Real Estate That Makes It Easier to Earn Income in Germany

Is it more profitable to buy an apartment or a residential compound? The whole house is usually more expensive. Perhaps the choice of apartments on the market is wider although this fact is indisputable. What other differences are there? We asked the experts - Ekaterina Demidova (DEM Group) and Sergey Kumekov (Investix). 

– Investors are counting on passive income and do not want to delve into the essence of processes and emerging problems. How tightly will the owner of the apartment and house have to manage?  

– There is not much of a difference. Any apartment building in Germany is monitored by a management company. The apartment owner has two options: either hire an intermediary (you can use another company, or you can even be a private person, not a certified specialist) or interact with the company personally. Even in the second case, communication can be minimized. For example, do not go to residents' meetings at all and just follow the decisions of the majority.

The owner of an apartment building will have to hire a company whose activities are licensed to manage. In which case, more problems can happen later on.

Apartment management requires less effort, and it is easier to maintain a house with one owner than a house with several owners. In the latter case, the company requires the greatest competence in both financial and legal matters. But a professional management company in this example will not take up the owner's time and will provide them with truly passive income.

Ekaterina Demidova

DEM Group

Those who are afraid to invest in a whole house sometimes think that today that there is a risk of being left alone with a huge property. If the excitement is too great, it's easier to buy an apartment so that responsibility for the condition of housing is distributed among all owners. In any case, when choosing a management company for a home, be sure to find out what kind of staff it has and how many objects are under management. A normal company should have at least a housemaster and preferably a plumber on staff. Firms, where only administrators work, will hire a subcontractor for any issue, and it will cost the owner dearly.

Sergey Kumekov

Investix

Oddly enough, the organization of high-quality apartment management is usually a more difficult task. One apartment is a very small volume, and if the company does not have other facilities in management nearby, it may refuse to work, and working with a private person is likely to disappoint you.

– It turns out that it's one thing to hire a partner to manage an apartment and another thing to manage an entire house. Since the requirements for such a company in the second case are higher, will you have to pay more for the work? 

– No. Quite the opposite. If you bought a profitable apartment as a private person and want someone to monitor it (a person or a criminal code), you are applying for an additional service that is not related to the work of the management company of the whole house. Some expenses cannot be shifted to the tenant.

– Sooner or later, any house will have to be repaired. It takes money. Where do they come from and in which case will you have to pay more? 

– The owner of an apartment in an apartment building must contribute money to the capital repair fund every month. For example, all owners have been collecting funds for roof repairs for several years. This amount is usually up to €50 per month from the owner and depends on the area of the apartment and is not included in the utility bills. This is not rent: it is paid by the owners of the housing, not the tenants.

No one can oblige the owner of an apartment building to accumulate funds. He allocates money for work – for example, the replacement of a heating boiler - as needed, which he determines himself. 

Which scheme is more profitable? The sole owner of the house can maneuver. They alone determine the cost and make financial decisions. This is the preferred scheme for a person with experience.  Another thing is that as a result, the costs between tenants and landlords are divided in the same proportion and do not depend on the composition of the owners. This means that the costs per unit area in both cases are approximately the same.

Ekaterina Demidova

DEM Group

On the one hand, it is more profitable to buy your own house and decide on the need for repairs yourself. But this is an option for a knowledgeable owner, who will not bring the object to such a state when absolutely everything breaks down one day, and the guests will start complaining or moving out. Therefore, it is easier for an inexperienced buyer to buy an apartment where everything is handled by a management company, which is monitored by the most vigilant tenants.
It is important to remember that capital costs cannot be shifted to the tenant. More precisely, some can be – but they need to be stretched for a long time – up to ten years - and a competent management company will be able to do it. In any case, it is more correct to assume that in Germany the owner will not be able to "take into account" such a payment when determining the rental price: it is determined solely by the market.

