their own money on their account. The acquisition of a listed apartment is therefore particularly suitable for individuals with an annual taxable income of EUR 80,000. Couples should have an annual income of EUR 120,000. Besides the advantage of saving taxes, the acquisition and comprehensive refurbishment of a listed property is also suitable for increasing capital. In the case of listed properties, it is not only central locations that are particularly rewarding, although demands are by far the highest. However, the example of Berlin shows that locations on the outskirts of the city have very good prospects for the future. Long-term population and rental price developments are the key to good real estate investments as the example of Potsdam shows: since Berlin can be reached within 30 minutes from Potsdam, the population of Potsdam has increased by one third since the turn of the millennium. The real estate prices grew accordingly. In the future, especially the north-eastern suburbs of Berlin, like Pankow, will experience a strong increase in value.

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