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30th October 2018

UK property investors flow to Germany to secure their hard earned funds

Investix Germany had the opportunity to participate in one of the biggest European Property Investment shows this year at the London Excel. Our main target was to present our latest investment products to UK market and introduce the current conditions of German residential property market that can benefit every foreign investor wishing to secure their investment.

Within the last year, we’ve been receiving more and more inquiries from UK investors, due to the recent political events, which have shaken the investment industry and have brought uncertainty for the future of their local property market. As the German economy grows stronger, it further strengthens the stability of its property market, therefore it’s not a big surprise that the current global attention turns more investors towards a low-risk capital preservation strategy, when choosing Germany as their No.1 investment heaven.

The Property Investor Show, which have been running since 2002, this year attracted the highest turnout within last 9 years. It welcomed over 5,372 visitors over two days which were eager to learn as well as invest. The seminars, where Investix took active participation, welcomed over 5,000 bookings with several hundred more standing at the sessions. Our managing partner, David Healy, participated in open table discussions led by John Howell, Editor & Founder of Guides Global, where they compared the benefits of German market structure and explained the necessary steps international investors should take before going into Germany.

David Healy, Adam Ryan and John Howell.

 

As the only company representing German residential investment products, our stand and seminars attracted huge interest from attendees. There wasn’t a single investor approaching our stand who wouldn’t be concerned about the future of UK market and looking for a way to protect their hard-earned funds. At the show, we presented two different products – very familiar for German investors but new to the international audience. For those, interested to purchase a single buy-to-let apartment, we offered apartments with Rental pool structure, which allows protecting your income by pooling together all rental income generated from the block and equally distributing it between investors. That way it secures your income in case of any vacancy. We also presented an opportunity to acquire tenanted buy-to-let apartment blocks with low cost fixed interest mortgage included. Investix offers a special tax optimised investment structure which secures the same finance conditions for international investors as it is for German locals.

Investix Germany stand at Property Investor Show.

 

There’s a couple of reasons why Germany stands out in the international property market. First of all, it has a historically very strong rental culture. Over 54% of German citizens are tenants, but in most cities, it is even higher. In Berlin the number rises to 84% and in Duisburg to 71%, what makes buy-to-let investment business very stable and predictable. Also, the finance conditions at the moment are extremely favorable. Investix can secure up to 75% LTV with fixed interest rates as low as 1.7% for the next ten years. If we combine the overall trend of high demand for rental property and long term tenants, rising rents and prices with exceptional finance conditions there’s no surprise why it places Germany at the top spot for any buy-to-let investor.

Open table discussions with David Healy and Adam Ryan, led by John Howell.

 

Over the last 5 years we have seen a dramatic increase in prices and rents in the top 7 cities in Germany which attracted a lot of foreign investment, however, the trend has lowered the yields and potential returns and also forced tenants to look for alternative housing in nearby cities. At Investix we are closely following the market trends and currently are investing in the B and C locations where demand is rising but the purchase prices are still relatively low and we can secure good rental yields. At the moment, we are seeing big potential in cities like Dresden, Leipzig, Magdeburg in the Saxony and also Essen, Duisburg and Dortmund in North Rhine Westphalia where the trend of increasing population and business opportunities drives price influx up. For our business, it is important to constantly look for next top investment cities to be a step ahead of the market and with over 20 years of investment experience in Germany, we are a reliable partner for our investors managing their investment from the ground in Germany.

Contact us for more information. 

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