Investment Property in Potsdam

Investment Real Estate in Potsdam

Investment Property in Potsdam
Investment Property in Potsdam

Potsdam 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 Potsdam .

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Search Map of Potsdam Investment Real Estate

Potsdam (German pronunciation: [ˈpÉ”tÍ¡sdam] (About this soundlisten)) is the capital and largest city of the German state of Brandenburg. It directly borders the German capital, Berlin, and is part of the Berlin/Brandenburg Metropolitan Region. It is situated on the River Havel some 25 kilometres (16 miles) southwest of Berlin’s city centre.

Potsdam was a residence of the Prussian kings and the German Kaiser until 1918. Its planning embodied ideas of the Age of Enlightenment: through a careful balance of architecture and landscape, Potsdam was intended as “a picturesque, pastoral dream” which would remind its residents of their relationship with nature and reason.

The city which is over 1000 years old is widely known for its palaces, its lakes, and its overall historical and cultural significance. Landmarks include the parks and palaces of Sanssouci, Germany’s largest World Heritage Site, as well as other palaces such as the Orangery Palace, the New Palace, the Cecilienhof Palace, or the Charlottenhof Palace. Potsdam was also the location of the significant Potsdamer Konferenz in 1945, the conference where the three heads of government of the USSR, the US, and the UK decided on the division of Germany following its surrender, a conference which defined Germany’s history for the following 45 years.

Babelsberg, in the south-eastern part of Potsdam, was already by the 1930s the home of a major film production studio and it has enjoyed success as an important center of European film production since the fall of the Berlin Wall. The Filmstudio Babelsberg is the oldest large-scale film studio in the world.

Potsdam developed into a centre of science in Germany in the 19th century. Today, there are three public colleges, the University of Potsdam, and more than 30 research institutes in the city.

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The financial stability of Potsdam 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 Potsdam

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

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

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

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

Flipping Investment Property in Potsdam

Flipping property in Potsdam

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

The Flipping Strategy in Potsdam

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

What is distressed Potsdam property:

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

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

Calculate profit that you make from Potsdam investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Potsdam

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

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