Investing correctly? It’s all a matter of location!
Type of investor who invested their entire fortune in a property in a nearly unknown city in Germany. Many said it wouldn’t work, but the investor just winked and, after five years, made a huge profit and moved to Bali. And you wonder: is it just pure luck?
Successful investing: the more you know, the less luck you need.
After buying a property, many things can be changed. The facade can be repainted. Walls can be torn down, trees relocated, but one thing is irreversible: the location.
That’s why checking the location, including the neighborhood and its development, is the first and most important checkpoint for experienced investors and our area of expertise. Only good investors will be able to see the potential of buying a nearly vacant apartment building next to a large wheat field, especially when they are informed and experienced enough to know that the city will build a university on that wheat field within the next two years, turning the apartment building into a unique investment opportunity.
In Germany, investors have the great advantage of being able to access current and accurate information for perfect site evaluation at any time. This includes, for example, government statistics on population, economy, employment figures, the ratio of tenants to homeowners in cities, housing development projects, and much more. Even the so-called “Mietspiegel,” which indicates the typical rent for residential space across Germany, is published for anyone interested.
The blessing of this publicly accessible data is also its curse: anyone can access it, and it’s almost impossible to act fast enough to spot and secure good deals first.
The true skill in evaluating a neighborhood or location is gathering firsthand information and not having to wait for publicly available data. To do this, you need a close network of partnerships and knowledge of the economic and local background of an area. The more you know and the more people you know, the less the success of an investment depends on the investor’s luck.
Know one, know them all? With InvestiX, you do.
With over 20 years of experience in the German real estate market, we benefit from a large network of informants, friends, and business partners who keep us updated on the best properties and developments in the market. Therefore, we recommend that you find a strong partner who
