Buying a property is just one way of investing in real estate. This also entails some risks:
- The investment required for purchase and maintenance is high. Properties have to be managed and maintained.
- If you decide to resell the property, the selling price is rarely the same as what you paid for it – with any luck, it may be higher, but there is also the risk that its value may have fallen. This may be due to rising financing costs, for example.
- The sale of apartments and houses can also be a long process.
- If you wish to successfully let an apartment and keep it long-term as an investment property, using a professional management company is recommended, because renting out the property sometimes involves high costs.
This means you do not know in advance how much money you can get back from your investment or how quickly. Then there are taxes that must be paid on the imputed rental value or when selling.