Investing in EUROPE !!???

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Hi Junior,To which city in Germany are you moving? Thank you for your availability, let's see how we can help each other! =]Answering your questions:1 - That's relative. The region I invest is mainly near Milan, very developed and high demand. You can find houses for less than 100k euto. Near Munich (which would be a comparable "big city periphery region") very hard to find something bellow 250k euro. My capital does not allow me to invest near I live... yet! hahaha2 - Profitability is also relative. My target is a profitability of 12%+ p.a. Which I am achieving so far.3 - I always liked investing. I choose to focus on RE after researching the theme and listening to biggerpockets podcasts and understanding how leverage. There are many investing possibilities, I like RE because you can "easily" use leverage.4 - Single or couples without children that need to work/live around a big city/region like Milan. My products are 2/3 rooms apartments well connected with the public transportation.5 - In Lombardy I "manage myself" through my family there. I am developing a process to manage, and they follow.Cheers!

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Hi Junior,The situation in Germany AFIK and the things that are different than USA(from what i hear on BiggerPockets) : 1. Interest Rate : The interest rate is very low 1-2 % and you can get financing up to 100% of the purchase price, (so you use your own money only for taxes/RE agent and so on which can be from 6% -16% ) This is not only for owner occupying but also for investing.2. Rents. As you can imagine that means the prices of RE skyrocketed, but the rents did NOT grow at the same speed, because of many factors some of them are: Regulations e.g. you can only increase the rent max 15 % in 3 years if you have same tenant and as long as tenant pays the rent you cannot kick them out only if you need the house for yourself. Sometimes cities like Berlin(since 2 years or so) are able to freeze the rents for couple of years.3. ROI . Because of low rents and and high price of RE the ROI(return on investment) in most of the big cities(Like Munchen, Stuttgart, Frankfurt, Hamburg, Cologne etc), is around 3-4 % So that means if you pay 1.5 % interest and you pay something for maintenance you are hardly break even or even on minus. You can only hope there will be capital appreciation and hope rents will go slowly up. This is about big cities, not off market deals not BRR, just standard buy to rent.In cheaper parts of Germany: North East or Saarland, in small towns or villages you can find deals that have a ROI of up to 8 % even 10% sometimes, but you need to count with bigger risk of vacancy and keep in mind that in some of these places there was not too much of appreciation.What i would do if i were to start again in Germany: get a very cheap rent, a room in shared flat if possible, get a permanent job so i can qualify for a loan. Then try to find right balance between a cheap place with big ROI and and one with potential of growth. Ideally i would buy something with long term renters already there and keep them happy. From what i have seen the purchase price does not variate too much if there are tenants for long term, there are more recent ones or none, but the benefit of it is huge.For anyone who has more experience in Germany reading this please correct me if I am wrong.

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Very interesting to see how Germany is different from the US. Thanks

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Very interesting to see how Germany is different from the US. Thanks

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@André Rairan Zacchi PereiraHiThanks for the information and all the details that you put on your answered that’s help to clarify the ideas about invest in Europe!

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@Beniamin BrudaThanks for all your details, that’s helps a lot to know about Germany and sure about rental properties.

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@André Rairan Zacchi PereiraHey Andre!Hope you doing well! So tell me more about your experience in Italy:1-Why is less expensive than other places? 2-Is it worth it? I mean is it profitable enough?3- how did you start in the world of real state? 4- what's the type of tenants are you looking for? 5- how do you manage your properties? Next week I’ll be in Spain and approximately by the end of November ill move to Germany. 🇩🇪 so if you get a fixer-upper, ill be glad to help you for free.

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Hi Junior,In Germany I own two turnkey properties that are yet to be refurbished. So I can only tell about the process to purchase it. Haven't operated that yet. Germany prices are way bigger than Italian ones, that why I "started" in Italy. From Italy I can tell you more, I have more experience there.BRRRR is not common here as it apparently is in USA. I had a very hard time to find a bank that would refi my second property. I acquired as a BRRRR, but it took me 30+ bank visits to get one that would refi me 60% max LTV. Me living in Germany also made things more difficult. But if you find a good deal, the number can work well.

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@André Rairan Zacchi PereiraHi Andre, That’s good to know, I don’t have an specific place yet, but I’m planning to go to Europe in a couples weeks I’m not a pro investor but I will jajaja.In your opinion how is going your experience as a investor in Germany? Is it worth it? I would like to do BRRRR so if you can tell me some recommendation about Germany, I’ll be glad to know about your experience. Thanks a lot Andre, never give up.

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Hi Junior,I live in Germany and have properties in Germany and in Italy. Glad to help if I can.Do you live in USA? Why are you considering investing abroad?