Apartments for sale in Germany:

1 590 000 €

Flat in Frankfurt-am-Main, Germany

190 sq.m 5 3 2

5-room apartment for sale in Frankfurt am Main. Area: 190 m2. Number of rooms: 5. Floor: 1. Year of construction: 1891. Last restoration: 2014. The apartment is located in a historic building in the center of Frankfurt. Spacious living room, kitchen, 3 bedrooms, 2 bathrooms, small garden with terrace. Equipped with high-quality materials: oak...

Estate-Service24

599 000 €

Flat in Berlin, Germany

98 sq.m 3 2 2

Apartment in a new residential project, which is being built in the business district of Berlin, a 10-minute drive from the city center, on the border of the Mitte and Friedrichshain districts. Two towers will rise above the embankment of the Spree, providing residents with magnificent views of the river and the city. The ensemble of houses will...

NF Group

1 560 551 €

Flat in Berlin, Germany

155 sq.m 4 3

Duplex with 3 bedrooms and a private garden is located in a new club project in the prestigious Grunewald district. The project consists of two elegant buildings of classical architecture with 5 apartments each, located on a plot of 2,000 sq.m. The houses are surrounded by a landscaped park with mature trees.Project features:Apartments with an...

NF Group

415 000 €

Flat in Frankfurt-am-Main, Germany

45 sq.m 2 1 1

Apartments in a new building near the Central European Bank - Ostend district. The residential complex, consisting of several high-rise residential buildings and a garden, offers its residents the concept of modern comfortable housing with a roof terrace and concierge services. All apartments are equipped with a balcony, loggia or terrace....

Estate-Service24

779 500 €

Flat in Berlin, Germany

50 sq.m 2 1 1

Credit

One of the most elegant addresses in the city turns life into a real art. The new premium residential project Fasanen Palace is located one minute walk from the Kurfürstendamm, in an exclusive area with developed infrastructure, where classic and modern styles create an extraordinary atmosphere. Residents and guests are greeted by a...

Prestige Property

718 920 €

Apartment in Berlin, Germany

71 sq.m 2 2

A modern residential project with a private courtyard garden is located in the heart of the exclusive Charlottenburg district and offers a quiet life in a lively area of the capital. The architecture of the building is inspired by the Wilhelmian era and reflects the traditional elegance of Berlin. Nearby is Savigny-Platz – a traditional place of...

NF Group

249 000 €

Flat in Berlin, Germany

29 sq.m 1 1

In the lively Friedrichshain district, a new city block is being formed, where you can live, work and relax at the same time. There are many IT startups, offices of Mercedes-Benz, Zalando Shoes and Fashion, MTV, Universal Music, Coca-Cola, a new Google campus, a multifunctional Mercedes-Benz Arena stadium, several art galleries and exhibition...

NF Group

395 000 €

Apartment in Berlin, Germany

66 sq.m 2

An apartment complex under construction for 49 units with an area of 24-66 sq.m, with finishing. The option of furnishing is available for a fee. Facilities of the complex – roof terraces, laundry, and underground Parking. Location – Lichtenberg, a developed favorable area 6 km from the center of Berlin, with a diverse infrastructure and...

Intermark Global

689 500 €

Flat in Berlin, Germany

45 sq.m 1 1

The new residential quarter is located in the center of Berlin, 1.5 km from Potsdamer Platz and Tiergarten Park. The ensemble of 14 buildings harmoniously fits into the surrounding streets thanks to the variety of facades made of different materials – massive clinker bricks, architectural concrete and classical plaster. Apartments with...

NF Group

228 000 €

Flat in Berlin, Germany

32 sq.m 1 1 1

Credit

The property is located in an area with apartment buildings and commercial buildings. The surroundings are urban and have excellent accessibility to all services and shops. The property is in close proximity to the recently closed Tegel Airport, whose renovation is giving a positive boost to this part of Reinickendorf. The location is also...

EW Real Estate

137 000 €

Flat in Herne, Germany

113 sq.m

Online Viewing Remote Transaction

There are 3 apartments for sale in Herne. The apartments are located on the 4th floor. The house was built in 1932 and is well maintained The total area of the apartments is 113.63 m2 Hausgeld:486 Euro (per month, total for all apartments) Nearby there are public transport stops, shops, clinics, supermarket REWE, museums, hospitals -...

