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Also at low inflation rates, one must not underestimate the inflation rate or the loss of the purchasing power of money. It was still possible to build your own house (converted) for 50.000,-in 1955 can today no longer even create a usable site for this money, not to mention a complete real estate. This is another advantage of reverse saving”: the purchaser paid and financed the current purchase price, his loan level does not rise with the prices. And who anticipates future price falls in real estate investment, can charge up quickly: the past clearly shows that real estate always almost regardless of the economic development in the value have increased. You can now do that performance in the past does not necessarily for the future must be true, but to trust to, that from this fact out with falling real estate prices are expected can, is more than questionable. As prices in all markets, real estate prices fluctuate, but I can say already at this point that land represent resources that can not be produced, and are thus limited. Already this reason suggests generally considered not in the future falling property and real estate prices. Many investors are throwing another point in the herein considerations: return on investment.
“And the word return” most people think of the amount of the interest. This opinion is true and it translated the word yield basically right, but for me, the return is always the benefits that I’ve achieved my investment. There are certainly investments, which offer a higher interest rate you can compares the real estate capital interest with rent. But the statement is not entirely true, because other factors should be considered when the return or the value of an investment. By the way there is also real estate investments different products and different rental yields. Student apartments get usually a higher rental yield than regular condos because they are smaller and there is especially much too few small affordable apartments for the target group of students.
