Buying real estate also brings some risks. An absolute return killer is the running costs of real estate. Miscalculation of ancillary and renovation costs can quickly pose a risk. Often these burdens are more than underestimated. Many buyers do not plan the high cost of repairs or recognize immediate remediation measures. New buildings or properties in modern construction carry a lower risk in the area of renovations.
This should be included in the calculation before the real estate purchase. The rental price brake is a political instrument that every buyer must take into account. It has now occurred in many large cities. The rental price brake states that the rent for new rentals or property purchases is not simply set arbitrarily. In this case, the ceilings must be adhered to.
However, if you buy your object again, you do not have to pay attention to it in the calculation. The rental price brake applies only to the purchase of existing buildings.
Furthermore, the risks are that credit institutions offer maturities that are too long. Low interest rates are not everything. Finally, the buyer must be able to maintain the repayment rates on a permanent basis. Similarly, there may be a risk if financial losses arise in the event of an early sale of the property. Especially with the premature termination of a real estate financing, there may be prepayment compensation or other costs, which often amount to up to 1000 euros or more.