Condominium as a capital investment - Which loan?

From when on is it worth buying a condominium that one wants to rent out?

Whenever you can buy really cheaply and keep ongoing costs low (by doing significant tasks yourself, such as maintenance, management, tax declaration, or diluting them through scale [100 apartments instead of just one]).

The purchase price is typically measured in multiples of the annual net cold rent. That means an apartment that costs 350,000 euros today should roughly yield 1400 euros/month cold rent if the purchase is to be affordable fair.

Equity? Ideally very, very much, although you still finance as much as possible with debt (see #3).

Rent price? Determined by the market within the legal framework.

Costs? Others have to name those. You can google non-allocable incidentals yourself. Management, tax advisor, ... Don’t forget unforeseen expenses!

Risk? You put everything(?) in one basket. The proverbial problem tenant could ruin you.

Note 1. Maybe you have gone through all steps, maybe not. The decision to invest in real estate should ultimately follow a holistic review of your finances. This includes:
- Cash check (assets, liabilities, income)
- Risk protection (e.g., disability insurance)
- Goal setting (new car? house construction? independence? retirement provision? children’s studies? world trip during a sabbatical?)
- Measures (reduce costs, overnight money, fixed deposit, bonds, stocks, ..., diversification/risk/return)
A property can be, but does not have to be.

Note 2. Those who absolutely want to invest in real estate can also buy shares in corresponding companies directly.

Hello,

if you yourselves are not yet in fully paid-off property, I would advise against it. You know that you are taking a risk here. Especially since 350k is not a small amount.

I would also consider whether the rent that needs to be achieved is sustainable in the long term.

I don't know which district you mean (Riedberg). Personally, I believe that Riedberg will eventually go downhill along with the rents.

Currently also relevant: Loan interest rates are currently so low that they hardly have any effect on taxes. This was different 15 years ago when people bought apartments as tax avoidance investments.

And before buying an apartment, one should calculate how long it takes until, after deducting renovations (~2.5 €/month/sqm) and credit and ancillary purchase costs, one breaks even at all. At the latest then, the trouble with tenants, other owners, property managers, etc. is no longer worth it.