Proper API

The Multiple Advantages of Existing Real Estate as a Capital Investment

The search for a profitable capital investment can be a demanding task. In this context, existing real estate has gained in importance as a capital investment in recent years. Away from volatile financial markets, existing real estate offers an attractive opportunity to invest capital over the long term. While new construction real estate is often in the spotlight, the many advantages of existing real estate as a capital investment should by no means be overlooked.

One of the outstanding advantages of existing real estate is the ability to generate rental income immediately. Unlike new construction properties, which take time to find tenants, investors in existing properties can start earning income right from the start. This allows for a quicker return on investment and helps cover ongoing costs such as loan repayments, maintenance and taxes.

Existing properties are often located in established neighborhoods and have access to proven infrastructure such as schools, stores, public transportation and medical care. This makes them attractive to potential tenants or buyers because they are already located in a well-developed neighborhood.

Further, existing properties have often shown a proven track record of appreciation over the years. Historical data may indicate that properties increase in value over time. Investors can benefit from this continued appreciation and grow their investment over the long term.

In addition, existing properties often offer room for improvement and renovation. By making smart upgrades, investors can increase the value of the property while making it more attractive to potential tenants or buyers. This offers the opportunity to charge a higher rent or sell the property at a later date for a profit.

Existing properties also help diversify the investment portfolio. Adding real estate to the portfolio can spread risk, as real estate often has little correlation to other asset classes such as stocks or bonds.

Also, investments in existing real estate often offer tax benefits such as depreciation on certain assets and maintenance costs. These tax incentives can help reduce the financial burden on investors and maximize their returns.

Overall, existing properties offer a number of attractive benefits to investors. From immediate rental income to historical appreciation to increased potential through Before investing in a property, however, thorough research and planning is essential. With a smart approach, investors can benefit from the many advantages that existing real estate has to offer as an investment.

Why do share prices sometimes fall despite positive company figures?

The world of stock markets is full of surprises and puzzles. One phenomenon that often causes confusion is the seemingly paradoxical scenario when a company announces positive financial figures, but the share price still falls. What could be behind this?

Expectations vs. reality
One of the key factors behind stock price movements is the discrepancy between market expectations and actual company results. If analysts or investors have previously made over-optimistic forecasts for the company, even a solidly positive report may be perceived as a disappointment. In such cases, the share price could fall because expectations were not met, even if the actual figures are positive.

Profit taking
The old stock market saying "buy the rumor, sell the fact" illustrates that some investors tend to sell their shares after positive news is announced. This can lead to a temporary downward movement in the stock price. Investors may want to realize their gains by selling their positions, resulting in short-term selling pressure.

Uncertainty and future forecasts
Even if a company has achieved good figures in the past, uncertainties about its future prospects could affect the share price. Investors look not only at the current numbers, but also at the long-term outlook. If there are uncertainties, such as changes in the market environment or unforeseen events, the share price could fall despite positive figures.

Macroeconomic factors
Stock prices are also affected by macroeconomic factors beyond the control of any one company. For example, changes in interest rates, political developments or global economic trends could affect investor sentiment and thus steer share prices in different directions.

A complex interplay
The world of stock markets is complex and multi-layered. A stock price is influenced by a variety of factors, from investor expectations to macroeconomic conditions to technical trading algorithms. Therefore, it is important not only to pay attention to the pure numbers, but also to understand the background and correlations. A seemingly paradoxical behavior, where share prices fall despite positive company figures, can often be explained by this complex interplay of factors.

What are your thoughts?

It is a commonly held belief that sustainable investments may lead to lower returns. One frequently asked question is: How much return would I have to give up if I choose to invest sustainably?

However, the definition of sustainability varies from person to person. Hence, it becomes essential to clarify what exactly sustainability means to an individual and which specific issues hold importance during its implementation.

The outcome of this clarification can indeed influence the potential investment results. Nonetheless, there is no need to fear sacrificing returns. Several studies now indicate that sustainable investments do not necessarily yield worse results compared to investments that do not consider sustainability aspects. On the contrary, many studies even suggest that sustainable investments offer added value compared to conventional ones. For instance, a meta-study conducted by the Smith School of Enterprise and the Environment at the University of Oxford found that 88% of the studies showed improved operational corporate performance after adopting robust ESG (Environmental, Social, and Governance) practices. Additionally, 80% of the studies demonstrated a positive impact on stock price performance due to sustainability considerations.

