Real estate investment by choice

In times of low interest rates, real estate is becoming increasingly attractive as an investment option. Find out more about the main criteria for your investment decision, compare investment opportunities and learn what benefits you can expect from a real estate investment.

The magic triangle of capital investment


The decision for the right investment is based on three fundamental factors: yield, security and liquidity. The significance of these three criteria can be used to determine which form of investment is best suited for your ideas.

In principle, one of the three criteria must always be subordinated to the other two. This is because there is no investment strategy that can equally satisfy all factors.
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Matti Biskup
Head of Investment Consulting
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Investment options in comparison


The golden mean

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The bank savings book

The bank savings book is probably the most tried and tested way of putting money aside. It is characterized by high flexibility and security. The growth of your money investment takes place here through the interest from day 1, which is based on the current key interest rate and is credited to the savings book at the end of the year. Since the interest situation for savings book owners has a rather disadvantageous effect at the moment and according to forecasts interest rates will not rise in the foreseeable future, many investors are looking for a higher-yielding alternative for investment.

Security:

Yield:

Liquidity:

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House pricing

Real Estate Investment

Real estate has always been an attractive investment opportunity. A real estate investment is characterised by a high degree of security and an attractive return. If you bring equity capital with you, you can even achieve a leverage effect with your borrowed capital to increase your return on equity (leverage effect). A real estate investment is the perfect form of investment for all those who want to invest their money securely, with a high return and on a long-term basis.

Security:

Yield:

Liquidity:

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Stock market

ETF savings plan

Similar to real estate, the capital investment according to the ETF savings plan is also a long-term investment. Even small monthly contributions can be used to buy fund units on a regular basis, thereby building up long-term assets. With this form of investment, however, it should be noted that developments depend on the respective stock index and may also be affected by fluctuations. For this reason, the ETF savings plan makes sense for a long-term investment, otherwise it is extremely risky.

Security:

Yield:

Liquidity:

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Why you should invest in real estate


  • Secure retirement planning
    Real estates are an attractive and secure alternative to private pension insurance policies, which have to be taxed again when paid out.
  • Constant value
    Real estates represent a constant value and are hardly affected by fluctuations in monetary value due to inflation. Furthermore, real estates have the advantage of not being affected by short-term price fluctuations, as can be the case with securities.
  • Basis for further investment projects
    Anyone who has property to show will receive better conditions for further investment projects and thus more attractive interest offers.
  • Passive income
    If the property is debt-free, a passive income can be generated by the monthly rental income. With certain investment strategies, a profit is possible even before the financing is fully repaid.
  • Tax advantages
    Especially for investment properties there are numerous possibilities to claim the investment for tax benefits. This strategy is particularly important for your real estate financing.
  • Inflation protection through Ownership
    The biggest advantage of a real estate investment is the immediate transfer of the property into your ownership. A freehold property gives you a lot of security, financial flexibility and in case of self-use even rent-free living.

Good to know


The Leverage Effect

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The leverage effect refers to the effect of the leverage of borrowed capital on the profitability of equity. You therefore have the opportunity to increase the return on your equity capital by taking up outside capital. The prerequisite for this is that the return on your investment must be higher than the interest on borrowed capital.

Attention! The leverage works just as well in the negative direction: if the return on the investment falls, the cost of borrowing increases. And these then have to be paid out of your own pocket. This negative effect is particularly noticeable when investing in stocks, as the fluctuations on the stock market can be large and unpredictable in the long term.

In order to be able to achieve a long-term and secure positive leverage effect, a real estate investment is ideally suited thanks to low fluctuations in value and precise predictability.