Your world. Your property. Your success.

Today, it is no longer possible to generate wealth through the classic savings account. A different investment strategy is required. A real estate investment is attractive for several reasons, not only because of the stable and attractive returns that can be generated through rental income and capital appreciation. This type of investment is also considered safe because it offers an opportunity to diversify the portfolio.

Real estate investments offer the opportunity for continuous income streams through rental income, capital growth, tax benefits and the ability to directly influence your investment. They provide physical security and can help diversify your investment portfolio.

1. Continuous income streams through rental income One of the biggest advantages of real estate investments is the ability to generate regular income by renting out the property. This source of income can help cover ongoing costs and also provides additional income alongside any salary or other income. Over time, rental income can even increase due to market developments and increasing demand.
   
2. Capital Growth Real estate has the potential to increase in value, which is known as capital growth. This increase in value can be influenced by various factors such as the development of infrastructure in the area, increasing demand and general market trends. In the long term, real estate has historically shown positive performance, making it a solid investment for capital investors.
   
3. Tax Benefits Real estate investments offer various tax benefits that can vary from country to country. Often, expenses incurred in connection with the ownership and management of the property, such as interest on property loans, maintenance and operating costs, can be deducted from taxes. In addition, some countries offer depreciation options that can be used to reduce taxable income.
   
4. Direct influence on the investment In contrast to other forms of investment such as stocks or bonds, a real estate investment allows investors to have a direct influence on the value and return on their investment. Through renovations, conversions or changes in the rental agreement, owners can actively contribute to increasing the value of the property.
   
5. Physical security Real estate represents a physical and tangible investment that is perceived as particularly safe in contrast to virtual or paper-based investments. Investing in “real” assets offers many investors a feeling of security.
   
6. Portfolio diversification Including real estate in an investment portfolio can help diversify risk. Since real estate markets often react differently to economic changes than stock or bond markets, investing in real estate can help reduce the overall risk of the portfolio.

Before investing in real estate, and thus entering the real estate industry, you should conduct thorough market research . This includes analyzing investment areas to identify places with high growth potential and strong demand. A basic understanding of local market dynamics, such as supply and demand, as well as future development plans of the area are also important.

After market research, you should review and compare your financing options for the property purchase. These include traditional bank loans, building society contracts or the use of equity. A solid financial plan that takes into account your investment goals, time frame and budget is the ideal strategy for success. It is also advisable to familiarize yourself with the basics of real estate law and, if necessary, seek professional advice.

The amount of capital needed for a real estate investment varies considerably and depends on several factors. Among other things, it depends on the type and location of the property as well as your individual investment strategy. Some investors invest a smaller amount in real estate crowdfunding or REITs (Real Estate Investment Trusts).

Others, however, usually require a higher initial capital for direct real estate investments, such as buying a house or an apartment . In addition to the purchase price, initial costs such as notary fees, property transfer tax and possible renovation costs must also be taken into account. Solid financial planning and consideration of all costs involved should form the foundation to avoid unpleasant financial surprises.

Real estate investments encompass a wide range of options: from direct investments in residential or commercial properties to indirect investment vehicles such as real estate funds or REITs, there is something suitable for every buyer. Direct investments offer the opportunity to become the owner of a physical property, be it a single-family home, an apartment, an office building or a retail store.

Indirect real estate investing , on the other hand, allows investors to invest in real estate portfolios without having to directly deal with the purchase, management or sale of the property. Each type of investment has its own risks and rewards, and the choice depends on your financial goals, risk tolerance and level of commitment to property management.

The decision between residential and commercial real estate also depends on your investment goals, risk tolerance, and available capital. Residential properties , such as houses and apartments, typically offer more stable income streams through long-term leases and are easier to manage.

Commercial real estate , including office buildings, retail space or warehouses, can offer higher returns, but requires a deeper understanding of the market, larger initial investments and is often more dependent on the economic situation. Both options have their advantages and require a careful assessment of your personal situation and market research.

Financing a foreign property can be complex. It requires, among other things, understanding and navigating the financing options and requirements in another country. Options include local bank loans in the target country, using lines of credit from your home country, or international financing solutions .

It is important that you understand the meaning of interest rates, loan terms and any tax implications. Careful planning and, if necessary, consultation with a financial advisor experienced in international property investments are essential to develop the best financing strategy for your needs.

The importance of location for real estate investments cannot be emphasized enough. It is often the most important criterion that can determine the success or failure of an investment. A favorable location not only offers high development potential.

It also provides access to important infrastructure such as transport links, shopping facilities, medical facilities and educational institutions. These factors play a crucial role in the quality of life and therefore in the attractiveness of the property for potential tenants or buyers.

1. Development potential Areas that benefit from urban development plans or where new infrastructure projects are planned can experience significant value appreciation. Investments in such emerging areas can generate high returns in the long term.
   
2. Access to infrastructure Good transport links, whether to public transport or main roads, significantly increase the attractiveness of a property. Equally important is the proximity to shopping facilities, leisure activities and medical facilities, which contribute to the general quality of life.
   
3. Proximity to jobs Areas close to business centers or industrial parks are particularly attractive to working people, which can increase the demand for housing and thus rental and sales prices.
   
4. Educational Institutions Proximity to good schools and colleges is an important factor for families and can significantly affect property values. Properties in school districts with a good reputation are often more desirable and command higher prices.
   

