Age isn't important. It depends on your life situation.

Why real estate is a worthwhile retirement investment
The state pension will be increasingly lower for many Germans in the future. The amount of pension varies depending on how much was paid into the pension fund during working life. It is therefore already recommended to start making private provisions for old age as early as possible. Owning your own property is one way of doing this.
Owning your own home as retirement provision
According to a study by LBS published in early August 2022, owning your own property reduces your overall housing costs – even if owners who are paying off a loan initially have more expenses and have to restrict themselves financially. The savings for owners over the age of 64 who had paid off their property were statistically around 205 euros per month. Homeowners also do not have to worry about rent increases and can modernize their property in such a way that energy consumption is reduced in the long term.
However, despite all the advantages and freedoms that owning your own home offers, owners should not forget one thing: repairs, maintenance, and government-mandated adjustments (Building Energy Act) cost money. Therefore, a financial reserve should be created. Depending on the project, the costs can far exceed $1,000—even if some government subsidies are available. If you are a property owner or prospective buyer and have questions about increasing the value of your property or are looking for a financing partner for your purchase, you can seek advice and support from a qualified real estate agent in your area.
Real estate investment as retirement provision
As a private investor, rental income generates returns that vary depending on the location, condition, and amenities of the property. This allows you to build up your assets in a structured manner. Owners can deduct the costs of purchasing the property and the annual interest payments from their taxes. From investment strategy and location analysis to property management, there are many challenges facing every investor. Anyone interested in real estate as a capital investment should therefore seek the assistance of an investment broker. They can assess whether the investment is profitable and guide you through the transaction process.
Real estate annuity for owner-occupied property in old age
Those who want to supplement their income in old age can put their property into retirement. In return, they receive the right to live in the property and a one-time payment and/or regular monthly payments. There are various models: life annuity, partial sale, and temporary annuity. If you have any questions or are interested in selling your property, you can seek advice from a local real estate agent.
Do you have questions about purchasing a property as a retirement provision? Then contact us. We will be happy to advise and support you.
Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
Photo: © KatarzynaBialasiewicz /iStock.com