Buying a property as an investment
Yes, it can be worth it. We find the right property, arrange financing of up to 110 % and take care of letting with a rent guarantee.
- Financing offers from 920 banks in 24 hours
- Rent guarantee: rent loss risk is covered
- We handle property and rental management
- No broker fees
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How to buy an investment property with Westmont Immo
Westmont Immo guides you from property selection through financing to letting. You invest in a rented property, and we take care of financing, the rent guarantee and property and rental management. Financing can cover up to 110 % of the purchase price, including incidental costs. Which terms are possible depends on creditworthiness and property. We clarify this together in the consultation.
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Financing
Up to 110 % of the purchase price, without your own starting capital.
Letting
Rent guarantee for steady monthly income.
Management
We take care of property and rental management for you.
Who is this for? Choose your situation
With a stable income, we check which financing of up to 110 % is possible for you.
As a self-employed person, too, we check your financing – we discuss the details in the consultation.
As an investor, you get properties suggested by location, condition and energy efficiency class.
Book a consultation→
Find the right investment property
The model is aimed at employees, self-employed people and investors who want to build wealth over the long term. We analyse your situation and suggest properties that fit – by location, condition and energy efficiency class.
- Comprehensive documentation for a secure purchase
- Live online viewings
- Personal on-site viewings
Financing offers in 24 hours
We submit your loan application to 920 banks and present you with the best loan offers within 24 hours. We also check possible KfW subsidies for your property.
- No equity required
- Up to 110 % financing
- KfW subsidies of up to €70,000 per unit
- No broker fees
Rent guarantee and property management
Tenants are selected professionally, including a credit check. We take care of property and rental management for you. With the rent guarantee you receive steady monthly rental income, even when tenants change or rent is missed.
Rent default risk covered
The rent default risk is covered in full.
Steady income
Steady monthly rental income is guaranteed.
What is left for you? An example
With a €250,000 purchase price and €1,000 base rent you pay around €294 per month after tax and build up around €458 of repayment at the same time. Assumptions: financing of 110 % (€275,000), 3.5 % interest, 2 % repayment, 35 % tax rate.
€1,000
Base rent per month
approx. €1,260
Loan payment per month (3.5 % interest, 2 % repayment)
approx. €294
Out-of-pocket per month after tax, of which approx. €458 is repayment
Example with freely chosen figures, not an offer. Before tax the out-of-pocket amount is approx. €385. The full calculation is in the guide below.
5 steps to your investment
In 5 steps you go from the first consultation to a rented property. From the first consultation to letting, we guide you personally. We also stay by your side afterwards, for example when you later sell.
Ready for the first step?
Book your consultation now. Together we will check what is possible for you.
Everything about investment property at a glance
The most important answers before you buy. Last updated: October 20, 2026 · Expert: Daniel Badour, CEO · By Westmont Group Immo.
When is a property worth it as an investment?
It is worth it when the rent largely covers running costs, the price fits the location and you can hold for at least 10 years. There is no guarantee of return, but you can assess properties by clear criteria.
| Criterion | Good sign | Warning sign |
|---|---|---|
| Price-to-rent multiple | up to about 20 to 25 | over 30 |
| Net rental yield | from around 3 % | well below 2 % |
| Location | population growth, jobs, connections | population decline, high vacancy |
| Condition and energy efficiency | good energy efficiency class, little renovation needed | old heating, roof or pipes due for replacement |
| Financing | payment affordable even at a higher interest rate | payment only barely affordable |
| Holding period | 10 years or longer | short-term intention to sell |
The values are guide values and not a promise. They differ by city, property and interest rate level.
How do you calculate yield and price-to-rent multiple?
Gross rental yield is the annual base rent divided by the purchase price. Net rental yield deducts non-recoverable costs and includes the incidental purchase costs. Both figures show how much rent comes back relative to the capital invested.
How expensive may an investment property be?
