FAQ - Around Real Estate

FAQ: Here you will find answers to your questions
(Part 1 - 6)

Real Estate Guide 2020

Simply use the
No. 1

Whether buying, selling, renting, living in old age or as a profitable investment: the topic of real estate raises many questions. We have answers for you. If you do not find what you are looking for in our FAQ list, we will be happy to help you in a personal conversation. We look forward to hearing from you.

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1. FAQ: General questions about real estate

When choosing a property, there are usually four factors to consider: the location, the condition of the building, the size and the land value. The latter plays a decisive role in the purchase of land, especially in conurbations.

Experts predict that most cities will see further growth in buying and rent prices over the next decade. Prices for houses, apartments and commercial real estate will continue to rise, especially in economically strong conurbations. The situation is different in cities with declining populations. A loss in value is to be expected here.

Studies show that the real estate boom will continue in most German cities and municipalities. Especially in the southern German cities with a rapidly growing population, above-average growth is likely. Real estate in Munich continues to be particularly lucrative. Here, the price per square metre is expected to increase by up to 1.81 percent per year by 2030.

Whether Saarland, East Germany or the Ruhr area: there has been a decline in population in structurally weaker regions. This is associated with falling rental and purchase prices for real estate. An investment in these areas should therefore be well considered.

Purchase and rental prices vary widely in Germany. While prices have risen significantly in cities such as Munich, Hamburg, Düsseldorf and Berlin in recent years, houses and apartments in other areas, such as the Ruhr area, can be purchased at comparatively affordable prices. You want to know what the situation is on site? Then use our location analyses. Here we have the latest figures and developments for you.

Factors such as location and location, condition and equipment, size, land value and connection to infrastructure are crucial when assessing real estate. Due to the demand, small apartments in a university town achieve an average higher selling price than large apartments for families.

This cannot be answered in a general way. Investing in houses and land is usually worthwhile at low interest rates. In addition, one should only strike if the purchase price fits, the purchase ancillary costs are manageable and an economically attractive return is likely.

The Corona pandemic is currently affecting all areas of our society. The real estate industry is also affected. We have summarized the relevant information on this topic for you on our website.

2. FAQ: Questions about E1 International Investment Holding GmbH

E1 International Investment Holding GmbH was founded in 2007. E1 is backed by an association of various real estate agencies throughout Germany. The company’s business model is based on the franchise principle.

The core areas of E1 International Investment Holding GmbH include brokerage, sale and purchase as well as the holding of real estate and investments. We also advise and provide investment, financial services and insurance.

Simply number one: E1. That is the philosophy of our company. E1 Holding is registered as a trademark with the German Patent and Trademark Office.

E1 International Investment Holding GmbH is currently represented with branches at more than 40 locations throughout Germany. In addition, there are international activities, for example in America and Turkey.

The central company address of E1 International Investment Holding GmbH is located in Wiesbaden. Contact detailscan be found on our website.

The licensees have close contacts with the most important associations in our industry. Examples are the Chamber of Commerce and Industry, the Federal Association of the Real Estate Industry in Germany, the Real Estate Association and the International Real Estate Federation.

Investors and owners expect a competent network at the holding company. You can rely on comprehensive advice on possible investments and our many years of experience.

E1 Holding has built up a competent network and offers its customers an excellent all-round service. We are particularly proud of our international know-how, the rapid due diligance and the high degree of discretion in all transactions for investors and sellers.

E1 International Investment Holding GmbH has been successfully on the market since 2007. With an average annual turnover of 18 million euros and a transaction volume of around 2.4 billion euros, we are one of the major real estate service providers in the sector. An overview of our references can be found in our company presentation.

On our website we provide detailed information about the development and development of our company. Here you will also find a detailed company presentation to download.

3. FAQ for franchise partners

Of course. Under our brand E1 we are active all over Germany. On site, we work closely with licensed real estate agents and thus offer our clients a profound knowledge of the regional conditions. We are always happy to be actively involved in our franchise system.

Anyone with at least five years of experience as a broker. If you want to join our franchise network with a license, you must be able to present a brokerage permit in accordance with Section 34c GewO.

