One of the undisputed best fixed income investments is land ownership.
Real estate ensures stability in turbulent times independently of currency reforms and financial crisis.
Real estate is a safe source of income and can be used as a hedging of an aging generation.
„THE THREE PILLAR-MODEL“
The three-pillar model represents the philosophy and strategy of LUXBURG CAROLATH GROUP.
A diversification in different property segments can generate solid and durable income, as well as develop a sustainable increase in value.
The model is as follows:
I. Cultural and historical buildings, such as castles, exclusive villas and other listed buildings
This segment provides, due to the need of elaborate renovations a government subsidy, depending on the location of the object as well as going beyond the conservation area, it can also affect the area of infrastructure funding.
In addition, increased depreciation is possible in the early years, allowing an interesting tax planning.
What’s more, regular income can be generated by a management, in the form of regular exclusive events, representation and home addresses.
Due to the limited amount, medium to long-term increase in value of the renovated historical buildings is above the average.
What is also worth mentioning ist hat the wealthy foreign investors’ interest in proving their success by owning such properties is steadily on the rise.
II. Solid stem property with a healthy and long-term rate of return, such as social housing, public facilities (schools, kindergartens or other municipal buildings) as well as all other objects which can be good and long term rent.
Especially in the public sector is to realize that the State avoids investments by acting as tenant with long-term rental guarantees, and therefore the revenues are guaranteed.
This segment has in the next few years a variety of possibilities to build solid properties.
In the area of social housing there is a possibility of transformation of the object’s status as soon as the social commitment expires, bringing additional price-performance ratio increase.
By a company's own property management costs can be additionally reduced and an overview is given continuously.
It also increases numerous opportunities for the purchase of high-yielding rentals being added to the portfolio in the long term.
III. Speculative trading of properties on foreclosures, from bank stocks and what can be acquired through contacts below the market price (off-market deals).
The city of Berlin with its rapidly growing demand for real estate is ideally suited for this business. Many districts are still in need of development.
These objects can be quickly and conveniently prepared and then resold. With an won-owned renovation company considerable costs can be saved and the entire value chain will remain in-house.
Finally, it should be mentioned that in times of turbulent financial markets the property provides a safe harbor, which can be passed on to the younger generation!