The crisis is coming to a head, inflation is growing, and interest rates are rising. Those who want to fulfil their dream of owning their own property face enormous financial challenges. For some, the dream is even dashed altogether. For those who cannot and do not want to resign themselves to this, the co-ownership model offers a perfect alternative to sole ownership of a holiday property, especially at the present time. This combines the benefits of ownership with full-service on-site management. The concept reduces the costs of acquisition and ongoing maintenance to a fraction of the costs of sole ownership, without noticeably limiting the use of the property.
In times when interest rates exceed the 3 percent mark, and the trend is upwards, the dream of owning one's own property is no longer attainable for everyone who is interested. In troubled times, the purchase of a dream property is postponed indefinitely, as financial bottlenecks and burdens make it difficult or even impossible. Banks are currently granting fewer or smaller loans and are calculating more conservatively when it comes to financing. In addition, since mid-2022 the deposit rates at the ECB for banks are no longer in negative territory, which reduces the pressure on banks to work with their deposits. Restrictive lending with higher interest rates and capital requirements is the result. David Schmitt, managing director at Engel & Völkers, describes the situation as follows: "Whoever was able to handle a budget for a house worth a million euros just months ago can suddenly only handle 800,000 euros because of the higher construction interest rates." (Source: Handelsblatt 29.08.2022). Many people interested in real estate are faced with the decision to either raise more equity than planned or to forego their dream home and make restrictions in terms of location and size. Co-ownership, however, makes this decision easier to circumvent. The lower costs due to the pro rata purchase also enable interested parties with low equity to acquire their dream property. Without having to cut back on the property, they can treat themselves to their holiday property and enjoy their second home.
The running costs of a second home are often not fully considered when buying a property. Effort, time and costs for duties and maintenance of the property are not adequately calculated. If the financing and management costs increase too much due to inflation, you fall into a financial trap as a single owner. Rising energy costs are currently largely responsible for the high level of inflation. Closely related to this are sharply rising operating costs (Source: Immobilien-Investments in Deutschland (Institutional Investment 26.0)).
Anyone with financial means of their own can obtain a high-quality property at a fraction of the total costs, i.e. become a co-owner and use it themselves. This is because the prospective buyer needs much less equity capital for the acquisition of a share in his dream property than for sole ownership, and can therefore finance his share with significantly less borrowed capital. And this also makes them less dependent on the development of rapidly rising interest rates on loans. In addition, the rising ancillary costs due to inflation do not affect the individual as much in co-ownership as in sole ownership. MYNE's concept of co-ownership distributes the management costs among several owners right from the start. For the individual, it is correspondingly more favourable, especially in times of inflation. The combination of interest- and inflation-reducing properties and high value stability brings the dream villa within reach even in times of crisis.
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