3 min read

Your real estate portfolio - how should it ideally be structured financially?

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One of the clear Advantages of real estate as a capital investment compared to other investment opportunities, such as gold as an investment, is the possibility of lending through banks. It is important to note that the banks evaluate the personal income situation in addition to the property when financing the first property.

As soon as you as an investor expand your portfolio, you - regardless of your assets or financial reserves - almost automatically fall into the category of a professional investor with increased risk requirements Risk requirement. This means that the valuation of the property, including annuities and possible rental losses, is now weighted higher than your personal income. This is another reason why it pays to think about the planned portfolio at an early stage.

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This also includes clarifying whether you are privately or commercially (for example, with a limited liability company): Do you acquire a single property privately and claim this in your tax return - or do you opt for a corporation that already owns several properties?

This is a so-called Share dealwhich may offer the advantage of savings on incidental acquisition costs. It is best to discuss the extent to which this is an option for you with your tax advisor.

Contact your personal advisor

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Engel & Völkers Germany

Vancouverstraße 2a

20457 Hamburg, Germany

Tel: +49 40 361310