Boost your returns with an apartment in Florida
Germany as an invest desert
In recent years, it has become increasingly difficult to find ways to achieve a sufficient passive income for retirement.
There is virtually no interest on financial investments and it seems like this situation will only continue. More and more Germans are beginning to worry about life insurance as an investment for their retirement. With returns constantly down, many savers are wondering how safe their money really is in insurance products.
The home ownership fallacy
The situation on the real estate market is different. There, prices for single-family homes and apartments are constantly on the rise. Homeowners are happy to know that, in many cases, their home is worth over one million euros. However, as they naturally want to keep living there, there’s no concrete benefit to be derived from this. The increase in house value offers no means of achieving a passive income for retirement.
Housing in Germany as retirement provision
Apartments can hardly be called lucrative investments anymore. Due to high purchase prices, gross return is generally only about 2% – a sobering realization given the high expenses incurred by real estate investment. In addition, demand is enormous, especially in urban areas. This leads to utopian selling prices and often destroys any lingering hopes for positive returns on investment.
Stocks – an alternative for young investors
Investing money in the stock market is certainly a good strategy for young people. However, if you need the money for retirement in the near future, the normal fluctuations of the stock market will not match your requirements. Also, every opportunity for higher returns is associated with increasing risk.
Tip: A real estate in Florida
The good news is that today you can invest globally. In the US, and especially in Florida, real estate prices are much lower. The returns on a house in the US are much higher than on one in Germany. Renting out your Florida apartment will achieve returns far above the average. Whereas German investors might receive 2% in their home country, they can achieve a gross return of over 10% by renting out apartments in Florida.
All it takes is to become a landlord. Your tenant in Florida will then transfer your “rent annuity” month after month, offering security for your retirement plans.
An example par excellence
Let’s assume you have an apartment with 100 square meters living space, and you rent it to a solvent tenant. You receive a rent of about $1,000, totaling $12,000 a year. Costs to be taken into account are taxes, insurance, administration, and interest. From experience, count on deducting a total of about $6,500. This leaves you with $5,500 annual return. In terms of capital investment, your Florida apartment will generate more than 10% returns. This is difficult to achieve with conservative investments.
Insider tip: funding in Germany
Take advantage of loan funded in Germany. This increases your annual returns considerably. Use this link to create a sample calculation tailored to your personal situation. Contact.
By the way, for this type of investment you don’t even need an address in the US or any special permit. AVT Service and the US partner companies will take care of the entire process. AVT Service is your experienced partner when it comes to successful investments in Florida.
Give yourself independence
Investing in Florida not only gives you access to higher returns. By reducing your currency dependency on the euro, your property in Florida offers a further advantage. If the strong ups and downs in the euro zone cannot be handled positively, as hoped, a solid investment in dollars with ongoing returns becomes even more important. The dollar is the reserve currency, and is hedged by its position in the global economy. For investors wanting to minimize their risk, it is therefore advisable to hold investments in US dollars as well as euros. Get a calculation tailored to your personal situation and request more information about the Landlord Return Plan. Berthold Schadek and his AVT Service team look forward to offering you comprehensive and no-obligation advice.
By the way, as a resident of Germany, you can receive the rent largely tax-free. Please click here for a personalized calculation and for further information.