Does the share I pay for myself in a property increase when property prices rise?

We answer these and many other questions in our video blog editions.

Here is the transcript of episode 31 to read:

If real estate prices rise, then of course the share of costs that you have to pay also rises. Absolutely right. If we take that in a long-term comparison, if with inflation, real estate prices have doubled after 10 years, for example. Or after 15 years. And you would then buy the property in 10 or 15 years, your tenant will of course also pay significantly more, because the rent also develops.

But your own share will of course have increased as well. That's why it makes a lot of sense to invest quickly if you want to invest in investment property. Because with a tangible asset, the sooner you're in, the better. But you're absolutely right in your thinking. So if you ask yourself, do costs go up when prices go up? Of course they do. So there will always be the saying: "If only I had...". That's the one I hear most often in my 30-plus years in the business.

Most often, people I accompany to invest say to me, "Martin, if only I had bought a year ago, if only I had bought two years ago, if only I had bought three years ago." But I can tell you that everyone will say the same thing again in five years. If only I had bought five years ago. You are absolutely right. It is important to buy early. The earlier, the better.

Keywords:
Real estate prices, cost share, long-term comparison, rent, own share, capital investment real estate, invest early