Every child knows that the pension is not secure. It is all the more important to do something right now. With a Mallorca property as an investment.
A little bit of saving is by far not enough to achieve a high monthly pension in old age. In order to maintain the current standard of living in old age, let alone be able to afford a few extra trips, you have to save. And properly.
The annual savings to be made should be in the five-digit range for a 50-year-old entrepreneur. After all, according to a study by the Handelsblatt , you should save around EUR 10,000 to only receive an additional pension of EUR 1,000.
Those who do not want to rely on banks and savings banks and prefer to act actively themselves will inevitably end up with real estate. Real estate is the only way to put yourself in the driver’s seat of your retirement savings!
Real estate is a solid investment. In the long term, B locations deliver a significantly higher increase in value than premium locations.
Premium locations are locations for banks, insurance companies and funds. You certainly can’t go wrong, and they’re better than not saving at all. But banks and insurance companies work with employed portfolio managers. And they are primarily interested in a secure job. They are measured by their performance. Namely daily, weekly, monthly and yearly. If the performance is good, the job is secure. You don’t risk investing in a B location.
Real estate as retirement provision – why B locations are so profitable.
The entrepreneur who buys real estate for retirement is driven by a long-term perspective. B locations are not premium. B-locations can vary in value. However, the pension fund has a decisive luxury that the professional portfolio manager does not have: he has enough time!
Time is a luxury these days. And when it comes to retirement provision, it’s a luxury that doesn’t cost extra. On the contrary: B locations are scorned by institutional, professional buyers. And therefore offer an ideal entry-level scenario for real estate as a pension.
Opportunities in B locations for real estate as retirement provision
In the short term, B locations deliver lower returns than A locations due to their poorer location. But if you save for retirement, you benefit from a low entry-level price. You don’t have to plan as much for the financing or you can even completely do without outside capital from the bank. A 50-year-old buying for retirement can leave the item they bought for 15 to 20 years.
Do you remember your first real estate purchase 20 years ago? What has become of the district? You yourself would not have thought the development of the last 20 years possible.
In the long term, a B location often becomes an excellent A location. Investors experience this again and again. This is particularly evident in areas with potential, such as Cala Pi on Mallorca !
What you need to know when making a purchase
It is best to first do our suitability test to find out which investment suits you best . When investing in a property on Mallorca , the location plays a very important role. Premium locations cost many times as much as B locations. And we advise against C locations, the risks here are far too great. If you don’t yet know which investment is best for you, arrange a free consultation. We’re here to help!