Help with buying an apartment in Munich

Purchase price 250k in the Munich outskirts. The rental prices here are about €750 cold...

A good approach is 20 net cold rents per year as the purchase price. The example you mentioned is already nearly 28 years.

On top of the 250k there are certainly additional purchase costs. And then it's already 30 years.

And as already said; concentration risk.

Okay, I understand. My "idea" was that the property would be sold after 10 years. But I can't quite grasp the whole thing, and as I already said, the calculation seems too simple to me...

Okay, I understand. My "idea" was that the property would be sold after 10 years. But I can't fully grasp the whole thing, and as I said, the calculation seems too simple to me...

This is highly speculative in the current market environment!!! Compared to this, the stock market is "child's play" ;)

What will happen in 2-3 years no one knows; in 5 it's already coffee ground reading; and in 10 I don’t dare without a fortune teller and

And value increase only happens with location, location, location. And how it develops is always questionable.

Just because prices are rising right now doesn’t mean it will continue that way.

You are right, location is extremely important, which is why it was originally about an apartment within Munich, where the market has generally developed well thanks to demand. Prices have been rising for 30 years, housing is becoming scarcer, real estate is more expensive, rent higher... I didn't think that the business with real estate is actually so risky

Do you want him to settle/stay in Munich and do so for the next 10 years? Do you have specific apartments in mind where you could imagine living? Can you estimate their purchase price and building condition? The owners' association? Are you familiar with speculation tax, maintenance reserves, taxation of rental income in terms of content?

The fewer questions you can answer with yes, the riskier the business becomes ;).