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Frequently Asked Questions

It is a capital investment in the literal sense. It involves the investment of capital to benefit from regular monthly returns or the appreciation of capital. Capital investment can include assets such as stocks, precious metals, and real estate. The most common form is real estate investment. In Germany, "Kapitalanlage" often refers to purchasing an apartment with the aim of rental income and capital appreciation. However, you are not obligated to make a capital investment; you can also partially or fully finance the apartment with a loan. This is also referred to as Kapitalanlage.

If you purchase an apartment with the intention of renting it out, you can deduct interest expenses within the loan payment, as well as other costs like insurance, renovations, and many other costs from your taxable income. This can potentially result in receiving a tax refund. If you buy an apartment for your own use though, interest and other expenses are not tax-deductible. Therefore, buying an apartment for rental purposes is more advantageous, especially during high-interest periods. Another advantage buying apartment during times when interest rates are high, is fast appreciation potential. Housing prices are expected to increase fast when interest rates start to decrease.

Yes. Unfortunately, due to macroeconomic measures against inflation, housing loan interest rates have jumped from 1-2% to 4-5%, and banks are currently very selective when granting housing loans. However, thanks to agreements with partner banks, BuildFuture can secure full credit for our properties in the right location and value.

When interest rates increase, loan payments also rise. However, when you buy a property for renting, you can deduct the entire interest expenses from your taxes, potentially receiving a tax refund. Therefore, this disadvantage is significantly reduced. On the other hand, property prices tend to rise rapidly when interest rates fall, so buying real estate these days is highly advantageous, allowing you to seize the period of value appreciation.

No. Unfortunately, Germany does not provide residency or citizenship solely through the purchase of real estate. However, due to its stable economy, real estate investment in Germany offers high and reliable returns in terms of both monthly rental income and appreciation. Many immigrants move to Germany each year, leading to an increase in rental yields and property values, particularly for smaller square meter residences.

In Germany, the average rental yield rate is approximately 3%. However, through the BuildFuture network, we can offer you apartments with a yield rate of around 5%. In addition to rental income, our customers can benefit from an annual appreciation rate of 4-5%. The Kapitalanlage system usually results in a tax return rather than a tax payment, if interest rates are above 3%. For rented apartments, if sold 10 years after the purchase date, there is no capital gains tax on the increase in the apartment's value. Contact us for more details.

Demand for rental and purchase of small apartments, up to 60-70 square meters, is high and is expected to increase even further in the future. Demand from immigrants, the declining purchasing power of the middle class, and the preference for smaller apartments over larger homes are driving this trend. Additionally, renting, selling, and obtaining loans for small apartments are easier and faster. Since mortgage loan amounts are limited by customers' monthly incomes, many customers can only afford small apartments. Therefore, it is expected that the percentage increase in the value of small apartments in the coming years will be much higher than that of larger apartments.

As of November 2023, Germany has adopted one of the most modern and inviting immigration laws in the world to address labor shortages in various sectors. At a time when Germany is already facing a housing shortage, an influx of more immigrants is anticipated. There will be high demand for renting small apartments and consequently increased demand to purchase small apartments near city centers.

Yes. In Kapitalanlage investments in Germany, all interest expenses and other costs can be deducted from taxes, leading to potential tax refunds. We can assist you in receiving tax refund payments in your monthly payslip.

Individuals with income in Germany, Switzerland, or Austria can fully benefit from BuildFuture. Unfortunately, those outside these three countries cannot take advantage of the credit opportunities. However, BuildFuture's advantages are not limited to credit agreements alone. They can buy high-yield properties with high appreciation potential. Residence in Germany is not required for real estate investment in Germany. We provide full-service to all customers, presenting high-yield, high-appreciation potential apartments, managing the purchase process, notary and title deed procedures together, offering full service property management including post-sale rental guarantees, and handling maintenance, repairs, and tenant relationships. If you want to protect your capital from inflation and generate regular income without dealing with tenant and home-related issues, please contact us.

With our full-service system, we differentiate ourselves from competitors. We provide full-service not only before the sale but also during and after the sale. With over 50 years of construction knowledge and experience, we are familiar with the region's locations with high appreciation potential. In these locations, we find real estate with high rental yields. After conducting a technical inspection of the apartment with our experts, we can secure full credit for you from our partner banks, which is a crucial difference – you become a homeowner without a down payment. We handle the credit, notary, title deed procedures, and other legal bureaucracy. We manage the property, providing you with rental guarantees – which is another significant difference. You only make the investment decision; we take care of the rest.

Banks in Germany typically request a down payment of 20% of the apartment's selling price from customers. As we develop apartments with high rental yields and high appreciation potential, we can offer you down payment-free mortgage credit through our partner banks.

Build Future does not charge commission or agency fees from its customers. As we are often already the owners of the properties, you, as customers, save on the approximately 6% real estate agent commissions. We are paid by landlords if we are not the owner of the property.

Buying an apartment in Germany can be tedious. It typically takes 1-1.5 months with various steps involving different parties. With years of experience, we will handle all bureaucratic steps before, during, and even after the purchase process. You only need to decide to invest, leave the rest to us.

A significant portion of your credit will be covered by the rent. Timely payment of rent is crucial. Therefore, at BuildFuture, we provide you with rental guarantees. An Insurance we use to resolve such an issue is called "Mietausfallversicherung" in German. If the rent payment is missed for a few days or not made at all, this insurance helps you make your credit payments smoothly. 3 months rental deposit, and insurance cover pretty much most if not all this risk. But as a last resort our so called "Hausverwaltung" company offers rent guarantee, just to make sure that rent is paid.

Normally, there are 3-month rental deposits to cover such damages. However, the damage may exceed this deposit. In such cases, we use suitable insurances to cover the costs of the damage. These insurances also cover legal expenses when needed. (Vermieterrechtschutzversicherung)

Experiencing legal issues with tenants is a rare occurrence in Germany. However, if a legal problem arises, we use suitable insurance to avoid attorney fees. Such insurance typically costs around 10-15 euros per month.

As a property owner, we don't leave you alone after purchasing the apartment. We provide you with a service called "Hausverwaltung." Typically, apartments are already rented. However, if the apartment is vacant or when a tenant moves out, finding a new tenant becomes necessary. We handle processes on your behalf, such as finding tenants, lease agreements and optimization, rent increases, rent collection, ensuring tenants have the necessary insurance, resolving tenant issues, and ensuring that necessary repairs are done quickly and at the most reasonable costs.

Alongside the appreciation of the value of the property, rental income is the most significant source of income. It is crucial to protect this rental income against inflation over time. For this purpose, it is essential to properly structure lease agreements and closely monitor the legally entitled rent increase periods. Within the scope of our "Hausverwaltung" service, we also keep track of these rent increases.

We are always with you. With our "Hausverwaltung" service, we also provide the service of finding new tenants.

Within the scope of our "Hausverwaltung" service, tenants contact us for all issues. As a construction company, we resolve most repairs through our own craftsmen, known as "Hausmeisters" at the most reasonable costs. Outsourcing these minor repairs to an external company could have been 3-4 times more costly.

Most often, the necessary repairs can be a malfunctioning electrical socket or a non-functioning door or window. If you were to call an external commercial repair company, not only would it be very expensive, but getting a quick appointment from these companies is also not easy. Within the scope of our "Hausverwaltung" service, these repairs will be much less costly for you.
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