In essence, taking sustainability criteria into account does not harm companies; instead, it often leads to more positive performance. This can also be logically justified since sustainable practices help in reducing risks. It particularly safeguards a company's public reputation and minimizes the likelihood of legal disputes. Moreover, a responsible approach towards employees also contributes to better long-term company performance.

Furthermore, there is a notable increase in demand and awareness among consumers regarding sustainable issues. To meet these demands, companies are compelled to address sustainability matters. Consequently, sustainable investments may involve the exclusion of certain companies or industries, but overall, adherence to sustainability criteria tends to have a positive impact on investment results.

What role do sustainability criteria play in your investment decisions?

If you invest in an investment property, working with a property management company is essential. But what are actually the tasks of a property management company?

A well-organized and professional management is crucial for the smooth functioning of a property. In this context, property management plays a crucial role. A property management company is an indispensable partner that helps owners and tenants optimize their living conditions and create a pleasant and harmonious living space.

One of the central tasks of a property management company is financial management. This includes preparing and monitoring the budget, processing payments and, in some circumstances, collecting rent and utilities. Property management ensures that all financial aspects of the property are properly managed, including bill payment, bookkeeping, and preparation of financial reports.

Another important area in which property management is involved is building maintenance. It is responsible for organizing and overseeing maintenance, repairs and renovation projects. Property management works closely with tradesmen, service providers and suppliers to ensure that the building remains in good condition and that all necessary repairs are carried out in a timely manner.

The property manager, in addition to the owner, is the first point of contact for tenants with questions, concerns or problems. It handles inquiries, complaints and assists in resolving conflicts. Good tenant relations fosters a positive relationship between tenants and property management and contributes to the satisfaction of all residents.

Property management ensures that all legal requirements and regulations related to the property are met. This includes knowing local laws and ordinances, handling insurance matters, and working with attorneys and government agencies if legal issues arise.

In addition, property management organizes regular owners' meetings to share important information with owners, make decisions and discuss common interests.

The duties of a property manager are varied and require extensive expertise in financial management, building maintenance, contract management, tenant services, legal matters and communications. By performing these tasks professionally, property management plays a key role in ensuring that properties are managed efficiently and profitably. But precisely because the tasks are so varied and sometimes very demanding, good property management companies are rare.

How satisfied are you with your property management?

How do interest rates influence the stock market?

The stock market is a complex and dynamic environment that is influenced by various factors. One of the most important factors that significantly influences movements on stock exchanges around the world is interest rates. In further we take a closer look at the influence of interest rates on the stock market and how this interaction plays out.

What is the importance of interest rates for the stock market?

Interest rates play a crucial role in influencing the stock market. High interest rates can lead investors to focus more on fixed-income securities such as bonds, where they can earn an attractive return. Stocks may appear less attractive in such an environment, as they are associated with higher risks.

Low interest rates, on the other hand, make equities more attractive compared with fixed-income investments. With yields on bonds and savings accounts low, investors are looking for alternative investment opportunities to generate higher returns. In this case, the stock market can benefit from an increased inflow of capital.

What are the interactions?

The relationship between interest rates and stock prices is complex and can be influenced by a variety of factors. A general rule is that rising interest rates can weigh on the stock market, while low interest rates can boost it.

When interest rates rise, loans become more expensive. Companies have to make higher interest payments, which can hurt their profits. This can lead to a reduced attractiveness of stocks and cause investors to shift their capital into bonds. Such a development may lead to a decline in share prices.

On the other hand, low interest rates can make corporate loans cheaper and increase corporate profits. This can stimulate the stock market, as investors are encouraged to put their money into companies to earn higher returns. As a result, stock prices usually rise.

What influence does central bank policy have?

Central banks play an important role in setting interest rates and thus have a direct influence on the stock market. Through their monetary policies, central banks can lower or raise interest rates to stimulate or cool the economy.

In times of economic downturns, central banks tend to lower interest rates to stimulate economic activity. This makes stock investing more attractive because lower interest rates make it easier for companies to borrow money and encourage investors to invest in the stock market.

