Entering the World of Investments

Whether you are a new investor or have an established portfolio, investing in any area can be scary and confusing. There are many different ways to invest your money, but how and where you do depends on many factors. The one term that encompasses all these factors is risk tolerance. When investing, you always need to ask yourself “what’s my risk tolerance?”

There are 4 key factors when analyzing your risk tolerance.

1: Your investment time frame

This may be the most broad factor, but it has rung true for most investors. the main logic behind this is the more time you have to invest, the more amount of risk you can afford. Say an investment goes south while you are still relatively young. You have a greater amount of time to make up for this loss compared to a person a little older. However, like I said before, this is a very broad rule and further considerations are needed to decide which investment is right for you.

2: Your Risk Capital

The amount of money you actually have to …

Read More

Property Market in Wuppertal, Germany

About the City:

Wuppertal is a city in North Rhine-Westphalia in the west part of Germany. There’s a population of about 350.000, and the name Wuppertal comes from the river ”Wupper” which flows through the city. Some key characteristics of the town include the suspension railway, ‘’Schwebebahn’’, the university and the Pina Bausch dance theater. The Schwebebahn is one of the defining features in Wuppertal, due to the fact that the train is actually upside-down.

Areas in Wuppertal, Germany

As in all other countries, the market in Wuppertal is divided into rental properties and properties to buy. Wuppertal is also divided into 6 different sectors, which have a strong influence on rental and purchase prices. Barmen, Elberfeld, Vohwinkel, Cronenberg, Ronsdorf and Beyenburg all have different prices for various types of properties. 

Prices for renting and buying

The cheapest area to buy and rent in Wuppertal is Elberfeld and the highest prices are found in Cronenberg. The prices generally start at 6.01 EUR/m² and goes up to 8.36 EUR/m².

For buying a house in Wuppertal, expect to pay 2.442,05 EUR/m² at …

Read More

German Property Market – Rules, Regulations and Taxation

Legal Restrictions

There are no specific legal restrictions on cross-border real estate investments in Germany for foreigners. Normally a valid passport and an adequate capital will be sufficient to purchase property. It should be noted that private investors will not be given residential status merely by acquiring property in Germany, as is the case in some other European countries.

With regard to indirect real estate investments, however, some general rules apply. They are laid down in different laws and are binding for both foreign and domestic investors.

Ownership in Germany

The owner of a property is generally in possession of both the plot of land and any buildings upon it. The rights to ownership and inheritance are guaranteed by law.

If an investor acquires a single flat in a multi-family house, it is a matter of property ownership. However, this property ownership does not entail ownership of the land and building associated with the property. Instead the investors obtain a co-ownership share of the jointly owned property which the flat is a part of. 

According to private law, the owner …

Read More

Dortmund Property Market – areas, prices and average costs

Areas and Districts

The city of Dortmund is divided into twelve distinct districts. All city districts are then subdivided into a total of 62 statistical districts. Some of main, more well known districts include Downtown-West, Downtown-North, Downtown-East, Eving, Scharnhorst, Brackel, Aplerbeck, Hörde, Hombruch, Lütgendortmund, Huckarde and Mengede. 

Price fundamentals

Housing prices in Dortmund depend greatly on a number of factors, not unlike any other city. As any good realtor will tell you, pricing is mainly contingent on location. After that buys and sellers look for things such as year of construction, the condition of the property, living space, date of last modernization, final energy requirement (e.g. quality of insulation), surroundings, neighbourhood, car parking spaces or garages and much more. For this reason the following information may differ.

Development of prices / rents

The Empirica Price Database and others form the basis for the following comments on the property price development in Dortmund:

Depending on location, interior or other criteria from above, the current rent for an apartment in Dortmund are somewhere in between 7 € and 12 € per square …

Read More

Ireland: Dealing With Crisis

In previous articles, I’ve discussed the ever increasing population of unemployed and homeless people in Ireland, as well as the rising housing prices. At times the two may go hand-in-hand. Higher cost of living could lead to homelessness, and so on. Within the last 12 years, the homeless population has tripled and the cost of living in Ireland has risen to 102% higher than the EU average. These two issues have rooted themselves all throughout Ireland, with no signs of being deweeded. While looking at the issues from an outside perspective may leave you believing nothing is happening to solve these circumstances, the government does have some plans in place to combat said issues. 