DEM GROUP GmbH

775 000 €

Flat in Munich, Germany

76 sq.m 2 2

Spacious apartment in a new house near the park. The house is located near a park, 900 m from the Harthof metro station (U2 branch). New house, ready at the end of 2024. Floor heating in all rooms. 2 full bathrooms with plumbing fixtures and finishing tiles on the walls from Villeroy&Boch. 2 balconies on the east and west sides. Open...

NF Group

70 000 €

Flat in Solingen, Germany

36 sq.m 1

Online Viewing Remote Transaction

A small apartment for sale in Mettmann the house was built in 1972 the area of the apartment is 36 m2 Hausgeld: 135 Euro The apartment is rented out and brings 2,460 Euros per year (3.51%). The commission for the buyer is + 3.57% of the cost of the object. Details on request.

DEM GROUP GmbH

119 900 €

Flat in Krefeld, Germany

76 sq.m 3

Online Viewing Remote Transaction

An apartment for sale in the very center of Krefeld. The apartment is renovated and ready to move in. The house was built in 1905 / renovated in 2022-2023 The area of the apartment is 76 m2 Peculiarities: The facility is located on 2 levels (floors) - Maisonette 2OG + DG Central gas heating, high ceilings, there is a keller...

DEM GROUP GmbH

220 000 €

Flat in Wuppertal, Germany

110 sq.m 5 2

Online Viewing Remote Transaction

A room for sale on the 1st floor, in the city of Wuppertal. A very beautiful place in the city center with a wonderful view of the city. You can purchase this wonderful property for a bright apartment, office, practice and even a good hostel. The house was built in 1985 Central gas heating 5 rooms The room is rented out and generates...

DEM GROUP GmbH

410 000 €

Flat in Berlin, Germany

48 sq.m 2

The historic residential and commercial building from 1900 offers carefully and luxuriously renovated apartments on all floors. When arranging the house, the emphasis was placed on mixing historical and modern. New elevators, elegant stairs and a newly designed green courtyard are just some of the details of the house. The south-facing windows...

EW Real Estate

849 635 €

Flat in Berlin, Germany

125 sq.m 4

We present to your attention new 2-4-room apartments in Berlin, in the Kepenik district. At the moment, the construction of the house is underway, which will be completed in the 1st quarter of 2025. The house is being built in a quiet side street, using the gap between the buildings, including the construction of two side wings, with...

EW Real Estate

66 000 €

Flat in Passau, Germany

37 sq.m 1

Online Viewing Remote Transaction

Studio apartment for sale in Bavaria, in the village of Langfurth There is a balcony with a wonderful view of the mountains and the forest The apartment is located on the 2nd floor from the ground The apartment is vacant (used by the owner for recreation) Skiing in winter, cycling in summer, and so on. The air here is very clean and...

DEM GROUP GmbH

263 658 €

Flat in Tonisvorst, Germany

50 sq.m 2 1 1

Online Viewing Remote Transaction

Apartments are offered in a new building, in the city of 47918 Tönisvorst. Very convenient location - near Dusseldorf. This apartment is WE-2, with an area of 50.03 m2 The apartment is located on the first floor of (EG) rechts The composition of the premises and their area: 2 rooms 1 bathroom 1 terrace W/E/K...

DEM GROUP GmbH

432 258 €

Flat in Tonisvorst, Germany

85 sq.m 3 2 2

Online Viewing Remote Transaction

Apartments are offered in a new building, in the city of 47918 Tönisvorst. Very convenient location - near Dusseldorf. This apartment is WE-4, with an area of 85 m2 The apartment is located on the second floor (1OG) of rechts The composition of the premises and their area: 3 rooms 2 bathrooms 1 balcony W/E/K 35,7...

DEM GROUP GmbH

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– Many residential buildings have commercial premises. Is it good for an owner of the whole house or a minus for the owner of a separate apartment?

– Commercial premises, like any apartment, have an owner. There is no such thing as collective ownership when we all belong to some area at once. The main risk is that the premises will not be rented out or the tenant will delay payments. This becomes the financial problem of the owner.

