Retirement apartments
The principle of the investment apartment: A project developer builds a residential property with a property developer, which is then sold to investors as an apartment. The real estate is usually financed with 20-30% equity and the difference with debt. The apartments are rented out and the rental income covers the financing costs. Expenses such as interest, ancillary financing costs as well as annual depreciation can be deducted from tax and, above all, in the first few years a _ deliberate_ negative tax result from renting etc. is achieved, which can be offset against profits from other types of income. Where a tax credit is realized based on these losses. The legislature grants the investor a period of 20 years plus max. Lead time of three years, during which a positive tax result must be achieved (small rental). The investor also benefits from the increase in the value of his investment apartment.
Life insurance
Closing the pension gap:
The increase in life expectancy will widen the pension gap - i.e. the difference between the last active income and the statutory pension. In order to maintain the standard of living in the pension, an additional monthly income is required. Life insurance is also well suited for this.