The Irish Council for Social Housing (ICSH) is one of the largest contributors to the development of various social housing services. One of their main goals is to “deliver housing and combat homelessness”. The ICSH has already proposed their plan and budget for next year. With funding from the Department of Housing, Planning and Local Government, the ICSH has “an overall package of €2.6 billion to …

Read More

Dortmund, Germany – Geography and Demographics

Geography 

With a population of approx. 590,000, Dortmund is the eighth largest city in Germany, and is about the same as Stuttgart, Düsseldorf and Essen. The more than 1100 years old city is considered the “heart of Westphalia”.

Dortmund is an important traffic junction on the north-eastern edge of the Ruhr area which borders the Sauerland area in the south-east as well as the Münsterland area in the north. Geographically, Dortmund has the following coordinates: 51° 30′ 58″ north latitude and 7° 28′ 05″ east longitude.

Dortmund lays between 50 and 254 meters above sea level. South of the city border, the river “Lenne” flows into the river “Ruhr”, which in turn flows into the “Rhine” river about 70 km west. The old Hanseatic city is connected to the North Sea via the Dortmund-Ems Canal, the end point of which is the more than 100-year-old Dortmund harbor.

Demographics

Dortmund’s population grew rapidly in the time of the 19th century industrialization when coal mining and steel processing in the city began. 1904 marks the year when Dortmund saw a population of …

Read More

Soaring Cost of Living in Ireland

For a lot of people living in Ireland, considering the cost of living never really crosses their mind. They pay rent, buy groceries and live their lives. The price of all of it is just that, the price. For others who haven’t grown up here or have traveled outside the country, the everyday price of living is more prevalent. Compared to most European countries, and many countries around the world, Ireland is a very expensive place to live.

The European Union (EU) has a lot of cheap places to live nevertheless, such as Bulgaria and Poland. In order to find out how cheap or expensive, we look at the Cost of Living Index. Based off of Prague, which is the central reference city, we can statistically see just how expensive certain countries are to live in. Both Bulgaria and Poland received scores hovering around 80. This means its 20% less expensive to live in those two countries than the average in the EU. Ireland and specifically Dublin received a score of 202! This translates to a cost of living 102% …

Read More

Some information about Frankfurt in Germany

Frankfurt is the 5th biggest city in Germany, it is in Hessen and more than 750.000 people are living there. Between 2008 and 2018 about 100.000 new people were coming to live in this big city.In Frankfurt there are many banks, the ECB (European Central Bank) and the stock exchange, so this city is considered as financial capital from Germany.

The demand for real estate in Frankfurt is bigger than the offer, so the prices for rental rise. In Frankfurt the prices are one of the highest in whole Germany, just Munich has higher prices.

The current average price per square meter for an apartment in Frankfurt today is 17,87 €/m². To rent a flat or a house you must lock a rental contract. These contracts are usually closed for one or two years. In 2018 for an apartment up to 40 square meters you had to pay about 17,90 €/m² , for up to 80 square meters about 13,10 €/m² and for up to 120 square meters about 13,50 €/m² . But the price for an apartment depends on …

Read More

New rent laws

Holiday homeowners must now have planning permission to rent out their property to tourists or stays ip to two weeks. This new rule are in effect as the start of July, 2019. The new rental law only applies to properties in a rent-pressure zone (RPZ). An RPZ is a zone where rent is typically above the national average.

This summer could mark the last summer that holiday home owners in the RPZs will be able to rent out their properties to tourists. Property owners will be breaking the rules if they continue to rent their homes out to tourists unless they are granted the planning permission to do so. Failing to get planning permission for renting to tourist can result in fines up to  €5,000 or six months of imprisonment – or both.

Homes that are not effected by the rental restrictions can be defined as homes which were purposely designed, constructed and approved to be dedicated to tourism accommodation.

According to Jacinta Doolan, the founder of Trident Holiday Homes, about 80% of holiday homes throughout Ireland do not have planning …

Read More

Fast-Track Planning System

The fast-track planning system was introduced in 2017 by the Housing Minister Eoghan Murphy. The program was aimed at expediting large scale developments and introduced the system for strategic housing development legislation. The fast track planning system is now subject to undergo public review.

The strategic housing scheme allowed fast track decision making for large scale housing schemes. The legislation allowed developers planning to build large scale housing schemes to make their case directly to the An Bord Pleanala. This allowed developers to by pass local authority decision making processes and thus, the planning  process is expedited. With out the fast track planning system, large scale developments would have to be approved by local authorities and then could be appealed to An Bord Pleanala.

The Strategic Housing Development system gave effect to the commitment in Rebuilding Ireland. This commitment is defined as “fast-track” devision making for large scale housing and student accommodation schemes.

According to the rules of the fast track housing planning system, developers building sites with 100 or more housing units or 200 or more student housing units …

Read More