Why,Property,Investment,German business, insurance Why Property Investment in Germany now?


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Economic developmentsA robust development in the global economy,strong growth in the Eurozone are indicative of the current macro environmentand are the driving forces behind a boom situation that Germany's economy hasbeen waiting for years. Towards the end of 2006, the German economy experiencedits strongest upturn since the New Economy boom in 1999/2000. All significanteconomic indicators point to a positive growth for 2007 and suggest asustained economic revival for the followingyear.In 2006, the German economy regained itsrole as the power behind growth in the Eurozone, the vitality of this upturnexceeded all expectations.The German Property Market is Europe's biggest with record transactions in 2006. Figuresfor the first half of 2007 show no slackening in volume.Despite the high demand prices are stilllow in comparison to international markets, even the Eastern European ones. Thepotential for property appreciation is strong.The rent level is stilllow and trailing behind the economic development. So buying now offers anupside on the cash flow as a good management can capitalise on the catch-up tofollow.Germanyis still currently one of the few major economies where an investor can expecta positive cash flow from property investments.Why now?Global property players have been in themarket for over two years now and have tied a great deal of their equity. Thisis where the chance lies for new arrivals in the market. Good investmentopportunities require speedy decisions and ready available equity. Thesefactors create a competitive advantage in the market. Equity is the easy partfor a new arrival in the market but speedy decisions require market informationand knowledge if they are not to turn out as risky or maybe wrong.There is only one solution to thissituation - Alliances with trustworthy partners alreadypresent in the market with access to off market properties and know-how intheir purchase and operation.What is the beststrategy?Developing the right strategy for the wayin and the way out again is key to any investment. The properties need to beselected for the investment period envisaged. The exit strategy has to be clearand the business plan developed accordingly. Whether the sale as condominiumsor as a block of rented apartments, market knowledge of the respective marketsis vital for the right purchase decision and the business plan. With the rightpartners at the starting point a successful and profitable exit after 3 to 7years, depending on the strategy, is easily achievable. For more detailed information please visitthe website of Berlin Portfolio Ltdor contact the author.

Why,Property,Investment,German

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