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24 10 2013
The best retirement arrangement: your condominium

Germany is a tenant country: In hardly any other country the proportion of people that live in a rental apartment is as high as in Germany.  But more and more German are interested in buying a house or a condominium as a retirement arrangement – residential properties are currently the most popular form of investment.

The German are precautionary tired

Almost half of Germans do not want to expand their own private retirement arrangement, according to a new study by the institute of Allensbach, which was assignment by the Postbank. One reason the current low interest rate: Every third respondent complained about the monetary policy in Europe and the consequent gradual devaluation of assets.  At the same time the interest to deal with the issue of retirement arrangement decreases. Less and less employees make a use of appropriate professional advice.

If retirement arrangement, then real estate

One third of the respondents, who want to expand their own private retirement arrangement, choose a condominium or a residential building - almost 50 percent more than five years ago. Of all respondents, almost 66 percent even favor an occupied property; ten years ago it was only 59 percent.  The own four walls are considered to be a secure and efficient form of a retirement arrangement and therefore they are the most popular type of investment.  The following are rented properties, which are also in high demand. Alternatives such as a life insurance, however, almost lost much of its popularity.

Real estate as a retirement arrangement?

Proper financing makes it possible: the low interest rate also has a positive side. Rarely before, it was that easy to get a loan for real estate financing on such favorable terms. Since the interest rates of the central banks are still at historic lows, banks can offer lucrative conditions for loans. More and more German make use of it to fulfill their dream of an own condominium or house. And the real estate property has a double positive effect on the retirement arrangement. The owners can not only live rent-free in the old age. Studies have also shown that property owners have a higher savings rate as tenants. The reason is that financial reserves must be invested for reparations in their own real estate which contributes to a long-term wealth accumulation. Therefore, the condominium is worth twice as a retirement arrangement.