The Laziest Way to Get Rich in Germany? Buy a Decent Apartment adn Wait. 🛋️📈
Berlin, germany – While get-rich-swift schemes abound, a surprisingly simple and historically reliable path to wealth in germany involves purchasing a well-located apartment and holding it long-term. recent data and personal anecdotes reveal consistent appreciation,coupled with notable tax advantages,making real estate a compelling,relatively passive investment.
In 2016, I bought my first apartment – a 107 sqm new build in Neukölln for €4,200/sqm. Back than, my colleagues laughed, calling it an overpriced gamble. Today, that same apartment is worth over €7,000/sqm. This isn’t an isolated case; it’s a pattern observed across Germany, notably in major metropolitan areas and their surrounding regions. But the real power lies not just in appreciation, but in leveraging German tax law.
Investfriend, building on the success of Hypofriend, is focusing on energy-efficient new builds starting from €30,000, specifically targeting projects eligible for § 7b of the German income Tax Act (EStG). This allows investors to utilize Sonder-AfA (special depreciation) at 5% and degressive depreciation at 5%, totaling 10% annual depreciation on the building’s construction value – crucially, land cannot be depreciated.
the strategy is particularly effective in areas with lower land costs. For example, in Berlin outskirts like Zossen (€125/sqm), the depreciation amounts are maximized compared to central Berlin (€4,200/sqm).
here’s a simplified example calculation, based on a €250,000 property purchase with €20,000 in fees and a €15,000 land share, resulting in a €255,000 depreciable base:
Annual Depreciation: €255,000 x 10% = €25,500
Tax Refund (at 47% marginal rate): €25,500 x 47% = €11,985/year
This translates to nearly €12,000 annually back in the investor’s pocket. Over ten years, with an initial equity investment of approximately €35,000, the potential net profit could reach €119,000, yielding an Internal rate of Return (IRR) of 20.49%.
Investfriend also handles property and tenant management for a fee of €60/month per unit. The company emphasizes a valuation-focused approach, prioritizing verifying value over simply making sales, stemming from their experience assisting over 10,000 people with homeownership through Hypofriend. They currently concentrate on the Berlin-Brandenburg region,citing its optimal balance of appreciation,rental yield,and tax benefits.
brochures for upcoming eligible projects are being launched first within their Telegram group. The core message? Leverage Germany’s real estate market and tax code to transform taxes into long-term wealth.
this is a simplified calculation. For the full calculation, refer to the comments.
