Torsten Heinrich wrote that he has never rented from a corporation, but from private individuals who had invested in real estate alongside their jobs. He knows at least seven people who over decades built up to 150 apartments through saving and loans. Two of them constructed and rented out multi-family houses with loans; several started from scratch, including one person from a refugee family. Heinrich argued that private real estate investments also need to be measured against other investment options. Real estate has already performed poorly compared to government bonds or index funds; the main argument for them is the possibility of value appreciation, which is tax-free after ten years. However, this is countered by high renovation costs, as well as work and hassle with tenants. In contrast, paper investments require hardly any effort and, according to him, do not entail additional payments, such as for new insulation or heating regulations. According to Heinrich, the abolition of tax exemption after the holding period is another reason not to invest in real estate. Anyone assuming that the taxation of private real estate sales has no impact on construction activity is effectively making an intellectual capitulation statement. #Immobilien #Investment #Vermietung (translated)
