12th January 2017 - Immobilien Zeitung

It’s Time for an Exit

When, if not now is the right time for exiting the residential real estate market? Asks John Amram, Director of HPBA.

When a party is at its peak, it’s time to leave. This saying is not just relevant for stock market investors, but also for German residential real estate; at least for a majority of the current investors. Prices in metropolitan areas keep rising year for year, and Germany enjoys the international reputation of being a safe haven, a depreciation is unlikely, and compared to the benchmark government bonds – well, let’s not even get started on those.

One thing is certain: Those who have invested capital into the German real estate market in the past few years has made considerable profits, on paper at least.
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This article was originally published in German only. A summary in English is available.

Summary
When a party is at its peak, it’s time to leave. The same goes for those investing in the German real estate market: those who invested in the German residential real estate market have made considerable profits by now, on paper at least. In this article, John Amram, director of HPBA, argues that a profit is only a profit once the investment has been liquidated, and that the current financial climate in Germany promises excellent returns. Exiting now would also mean gaining the capital required to reinvest into other promising asset classes. Amram suggests that the time to exit is now as Brexit and the German elections in September will bring with them uncertainty and further restrictions. He concludes by saying that the market remains ripe for certain participants; patient investors are encouraged to invest, but opportunists should move on.
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