Conclusion: Interest rates undoubtedly have a significant impact on the stock market. High interest rates can weigh on the stock market, while low interest rates can give it a boost. However, it is important to note that the stock market is influenced by a variety of factors and that the interactions between interest rates and stock prices are complex.

As an investor, it is advisable to keep abreast of current interest rate developments and central bank policies to better assess how the stock market might behave. Careful analysis and diversification of your investment strategy can also help mitigate the impact of interest rate changes on your portfolio.

What impact do interest rates have on your portfolio?

What is the annual income limit all about?

In Germany, there are many regulations and laws that affect our working lives. One important one is the annual earnings limit, also known as the JAEG. But what does it actually mean and how does it affect you?

The annual earnings limit is a limit that determines an employee's income for the year. It is also known as the compulsory insurance limit. If you earn an annual salary above this limit as an employee, you have the option of exempting yourself from compulsory health insurance and taking out private health insurance.

How high is the annual income limit? The exact amount of the annual income limit is adjusted every year. In 2023, it was 66,600 euros per year or 5,550.00 euros per month. It is important to note that this amount can change every year, based on legal regulations and economic factors.

What happens if my income is below the annual income limit? If your income is below the annual income threshold, you are automatically insured in the statutory health insurance. You pay the corresponding contributions, which are usually calculated according to your income. There is no possibility to exempt yourself from the statutory health insurance obligation as long as your income is below the annual income threshold.

What happens if my income exceeds the annual income threshold? If your income exceeds the annual income threshold, you have the option of exempting yourself from the statutory health insurance obligation. This means that you can take out private health insurance. The conditions and benefits can be very strongly individualized in the private health insurance and thus adapted to your personal needs. Therefore, the switch to private health insurance can be associated with some advantages such as lower premiums or better health care.

Conclusion: The annual income limit is an important regulation in German labor law. It determines from which income you have the possibility to exempt yourself from the statutory health insurance obligation and to take out a private health insurance. Before switching to private health insurance, however, you should be informed in detail about the advantages and disadvantages.

Have you ever thought about switching to private health insurance?

What are the advantages of a private pension (annuity) insurance?

There are many different ways to provide for old age. Real estate, shares, fund savings plans, investments...

But what are the advantages of a private pension insurance?

Since the state wants to support citizens in building up old-age provisions, certain products whose goal is clearly geared towards an additional old-age pension are tax-privileged. In contrast to a "normal" fund savings plan via a custodian provider, no taxes have to be paid on the returns during the savings phase (usually until 67). As a result, the compound interest effect is even more pronounced.

Depending on the specific structure of the pension insurance, the contributions can also be tax-deductible or only parts of the income have to be taxed at retirement age.

In addition, the provider guarantees that the pension will be paid out until the end of one's life. So it doesn't matter how old you get, whether you die at 90 or perhaps even exceed 100, the pension will be paid out until you die. This advantage should not be underestimated. It's hard to imagine what it would be like to suddenly not receive a pension at an advanced age because you didn't expect to live to that age.

How do you provide for your pension?

There are many different strategies to make money on the capital market. Some work better than others, but the bottom line is that almost all strategies have different advantages and disadvantages. One strategy that is often talked about is the dividend strategy, because it is supposedly easy to understand and implement. The idea is to invest in companies that pay particularly high dividends (i.e. profits).

Worldwide, dividend payouts are at a record level. Last year, German companies paid out around 55 billion euros in dividends. Spread over the entire world, the figure was as high as 1.52 trillion US dollars.

As a rule, companies that pay out high dividends are established companies that can score with stable profits, especially in weaker market phases. On the other hand, they are also often companies that have already reached a certain size and are therefore no longer growing as strongly as other companies. Which one is ultimately better off depends in particular on the current market phase.

But just how important dividends can be is illustrated by the German benchmark index. Since its launch in 1987, 62% of price gains have been attributable to dividends.

However, one should not only blindly pay attention to the dividend or the dividend yield. A high dividend yield can also be a warning signal. It is the same as with all other key figures: a key figure alone says nothing about the quality of the company and thus about the potential investment.

What role do dividends play in your portfolio?

