Investment Property in Kiel

Investment Real Estate in Kiel

Investment Property in Kiel
Investment Property in Kiel

Kiel 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 Kiel .

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Search Map of Kiel Investment Real Estate

Kiel (German: [kiːl] (About this soundlisten)) is the capital and most populous city in the northern German state of Schleswig-Holstein, with a population of 249,023 (2016).

Kiel lies approximately 90 kilometres (56 mi) north of Hamburg. Due to its geographic location in the southeast of the Jutland peninsula on the southwestern shore of the Baltic Sea, Kiel has become one of Germany’s major maritime centres, known for a variety of international sailing events, including the annual Kiel Week, which is the biggest sailing event in the world. Kiel is also known for the Kiel Mutiny, when sailors refused to board their vessels in protest against Germany’s further participation in World War I, resulting in the abdication of the Kaiser and the formation of the Weimar Republic. The Olympic sailing competitions of the 1936 and the 1972 Summer Olympics were held in the Bay of Kiel.

Kiel has also been one of the traditional homes of the German Navy’s Baltic fleet, and continues to be a major high-tech shipbuilding centre. Located in Kiel is the GEOMAR – Helmholtz Centre for Ocean Research Kiel at the University of Kiel. Kiel is an important sea transport hub, thanks to its location on the Kiel Fjord (Kieler Förde) and the busiest artificial waterway in the world, Kiel Canal (Nord-Ostsee-Kanal). A number of passenger ferries to Sweden, Norway, Lithuania and other countries operate from here. Moreover, today Port of Kiel is a popular desination for cruise ships touring the Baltic Sea.

Kiel’s recorded history began in the 13th century. Before then, in the eighth century, it was a Danish village. Until 1864 it was administered by Denmark in personal union. In 1866 the city was annexed by Prussia and in 1871 it became part of Germany.

Kiel was one of the founding cities of the original European Green Capital Award in 2006. In 2005 Kiel’s GDP per capita was €35,618, which is well above Germany’s national average, and 159% of the European Union’s average.

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The financial stability of Kiel 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 Kiel

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

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

  • Set goals based on how much rental yield will be required and the local rental yield rates in Kiel and be prepared to change your initial outlook.
  • Thoroughly research the Kiel location with a special emphasis on fringe areas outside the main Kiel metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Kiel.
  • Ensure that your target investment property in Kiel 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 Kiel properties yourself is an easy option, but are these savings justifiable when you run into Kiel red tape? Physis Realty Kiel office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Kiel buy-to-rent sector.

With our expert guidance, investing in Kiel provides the secure knowledge that your money is working harder than it would in a local Kiel 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 Kiel, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kiel property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kiel

Flipping property in Kiel

Flipping property is when we advise clients to buy a Kiel 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 Kiel market has a time to react to the renovation.

The Flipping Strategy in Kiel

Investment property flipping in Kiel 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 Kiel real estate investments are sometimes referred to by professionals as ‘distressed’ Kiel real estate.

What is distressed Kiel property:

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

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

Calculate profit that you make from Kiel investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Kiel

For luxury property investors hoping to add a superb property in Kiel 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 Kiel, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Kiel should be entrusted to only the highest-quality agency.

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