When the owner of the commercial premises does not pay the hausgeld in a house with several owners, everyone starts having problems. The management company cannot fully maintain the facility in a normal state without having the means to do so. It will try to sue the defaulter, but the court may be delayed, and the costs need to be covered constantly… 

Ekaterina Demidova

DEM Group

Now, during the pandemic, commercial premises in the house are more often a disadvantage for any investor. For example, banks are less willing to lend to houses with commercial space now in Germany. Many small companies that just rented them have left the market. In this case, the costs either fall on the owner of an apartment building or all apartment owners.

Sergey Kumekov

Investix

The presence of commercial premises is rather a shortcoming for the owner of both the whole house and apartment. Firstly, tenants of such premises are often a source of concern for neighbors because of noise, additional traffic, etc. Secondly, a business that rents such small premises is unstable and is not ready to enter into long contracts. Thirdly, it is always more difficult to change a commercial tenant than to find a new one. Therefore, during the pandemic, some investors transferred commercial premises to residential ones.

– Is it easier to get a loan when buying an apartment building than a separate apartment?

– A loan can be obtained (or not obtained) in both cases, the determining factor will not be the composition of the owners, but the budget. Banks will not work with cheap objects, especially if the applicant is a foreigner, they will not be able to cover even the costs of processing documents. €50,000 is the minimum amount of money that you need to apply to the bank. With this amount, you can count on buying an apartment up to €100,000.

Ekaterina Demidova

DEM Group

A foreigner will be given a loan only for an object that is rented out. And when buying, the bank will require documents that the property is for rent. If you buy an apartment for yourself, there will be problems with the loan.

– Is there a difference in the procedure and details of registration? They say it is better to register apartments for an individual, and apartment buildings for a legal entity…

– There is no such dependence. You can also buy a house for an individual. Here you need to think about the expediency of maintaining the company from the point of view of taxes. When buying up to a million euros, you should not think about opening a legal entity.

Sergey Kumekov

Investix

In the case of an apartment, structuring a transaction using a German legal entity becomes economically inefficient. After all, what does the GmbH open for? Reduce the tax burden, exclude any active participation of the owner in operational processes, and minimize the risk of personal liability. But when buying an apartment, these tasks can be solved in other ways.

Profitable houses for sale in Germany:

4 000 000 €

Commercial apartment building in Germany

2835 sq.m

Germany Land of North Rhine-Westphalia G.Hiddezen (Detmold) New apartment building Commercial 4-storey building divided into 11 units: medical offices (private medical practice), bank, pharmacy. Year of construction of the building: 2013 Previously, part of the building was the city hall Land area: 2938m2 Area for rent: 2835,13m2...

INDOM

8 755 000 €

Commercial apartment building in Germany

4874 sq.m

Germany Land of North Rhine-Westphalia City of Dortmund Apartment building with Edeka supermarket Commercial building (shopping center + apartments), fully leased. Location: shopping street in the center of the eastern district of Brackel, near the exit to the A1 expressway, 4.5 km from the historical center of Dortmund (population 575...

INDOM

3 000 000 €

Commercial apartment building in Frankfurt-am-Main, Germany

663 sq.m 4% per year

Apartment building for sale in Frankfurt am Main. 8 apartments with an area of 600 m2. Rental status: 100%. Rental income per year: 4% euro. Floors: 6. Heating: central. Parking space: 9 places in the underground garage. Elevator: yes. Balconies: yes. P.S. For the purposes of confidentiality and in accordance with the conditions of the owner,...

Estate-Service24

5 000 000 €

Commercial apartment building in Frankfurt-am-Main, Germany

700 sq.m

Apartment house for sale in Frankfurt am Main. Leased area – 700 m2; year of construction – 1900; quality of equipment – high; condition – the house is renovated; heating – gas. Rental income per year is 300,000 euros. The object is under the protection of historical monuments. The apartment house with furnished apartments and high...

