If only I had known then how money works - capital investment

Investment in real estate

Peter Kerler on the Micro-Living condominiums at the Kauferinger station

How often do I hear this phrase from friends and acquaintances. "If someone had taught me 'money'!" The retirement age is approaching inexorably and the low pension, the taxation of the same and inflation cause so many a headache.

And money is not a new invention. On the contrary. In our society, however, the focus is primarily on how hard work makes a living and less on how it works, that money rolls up our sleeves. This is quite legal, according to classic market rules and without anyone being disadvantaged or others over-benefits.

But first, back to my friends. Of course, who thought at the time or think today with 25 or 30 to the pension? These days, interests are more focused on self-fulfillment, on a job that is fun, independence and leisure with high added value.

In fact, it could be a lot easier with the time-consuming future planning, personal responsibility and personal protection. If money were not something intangible in people's ideas, a medium that can only be used profitably by banks and major investors, there would be less worry lines in the face of industrious workers.

This myth "I can not afford money." To make up for it, is my concern again today. Whether you invest your own or borrowed money, it generates a profit under certain conditions. The money simply becomes our friend when we give it something worthwhile and worthwhile to do.

It feels particularly well in promising real estate markets, such as temporary housing, which takes into account both our social development and regional economic growth.

For me, this includes our furnished Micro-Living apartments at the large commuter station of Kaufering / Landsberg, which will be completed next year and which we build for investors.

This real estate sector is showing tremendous growth rates with a sustained upward trend and is particularly attractive. And for everyone, because small apartments require relatively little equity and good profit expectations.

So instead of looking for luck in the evenings and at weekends in a second job to build up a passive income with a lot of effort, the best agers and especially our young professionals could let the money work for them. Just like the big money people.

The stated goal: a responsible asset accumulation

Those who do not say "yes" to their own property today will probably grieve bitterly in a few years' time. Consider: instead of paying off the property itself, the lion's share is the rent. Added to this are the advantages of low interest payments and high repayment installments, the constant increase in the value of the real estate, rental indexation and individual tax benefits that leverage equity and thus increase the total return by the way.

My professional focus is micro-living. It started with student apartments. Meanwhile, the demanding user target group has grown tremendously. It ranges from companies that need company housing, to working people, commuters, trainees and singles.

Micro apartments are ideal for temporary living. For this it is important that the connection is perfect, that big companies and growth markets are in the area.

Imagine these figures: mobile workers pay up to 70 € or 120 € per night x 20 = up to 1,900 € per month for a hotel room. How much money could be saved if you only had to spend a fraction of that rent on your own four walls of a fully furnished rental apartment instead?

In Kaufering at the commuter station we are currently building 60 of these smart apartments. They offer everything your heart desires, such as sunny south-west sides, an attractive furniture and room design, fresh air through a decentralized ventilation with heat recovery, intelligent systems for simplified billing of utilities and a functional furniture system that offers sustainability.

Here we have created the best conditions for money to go to work productively.

In our example of financing (see display on back page) you can see that even with an equity investment of just € 21,645, the financing rate plus 2% repayment at the bank is sufficiently covered by the rent!

If you are still young, you can apply for longer term loans and at the same time invest less capital and still be profitable.

For example, if I sell the apartment after 10 years, according to forecasts I can expect a 25% increase in value, after the repayment of the bank balance of approximately € 93,500 I will earn a profit of € 75,500. So, my equity and the borrowed money make a whopping € 53,900 in 10 years ... but we did not consider a rent increase! If I keep the apartment I have a monthly real estate pension.

That sounds unbelievable, yet it is "normal" in the institutional investor world.

Of course, our calculation example does not replace tax, financing and legal advice.

The future of your financial security can start today

In the metropolises, Micro-Living is an indispensable part of the minds of both institutional and private investors. The more rural, high-growth regions have been recovering for some time due to demand and trends.

The chance to enter now could hardly be greater and can lay the foundations for your solid financial security.

Find out more on our website www.inventus.blue .... or call us.

Your Peter Kerler

Source: AmmerseeKurier Special December 2018