BREXIT: these are the consequences for the German real estate market
The BREXIT will have many consequences – political and economic. This has implications for the individual asset classes. Falling prices on stock exchanges is leading investors to favour tangible assets over stocks.
Finest hour for tangible assets
In recent years there has already been a clear trend towards real estate. This trend is fueled on by the BREXIT. Currently the reason is the great uncertainty in the capital markets. On the one hand it is poison for the stock markets, but on the other it acts as a catalyst for investments in tangible assets.
Investors will be placing more on security after the BREXIT vote. This will continue for some time. The uncertainty will remain as long as there is clarity about the consequences. And that may take some time. According to the Maastricht treaty an actual BREXIT will not happen for at least two years.
Gold or real estate?
This raises the question of whether gold or real estate is the more suitable tangible asset. The day after the BREXIT, the gold price per ounce rose by more than 10% and thus once again confirmed its reputation as crisis currency. But this short-term effect should not obscure the disadvantages of gold as an investment. For example, there is no interest when investing in gold. That is the essential difference to asset value real estate, in which a regular interest rate is available through rental income.
German real estate as a safe haven
German investors will especially have the German real estate market in their sights. The residential real estate market in Berlin will greatly benefit from this and drive prices up further. In comparison to other European capitals property prices in Berlin are extremely low and therefore very attractive to investors.
Prices in 2015 therefore already rose by more than 10%. This trend will only be further reinforced by the BREXIT.
Invest in CASPER THEYSS BERLIN now
Many link investment in real estate with an extremely high capital expenditure. In the past it was indeed very difficult to invest small sums. Real estate crowdfunding provides a solution: Starting at 500 Euro Investors can currently invest in the Berlin residential real estate CALVIN BERLIN and achieve a
fixed annual return of 5% with a maturity term of 12 months. For further information, click here.