Timing the Sale, as Well as the Purchase
It is often said with regard to the stock markets, that nobody rings a bell when the FTSE or Dow Jones hits its historic high or its low point. That’s a real shame isn’t it, as economists helpfully tell us to “buy low and sell high” and the sound of a bell would surely prove a very useful indicator to lead us into action. The property market moves in the same way, albeit in a slower and more predictable fashion perhaps than the stock markets.
At ProVenture we spend a great deal of our time looking at locations to determine the point in the market when someone with a bell would ring it when it hits the bottom. We spend all day as consultants thinking about this point really. And I guess you do too. It is perhaps human nature for investors to focus on the purchase phase in property investment, paying less heed to the selling phase until it becomes necessary for financial or lack of time to manage the property. Additionally, we are all bombarded by marketing messages to tell us what the next best place is to buy, and how we should part we our cash.
In this short article we will look at methods to plan the timing of the sale of your investment in a methodical way, making this part of your business as pro-active as the purchasing side. Even with yield investments, the capital appreciation for property held more than a few years usually far outweighs the rental income, so it makes good sense to plan the release of your hard-earned money well.
Market Features going from Low to High Point
Well, practically the complete articles on property investment and books on the property investment cycle our team has written focus on this part of the equation. Those who know us will understand that we use rental yield as a key indicator to how low a market is, together with other factors which look at general confidence of fellow investors and financing banks.
Whilst we will avoid a discourse of our ideas here, it is perhaps worth looking at features of a market which perhaps had the “low point” bell rung out long ago and are not so interesting to make new investments. This will help us when we are guessing at when the “high point” bell may start to peel out.
Some of the indicators we would suggest point towards the end of any buying point, for those who seek to purchase near the bottom of a market:
What are those indicators? Find out here
German Property Market Lively – But is it a Good Time to Enter?
News articles and market reports this month are continuing the growth story of the German economy and property market, with the uncertain backdrop of the Eurozone crisis bubbling away in the background.
Bloomberg reported early in September on the apparent exuberance in the market, with investors flocking even for the ugly pre-fabricated homes that are still standing in the old East.
Price gains have accelerated over the past three years, and property that was once unloved is now being snapped up by international investors, according to the report. In Berlin and Munich, where the boom has been the strongest, values have gained 16.8 percent in the last 12 months, according to Berlin-based online broker ImmobilienScout.
Is the German market still worth investigating? What does George Soros think?
Latest Property Offers
Single Units
65,075€ | Leipzig
Potential Yield: 5.8%
Type: Residential
Approx. Size: 69 sqm
Available to purchase is this attractive 3-room apartment with approximately 68.50 m². The property includes a separate storage room and a garage parking space, in addition to a shared laundry/drying room and bike storage. Currently rented, the apartment brings in a rental income of 314.50 Eur/month.
The condo is located in a modern residential development in the district of Gohlis South; a quiet and comfortable atmosphere with good social structures and facilities for residents, nearby.
Gohlis is probably one of the best known and one also one of the most desirable neighbourhoods in Leipzig due to it being conveniently well-connected.
The property itself is located on a pedestrianised street close to Leipzig City centre. Located nearby: elementary school, Junior high school, middle school, high school, university,
College, daycare, Transport connections and all Shopping for daily needs.
49,590€ | Leipzig
Potential Yield: 8.65%
Type: Residential
Approx. Size: 55 sqm
The apartment for sale is located in a building constructed in traditional style, just a 3 minute walk from Cospudener Lake, in Leipzig – Markkleeberg. This rented apartment is located on the 2nd floor of the object.
Bremerhaven
410,000€ | Bremerhaven
Potential Yield: 9.67%
Type: Residential
Approx. Size: 832 sqm
This impressive corner building is in the north of the district of Lehe, about a 20 minute walk from the city centre. The unit consists of basement, four floor, plus four garages and contains 12 apartments in total. The apartment sizes all fit the demographic of the area and are 59-82 sqm. The communal areas, grounds and building itself are well maintained regularly and kept in a very neat condition, with any former repairs done in a timely fashion. The building is heated with gas central heating.
320,000€ | Bremerhaven
Potential Yield: 9.69%
Type: Residential
Approx. Size: 618 sqm
A solid brick-built, quaint building in the heart of the district of Lehe, close to the city centre. This side by side buildings consists of basement, two full floor, plus converted attic and contains 12 apartments in total. The entire building will undergo a full refurbishment and new tenanting before delivery. The communal areas and grounds are already maintained regularly and kept in a very neat condition. The building is heated with oil fired central heating.
Leipzig
695,000€ | Leipzig
Potential Yield: 7.9%
Type: Residential
Approx. Size: 1192 sqm
This substantial fine building lies just to the east of the city centre, around 800m from the historic Augustusplatz. The area is favoured by a wide range of tenants owing to its enviable position in the city. This residential and commercial building ,from the early 20th Century, consists entirely of commercial space which is used for 2 shops and a restaurant, on the ground floor and from the 1st to 4th floor are 16 residential units. The attic in not inhabited, but plans are already drawn up and this expansion could take place with very little effort, as some work has already begun.
Over the last 4 years, 50k Eur was spent refurbishing the communal areas, and another 20k spent on renovating apartments as and when they became empty. As a result, the building is in impeccable condition.
695,000€ | Leipzig
Potential Yield: 8.25%
Type: Residential
Approx. Size: 1074 sqm
A fantastic opportunity at a very low price per square meter in the popular area of Connewitz, Leipzig. 10 fully let residential with a long standing commercial tenant in place also.
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