Real estate is a good investment? The bitter truth often looks different.

Waiting for better prices: houses on Berger Strasse in Frankfurt

IReal estate is usually worth less than you think. The myth of safe and lucrative investments sticks to them. And finally, there is talk of “booming property prices” and “skyrocketing rents” everywhere. This often leads to the misjudgment that this could also mean your own property. However, the reported price increases generally relate to new buildings and very often also to the (few) regions in which real estate prices are really rising sharply.

The value of existing properties is primarily influenced by two factors. Unfortunately, one has a negative effect. This is the ravages of time that gnaw on every property. A building loses value over time because, in addition to the owner, the fabric of the building, the heating and the windows also age. The second factor is land prices in your area. If they increase, they may be able to compensate for the age-related depreciation – in some regions even exceed it. Unfortunately, only an actual sale can show what applies to your property. Everything else is conjecture.

In contrast to stocks, there are no up-to-date prices for real estate that can be sold at any time. Quick estimates from Immobilienscout24, for example, provide clues. A rough range is given there free of charge. For 44.90 euros there is a more precise estimate. Banks also provide rough price estimates as part of credit inquiries. The often bitter truth, however, only comes to the table when it is actually sold.