The most important location characteristics of a profitable investment property

When it comes to an investment property, location plays a crucial role in the success of your investment. A good choice can determine whether your property is profitable and increases in value in the long term. In the following, we will take a closer look at which location characteristics should be given special attention:

A prime location is characterized by high demand for rental housing or commercial space. A growing population, a thriving economy and good employment opportunities are indicators of strong demand. Local population trends, labor market conditions, and leasing rates in the area should be reviewed to maximize the leasability of the property.

Excellent infrastructure is another important characteristic of a prime location. Proximity to schools, universities, hospitals, shopping centers, public transportation, and recreational facilities is extremely attractive to potential tenants or buyers. Consideration should be given to whether the infrastructure is well developed and whether planned infrastructure projects can support future value growth. For example, access to public transportation can be significantly improved by the construction of a new bus stop or due to the connection to a new or existing bus line, thus significantly increasing the attractiveness of the property.

A central location in the city or in an up-and-coming neighborhood can have a significant impact on the value of the investment property. Good access to the city center, business districts and major transportation routes is an advantage. Locations should be sought that offer a good mix of convenience, attractiveness and potential for appreciation.

It is important to consider the specific target tenant group and their individual needs. The definition of a good location can vary depending on the type of property and local market conditions.

At the end of the day, a prime location is a key factor in the success of your investment property. When you consider high demand, good infrastructure and potential for long-term appreciation, you lay a solid foundation for a profitable investment.

What are the benefits of private health insurance (PHI)?

When it comes to choosing health insurance, we all want the best care and the most comprehensive protection for our health. In Germany, we have a choice between statutory health insurance (SHI) and private health insurance (PHI). But what are actually the advantages of PHI and why is it an attractive option for many people?

First of all, a major advantage of PHI is the ability to customize insurance coverage. We all have different needs and preferences when it comes to our healthcare. With PHI, we can choose from a variety of plans and tailor coverage to meet our individual needs. This means that we can include benefits such as free choice of doctor, accommodation in a single room or treatment by a chief physician. This flexibility gives us the certainty that we have the right protection.

In addition, PHI often offers more extensive benefits compared to SHI. This means we can benefit from shorter waiting times for doctor's appointments, faster access to specialists and expanded treatment options. In addition to medical benefits, many PHI providers also offer additional services such as health checks, preventive examinations and special health programs. This gives us more comprehensive and individualized care.

In PHI, we have the freedom to choose our doctors, specialists and hospitals. This ability to choose our doctors freely plays an important role in allowing us to seek out experts and specialists who meet our needs and preferences. This gives us the confidence to receive the best possible medical care and choose the right treatment options.

Furthermore, with private health insurance, we can often benefit from faster medical services. Waiting times for doctor's appointments and medical procedures are usually shorter than with SHI. This means that we can receive timely diagnoses and effectively treat our health problems. In addition, many PHI providers place great emphasis on high quality service. We receive personal attention and support to ensure that our health needs are met in the best possible way.

Overall, private health insurance offers a number of benefits. Customization of coverage, more comprehensive benefits, free choice of doctors and faster treatment are just some of the reasons why many choose private health insurance. However, the tariff world of private health insurance is a very complex and difficult field to pe*****te. Therefore, sound advice from experts is important and can help make the right choice for personal needs and find the best possible health insurance. Because at the end of the day, it's all about having protection that makes us feel good and gives us the best possible support in health matters.

In the statutory health insurance, the deductible rate, i.e. the co-payment, is in principle the same for everyone. For remedies and aids, the co-payment is 10%, with a minimum of 5 euros and a maximum of 10 euros.
For certain treatments, such as dentures, there are special regulations.

But how does it actually look in the private health insurance?

Here there are different models between which the policyholder can choose and also the amount of the maximum deductible can often be selected when the contract is concluded. Very common is the variant that the policyholder pays all costs up to a fixed annual amount and only beyond that is paid by the insurer. In another model, the policyholder always pays a fixed absolute or percentage contribution from each invoice (e.g. 10%). In this variant, too, there is of course a maximum limit above which no deductible is payable.

