Every fourth landlord in Germany doesn’t earn any profit. The exorbitant costs for property maintaining and management barely cover the rent. But it could be worse: 8.5% of the objects bring losses says ee24.com citing welt.de.
About 7 million of Germans own real estate as an investment; on average their rental income is 2-3% per year: 8.5% of them are working at a loss, 24.6% go to zero, 20.7% earn up to 2% and 46.2% – over 2%. Thomas Meyer, CEO at Wertgrund says that less than half the houses and apartments in Germany are able to generate income if adjusted to the inflation.
Despite the modest rates, real estate investments keep its highest priority for German private investors. Income terms are simple: carefully planned real estate purchase in Germany (to make profitable acquisition) to reduce the property maintaining cost as much as possible and try to avoid long periods of inactivity when changing housing tenants.