Real estate in transition: How investors can benefit now!

Real estate in transition: How investors can benefit now!

Real estate is currently playing an increasingly important role as an investment, although the market is facing some challenges. Loud Schwäbische.de For a long time it was believed that real estate was a safe and inflation-protected form of investment. But rising interest rates, high construction costs and geopolitical tensions have set the market in motion. Experts such as Simon Weiß from Volksbank Allgäu-Oberschwaben and Michael Tronsberg from Kreissparkasse Ravensburg are optimistic that the initial market skepticism, which led to a drop in prices in 2022 and 2023, is now gradually giving way to more stable demand.

Real estate and properties in urban locations that have been renovated for energy efficiency are particularly resilient to crises and even enable moderate price increases. Moving to the region contributes to long-term value retention. At the same time, the current market situation emphasizes the importance of choosing high-quality real estate. Factors such as location, structural condition and energy standard are crucial, as poor energy efficiency can result in high investments.

Funding and tax advantages

An aspect that should not be neglected is the funding available. The BAFA supports the renovation of buildings with subsidies of up to 70% for energy-saving measures, such as insulation and heating systems. These grants are particularly valuable for owners who want to invest in existing properties to increase their value.

But BAFA doesn't just offer financial support: thanks to the tax deduction options for loan interest and depreciation, you can also secure some advantages in your income tax return. Individual advice from a tax advisor is recommended in order to make the best possible use of all options.

Strategic investments in transition

However, the interest rate turnaround has led to a decline in transactions and many project developments have had to be put on hold. Loud Forbes.swiss During this time, opportunities open up for anti-cyclical investors, particularly in existing properties from the 1950s to 1990s that offer high renovation potential. Buildings from the 1980s are characterized by a solid structure and are particularly interesting for investments aimed at energy optimization.

The sustainability of real estate is becoming increasingly mandatory due to current EU regulations. Investments in energy-efficient renovation are not only necessary to reduce operating costs, but also to secure property values ​​in the long term. The combination of sustainable development and funding opportunities can pave the way for successful real estate investment.

The current situation requires investors to have a good instinct for making the right decisions. Planning security is supported with a recommended equity share of 15 to 20% and a long-term fixed interest rate. An initial repayment of around 1.5% is considered advisable - this way you can stay on the safe side even in stormy times. The question of what will happen next with real estate investments remains exciting. Healthy market mechanisms and strategic action are now more important than ever in order to continue to invest successfully in real estate in the future.