Buying a property in Germany vs investing into MSCI World

[nwalls]

@craig01 This type of pension scheme is quite common. Many countries also have supplementary schemes that people can additionally contribute to that is solely their own savings and less of a ponzi scheme.

 

[avimay]

@craig01 Italy too and you can't opt out

 

[nj_]

@craig01 Spain has also that.

 

[britmark]

@chris1974 A property is an illiquid asset, especially in Germany where mortgages pretty much limit your ability to sell the property until you are passed the fixed period. They can also take a lot of work, things break, tenants don't pay, agents rip you off, things need to be refurbished. Where as investments in shares are liquid and can easily be sold if circumstances change.

 

[chris1974]

@britmark I agree with you. However if (hypothetically) property will bring higher returns, maybe it will be worth it for some people

 

[xianghua]

@chris1974 higher returns are a possibility in exchange for taking higher risk. While with real estate it’s hard to lower risk after some point (get the property insured, hire a property management co,...) there are many ways to fine tune the risk of your equity holding according to your appetite: you could diversify in household names to lower risk or you could go TSLA all-in on margin and expect your higher return, heck you could even dump all your money to bitcoin. These might (or might not) bring much higher return compared even to real estate. As they say, choose your weapon. Real estate is definitely not the only way to gain (lose) money

 

[resjudicata]

@chris1974 I am working for a company that targets DYI homeowners and also offers taking care of the properties entirely for them. it's still quite cheap, too. So I think the effort can be handled. On the other hand the recommendation from interviewed landlords with multiple homes is often to rather look at ETFs than RE simply because it requires so much knowledge, time, and will.

 

[madhusudhana25758]

@resjudicata Is this company you are talking about in Germany?

 

[resjudicata]

@madhusudhana25758 Why are you asking?

 

[madhusudhana25758]

@resjudicata because I would be interested to learn more? the name of the company maybe?

 

[tumin0]

@chris1974 Check also taxes.

 

[katescreates]

@chris1974 MSCI World will also be buying high although I prefer it

The one good property investment I see is buying a place that you will also live in then renting out 2 of the bedrooms

 

[chris1974]

@katescreates Yeah everything is pricy now, even MSCI World, but at least it is the whole world economy in one basket, so to say. And German best days are probably behind

 

[resjudicata]

@katescreates Yeah I like that idea, house hacking is a great opportunity indeed,