How do we analyze the markets and deals outside of the US?

[Ngoc Vo]

Hi Biggerpockets community, I’ve been hooked to real estate investment lately and determined to buy the first property in the next 6 months. I live in Germany where the real estate market is really expensive. I read a few books, one of which is “How to invest in real estate market: the ultimate beginner’s guide…” by Brandon Turner and Joshua Dorkin. The book suggests some key metrics when analyzing deals and how the metrics should be to consider it is a good deal. However, it seems none of the metrics is applicable to the German market. For example, the 2% rule about how rent should be compared to the house value - in Germany the rent is always far less than 1% of the house value. What is your advice? Thanks a bunch!

[Mitch Messer]

@Ngoc Vo Welcome to BiggerPockets!

The good news is that the financial metrics you've read about are universal and not at all country specific.

The bad news is that Germany may just not be a good cash-flow market, compared to the U.S.

But then, few markets are.

That's why you find so many Germans and Australians and Spaniards and others trying so hard to find great deals in the U.S.

And, even in the States, there are plenty of sub-markets where properties routinely fail the so-called "1% rule."

My advice is to keep searching, see the whole gameboard, and let the financials be your guide to great opportunities!

They are definitely out there!