Franchise partners of E1 International Investment Holding GmbH benefit from a competent network of specialists for investment properties of all kinds. Our licensees open up lucrative deals, also on the interesting off market. Franchise partners of E1 International Investment Holding GmbH do not have to give up their independence as a broker. License partners gain access to the extensive network of E1 International Investment Holding GmbH. In addition, there are joint marketing and PR activities as well as workshops and training courses.

E1 International Investment Holding GmbH has a broad network. We currently offer our partners access to more than 121,000 contacts. In addition, our database contains around 2,100 properties for investment.

Our franchise concept does not include an entrance fee. As a beginner, you only pay a license fee – either once or in monthly instalments. The amount of the fee depends on whether you choose the Gold or Platinum license. By the way: We offer a free trial phase. Find out more here.

E1 International Investment Holding GmbH has a five to seven percent stake in the net sales of its franchise partners.

The term for a license in our franchise system is usually two years. You can extend your participation for up to five years.

E1 International Investment Holding GmbH supports professional insurance and financial brokers, as well as newcomers. More information about the possible franchise programs can be found here.

4. FAQ: Around the purchase of real estate

E1 International Investment Holding GmbH is one of the largest real estate companies in Germany. We focus on large-scale projects, including apartment buildings, building plots, commercial real estate, residential complexes and nursing homes. We are also interested in hotels and vacant properties.

Basically, we are interested in properties with an investment volume of at least one million euros. We also arrange multi-family houses to privatize them, as well as plots of land that are suitable for a floor-to-ceiling apartment building. Another criterion is location. Our residential properties are located in cities with at least 10,000 inhabitants. Residential properties are of interest to us with a return expectation of at least three percent.

A real estate purchase takes place in several steps. You order us to research a property according to your desired criteria. This is carefully checked by us as part of the purchase test, a so-called “Due Diligance”. The procedure lasts about two weeks. Afterwards, you will receive a declaration of intent including a commission hedging.
When we have received all documents and data from you, we will prepare a non-binding purchase offer as well as a financing plan. Once all the details have been clarified, a notarial sales contract is drawn up.

In the event of a change of ownership of land and real estate, a notarial purchase contract is mandatory. The notary also initiates the change of the land register entry, determines the broker’s commission and regulates the settlement of the contractual purchase price.

The notary is usually commissioned by the real estate agent. It is also possible that buyers and sellers will go separately to a notary of their own choice. We are of course guided by the wishes of our customers.

Unlike rented apartments, there is no legal fee for the amount of brokerage courtage for the sale of real estate. Pursuant to Section 652 of the German Civil Code (BGB), the broker is entitled to charge a freely compatible fee for his services.

In most federal states, it is common to divide half of the brokerage between buyer and seller. Elsewhere, the buyer will pay the fee. There is currently a change in the law. According to the buyer principle, the contracting party is to pay the brokerage fees in the future. However, it can pass on 50 percent of the costs.

An exposé is a sketch or data sheet of the property with all relevant details. It informs the buyer about the location, the equipment, the floor plan, the price and the energy factors. An exposé of E1 International Investment Holding GmbH also serves as the basis for the financing plan.

The Land Registry is a public document which lists all legally relevant information about a property or property. This includes information on the owner, usage rights and liens. The administration of the land register is the responsibility of the local district court or the land registry office.

An expression of interest is completed by the potential buyer. With this form, he submits a serious interest in a real estate acquisition to the seller. As long as no notarial contract is concluded, an expression of interest is non-binding. For our employees, your expression of interest is the starting signal to research a suitable property for you.

With the sales mandate, you are ordering us from E1 International Investment Holding GmbH to find a solvent buyer for your property. We always proceed discreetly and give you an initial feedback within two weeks. A sales mandate is non-binding. A commission is not due until a notarial purchase agreement has been negotiated.

You have concrete ideas about your desired property. Prima! Create a purchase profile in our portal and we will research whether there is a suitable object for you in our inventory. As soon as we land a hit, we will contact you. Discreet and non-binding.

In some cases, working with other brokers is helpful in brokering real estate, especially when looking for an object in another city or country. Cooperation with brokers who are familiar with local conditions can speed up the process. It is important to define the framework conditions in a cooperation agreement in advance.

Can you make a recommendation? Do you know a property owner who wants to sell his house? Then we look forward to a tip from you. If the property meets our purchase criteria, we would like to thank you for the good advice with a tipper commission of ten percent.

