Investment Property in Stuttgart

Investment Real Estate in Stuttgart

Stuttgart property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Stuttgart .

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Search Map of Stuttgart Investment Real Estate

Stuttgart (German: [ˈʃtʊtɡaʁt] (listen); Swabian: Schduagert [ˈʒ̊d̥ua̯ɡ̊ɛʕd̥]; names in other languages) is the capital and largest city of the German state of Baden-Württemberg. It is located on the Neckar river in a fertile valley known locally as the “Stuttgart Cauldron” and lies an hour from the Swabian Jura and the Black Forest. Its area has a population of 605,997, making it the sixth largest city in Germany. 2.8 million people live in the city’s administrative region and 5.3 million people in its metropolitan area, making it the fourth largest metropolitan area in Germany. The city and metropolitan area are consistently ranked among the top 20 European metropolitan areas by GDP; Mercer listed Stuttgart as 21st on its 2015 list of cities by quality of living, innovation agency 2thinknow ranked the city 24th globally out of 442 cities and the Globalization and World Cities Research Network ranked the city as a Beta-status global city in their 2014 survey. Stuttgart was one of the host cities for the official tournaments of the 1974 and 2006 FIFA World Cups.

Since the 7th millennium BC, the Stuttgart area has been an important agricultural area and has been host to a number of cultures seeking to utilize the rich soil of the Neckar valley. The Roman Empire conquered the area in 83 AD and built a massive castrum near Bad Cannstatt, making it the most important regional centre for several centuries. Stuttgart’s roots were truly laid in the 10th century with its founding by Liudolf, Duke of Swabia, as a stud farm for his warhorses. Initially overshadowed by nearby Bad Cannstatt, the town grew steadily and was granted a charter in 1320. The fortunes of Stuttgart turned with those of the House of Württemberg, and they made it the capital of their county, duchy, and kingdom from the 15th century to 1918. Stuttgart prospered despite setbacks in the Thirty Years’ War and devastating air raids by the Allies on the city and its automobile production during World War II. However, by 1952, the city had bounced back and it became the major economic, industrial, tourism and publishing centre it is today.

Stuttgart is also a transport junction, and possesses the sixth-largest airport in Germany. Several major companies are headquartered in Stuttgart, including Porsche, Bosch, Mercedes-Benz and Daimler AG.

Stuttgart is unusual in the scheme of German cities. It is spread across a variety of hills (some of them covered in vineyards), valleys (especially around the Neckar river and the Stuttgart basin) and parks. This often surprises visitors who associate the city with its reputation as the “cradle of the automobile”. The city’s tourism slogan is “Stuttgart offers more”. Under current plans to improve transport links to the international infrastructure (as part of the Stuttgart 21 project), the city unveiled a new logo and slogan in March 2008, describing itself as “Das neue Herz Europas” (“The new Heart of Europe”). For business, it describes itself as “Where business meets the future”. In July 2010, Stuttgart unveiled a new city logo, designed to entice more business people to stay in the city and enjoy breaks in the area.

Stuttgart is a city with a high number of immigrants. According to Dorling Kindersley’s Eyewitness Travel Guide to Germany, “In the city of Stuttgart, every third inhabitant is a foreigner.” 40% of Stuttgart’s residents, and 64% of the population below the age of five, are of immigrant background.

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The financial stability of Stuttgart has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Stuttgart

Renting out your Stuttgart buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Stuttgart are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Stuttgart and be prepared to change your initial outlook.
Thoroughly research the Stuttgart location with a special emphasis on fringe areas outside the main Stuttgart metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Stuttgart.
Ensure that your target investment property in Stuttgart appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Stuttgart properties yourself is an easy option, but are these savings justifiable when you run into Stuttgart red tape? Physis Realty Stuttgart office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Stuttgart buy-to-rent sector.

With our expert guidance, investing in Stuttgart provides the secure knowledge that your money is working harder than it would in a local Stuttgart bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Stuttgart, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Stuttgart property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Stuttgart

Flipping property in Stuttgart

Flipping property is when we advise clients to buy a Stuttgart property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Stuttgart market has a time to react to the renovation.

The Flipping Strategy in Stuttgart

Investment property flipping in Stuttgart is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Stuttgart real estate investments are sometimes referred to by professionals as ‘distressed’ Stuttgart real estate.

What is distressed Stuttgart property:

Stuttgart property in need of renovation
Stuttgart real estate with a change of purpose and use
Oversold Stuttgart property
Bank repossessions in Stuttgart

Put simply, long term investors in Stuttgart purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Stuttgart investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Stuttgart property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Stuttgart use a minimum profit value of 22% when looking at potential Stuttgart projects. The reason for this is because there are lots that can go wrong in Stuttgart property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Stuttgart

For luxury property investors hoping to add a superb property in Stuttgart to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Stuttgart, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Stuttgart should be entrusted to only the highest-quality agency.

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