FAZ warns against investment in listed real estate
The Professional Partner AG advertises that listed property for the past "tax havens" and to praise their safety, " The listed property is a smart investment for the future [...] The listed property is a tax gift , like almost none. other investment and represents a promising investment of which money "
This is not surprising, is the sale of such property, the core business of the company who set up for it a separate new portal "www.denkmal-verkauf.de. But the investment worth it? The Frankfurter Allgemeine any case warns against drastic words: "Listed Homes are popular investments. In many cases, however, they lead to losses. [...] In Internet portals that offer such items as mushrooms sprung up, but the substance of the objects is reminiscent of the disastrous times of the builders models. [...] who invests his money in this way should not be surprised if the business burst like a soap bubble. "
Here, the entire article from the Frankfurter Allgemeine Zeitung on 5 December 2009, page 25 (" Financial markets and investment ")
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tax savings are sending questionable
By Volker Looman
06th December 2009 Over the past 30 years in December is always the month of the tax saving. Because there was heeled usually no stopping them. What a smell of advertising costs and tax advantages, off went like hot cakes: real estate, movies, airplanes, ships, solar panels and wind turbines sold in that time by itself, because many investors were of the opinion that even miserable plants better than taxes to the Treasury were. Today, these investors know that they have not reckoned with the host. Most investments were made both on sand and on credit.
The plants are only a fraction of value, but the debt continues to shine in full glory, so that many tax savings had money burning in pure culture. Now, once again in December, but the wind has turned. The tax authorities have been digging the most tax-saving models, the water so that the top earners for tax purposes in those days sit on dry land. But they should actually thank the Minister of Finance of the heart, but gratitude has its own laws. In short, the hunger for advertising costs persist, but Suppliers have big problems, appropriate provisions for the "march to destruction" to deliver. so it is no wonder that real estate currently listed are particularly popular with top earners of all kinds. In Internet portals that offer such items as mushrooms sprung up, but the substance of the objects is reminiscent of the disastrous times of the builders models.
lawyer and dentist might get carried away
In the City of Reutlingen is offered as an object. It is an apartment building with ten units, and the first floor of an apartment is offered, which costs 348,000 Euros. Including the land transfer tax and notary fees, the good pieces in all probability will come to 365,000 euros. But the investors are delivered around 114 square meters. But the two figures should spoil the willing investors, the more interested in the property, because a square meter price of 3200 € is fierce: as much apartments cost in Reutlingen before the introduction of the euro in Mark. Obviously, they were replaced not only in restaurants but also in the real estate industry, only the currencies.
For the high price it is a four-room apartment and the rental is to rinse the investor every month about 969 euros in cash. They are 8.50 euros per square meter, and the performances are rich. If the income flow actually waving to the investor according to the internet an annual return of about 8 percent - after taxes. They are given the current yields on bonds or shares fantastic values, so that normal investors from A lawyer to dentists and may again be tempted to go astray.
In calculating the return on the advertiser must certainly be a few numbers mixed up. Who twelvefold the monthly rent of 969 €, will come to an annual yield of 11 628 €. If the purchase price is divided by the annual rent is a price out of 31 years' rent. In Swabia Although the motto is that nothing can be worth what it costs nothing, but what is too much is just too much. The pre-tax return is 2.8 per cent, rising after tax of an investor who is taxed each year and according to the basic table, around 200,000 €, the annual interest rate to 4.1 percent.
The real interest rate is lower
The property will sell gorgeous despite the "truncated" rate of return with high probability, because the object can be written off within a short time. The house is by Clauses 7h and 7i of the Income Tax Act (ITA). As a result, 68 percent of the total expenditure will be sold within twelve years. In addition, the annual depreciation is 2.5 per cent to the old building, which is 15.5 percent of total expenditure. Then come along, the bottom line annual depreciation, starting at 23,000 euros and over time fall to 18,000 €.
The high tax benefits can not adjust the view of the fact that the whole thing most likely will not count. This is evident in a payment plan for the next decade. The starting price is 365,000 euros. Thereafter, the investor A total of 120 rentals per 969 € accrue. Completed, the cashflow from the sale value to be in the first run as high as the starting price minus costs, ie € 348 000. In this analysis, the annual return is 2.8 percent before taxes.
is the real interest rate - already done miracles - are considerably lower, because it is likely that a "reasonable" investors in ten years for an "old" apartment, which offers no tax advantages over again 31 years rent on the table will scroll. If only 25 years 'rent to be paid, the rate of return before tax slipped to 1.3 percent, and 20 years' rent decreases the return on minus 0.5 percent.
No wonder the tax saving investments
Taking into account the tax advantages, which made the restructuring specialist, sees the thing but a little better: The results are 4.1 to 1 percent. Of the 8 percent that are in space, the rates of return, however, continue to remain light years away. Such returns are only accessible by craft and saliva. First, a credit is required, and secondly, much needed hope. The two ingredients are indeed in financial transactions not just an advantage, but for the "whitening" of the yield essential.
decreases with the aid of a mortgage of 250,000 euros, for example, the initial value of the cashflows to 115,000 Euro. In the following years are offset by income and expenditure. The rents amount to 11 628 €. Then there are the tax benefits from renting and leasing. They start at 10,000 € and will decrease over time to 6000 €. The credit rates amount to 18,000 euros, if the mortgage costs per year and 4.5 percent each year will be repaid at 2.7 percent. For waves at the end of the show a final value of 183,000 €, and behind this figure hides the difference between the anticipated selling price (348,000 Euros) and the actual outstanding debt (165,000 €).
The payment plan looks attractive on first sight. Initially, 115,000 euros down on the table. Then there are annual distributions 2000-3000 €, and at the end of a back flow waves of 183,000 €. When the bill comes up, will pay interest on the business at 6.5 percent per year, so this raises the question of where the risks lie. The answer is simple: the hope for a sale value of 31 years' rent is and will remain a dream. who invests his money in this way, do not be surprised if the business burst like a soap bubble. comes at a sale value of 25 years 'rent out a return of 2.9 percent, at 20 years' rent, the annual interest rate slumped to minus 2.6 percent.
The various figures show very clearly that housing is listed no wonder plants. You are investments such as bonds, shares and stocks, and if the starting price is too high to help, as a rule, praying and hoping no further. While this is old hat, but said that the "tax savings" should be taken to heart the knowledge that taxes and reasonable facilities are a better solution in most cases, also in December.
