Nice attempt at advertising with the usual omission of the negatives. Firstly: If real estate is such a no-brainer, why is Chemnitz, for example, so unpopular as a real estate investment, even though I can get a 1-2 room apartment from the post-war period there for the price of an entire house with 6 apartments in Munich? After all, Chemnitz is a university city with almost 1/4 million inhabitants. Individual properties have to be selected even more carefully than shares, otherwise you have a great money pit.
Secondly: Who claims such nonsense that shares and securities are not recognized as collateral? Have you ever heard of a simple bank pledge? But perhaps the sleepy German banks are simply not up to date and prefer to moan about it. When I think back to the look of amazement on the faces of the bank advisors when I bought my first apartment with a currency loan (CHF), secured by a British life insurance policy (GBP) and with a bullet repayment (=0% repayment, 100% repayment at the end of the term, with only minimal CHF interest in between), I still have to grin all the time. I'll probably never get a property that cheap again, but you can see what's possible behind the show backdrops and forest-and-meadow offers.
Thirdly, renting is always an expense and much more than trading an ETF or a few shares. In addition, there is the penalty tax on capital gains compared to lump-sum taxation.
More details may come later (when I have the time and inclination), but promoting real estate as a serious, equivalent alternative to movables is quite bold.
Secondly: Who claims such nonsense that shares and securities are not recognized as collateral? Have you ever heard of a simple bank pledge? But perhaps the sleepy German banks are simply not up to date and prefer to moan about it. When I think back to the look of amazement on the faces of the bank advisors when I bought my first apartment with a currency loan (CHF), secured by a British life insurance policy (GBP) and with a bullet repayment (=0% repayment, 100% repayment at the end of the term, with only minimal CHF interest in between), I still have to grin all the time. I'll probably never get a property that cheap again, but you can see what's possible behind the show backdrops and forest-and-meadow offers.
Thirdly, renting is always an expense and much more than trading an ETF or a few shares. In addition, there is the penalty tax on capital gains compared to lump-sum taxation.
More details may come later (when I have the time and inclination), but promoting real estate as a serious, equivalent alternative to movables is quite bold.
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@financial_genius_20 The colleague also takes an estimate from Immoscout as the fair value of his property and then compares it with any stock and the MSCI to show that real estate supposedly performs better than stocks.
You can only shake your head.
Not a word about immobility and sometimes illiquidity either.
You can only shake your head.
Not a word about immobility and sometimes illiquidity either.
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@financial_genius_20 why Chemnitz is unpopular as a real estate investment? The city lacks the dynamism to ensure that real estate steadily increases in value and rents do too. Investors don't get enough input for fantasy there.
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