Housing Market Experts

Players in real estate who do not permanently monitor and analyze the market need good advisers even more than investors in financial markets.

Just as in financial markets, the real estate market is undergoing dynamics (e.g., demographic trends, interest rates, location development, rent progression, housing trends, inflows/outflows, transportation links, employment) that affect the value of both existing and planned investments. The Zinshaus market is subject to different criteria than other real estate segments. The dynamics in the real estate market are also more complex and less transparent than in financial markets, since, for example, each property represents a unique product in and of itself. An analysis of these complex dynamics is therefore necessary on a local, regional as well as supraregional basis in order to be able to react accordingly. Usually, a private investor has neither the capacity nor the time for such critical and comprehensive analysis.

Meanwhile, both optimal buyers (purchase price/marketing time) and matching properties are increasingly being found – nationwide and even throughout Europe. Barely any brokers in the Zinshaus market operate nationwide, let alone internationally. Due to internal structures and agreements, even the "big brokerage companies" usually work only in certain regions (e.g., protected areas) and a "loose coupling in their own network". For investors who want to spread across Germany, this is a disadvantage.

Local real estate consultants with a “one size fits all” concept (around 95 % of all brokers) cannot meet the required consulting standard the Zinshaus market demands – neither on the investor nor the seller side – due to their size, limited reach and lack of specialization.

This results in a principal-agent problem between client (principal) and broker (agent), aggravated by mutual intransparency: The owner who is willing to sell wants the best possible price and speedy marketing. The limited brokers within their reach lack the supraregional investor access. At the same time, they strive for a quickly achievable brokerage fee, and are usually unwilling to share the fee or unable to collaborate nationwide. The resulting risks for the owner: disproportionately long marketing times and sub-optimal pricing.

For the investor, in turn, the search effort for suitable properties and the risk of weak investments increase.

Other players are also of little help here:
Due to fierce competition and the resulting pressure on margins, property managers focus on completing their contractually agreed core activities in operational management, mostly limited to tenant management. Tax consultants look primarily at things from a tax angle, but not on the holistic financial and economic treatment of real estate assets.

Today, strategically controlling real estate assets with the aim of preserving and maximizing value remains in the hands of the owner or their asset manager. Only at this level can real estate assets be classified and managed via strategic asset management in the overall asset context. For this reason, many private owners focus very intensively on investing in regional proximity and thus close off more attractive opportunities in supraregional locations.

We at SAEGER & CIE. acknowledge these facts. Our private real estate investment services in the Zinshaus market fully meet the requirements. Our services offer practical as well as commercial advantages and provide a high benefit.