Better Unlimited Returns Than Capped Rent
Investing in rental apartments in Germany is no longer interesting for investors. The fact that too few apartments are being built is a well-known issue and added to this is “rent control”, which further aggravates the situation and makes rental apartments an even less attractive prospect. In a global economy, no one has to put their money in an investment that won’t pay off. Investors are always free to move into more lucrative markets.
Against this backdrop, informed investors have for years been turning to the US real estate market to generate far-above-average returns. Rental legislation is different in the US and so returns of more than 10% on apartments in multi-family rental housing are a reality. In Germany, this is unthinkable.
These types of apartments are offered only as long-term rentals of one year or longer. The rental housing market in the US is extremely healthy. There is positive population development and increasing household start-ups. The desire for greater flexibility is also fueling the market.
Between 2005 and 2017, the number of rental households rose by almost 10 million. Finally, liberal tenancy laws and shorter tenancy agreements make rent adjustments easier.
A nice added benefit for investors who are also permanent residents of Germany is that the already high returns are almost tax-free.
Moreover, investing in US dollars, the global currency, and in a country that is highly private property-minded increases security.
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