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Ammerland: Concrete gold: demand remains high

Ammerland

The demand for real estate (and mortgage loans) is still enormous, as Renken and Laßwitz confirm. But the offer is limited. In 2020, twelve percent fewer apartments were sold in Ammerland than in the previous year. At the same time, the prices of used objects rose by an average of 17 percent. Anyone who buys an apartment for capital investment therefore has to calculate with less and less return. And the ratio of annual net rent and purchase price is becoming increasingly unfavorable. Sometimes you have to pay more than 30 annual rent.

Example: A new apartment costs 3000 euros per square meter. With 70 square meters that makes 210,000 euros. If 15 percent of additional costs are added, the result is 241,500 euros. At ten euros basic rent / square meter, this equates to 8,400 euros annual rent. The investment price therefore corresponds to 28.6 annual rents. But if the market only sells eight euros / square meter, we are already at 35.9 annual rents. And the risk of loss of rent is not factored in.

Nonetheless, if the price and rent are right, concrete gold makes sense because of the low interest rates and the (somewhat slowed) increase in value.

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