Facts
Advantages
From single rooms to multi-room apartments
Condominium vs. care apartment
The care real estate market is just as flexible as the people who will later live in the properties. This means that you don't have to think in terms of millions if you are interested in investing. One advantage over real estate funds is that the owner is secured by a separate entry in the land register - just as with all other real estate purchases. Theoretically, rent losses are possible with care properties, but in practice they hardly ever occur because the owners receive the rent payments from the operator of the property - even if the apartment is not rented during short transitional phases. The decisive factor is the solvency of the operator. And since the legislator has stipulated that accommodation and care costs for people in need of care are covered if they are unable to do so themselves, the rental payments are as good as guaranteed by the state.
Care apartment vs. condominium
| Nursing apartment | Condominium | |
|---|---|---|
| Location decision | Location analysis incl. calculation of requirements (hard facts) Largely identical equipment features (easy decision) | Subjective basis for decision-making (soft facts) |
| Equipment | Secure rental income thanks to long lease agreements with the operators. Does not have to be organized by yourself | Many different factors must be taken into account (difficult decision) |
| Letting | Is based on the negotiated care rates and is therefore independent of the rent index. Generally secure | Uncertain letting due to tenant changes, possible rental nomads/non-payers and associated vacancies. Must be organized yourself |
| Rent | Rental payments of 12 euros per square meter | Prices per square meter from approx. 3,000 euros for new buildings. As a rule, rents from 7 euros per square meter |
| Returns | Are between 3% and 4% | Are between 3% and 4% |
| Operating costs | With a few exceptions, all operating and maintenance costs are borne by the operator. Service charge statement does not have to be prepared | Maintenance costs are borne by the owner and can be partially claimed for tax purposes. Service charge statement must be prepared |
| Tax advantage | The construction costs can be amortized over 50 years at 2% per year | At 2%, the same depreciation conditions as for PA, 20 - 25% of the property costs are not depreciable |
| Risks | In the event of insolvency of the operator, possible loss of rent until a new tenant is found | Greater number of risks, e.g. eviction suits, rental nomads, legal disputes |
| Sale | Good resale opportunities for the property, as the market is in high demand | The chances of selling depend on the chosen estate agent and their knowledge of the market. May take longer |
- State coverage in accordance with SGB XI
- Rental income for at least 20 - 30 years, even in the event of vacancy or financial difficulties
- Attractive financing thanks to low interest rates
- Independence from financial markets and stock exchanges
- Guaranteed return of approx. 3% - 4% with monthly payout
- Protection against inflation through rent adjustments
- Capital is preserved plus capital appreciation
- Low purchase prices between €120,000 and €190,000
- Secured by own land register - no fund participation
- The care market is booming - too few places, real estate is not cyclical
- No additional costs, such as electricity, gas, etc.
- No maintenance measures
- 100% financing possible
- Tax advantages, commission-free purchase
- Inheritance, giving away or sale possible at any time
- Right of pre-occupancy for personal use
Conclusion - The returns are higher, the effort lower, the decisions easier.
In fast allen Bereichen punktet die Pflegeimmobilie.