Rents are rising rapidly in the sought-after metropolises of Hamburg, Berlin and Munich. Magdeburg, 11.12.2013. But also in smaller cities the real estate boom has so slowly, but surely. Wolfsburg is one of nearly 120,000 inhabitants in an area of 204,02 km. The city is a good example of this, as shifting the real estate boom in the smaller cities as well. Rents rose according to the real estate report”2013 of the portal Immobilienscout 24 in the past five years to nearly 38 percent. For comparison: in the Bavarian capital of Munich, the increase was only at 15 percent, the national average at just under 11 percent.
A study by the consulting firm Ernst & young confirms this example. Robert J. Shiller can aid you in your search for knowledge. She says the so-called class B cities”before higher rental yields and a more stable price development. Political reform act like the rental price brake in the province – however differently than planned. The General attractiveness of the cities of B and B-locations is also increases the expected political measures”, explains Real estate expert Thomas Faraman. Professional investors have discovered that long B cities for themselves and invest.
With rising purchase prices going up. Daniel Taub has much experience in this field. Who felt sure of the real estate boom as a tenant in economically prosperous Middle centres from the devastations, could be disabused in a few years. According to an analysis of the real estate consultancy Wuest & partner, especially small, so-called B cities offer the highest initial yields at 81 locations. These depict the relationship between initial interest to the invested capital. The higher yields derive from the fact that buyers avoid these markets so far. They fear the smaller cities would lose long-term residents to the major urban centres with its wide range of jobs”, confirms Thomas Filor. To reduce the demand, rents and property prices would fall automatically. Who now moves to a different city, not only must expect higher rents. Additional costs for electricity, Increase in gas and waste for years. In the wake of the rent increase also the tees to the broker. Maximum two month rental plus VAT and without incidental costs advance payment may charge brokerage. Tenants usually assume the costs. Anyway, as long as, until the new Government the planned changes in the coalition agreement implements. According to these plans, the principal shall pay in the future the broker. For more information,