Quality of life Areas that offer a high quality of life, whether through parks, recreational opportunities or an attractive environment, are particularly sought after. Such locations attract buyers and renters who are willing to pay more for a pleasant living environment.

As a small guide to assessing the profitability of real estate investments: A good return depends on the type of property, the location and the current market conditions. In general, returns between 4-6% are considered solid.

However, higher returns are possible in certain markets or with special investment strategies. It is important that the return covers your costs and offers a reasonable profit margin. For overseas properties, returns of between 5-10% can be expected, depending on the location and quality of the property.

As with any investment, there are risks associated with real estate investments, but these can be minimized through careful planning and market research. Risks include market fluctuations , unexpected repair costs , vacancy risks , and loss of value . Therefore, careful property selection and solid financing are fundamental to reducing risks.

A thorough market analysis , portfolio diversification , investing in quality and solid financing can minimize risk. In addition, choosing the right property based on location, condition and potential for value appreciation is crucial. Professional management of your property can also help reduce risk.

Open-ended real estate funds allow investors to buy and sell shares in real estate at current market prices. Closed-ended real estate funds, on the other hand, can offer higher returns in certain market phases.

Open-ended real estate funds

Open-ended real estate funds offer a high level of flexibility and liquidity . Investors can buy or sell shares in these funds at any time. The price of the shares is usually adjusted daily based on the net asset value (NAV) of the fund.

These funds invest in a wide range of properties and allow investors to enter the real estate market with a relatively low capital outlay . Diversification within the fund can spread the risk , but the potential returns are often linked to the general market and can fluctuate during volatile market phases.

Closed-end real estate funds

Closed-end real estate funds, on the other hand, target specific projects or real estate investments. They have a predetermined investment amount and a limited number of shares . After all shares have been sold, the fund is closed and no further shares are issued.

Investors usually commit for a fixed term , which means that their capital investment is less liquid. However, the advantage is the possibility to invest in selected projects that promise potentially higher returns , especially if these projects are successfully developed and managed. The return on closed-end funds depends heavily on the success of the individual project, which brings with it both opportunities and risks.

Both types of funds enable private individuals to invest in real estate markets without having to purchase a property directly. The choice between an open-ended and a closed-ended real estate fund should be made based on individual investment goals, desired liquidity and risk appetite.

Open-ended funds can therefore be a good option for investors looking for flexibility and broad diversification. Closed-ended funds, on the other hand, offer the opportunity to invest in specific projects with potentially higher returns – but with higher risk and lower liquidity.

“Fix and flip” is a strategy in which investors buy properties with the goal of renovating them and then selling them quickly for a profit. This method requires market knowledge, a good understanding of renovation costs and the right time to resell to be successful.

The “fix and flip” approach to real estate investing has gained widespread popularity through popular television shows such as “Top or Bottom,” hosted by Tarek El Moussa and Christina Anstead, and “House Flipping” with Tarek El Moussa, among others. These shows show how investors buy run-down properties, renovate them, and then sell them for a quick profit.

Viewers gain a small insight into the challenges and successes associated with the fix and flip approach. Above all, the need to have market knowledge, calculate renovation costs precisely and choose the perfect time for resale. Careful planning and budgeting when investing in real estate contribute to success, as do creative solutions and hard work. This turns a dilapidated property into a desirable home that can be sold for a profit.

The success of these shows has inspired many to get into the fix and flip business themselves. But it also highlights the risks and the need to be well informed and prepared.

FGI offers you a 360-degree service for the management of your property abroad. This includes the rental, management and maintenance of your properties. Our goal is to enable you to make a worry-free investment by taking care of all aspects of property management for you. So that you have enough time for the important things in life.

Legal and tax aspects are of central importance when investing in real estate. Our broad network enables us to give you an overview of the general legal framework and tax considerations that play a role in investing in real estate. However, for specific questions we always recommend consulting a specialist.

When purchasing a property, there are various additional costs to consider in addition to the actual purchase price, which can significantly affect the total price of the investment. These additional purchase costs vary depending on the country, region and type of property, but typically include:

• Property transfer tax : This tax is levied on the purchase of land and real estate and varies greatly by country or even region within a country. It is often a significant percentage of the purchase price.
• Notary and land registry costs : Notary fees are charged for notarizing the purchase contract and entering it in the land registry. The land registry costs cover the fees for the official registration of the change of ownership.
• Property appraisal fees : A property appraisal may be required to determine the value of the property, particularly when financing with a mortgage. The cost of this is usually borne by the buyer.
• Construction and renovation costs : If renovation work is planned immediately after the purchase, these costs must also be factored in. It is advisable to obtain quotes for these in advance and to plan a buffer for unexpected expenses.
• Insurance : Various types of insurance, such as building insurance or liability insurance, may be required or recommended to protect the new property.

Before buying property, you should therefore find out all the additional costs involved. Include these in your financial planning to enable a realistic calculation of the total investment.

Flum Globale Investments stands for expertise and reliability in the real estate market. With our comprehensive market knowledge and our access to first-class properties, we offer our customers tailor-made investment solutions.

Whether you are looking for stable sources of income, value creation potential or sustainable investment projects, our goal is to exceed your financial expectations and accompany you through the entire investment process. Choose Flum Globale Investments for a partner that is characterized by transparency, innovation and a strong focus on customer satisfaction.

Are you ready to secure your future with real estate and achieve exceptional returns? Discover your options now and start your investment journey with us.