You are the owner and want to commission us to sell your property. Nothing easier than that! We include your property in our inventory list and are looking for a potential buyer. Of course, we will not pass on the address of your property until we have received a written expression of interest. As a seller, you can rely on our discretion.

Nothing. The brokerage of real estate is basically free of charge for the owner. As a rule, the buyer pays the broker’s commission after the brokerage.

5. FAQ: Real estate as an investment

There are several ways to invest in real estate. They can invest directly in the purchase of houses, apartments or commercial and office units – or indirectly in the form of a shareholding.

For us as a real estate investor, properties with a volume of one million euros or more are interesting. In addition, we also enter larger new-build projects such as multi-family houses with up to 50 million euros per investment, if they are located in cities with at least 10,000 inhabitants and yield a return of three percent.

If you buy a rental house or apartment and want to invest money with it, you should make sure that the property is located in a sought-after and economically stable area. In principle, so-called micro-locations are recommended for tenements or residential complexes – locations with good infrastructure and a low unemployment rate. This guarantees a problem-free and lucrative rental of the units.

With the purchase of a rented property, you as a landlord are subject to the tenancy law. This entails a whole series of requirements. The spectrum ranges from the maintenance of the apartment to the repair of damage to the inclusion of life partners in the rental agreement.

Those who buy a rented property should not rely solely on their knowledge of human beings. Again and again there are reports about so-called rent nomads and cash-strapped tenants. It is recommended to consult an expert. E1 International Investment Holding GmbH also advises its clients on these topics.

The rental price brake, which has not been uniform in several federal states, stipulates that rents may be no more than ten percent higher than the local average for new contracts. New buildings are excluded. All information on the rental price brake can be found here.

The rental mirror is a legally regulated instrument for comparing local rents. The rent level serves as the basis for rent increases. It is usually created by municipalities, often in cooperation with tenant associations.

A sale or purchase without an energy certificate – that is no longer possible today. The statutory document records all data on the energy efficiency and costs of a property. If an object is rented or sold, the owner must already display the energy certificate in the advertisement.
Energy certificates are also mandatory for offices or public buildings. Depending on the number of square meters, the proof must be displayed clearly visible.

Commercial properties are very interesting for E1 International Investment Holding GmbH – this applies to offices, logistics properties and business parks. In addition, we also appear as an investor in car parks, hotels and industrial real estate. The basis for this is the respective development perspectives. In addition, the return in this segment must be at least five percent. For hotel projects, the property should be located in a city with at least 100,000 inhabitants. Detailed information on the respective criteria for commercial real estate can be found on our website.

Investments in hospital, nursing and senior citizens’ properties are interesting because they are profitable in the long term and at the same time low-risk. The demand for real estate for seniors will continue to grow in the coming years. An investment in senior citizens’ properties is ultimately a retirement provision in the double sense. First, the investment yields, in old age the property itself can be inhabited.

EKZ real estate are shopping or retail centres such as construction and garden markets. E1 International Investment Holding GmbH is internationally active in this segment. A prerequisite for a purchase are high-quality tenants and tenants – gladly in a long-term lease.

E1 Holding acquires vacant commercial properties, even if they are in need of renovation. Many of these buildings are suitable for a lucrative conversion into residential properties. Criteria for a purchase include the size of the land and the location. When converting vacancy to housing, long-term stock retention is important to us.

We are looking for plots of land nationwide that are suitable for the construction of multi-storey residential complexes. The prerequisite is that a building permit exists for the land.

Local housing associations are obliged to provide local services. This includes apartments for tenants with lower incomes. E1 International Investment Holding GmbH is also involved in this segment – mainly in large cities and conurbations. The commitment also includes the purchase of building plots with a social requirement.

Listed properties are subject to special tax rules – the preservation of the old building structure is particularly encouraged. Depending on the location and equipment, the purchase of an old Art Nouveau villa can be an economically interesting property. However, buyers must also take into account the usually high cost of maintaining the house.

A listed old building, such as a stately town villa: for many investors, this is a dream. Before the acquisition, the costs of the necessary refurbishment should be carefully examined. This must be carried out in accordance with the current Energy Saving Ordinance. The costs for new windows, heating systems as well as roof and facade work are quickly in a six-digit range.

