If you wish to sell a property or invest in a new property, you can find anything you need to know about property investment here. Our property investment experts are ready to assist you.
When it comes to investing your money, you have several options such as shares, bonds, and of course real property. Investment properties are usually described as a safer way to make money, as real property does not fluctuate as much in value as shares do.
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Senior Director, René Neesgaard
Our experienced experts are always ready to assist and answer your questions. At Colliers, you will find a large selection of investment properties within different sectors and in different price levels.
Contact our expertsHow to get started on property investment
When you choose to acquire an investment property, it is usually with the purpose of letting the property as a private home or for commercial purposes. In addition to this, you can, however, also acquire an investment property for the purpose of reselling it – often with a renovation of the acquired property.
Your income from the investment property will come from the letting, i.e. the rental income. In addition, property prices will usually increase, which will also give you a yield consisting of the property’s increase in value.
In general, residential letting is a safe investment as there are no major fluctuations, and at the same time the value is steadily increasing. Moreover, you will not be affected by price increases on the property market as you will have a regular income from the letting.
Before you start investing in properties, it is a good idea to clarify your purpose. Do you wish to have the property at your own disposal? Do you wish to have a certain risk diversification? Which time frame do you prefer? Often you should wait a minimum of five years before considering reselling the property. Otherwise, your total yield will be too low, and the transaction costs too high.
What do you need to know about property investment in Denmark?
In recent years, investing in properties in Denmark has offered a stable yield, but in fact, property investment is a bit different here in Denmark compared to our neighbouring countries. In Denmark, you have the opportunity to increase the rent on an annual basis, which is usually 1.5%. First and foremost, you do, however, need to find new tenants to your vacant investment properties.
In addition, you must be aware of the legal requirements that apply. For instance, you must ensure that the deed is registered when transferring the ownership of the property. Here, we are ready to help you with all the practicalities.
Moreover, it is important that you get familiar with the Danish Rent Act, which, among other things, regulates the rent determination for residential leases. The rules may vary dependent on the property’s size, previous usage, share of commercial area, construction year and in which municipality it is located
It is worth knowing that as a rule the rent must not be higher than the property’s operating costs, statutory yields, and improvement increases. The rent may, however, be increased if the property is renovated.
The most important aspects of property investment
No matter which property you wish to invest in, there are several aspects that you need to be aware of, including:
- Yield: For each investment property, we will provide an estimate of the yield you may expect. Please be aware that this yield is only indicative, as potential income sources have not been included in the calculation. Thus, the yield may be higher than estimated. The responsible advisor of the given property can provide you with further information regarding the yield.
- Location: The location of your investment property is, of course, important to you. It goes without saying that it will be easier for you to manage the property if it is situated close to you. This way you will for instance avoid too much transportation time, when you have arranged a property viewing.
The location also affects the property’s potential increase in value. Bigger cities often have the highest influx of citizens and can offer much more new build. This also affects the prices. Usually, it is significantly cheaper to invest in a property outside the bigger cities. The yield is usually highest in the provinces, but so is the risk.
- Financing: Depending on the financing, the value of the investment property may be changed. Your financing of the property will usually be dependent on the return on the property. The financing generally comes from either a mortgage or a bank loan. It may be difficult to raise the required capital, which is the largest barrier to the property market.
Types of investment properties
We offer several different types of investment properties for you to invest in. Each sector comprises different types of properties, and it will definitely pay off to acquaint yourself thoroughly with each of the sectors, so you can generate a profit through rental income or capital gain.
We also offer advisory services within the entire spectre of both residential rental properties and commercial properties. At Colliers, you will get an experience advisor – regardless of which type of investment property you are interested in.
We offer the following types of investment properties:
Find an advisor near you
At Colliers, you can find a wide range of attractive investment properties for sale across Denmark. This makes it easier for you to find the exact property you wish to inspect more closely.
We have offices in Copenhagen, Odense, Vejle, Aarhus and Aalborg. Here, you will find investment experts who know your local market for commercial properties and what it takes to make a good deal.
If you wish to reach out to one of our experts, you can contact us here.