As a rule of thumb, a price-to-rent multiple up to about 20 counts as cheap and above 25 as rather expensive. You calculate the multiple as the purchase price divided by the annual base rent.
| Price-to-rent multiple | Assessment |
|---|---|
| up to 20 | rather cheap |
| 20 to 25 | medium |
| 25 to 30 | rather expensive |
| over 30 | very expensive, often only found in top locations |
Worked example: what is left at the end?
| Item | Example |
|---|---|
| Purchase price | €250,000 |
| Incidental purchase costs (approx. 10 %) | €25,000 |
| Total investment | €275,000 |
| Base rent | €1,000 per month = €12,000 per year |
| Price-to-rent multiple | 20.8 (€250,000 ÷ €12,000) |
| Gross rental yield | 4.8 % (€12,000 ÷ €250,000) |
| Non-recoverable costs and reserve (assumption) | €1,500 per year |
| Net rental yield | 3.8 % (€10,500 ÷ €275,000) |
And with financing? The example as cash flow
With financing of €275,000 (110 %), monthly cash flow before tax is negative, about €385 per month. After tax the out-of-pocket amount is around €294, offset by repayment of about €458 per month. Whether that is worth it depends on how you value wealth building through repayment and possible appreciation.
| Item per month | Example |
|---|---|
| Base rent | + €1,000 |
| Loan payment (€275,000, 3.5 % interest, 2 % repayment) | − €1,260 |
| Non-recoverable costs and reserve (€1,500 ÷ 12) | − €125 |
| Cash flow before tax | − €385 |
| Tax saving (assumed 35 % tax rate, see note) | + approx. €91 |
| Out-of-pocket after tax | approx. €294 |
| of which repayment (wealth building) | approx. €458 per month |
Tax calculation in year one: interest approx. €9,625 plus AfA €4,000 (2 % of a €200,000 building value) plus costs €1,500 add up to €15,125. Against €12,000 rent this gives a tax loss of approx. €3,125. At a 35 % tax rate that is a saving of approx. €1,094 per year. The figures are freely chosen and not an offer. After the fixed-interest period the payment can rise. You can calculate your own values with the property financing calculator (German). All incidental costs are in our guide Incidental purchase costs when buying a home (German).
Which property is suitable as an investment?
For getting started, a rented condominium in a good location is usually the best fit. Apartment buildings offer more yield but need more capital and experience. The right type depends on your budget, experience and risk appetite.
| Property type | Advantages | Watch out for |
|---|---|---|
| Condominium | manageable purchase price, little effort | service charges, reserve and decisions of the owners' association |
| Apartment building | several tenants, risk spread | high purchase price, more management effort |
| Single-family house | stable demand from families | only one tenant, 100 % vacancy when they leave |
| New build | low maintenance needs, 3 % AfA for new builds from 2023 | usually higher purchase price |
| Care property | operator rents the property long term | check operator quality, see Care property as an investment (German) |
| Commercial property | higher yield potential | higher risk, expertise needed |
What matters for location and property?
Location has the biggest influence on rental demand and value development. So check the city and micro-location first, then condition, energy efficiency and documents of the property.
A cities
Large metropolises such as Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf. High demand, but also high prices and usually lower rental yields.
B cities
Larger cities such as Leipzig, Dresden, Hanover, Nuremberg or Bremen. Often a better ratio of purchase price to rent.
C cities
Smaller cities and regions. Higher yield potential, but also a higher vacancy and value risk.
Checklist before buying
- Micro-location: transport links, shopping, schools, nearby employers
- Demand: rent level according to the rent index and vacancy in the area
- Condition: roof, heating, windows, pipes, damp
- Energy certificate and energy efficiency class
- Rental agreement, current rent and rent development
- For condominiums: service charges, reserve and minutes of owners' meetings
- Declaration of division and land register extract
- Total costs: incidental purchase costs, reserve, management
Want to handle the purchase digitally? Also read: Buying property digitally (German).
How much equity do you need for an investment property?
Banks classically expect about 20 % equity plus incidental purchase costs. With the right creditworthiness and a suitable property, financing of up to 110 % without equity is also possible. More equity lowers payment and interest, less equity increases leverage and risk.
A lot of equity
Lower payment and usually better interest rates. In return your capital is tied up in the property.
Little equity
More leverage for your return, but a higher debt load and less buffer against interest rate changes.
No equity
Financing up to 110 %, including incidental purchase costs. Read how it works here: Investment property without equity.
More on financing and terms: Property and financing 2026 (German). We submit your loan application to 920 banks and present you with the best offers within 24 hours.
What tax benefits does an investment property have?
When you let a property you can deduct interest, running costs and depreciation (AfA) as income-related expenses. A sale gain is generally tax-free after a holding period of more than 10 years. In addition we check possible KfW funding of up to €70,000 per unit.
