Germany is a great city to Real Estate Investors
Today Germany one important country that have gone out from the crisis and now is working like one of the world engines is a great point to Real Estate Investors.
A few days later, we received in Zentrica one important operation to manage, this operation was a complete Real Estate Community where all the Real Estate assets was for rent, with a high annual yield (i think was about a 7% of annual yield), in comparison with Spain may be a very good operation because in Spain for homes more than a 5% of annual yield is not very usually to find.
Germany is a good place to rent Real Estate assets because there is not a ownership feeling for Real Estate like in Spain, in Spain everybody want to have their own house. In Germany people have a different culture that do better and normal to rent a house and not to buy it.
Too, is the second country in Europe in number of population (near 82 Million people) and the 3rd economy in the world, having important industries like iron, steel, machinery and electronics. Berlin is the country’s capital, one of the more cosmopolitan cities in the world.
A country with a dynamic economy like Germany do that people go and came and this means that the Real Estate Assets may be return on investment without setbacks.
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Banks in Spain need to sell their Real Estate Assets
Banks in Spain are beginning to sell hundred of unpaids Real Estate Assets. A large number of assets are going out to the market with very low prices. They need to sell this assets in order to maintain their structures.
Private Equity Real Estate are doing very good operatios where the big discount in the king. Prices with a 70% or 80% below of the market price is the common. Too, the private investors are soing the same but with pay strategies unhurried.
The problem for the banks when they have the unpaid asset is not only the unpaid amount, too the forced and additional costs that the Real Estate asset has.
The next year will be a very good year for Real Estate Investors in general, REIT, REI Funds and PERE, but will be a good year allways that they have the possibility to invest using gateways that offer them confidence and quickly management of the opportunities.
A good example of how not to do the things is Spain, many Real Estate Funds have tried to invest but rarely they have found the Investment Partner or Manager beyond the banks that use the funds like a portfolio product for his clients and often without pay attention to the Funds real interests.
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