The project is implemented in 3 stages:
- buying an apartment that needs renovation at a price lower than the market price
- complete overhaul
- renting out or resale as a rental business
Benefits:
- developers with reliable reputation
- Tranio also acts as an investor and invests own money in proposed projects
- high demand — more than half of Bavarians rent housing
- you can get a loan 50% of the property with interest rate 1.8–3.2% per annum
- high liquidity of the project
An example of a project in the elite district of Munich:
Total cost of the project — 805,000 €
Investments — 403,000 €
Average rental return on invested capital for 5 years before taxes — 2.5% per annum
Net rental income for 5 years after the payment of the loan and taxes — 40,000 €
Selling price — 1.05 million €
Net profit — 213,000 €
Total project yield — 9.3% per annum
Munich is located on the river Isar in the south of Germany. The city is the capital of Bavaria — the richest and most developed region in the country. In the whole world it is famous for its brewing traditions and Oktoberfest. The city has many museums and cultural values. Today Munich is a large industrial, research and scientific center.