Overall, the higher the deductible, the lower the monthly premiums. But especially for employees it can be quite reasonable to accept the higher contributions and to do without a deductible. If the contribution for private health insurance is not higher than the contribution for statutory health insurance, the employer pays half of the contribution. The deductible, on the other hand, must always be paid out of one's own pocket. As a result, it can be significantly more advantageous to accept the higher monthly contributions and, in return, not agree to a deductible.

When do we actually talk about a moat in companies?

A moat in the investment world describes a type of competitive advantage that a company has to keep its competitors at bay. This competitive advantage is extremely important for many companies, but the value of the moat can rarely be determined in monetary terms. A moat can take different forms and provide different benefits to a company. Below are a few examples:

Coca-Cola: Coca-Cola is a company with a strong brand and a long history. The Coca-Cola brand is known worldwide and has high brand awareness and loyalty, which makes it difficult for competitors to enter the market and poach customers.

Apple: Apple has built a moat in the form of its ecosystem of hardware, software and services. The integration of products such as the iPhone, iPad, Mac and iCloud, as well as exclusive services such as iTunes and the App Store, create a high level of customer loyalty and make it difficult for competitors to offer a comparable ecosystem.

Microsoft: Microsoft has built a moat in the area of operating systems and office software. With Windows as the dominant operating system and products such as Microsoft Office, the company has achieved a strong position in the enterprise and consumer market.

Google: Google has created a moat in the Internet search engine sector. Through the high quality and relevance of its search results, Google has achieved a dominant market position and it is difficult for competitors to offer a comparable search engine.

Amazon: Amazon has built a moat in the e-commerce space. The company has a huge product selection, fast delivery times, an efficient logistics network and an established marketplace, making it difficult for competitors to offer similar services.

Generally speaking, however, a moat is not insurmountable and companies must constantly strive to strengthen their competitive position and adapt to changes in the business environment. A strong and sustainable business model requires continuous innovation and adaptability to maintain competitive advantages.

What are the advantages of an annuity insurance?

There are many different ways to provide for old age. Real estate, shares, fund savings plans, investments...

But what are the advantages of a private pension insurance?

Since the state wants to support citizens in building up old-age provisions, certain products whose goal is clearly geared towards an additional old-age pension are tax-privileged. In contrast to a "normal" fund savings plan via a custodian provider, no taxes have to be paid on the returns during the savings phase (usually until 67). As a result, the compound interest effect is even more pronounced.

Depending on the specific structure of the pension insurance, the contributions can also be tax-deductible or only parts of the income have to be taxed at retirement age.

In addition, the provider guarantees that the pension will be paid out until the end of one's life. So it doesn't matter how old you get, whether you die at 90 or perhaps even exceed 100, the pension will be paid out until you die. This advantage should not be underestimated. It's hard to imagine what it would be like to suddenly not receive a pension at an advanced age because you didn't expect to live to that age.

How do you provide for your pension?

It is commonly assumed that sustainable investments yield a poorer return... For example, one frequently asked question is: How much return do I have to forego if I invest sustainably?

But everyone defines sustainability differently. Therefore, it would first have to be clarified what one specifically means by the term sustainability and which issues are important to one in the implementation.

The result of this can of course have an influence on the possible investment result. However, one should not be afraid of having to forego returns. There are now a whole series of studies that show that sustainable investments do not achieve a worse investment result than those investments in which sustainability aspects do not play a role. On the contrary, many studies even show an added value of sustainable investments compared to conventional investments. For example, a meta-study by the Smith School of Enterprise and the Environment at the University of Oxford concluded that 88% of studies demonstrated better operational corporate performance following the application of sound ESG practices. In addition, 80% of the studies also demonstrated a positive impact on stock price performance due to sustainability considerations.

So, in essence, taking sustainability criteria into account does not harm companies, but usually leads to a more positive performance. This can also be logically justified. After all, sustainable action reduces risks. In particular, public reputation can be protected and legal disputes can be avoided. But a responsible approach to one's own employees also leads to a better company result in the long run.

In addition, there is a strong increase in demand and awareness on the part of consumers for sustainable issues. To meet these demands, companies are forced to address sustainability issues.
Sustainable investments therefore naturally lead to the exclusion of certain companies or industries, but overall sustainability criteria have a positive impact on investment results.

What role do sustainability criteria play in your investment?