Buying rented properties makes sense given the rise in interest rates: financial expert Reinhard Panse explains why.

Buying rented properties makes sense given the rise in interest rates: financial expert Reinhard Panse explains why.

According to a report by amp.focus.de, asset manager Reinhard Panse explains why buying a rented property makes sense despite increased interest rates. He argues that housing is scarce and inflation will lead to rising wages and rental income.

The increased interest rates should not deter buyers, says Panse. For real estate as an investment, investors could increase the rental yield by the long-term, ten-year inflation rate. This is a proven approach in the German real estate market that will continue to work in the future. Panse predicts that many who hesitate will regret not buying a property in a few years.

This analysis shows that the real estate market remains attractive despite increased interest rates. Investors can continue to rely on increasing rental income and a positive rental yield. A shortage of living space and rising wages can lead to a further increase in rental income. This could also keep the real estate market attractive in the long term and encourage investors to invest in rental properties.

Reinhard Panse's statements can help increase confidence in the real estate market and increase interest in investing in rental properties. The news could encourage potential buyers to look into buying a property despite the increased interest rates.