1. How to get rich in real estate
International Finance
Panic! - Presentation
Jens Naussed
How to get rich with real estate Jens Naussed

2. How to get rich with real estate Jens Naussed
Did you know??
More millionaires got rich through real estate than through any other way!
Real estate values always go up in the long run!
You can buy real estate without having any money!
Everybody can get rich with real estate!
How to get rich with real estate Jens Naussed

3. How to get rich with real estate Jens Naussed
Really that easy?
How to get rich with real estate Jens Naussed

4. How to get rich with real estate Jens Naussed
Agenda
Three mistakes about real estate
Mistake number 1: Buy an old house
Mistake number 2: Buy a new house
Mistake number 3: Take out a mortgage
Critical review of the text
Conclusion
How to get rich with real estate Jens Naussed

5. Three mistakes about real estate
How to get rich with real estate Jens Naussed

6. Mistake number 1: Buy an older house
How to get rich with real estate Jens Naussed

7. Mistake number 1: Buy an older house
A common reason for buying an older house is that they have „character“
But it has a lot negative sides:
Old houses will probably need renovation sooner or later and hence high capital requirements are necessary
How to get rich with real estate Jens Naussed

8. Mistake number 1: Buy an older house
Most older houses are mostly built out of wood
Which makes them fragile for termites and other critters
An antiquated electrical system
Also this may call for renovation sooner or later
The plumping system
consisting of pipes made from material no longer considered as safe
How to get rich with real estate Jens Naussed

9. Mistake number 1: Buy an older house
Windows that cannot be opened
Old heating system
Air-condition that is not installed properly
=> An old house is full of costly defects that need to be repaired sooner or later
How to get rich with real estate Jens Naussed

10. Mistake number 2: Buy a new house
How to get rich with real estate Jens Naussed

11. Mistake number 2: Buy a new house
While old houses fall a part over time, new houses do this immediately
This has several reasons:
Materials:
Modern houses are built of wood, but today it is even flimsier than in older times
Quality of the builder
The US license for house builders is very (or better too) easy to get
How to get rich with real estate Jens Naussed

12. Mistake number 3: Take out a mortgage
How to get rich with real estate Jens Naussed

13. Mistake number 3: Take out a mortgage
There exists a huge amount of different mortgages in the market
But it does not matter which one you pick
You make your monthly payments and in the end you still owe the same amount of money
How to get rich with real estate Jens Naussed

14. Critical review of the text
The author has a very negative view about real estate and I cannot agree with much of what he is writing:
My personal opinion:
Real estate was always one of the safest investments someone can make
If you buy an old house you should make sure that it is in a good condition and calculate the costs that are following carefully
How to get rich with real estate Jens Naussed

15. Critical review of the text
When you build a new house: you should carefully choose the house builder
Did the author understand how a mortgage works?
He says that you make monthly payments and your loan does not get less, it does not matter how long you are paying it
How to get rich with real estate Jens Naussed

16. Critical review of the text
Here is the way a mortgage (annuity loan) works:
Your monthly payments are the same over normally around 30 years
The payments include interest and amorization
In the first years the interests are much higher than the amorization but over time this changes and your amorization becomes the bigger part of the payment because you pay interests on the money you owe
Hence the more you pay back, the less interests you have to pay
How to get rich with real estate Jens Naussed

17. Critical review of the text
Annuity loan:
How to get rich with real estate Jens Naussed

18. How to get rich with real estate Jens Naussed
Conclusion
The author gives an overview over the most common mistakes you can do with real estate
The view he is taken is very negative and he does not provide an accurate picture about the positive sides
How to get rich with real estate Jens Naussed

19. How to get rich with real estate Jens Naussed
Conclusion
The author‘s opinion from the text:
Never invest into real estate because you will definitly lose your money
My opinion:
Investigate the market carefully and calculate all costs that might follow and you have a safe investment that has good chances to go up in value over time
How to get rich with real estate Jens Naussed

20. How to get rich with real estate Jens Naussed
Questions?
How to get rich with real estate Jens Naussed

21. Thank you for your attention
How to get rich with real estate Jens Naussed