In times of rising rents, interest in building cooperatives is growing. But even those who are not looking for an apartment can buy shares. We show the benefits and risks.
Affordable living and being protected from luxury renovations – that is what building cooperatives promise their members. For many city dwellers, this is an attractive offer.
But how do you even become a member of a cooperative? What does it cost me? And is the purchase of cooperative shares also suitable as a pure financial investment?
What are cooperative shares?
Cooperative shares are nothing more than shares in the company. In Cooperatives people come together to do business together for the benefit of all members. Housing cooperatives In particular, they aim to provide their members with affordable apartments.
If you want to rent a cooperative apartment, you have to go for it Buy shares in the cooperative. This is how you become a partner from a mere tenant.
You don’t just get one then Say and are allowed to elect the board of directors, but can also be in the form of dividends involved in the profits that the cooperative generates.
This also makes cooperative shares interesting for investors who are not looking for an apartment at all. If you leave the cooperative again, you will become yours Shares repaid with interest.
What does a cooperative share cost?
According to the Federal Association of German Housing and Real Estate Companies (Gdw), shares in cooperatives that have already existed for a long time are usually for 500 euros to 3,000 euros to have.
With new cooperatives the costs are higher because they lack capital at the beginning. Usually, according to Gdw, five-digit sums are then due.
How many cooperative shares do you have to buy?
That varies depending on Apartment size. The larger the apartment, the more shares are usually due. However, the right to vote is the same for every member – no matter how many shares in the cooperative he or she owns.
What is the difference to the rental deposit?
Owners of cooperative shares usually do not have to pay an additional rental deposit. But the shares can used as a deposit become. This means that you will not be repaid in full if your cooperative apartment is damaged.
A rental deposit you receive when moving faster than the cooperative shares in the event of an exit. For the repayment have cooperatives up to two years, In the case of rental deposits, the deadline usually ends a maximum of six months later.
How much return do cooperative shares bring?
In view of the low interest rates, more and more investors are also interested in cooperative shares. Here were last between 1.5 and 5 percent yield per year in there.
However, there is no guarantee that the dividends will be distributed. The cooperative can also be generated Reinvest profitsto modernize existing buildings or to build new ones. Young building cooperatives also pour in in the first few years often no dividends at all.
Are cooperative shares a sensible investment?
An investment in cooperative shares can make perfect sense. Because the yield, called return, is not only comparatively high, it is also a sustainable Form of investment.
Because in the Cooperative Act it is stipulated that cooperatives should support their members economically and socially. So in many cases the purchase of cooperative shares is one social investment. You can help you Cooperative banks acquire – for example the Volks- and Raiffeisenbanken.
You should be aware of these risks
However, there are also black sheep among cooperatives – and not all are profitable. Before investing, you should therefore read the Balance sheets and annual reports the past few years.
Money that you put into cooperative shares is also not subject to the statutory deposit protection. If a cooperative goes bankrupt, you suffer one Total loss. However, the bankruptcy rate is only 0.1 percent.
Nevertheless, you should be aware that a so-called Obligation to make additional payments can exist for you. According to the cooperative law, this takes effect if, in the event of bankruptcy, there is not enough bankruptcy assets to satisfy the creditors. However, cooperatives can wholly or partially exclude the obligation to make additional contributions in their statutes.
In practice there is a completely different problem: If you only want to join a cooperative for the sake of investing your money, you have bad cards with most. Many cooperatives apply without a specific apartment request Recording stops.