Why for Sven Schwarzat the return on investment is more important than the price per square meter

Buying a property is one of the most important financial decisions in a person's life. When evaluating a property, many buyers focus on the price per square meter. While this factor is certainly important, there is one crucial aspect that is often overlooked: the return on investment. The yield describes how profitable a property is compared to the investment costs and should therefore be at the forefront of consideration. Sven Schwarzat from Schwarzat Capital GmbH reports on this.

1. return as a benchmark for profitability

The yield of a property provides information on how much return an investor can achieve in relation to the capital invested. A high price per square meter could in some cases indicate a prime location or high-quality fittings, but it says little about how profitable the property actually is, says Schwarzat. Several factors play a role in calculating the yield, including rental income, running costs and possible increases in value.

2. long-term perspective

The yield offers a long-term perspective on the profitability of the property. A property that initially appears expensive can generate a high return through high rental income and increases in value over the years. Conversely, a property with a low price per square meter can quickly become a financial trap if the rental income does not meet expectations or additional costs are incurred. It is therefore crucial to consider not only the price per square meter, but also the future income and expenses.

3. risk assessment

The yield helps investors to better assess risks. Properties with a high price per square meter are often in sought-after locations, but the risk that these markets are overheated is also high. A careful analysis of the yield provides information on whether the investment is justified. A property in a less sought-after location with a higher yield could prove to be a far safer investment if rents remain stable and operating costs are manageable.

4. financial flexibility

A higher yield often also means more financial flexibility for the investor. With higher rental income, reserves can be built up that can be used for renovations, unexpected costs or even as a basis for future investments. This not only provides the owner with better financial security, but also enables them to react quickly to changes in the market if necessary.

5. market analyses and location evaluation

The focus on yield also encourages a more comprehensive market analysis. Investors must take a close look at the location, the neighborhood and the demand. This leads to a better assessment of the property's potential. When focusing on yield, it is also necessary to pay attention to demographic developments, infrastructure projects and economic trends.

Conclusion

Overall, the yield is a much better measure of the profitability of a property than the price per square meter. While the price per square meter gives a first impression of the financial burden, the yield offers deeper insights into the actual profitability of the investment. Buyers should therefore rethink their priorities and focus on the yield to ensure long-term financial success. This is what Sven Schwarzat has done with his investments. Only in this way can they ensure that their investment remains profitable not only today, but also in the future.

About the author: Sven Schwarzat is Managing Director of Schwarzat Capital GmbH, based in Lützen. With this GmbH and also privately, he holds numerous properties in his portfolio, carries out construction projects and rents out his apartments. His focus is in and around Leipzig. His expertise and experience make him a reliable advisor for general questions on real estate and specifically on the Leipzig real estate market.

For further information, please contact (also responsible for this press release):

Schwarzat Capital GmbH
Mr. Sven Schwarzat
Ernst-Thälmann-Straße 18
06686 Lützen
Germany

phone ..: 034444909876
web ..: http://www.schwarzat-capital.de
email : info@schwarzat-capital.de

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Schwarzat Capital GmbH
Ernst-Thälmann-Straße 18
06686 Lützen
Germany

https://schwarzat-capital.de

Herr Sven Schwarzat
034444909876

info@schwarzat-capital.de

About the author: Sven Schwarzat is Managing Director of Schwarzat Capital GmbH, based in Lützen. With this GmbH and also privately, he holds numerous properties in his portfolio, carries out construction projects and rents out his apartments. His focus is in and around Leipzig. His expertise and experience make him a reliable advisor for general questions on real estate and specifically on the Leipzig real estate market.

This release was published on openPR.