What are the types of real estate?

Episode 35:

What are the types of real estate?

In today's edition of our video blog you will learn what types of real estate there are.

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Frequently, capital investors ask themselves

  • What different types of real estate are mentioned in the text?
  • What are the advantages and disadvantages of used real estate compared to new construction real estate?
  • What tax benefits can be achieved by purchasing a listed property?
  • What are the risks associated with buying an apartment in a care property?
  • Why do we recommend paying less attention to property type and instead consider individual needs?

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

Here is the transcript of episode 35 to read:

If you are looking for passive income or real estate income, there are very different properties. Let's start with new or used. Used real estate, i.e. existing real estate or do you prefer to buy a newly built real estate? These are questions that have something to do with the ecological aspect of a property. In existing real estate you will seldom have modern, future-oriented ecological real estate, while you will of course have that in new construction. On the other hand, new construction sometimes takes a few months to complete and you have to take a construction phase into account.

Then there is the listed property. A listed property brings you extremely high tax advantages, namely if it is a listed new building, i.e. classically a new building property, but where the property or the real estate is listed, then you get very, very high tax advantages.

If we're talking about existing, new construction or landmark, there are differences in the type of use. Are you buying a traditional condo to rent out or are you maybe buying a micro-apartment, a furnished micro-apartment in a location where furnished micro-apartments are also in demand and going. And then there's nursing care real estate. Are you buying an apartment in a care property? That's a very risky area, because there is an operator who has to run that care property. And you are dependent on the economic success and the seriousness of this operator. That's something where I'm very, very rarely on the road, because I think that a higher risk often doesn't pay off, because the additional return is not really that significant. But if you have questions about that, then it's worth talking about that as well.

And, of course, there are also special properties like apartment buildings. You don't buy one apartment, you buy an apartment building right away. This can also have disadvantages. For example: lack of diversification. As you can see, there are many different types of real estate and it makes sense to first get an overview of what is worthwhile for you. The type of property is always the right one if it suits you, your situation and what you can afford and what is worthwhile for you.

That's why I recommend paying less attention to whether you're buying a micro-apartment, a classic condo, whether you're buying a landmark, a landmark new construction, a new construction, or an existing property, and more attention to what's right for you individually.

Existing real estate, New construction real estate, Monument real estate, Care real estate, Micro-apartment, Furnished micro-apartments, Multi-family houses