It’s always great when an innovative idea hits the market at the right time.

We set out with the core market for our Gecci Rent and Buy® concept being the south of Lower Saxony. Gerald Evans and his team know this region inside out and work with a great regional and local network. Most of the requests for the first GECCI homes are from this region. At the same time, this region is more than just a test region. It is the core market, from which our model will conquer the property market. Some prospective customers and investors are already on board.

But in general, our target is a much larger market: All over Germany the property market is extremely rent-oriented: The property share is way below the European average.

Meanwhile, the pressure rises rapidly due to rising prices. For years, the rent prices have been rising and rising, especially in urban areas. The rental summit of the federal government in autumn of 2018 didn’t either come up with a sustainable solution.

What does this scenario mean for our target groups,
especially for young families?

Affordable rental properties are scarce, in city centers as well as in suburbs. Not just in large cities like Hamburg, Berlin oder Hanover, but also in many smaller towns and even in rural areas.

Reorganization, changes with municipal housing or redevelopments can result into our target groups no longer being able to afford their housing. Even when the household income should actually be sufficient.

The logical consequence of this situation is the purchase of an own home, ideally outside urban areas. Problem of this alternative is the financing.

Since the introduction of the EU directive from 2016 relating to credits for residential properties, the financial corporations are obliged to exert a very restrictive credit policy.

The consequence: Up to 50 per cent of all credit requests are rejected. Even when the applicants are actually solvent and reliable.

And if the credit is granted, the interest rate is rather high, especially with local banks: Since their profits have severely suffered for years due to the low interest rate policy, they try to compensate this with their interest rates for credits.

At the same time the demand for turnkey homes outside the cities continues rising. The competition in our target groups continues to grow. And immigration adds to this situation.

It is always great, when an innovative idea already exists.

It is undeniable: Our target group needs alternatives. A home they can really afford and which is protected from rising rent prices and interest rates. This alternative is Gecci Rent and Buy®. Potential home owners can purchase their home without credit and even save up to € 30,000 over the whole time span.

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