Investment Property in Schwerin

Invest in Real Estate in Schwerin

Investment Property in Schwerin
Investment Property in Schwerin

Schwerin property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Schwerin .

Search Map of Schwerin Investment Real Estate

Schwerin (German: [ʃveˈʁiːn] (listen); Mecklenburgian Low German: Swerin; Latin: Suerina, Suerinum) is the capital and second-largest city of the northeastern German state of Mecklenburg-Vorpommern as well as of the region of Mecklenburg, after Rostock. It has around 96,000 inhabitants, and is thus the least populous of all German state capitals.

Schwerin is located on the southwestern shore of Lake Schwerin (Schweriner See), the second-largest lake of the Mecklenburg Lake Plateau after the Müritz, and there are eleven other lakes within Schwerin’s city limits. The city is surrounded by the district of Northwestern Mecklenburg to the north, and the district of Ludwigslust-Parchim to the south. Schwerin and the two surrounding districts form the eastern outskirts of the Hamburg Metropolitan Region. The name of the city is of Slavic origin, deriving from the root “zvěŕ” (wild animal) or “zvěŕin” (game reserve, animal garden, stud farm).

Schwerin was first mentioned in 1018 as Zuarina and was granted city rights in 1160 by Henry the Lion, thus it is the oldest city of Mecklenburg-Vorpommern. As main residence of the House of Mecklenburg, a dynasty with Slavic roots also known as the Obotrites or Niklotides, Schwerin was the capital of the Duchy of Mecklenburg-Schwerin from 1379 to 1815, of the Grand Duchy of Mecklenburg-Schwerin (after the duke was elevated to the title of a grand duke) from 1815 to 1918, of the Free State of Mecklenburg-Schwerin from 1918 to 1934, of the State of Mecklenburg (after it was merged with the Free State of Mecklenburg-Strelitz) from 1934 to 1952, and of the District of Schwerin from 1952 to 1990.

The romantic Schwerin Palace, situated on Castle Island between Lake Schwerin and Castle Lake, known for its golden dome, the Castle Church, the throne room, and the Niklot statue, used to be the seat of the dukes and grand dukes of Mecklenburg-Schwerin, and since 1990, it is the seat of the state parliament of Mecklenburg-Vorpommern. Schwerin’s silhouette is completed by the towers of Schwerin Cathedral, St Paul’s Church and St Nicholas’ Church. Because of only minor damage in World War II, the city has a largely intact building structure, both in the Altstadt (Old Town) and Schelfstadt (Reed City) quarters.

Major industries and employers include high technology, machine building, healthcare, government agencies, railway supply, consumer goods and tourism. Schwerin has two academic colleges, the Schwerin campus of the “Fachhochschule des Mittelstands” (University of Applied Sciences of the Mittelstand), and the Schwerin campus of the “Hochschule der Bundesagentur für Arbeit” (University of the Federal Employment Agency). There is a regional airport in Parchim, southeast of the city, while Hamburg Airport serves as the city’s main airport.

The financial stability of Schwerin has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Schwerin

 

Renting out your Schwerin buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Schwerin are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Schwerin and be prepared to change your initial outlook.
  • Thoroughly research the Schwerin location with a special emphasis on fringe areas outside the main Schwerin metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Schwerin.
  • Ensure that your target investment property in Schwerin appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Schwerin provides the secure knowledge that your money is working harder than it would in a local Schwerin bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Schwerin, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Schwerin property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Schwerin

Flipping property in Schwerin

 

Flipping property is when we advise clients to buy a Schwerin property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Schwerin market has a time to react to the renovation.

 

The Flipping Strategy in Schwerin

 

Investment property flipping in Schwerin is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Schwerin real estate investments are sometimes referred to by professionals as ‘distressed’ Schwerin real estate.

 

What is distressed Schwerin property:

 

  • Schwerin property in need of renovation
  • Schwerin real estate with a change of purpose and use
  • Oversold Schwerin property
  • Bank repossessions in Schwerin

Put simply, long term investors in Schwerin purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Schwerin investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Schwerin property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Schwerin use a minimum profit value of 22% when looking at potential Schwerin projects.

 

The reason for this is because there are lots that can go wrong in Schwerin property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Schwerin

 

Property Secured Investments is a Private Equity fund that invests in Schwerin and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Schwerin

For luxury property investors hoping to add a superb property in Schwerin to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Schwerin, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Schwerin should be entrusted to only the highest-quality agency.

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