Philosophy

Investment Philosophy

Buy-to-let is the term used when you buy a property (usually with a mortgage), and rent it out. There are many cash buyers of course, because the property market in Berlin is undervalued and offers a reasonable yield. The idea is that the rent paid by your tenants will cover all of the mortgage payments, fees, insurance and other outgoings, and perhaps even provide a little extra cash on top to help you cover additional costs and maintenance, or , in the best case, boost your income.

Meanwhile, you own a property which may grow in value and could make a great investment. The value potential in the Berlin market is much higher in comparison to other European cities. Investing in a buy-to-let property has become more and more popular in recent years as people look to make money from the rising property market, rather than putting their spare cash in the bank.

Thinking long term, many people are investing in a buy-to-let property as a kind of pension – the monthly rent may be a useful supplement to other retirement incomes, as the property could be sold and the proceeds used as a nest egg. Whatever your reasons for buying to-let, it´s important to remember that it is a medium to long-term venture and not a way to get rich quick.