How do I make money by buying real estate?

A good real estate investment is like a stock savings plan. With one exception: The money invested isn't your own.

Three magic words: cash flow, rental yield, appreciation. 

As soon as your cold rent exceeds your mortgage fees (interest and repayment), you'll achieve a  revenue surplus with your real estate investment. This surplus is your cash flow. 

In addition, you benefit from the fact that every monthly repayment lowers your outstanding mortgage. The great thing is: the money that you use for this repayment isn't yours, but the tenant's money. 

Lastly, you profit long-term from the general value appreciation of a well-chosen property.

Why an investment in real estate is a real supplement to shares you can find out in our podcast episode "Lohnt sich eine Eigentumswohnung als Kapitalanlage?".

Note: German audio only.