15th October 2016 - Immobilien & Finanzierung

The Real Estate Market Remains Solvent

It may seem that currently no one wants to sell, but is this true? John Amram believes there’s always a reason to sell.

The herd is heading towards a standstill. Large real estate agencies, which had up to 500 revenue houses in their portfolio several years ago, are now down to 50. Investors trying to enter the German property market are finding it increasingly difficult. It seems as though no one currently wants to sell, but is this true?
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This article was originally published in German only. A summary in English is available.

Summary
It appears that currently no one wants to sell, but John Amram argues that there are always many reasons why an investor should sell, such as international investors needing the money invested in Germany to invest in their countries, and a change in strategy as new asset classes are identified. Amram also mentions that renovation costs should not be underestimated and are another reason investors may choose to sell. The fact that residential property prices have been rising in the past years also suggests that now is a good time for an exit. In the concluding paragraphs Amram argues that sale numbers are not decreasing as 2015 should be considered a one-off record year, and concludes that the problem is not that no one wants to sell, but that many owners simply do not know that a perfect buyer for their requirements exists.
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