Planning for retirement by buying real estate – 3 good reasons

"If there's one thing that's safe, it's your pension!" That was the announcement from the minister Dr. Norbert Blüm in 1986 on advertising pillars. Nowadays we know how unsafe the value of our national pensions are. Private retirement planning is becoming more and more important to be fully covered in your old age.

Owning your own property is one of the most important pillars of financial planning in Germany for your own retirement. The primary benefits of a "bricks and mortar pension" are:

  1. If you let out your own, already paid for property, you have a regular rental income in addition to your pension.
  1. If you live in your own owner-occupied condominium, you don't have to pay loan interest or rent and you can spend your hard-earned pension on things that are more important to you and bring you pleasure.


In addition to these two points, there's a third aspect that some people feel is the most important argument for residential property:

  1. When you live in your own property, no one can force you to move in your old age by terminating your lease or raising your rent.

Whether it's the emotional added value or rational advantages, a paid for property with a good quality valuation is a more solid investment than many other types of assets. It doesn't matter if we're talking about equities, insurances, mutual funds or other shareholdings, an entry in the land registry is and remains the safest haven for a dependable retirement income.