Depreciation (AfA)
Usually 2 % per year of the building value, 3 % for new builds from 2023 and 2.5 % for buildings before 1925. Land is not depreciated. More in the AfA calculator and the AfA table (German).
Income-related expenses
Loan interest, maintenance, management and property tax reduce the tax on your rental income. How to proceed: Depreciating a rented apartment (German).
Sale and KfW
After more than 10 years of holding, a sale gain is generally tax-free, see speculation tax (German). In addition we check KfW funding of up to €70,000 per unit.
The tax effect depends on your personal situation. Please speak to your tax adviser.
What are the pros and cons of an investment property?
The advantages are ongoing rental income, wealth building through repayment, tax effects and a real asset. The disadvantages are high capital commitment, low liquidity and the risk of concentrating your wealth in one property.
Advantages
- Ongoing rental income
- Wealth building through repayment
- Tax benefits through AfA and interest
- Real asset with possible appreciation
- Leverage through borrowed capital
Disadvantages
- High capital commitment and incidental purchase costs
- Low liquidity: a sale takes time
- Concentration risk with only one property
- Interest rate risk after the fixed-interest period
- Effort for management and maintenance
What risks does an investment property carry?
The biggest risks are rising interest rates after the fixed-interest period, vacancy or rent loss, and value fluctuations. Maintenance costs and dependence on a single property come on top.
| Risk | What can happen | How to limit it |
|---|---|---|
| Interest rate change | The payment can rise after the fixed-interest period. | Choose a long fixed period, plan a buffer, use special repayments. |
| Vacancy and rent loss | Rental income is missing while the payment continues. | At Westmont Immo the rent guarantee covers the rent loss risk. |
| Value fluctuation | The market value can fall. | Plan long term, pay attention to location, condition and energy efficiency class. |
| Maintenance | Repairs and renovations cost money. | Plan a reserve. We handle property and rental management for you. |
| Concentration risk | Your wealth depends on one property. | See the investment property only as one building block of your overall wealth. |
| Loss of income | Illness or job loss endangers the payment. | Consider term life and disability insurance. |
Property, ETF or fixed deposit: what suits you?
A rented property suits investors with a long horizon who want a real asset, rental income and the leverage of borrowed capital. ETFs are more liquid and can be started with small amounts. Many investors combine several asset classes.
| Criterion | Rented property | ETF savings plan | Fixed deposit |
|---|---|---|---|
| Entry | high capital need, financing possible | even with small amounts | even with small amounts |
| Income | rent | price gains and distributions | fixed interest |
| Leverage | possible through a loan | usually without a loan | no |
| Effort | management needed, handled by Westmont | low | low |
| Liquidity | low | high | depends on term |
| Risk | vacancy, value, interest rates | price fluctuations | low, inflation erodes value |
Is a property a good retirement provision?
It can be one building block of retirement provision: once the loan is repaid by retirement, the payments fall away and the rental income remains as additional income. Do not put everything on one property and plan reserves for maintenance.
Daniel Badour
CEO Westmont Group · Property advisor
Daniel Badour leads the Westmont Group and advises on real estate as a capital investment. The information on this page is based on the services of Westmont Group Immo: financing, property selection, rent guarantee and property and rental management.
Read the exclusive interview with Daniel Badour (German)
Frequently asked questions
Can I buy without equity?
Yes, depending on creditworthiness and property, financing can cover up to 110 % of the purchase price, so incidental costs are financed as well. Whether and on what terms this works for you, we clarify in the consultation.
What costs arise when buying?
Incidental purchase costs are roughly 5 to 12 % of the purchase price: real estate transfer tax 3.5 to 6.5 %, notary and land registry about 1.5 to 2 %. With Westmont there are no broker fees.
What happens if the tenant does not pay?
With the rent guarantee the rent loss risk is fully covered and you receive constant monthly rental income. Tenants are selected beforehand through a professional selection process including credit checks.
Do I have to take care of tenants and management myself?
No. We take over property and rental management for you.
How quickly do I get financing offers?
We submit your loan application to 920 banks and present you with the best loan offers within 24 hours.
Are there broker fees?
No, with Westmont there are no broker fees.
Laws and authorities (German)
This article is for general information and is not tax, legal or investment advice. All example calculations are simplified.
Book a consultation
Talk to us about your investment property – we will get back to you with a tailored offer.
- Westmont Leads GmbH, Uerdinger Straße 333, 47800 Krefeld
- [email protected]
