In the current economy, which has been operating for a long time in the shadow of the corona, investing in real estate is probably the preferred channel for most medium-sized investors. But the question in real estate is location: where to invest? Real estate developer Moshe Bar Shilton believes that in Berlin investors will find some interesting options.
In order to choose a suitable investment channel in real estate, especially real estate abroad, it is important to characterize the investor: what is the equity that that investor has, and what level of risk is he willing to take? Second, the investment must be characterized: what is the average return in the country, how did the real estate market react in the subprime crisis, and what collateral and partnerships are there in the transaction?
According to Moshe Bar Shilton, who specializes in the German market, Germany is a great investment option: until a few years ago, the average German preferred to live in rented accommodation, whether he could afford it or not. In recent years, the Germans are on a trend of change, which increases the demand for real estate in the country. The low interest rate used in Berlin also contributes to the rising trend in real estate prices in the country. Second, investing in Berlin has a nice return on investment, of about 3% return per year. In the last year (as of May 2020), housing prices have risen by 11%, and in general, the German market is very stable, and is considered to have escaped the subprime crisis in 2008