Estate-Service24

3 100 000 €

Commercial apartment building in Germany

2006 sq.m

Germany Federal State of Hesse, Dietzenbach Apartment house 16 km from Frankfurt Apartment house in a shopping area in the center of Dietzenbach, near the railway station and bus station and just 16 km from Frankfurt am Main. The building is leased to private medical practitioners (dentistry, gynecology, dental technician,...

INDOM

710 000 €

Commercial apartment building in Herne, Germany

554 sq.m 5.59% per year

Online Viewing Remote Transaction

DEM GROUP GmbH

20 000 000 €

Commercial apartment building in Aschaffenburg, Germany

3200 sq.m

A new apartment building (due date 2022) with high-quality finishes in the Bavarian town of Aschafenburg. Number of apartments: 30 Living area: 3200 sq.m. Plot size: 2900 sq.m. Number of parking spaces: 42 Aschaffenburg is a university town of regional significance in Germany in the state of Bavaria. Aschaffenburg is famous for numerous fairs...

Estate-Service24

11 500 000 €

Commercial apartment building in Germany

4750 sq.m

Germany North Rhine-Westphalia Boarding house for the elderly A boarding house with medical care for the elderly in the suburbs of Cologne. Land area: 14000m2 (1.4 ha) Living area of the building: 4750m2 Year of construction: 1900 Reconstruction and renovation: 1974, 2010. The building is leased for a long time to a...

INDOM

495 000 €

Commercial apartment building in Duisburg, Germany

480 sq.m 8.14% per year

Online Viewing Remote Transaction

For sale a well-maintained apartment house in Duisburg There are 8 apartments in the house. Now only 1 apartment is not rented. It is in good condition and does not require repair. It can be passed quickly. The house area is 480 m2 Annual income 44760 euros (9.04%) The commission for the buyer is +7.14% to the cost of the object....

DEM GROUP GmbH

580 000 €

Commercial apartment building in Gelsenkirchen, Germany

391 sq.m 5.45% per year

Online Viewing Remote Transaction

The house is very well located in a sought-after area of modern development. Good location in the area. there are 7 apartments in the house 6 garages The house is fully commissioned!!!Soll Jahresmiete: 32.460,00 €Ist Jahresmiete: 32.460,00 € Commission for the Buyer + 4.76% of the cost of the object. Details on request.

DEM GROUP GmbH

390 000 €

Commercial apartment building in Krefeld, Germany

221 sq.m 4.83% per year

Online Viewing Remote Transaction

The apartment house is conveniently located in the center of Krefeld. Built by the method of massive construction in 1900 The house has 3 floors. Central gas heating! The composition of the object: 4 apartments and 2 commercial premises. Annual income: Actual: 18,840 Euros (4.83%) Possible: 24240 Euros (5.84%) The broker's...

DEM GROUP GmbH

830 000 €

Commercial apartment building in Gelsenkirchen, Germany

870 sq.m 6.03% per year

Online Viewing Remote Transaction

Well-maintained object, in good condition.house of 196712 apartments5 floorscentral gas heatingthe apartments have high-quality tiles and laminate flooringModern double-glazed windows are installedWith a full lease at a price of 6.50 - 7 euros per square meter, the annual income will be from 62.946 to 67.788 euros.The commission for the Buyer is...

DEM GROUP GmbH

7 500 000 €

Commercial apartment building in Frankfurt-am-Main, Germany

800 sq.m

Apartment building (new building - 7 apartments) in the popular central district of Frankfurt am Main. Living area: about 600 sq.m. Total area: about 800 sq.m. Number of floors: 3 floors In the house: apartments on the ground floor with terraces and access to the garden, apartments on the upper floors - with balconies and terraces. A...

Estate-Service24

2 500 000 €

Commercial apartment building in Frankfurt-am-Main, Germany

380 sq.m

Profitable three-storey apartment building with a landscaped garden and 5 apartments of different sizes, partly with high-quality furniture. An ideal option for your own residence in a prestigious area and renting out other apartments. Classical architecture combined with noble materials of high quality create a cozy modern atmosphere in the...

