Why are rents getting on? An expert gives answers

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In this article, find out why rents in Germany keep increasing and what you can do about it. The causes such as lack of housing, increased construction costs and the growing demand are illuminated. You will also receive tips on how you as an investor can benefit from rising rents. Visit the Investment Punk Academy and learn from Gerald Hörhan how you can achieve financial freedom.
In this article, find out why rents in Germany keep increasing and what you can do about it. The causes such as lack of housing, increased construction costs and the growing demand are illuminated. You will also receive tips on how you as an investor can benefit from rising rents. Visit the Investment Punk Academy and learn from Gerald Hörhan how you can achieve financial freedom. (Symbolbild/MB)

price shock in rent - expert reveals why rents keep increasing and what you should do now

The rising rental prices are a persistent problem that makes apartment investments extremely attractive. Affordable living space, especially in metropolitan areas, can hardly be found. The causes of this development lie in the lack of housing, the increased construction costs and the growing demand.

experts agree that the continuous increase in rents is not a temporary appearance, but the result of structural problems on the real estate market. In this article you will find out why rents are increasing and what you should do now to prepare for this situation.

Lack of living space due to crises in the construction industry

The increasing lack of housing is primarily due to the narrow range of living space. In the past, it was possible to get cheap loans for the new building. But at the latest since the rate increase in 2022, this has no longer been the case. The long -term interest rates temporarily rose to over four percent, while short -term loans with interest rates of up to six percent were occupied.

In addition, the deletion of the KfW 55 program and other funding programs leads to fewer and fewer apartments are being built. As a result, the margins of the developers continue to shrink. This creates a chain reaction: developers go bankrupt, loans burst and banks suffer losses. At the same time, numerous workers leave the construction industry and construction companies in difficulties. In the next five to ten years, a significant increase in new buildings cannot be expected.

city apartments more popular than ever

The lack of living space is offset by a high immigration. People from Ukraine and the Middle East flee conflicts in Germany, while the government promotes immigration from specialists. This increases the already existing lack of housing in large German cities - and rents rise. In Berlin, it is currently almost impossible to find a one -room apartment for less than 1,000 euros a month. WG rooms often cost more than half of them. In other cities, rents for one -room apartments are already between 600 and 800 euros net per month, plus high operating costs. An end to the rental price increases is not foreseeable. Experts even predict that rents of 25-35 euros per square meter can be reached in coveted locations.

In order to counter the problem, politics tries to implement measures such as rental price brakes at local, state and federal level. As a result, old tenants are largely protected against sudden price increases, while new tenants have to expect massive surcharges. At the same time, however, the operating costs rise continuously, which forced many tenants to move into smaller apartments or shared apartments.

model "rent pays credit" again practical

A unique situation will open for investors in the coming months: While rents continue to rise, developers and real estate dealers have to sell their stock quickly to avoid bankruptcy. This makes it possible to acquire apartments in coveted cities up to 30 percent cheaper than in the previous year and to achieve returns of five to six percent that are sufficient to repay bank loans.

One or two-room apartments in good city locations as well as apartment buildings are currently particularly attractive that can be used as shared apartments. These investments offer the highest returns in relation to the purchase price and enable buyers to pay off the loan without additional costs. If you buy now, you can build a real estate portfolio at cheap conditions and benefit from rising rents.

expert Gerald Hörhan has become a millionaire with one -room apartments and is convinced that 90 percent of people are able to do so. He founded the Investment Punk Academy to train the participants in financial planning and help them achieve their goals. At the Academy, he has already taught over 100,000 people in finances. You can find more information at: [Link]

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