Real Estate as an Investment

Invest in Quality

At Deutsche Reihenhaus AG, we develop and build well-tought-out residential quarters that offer a 100 percent renewable and climate-friendly energy supply. By specializing in three row house variants, two semi-detached house types and an apartment building – all produced with industrial serial precision – we create livable living space in inner cities at attractive prices. Our team of around 350 employees works to produce approximately 750 new residential units per year. Find out why investing in one of our properties is also worthwhile as a capital investment here:

Benefits

Benefits at a Glance

Tax Advantages
Depreciation of 6% annually (if construction begins after October 1st, 2023) on the acquisition costs as well as repair work and other expenses related to the property can be claimed for tax purposes. These have the effect of reducing income and thus reducing the tax burden. Anyone who sells the investment property after ten years earliest will also receive the increase in value tax-free.

Protection against Inflation
Tangible assets such as real estate are widely considered as inflation-proof because, unlike money, they do not lose value in times of inflation. The face value of the debt remains unchanged, but the actual value of the loan decreases due to inflation. At the same time, the property value usually increases. Therefore, real estate is a popular investment to protect assets from loss of value.

Low Investment Risk
Compared to securities, fluctuations in the value of real estate are significantly lower and a total loss is virtually impossible, making them a secure component in retirement planning and a useful addition to the investment portfolio.

Sample Calculation

Figures that make sense:

If you are considering to buy a property as an investment, the expected net rental yield is an important key figure. In our example, the purchase price for one of our row houses (model “145 sqm Familienglück”) is 360,000 euros plus 60,000 euros for the interior finish. In this case, the additional costs, including notary and real estate transfer tax, amount to 8.5 percent and add up to a total acquisition cost of 455,700 euros. If you rent the house for a basic rent of 11.90 euros per square meter and deduct 1,800 euros of non-apportionable costs, this results in an annual net basic rent of 18,906 euros. The net return in our example is therefore 4.15 percent.

Please note that this is a sample calculation! The values vary depending on the specific location and house type. We are happy to calculate the returns for different projects in order to find the right investment property for you.

Convincing Reasons to Invest in Real Estate From Deutsche Reihenhaus:

Field-Tested Construction

We have built our houses several thousands of times. For over 20 years, we have been experts in serial housing construction. In short, this means: smooth processes, low error rates, efficient and reliable construction – all certified by DEKRA.

Satisfaction Guaranteed

With us, you receive everything from a single source – and that goes beyond handing over the house keys! A whole team is at your side to ensure quality as part of the warranty and will take care of your concerns for another five years.

Lower Efforts

The residential quarters are looked after by a property management company. This saves effort and coordination with the tenants on site. If necessary, the property management can also undertake the rental management. The energy and heat supply is ensured via an on-site technology center for the entire residential quarter and is operated by a contractor.

A Sustainable Concept

Our residential quarters are equipped with photovoltaic systems and heat pumps. The electricity and heat supply is therefore 100% renewable. Our houses also meet the German KfW 55 standard. Car parking spaces are equipped with the necessary infrastructure to set up charging stations for electric vehicles.

Checked Micro Locations

Good transport connections to major cities, schools and local amenities nearby, as well as green and quiet locations live up to the trend towards suburbanization. This ensures adequate rents and reduces the risk of vacancies.