Estate-Service24

6 950 000 €

Commercial apartment building in Frankfurt-am-Main, Germany

1265 sq.m

A new apartment building in the nearest suburb of Frankfurt am Main.A new apartment building (currently under construction) with 8 apartments, an underground garage and a shop on the 1st floor + 5 townhouses in the center of the nearest elite suburb of Frankfurt am Main. The total area of the project is 1,265 m2 (rental area). Location: central...

Estate-Service24

12 500 000 €

Commercial apartment building in Baden Baden, Germany

2280 sq.m

We present to your attention a new apartment building in the suburb of Baden-Baden, in the center of Gaggenau (Baden-Württemberg). Residential building with a total area of 2,280 sq.m., consists of 20 apartments and commercial premises on the ground floor. The house is currently being completely renovated and rebuilt. The store with a large...

EW Real Estate

568 000 €

Commercial apartment building in Solingen, Germany

551 sq.m 5.71% per year

Online Viewing Remote Transaction

Apartment house for sale in Solingen. The house has 6 apartments and 2 rooms Central gas heating in the house - updated in 2015 From 1988 to 2015, scheduled repairs were carried out in the house There are two parking spaces on the street Actual annual income: 33720 euros The commission for the buyer is + 3.57% of the cost of the...

DEM GROUP GmbH

650 000 €

Commercial apartment building in Emmerich am Rhein, Germany

350 sq.m

Online Viewing Remote Transaction

Apartment house for sale in 46446 Emmerich am Rhein The house has 9 apartments and 1 commercial space All premises are rented out.The commission for the buyer is + 4.76% to the cost of the object.Details on request.

DEM GROUP GmbH

500 000 €

Commercial apartment building in Kassel, Germany

882 sq.m 9% per year

Online Viewing Remote Transaction

Apartment house for sale at 34466 Wolfhagen (30 minutes from Kassel). The land area is 532 m2; The total area of the house is about 882 m2 Renovated and leased - 411.53 m2; The building consists of 3 wings and 3 floors: - a wing in the middle - a residential apartment (2 levels, 3 rooms) and an attic room ready for finishing into...

DEM GROUP GmbH

690 000 €

Commercial apartment building in Hagen, Germany

690 sq.m 6.56% per year

Online Viewing Remote Transaction

Apartment house for sale in the city of Hagen. The house is well maintained and located in the very center of the city. The house has 10 apartments + 1 apartment in an annex, as well as 10 garages. Everything is rented out profitably. Annual income: 45,288 euros (6.56%)The house was built in 1953, renovated in 1985 and in 2014The city railway...

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See more 46 similar properties

– And yet: which investor is closer to buying an apartment, and which one is closer to buying a whole house?

Sergey Kumekov

Investix

What arguments should be taken into account? Of course, an apartment is a simpler and more affordable object for investment. At the same time, the proportion of low-quality offers is higher, which is routine to filter out. Moreover, many apartments are sold by private individuals, and it is not always easy for a foreign investor to establish normal contact with them. 
Remember that in the case of buying an apartment, you have little influence on the decision-making process for the maintenance of the common property and will not be able to optimize part of the costs associated with the engineering systems of the house. The owner of the house makes decisions on repairs and modernization of the common property, based on economic feasibility.

Ekaterina Demidova

DEM Group

It is worth starting first of all from the budget. It is clear that apartments are generally cheaper than houses. Although there are possible options here. Conditionally, an apartment in Dusseldorf can cost as much as a house in Essen, but the latter will bring more, and the apartment will become more expensive faster. Is this a universal recipe and can we say that it is more profitable to buy apartments in some regions, and houses in others? No, it is impossible to say unequivocally. We need to calculate and compare everything. The main difference is the ability to make decisions on object management. Although if we are talking specifically about passive income, this opportunity is not desirable for many. I repeat: buyers who come to the German market for the first time may be afraid of possible troubles. If the fears are great it is easier to buy an apartment. But by purchasing several apartments, you can take a closer look at the whole house and get benefit from the formation of expenses.

Author: Philipp Berezin
Photo: pexels.com (Irina Iriser)

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