Real estate is a very conservative and therefore comparatively very safe investment. Good tangible assets compensate for inflation and ensure a tidy increase in assets in the long term. In addition, real estate makes sense as an investment, because you buy the property, but the tenant and the tax office pay large parts for you. This is what we call passive income or real estate income. Germany is a fantastic market for landlords. You can deduct the property from your taxes, have a large part of the rental income tax-free, as a landlord you can also deduct the interest on the loan and the costs around the property from your taxes and as a non-commercial property buyer you can also sell a property tax-free after 10 years. In other words, you can collect the net appreciation and real estate gains tax-free.
And since we have more than 40,000,000 tenants in Germany and thus more than 50% of the population are tenants, it is a paradise for landlords. Against the backdrop of so many tenants, it has been problematic for years that far too few apartments are being built, resulting in an ever-increasing housing shortage in regions and larger cities that are in high demand. That's why landlords also do something good for the community, because you as a landlord create valuable living space and are therefore supported by tax benefits, allowances and subsidies.
Real estate as an investment is very flexible, because you can sell the property again or pass it on later to children or other heirs.
English 
Deutsch