Property owners are required to retrofit their buildings according to the Energy Saving Ordinance. The aim is to achieve a minimum standard in terms of energy demand and heat loss. An energetic renovation of the building is expensive – but it contributes to the increase in the value of the object. In addition, funding can be used for the necessary measures. For example, the Kreditanstalt für Wiederaufbau (KfW) provides a funding pot. In the case of monument properties, an energy-efficient renovation can also be claimed for tax purposes.

In order to distinguish himself from the share deal, an investor acquires a property as the owner in an asset deal. It is a classic purchase of a house: the property usually passes into its possession along with the land. Other forms of asset deal include property developer contracts and so-called general contractor models.

In contrast to the asset deal, shares are acquired in a share deal – for example, in the company that owns the property. For investors, this form of investment can be worthwhile for tax reasons alone. E1 International Investment Holding GmbH is very active in this area. Please contact us.

Off-market real estate means properties that are not publicly offered for sale. We mediate such properties, for example residential complexes, shopping centers and logistics areas, discreetly and after a detailed preliminary examination to solvent investors.

Yes. E1 International Investment Holding GmbH specialises in this area. The international mediation of real estate requires in-depth knowledge of the conditions and structures on site. In addition to legal requirements, the tax law of the respective country must be taken into account. There is a great wealth of interesting objects, such as car parks, hotels and shopping centres.

6. FAQ: Around returns, taxes and financing

Real estate as an investment is a long-term investment. They are not suitable for making money quickly and quickly. In addition to the purchase price and the additional purchase costs, owners must plan regular maintenance. The effort involved should not be underestimated. Rented properties generate rental income – but here, too, expenses for repairs, renovations and administration are due to the owner. Nevertheless, unlike equities and securities, real estate remains considered one of the safest forms of investment.

With this tool, investors have all relevant cost factors in the context of real estate purchases in mind. The aim is to check the cost-effectiveness of the acquisition. Central to a financing plan is, among other things, the cost of the budget, equity, the total cost of the property and financing needs (the amount of the loan).

Anyone wishing to purchase a house, apartment or property is not obliged to raise equity capital. As a rule, however, it is recommended that you have saved at least ten, better twenty percent of the purchase amount.

The loan value of a property plays a central role in the financing of your property. As a rule, a house purchase is financed by a bank loan. The bank requires collateral for this – the loan value of your property in the event of a necessary forced auction.

The calculation of the loan value of a property is determined by state-recognised experts. Decisive factors are the age of the house, the market value, the comparison with local prices as well as possible yields, for example through rents.

For years, real estate has been regarded as a lucrative and secure investment. Experts predict that prices and rents will continue to rise in many cities and municipalities in the coming years.
The key is to calculate the return as realistically as possible. We offer our customers a simple tool for calculating with the return calculator. We are also happy to provide you with personal advice.

Have you found your dream property? Congratulations. So that you don’t experience a nasty surprise when financing, you should carefully calculate the purchase ancillary costs. These include the real estate transfer tax (3.6 to 6.5 percent of the purchase price), the broker commission (up to 6 percent of the purchase price), the notary and land registry costs (about 2 percent of the purchase price) as well as the costs for refurbishment, conversion, relocation and furnishing.

If you want to invest money in real estate without buying an entire house: real estate funds are a lucrative alternative. Funds in this segment benefit from rising prices in the housing market. Mixed funds and open-ended real estate funds are particularly popular. More information can be found here.

Naturally. With the help of our competent network, we are also at the disposal of existing clients in the search for lucrative investments in real estate or funds. Please contact us. We will be happy to advise you in a personal conversation.

Buying a property as an investment or for use as a home has a tax-reducing effect. In addition to the purchase price, running costs, for example for maintenance costs, administration and caretaker services, are also deductible.
On the other hand, buyers of a property in Germany are obliged to pay a property tax as well as a real estate transfer tax. In the case of an inheritance, an inheritance tax is also payable.

Unlike equities and securities, real estate is a comparatively inflation-proof investment. On the one hand, rents and purchase prices rise with inflation, so that there is no loss of value. At the same time, the financing of the property is losing value. As a result, liabilities are also falling.

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