The project of an apartment building with service for the elderly, modern bakery/ cafe and an outpatient office on the ground floor.
The property is in the process of obtaining a building permit. The construction period is about 18 months.
The buidling will include 24 apartments.
There is a preliminary agreement with the local management company.
Deal type: Forward Deal.
The expected annual income is 200,000 €.
The expected yield is 5,6%.
Two commercial spaces on the ground floor will be leased to the cafe/bakery (50 m²) and outpatient office.
The minimum cost of renting 1 m² is 17 €.
Notary (state registration) is 1,5 – 2%.
Acquisition tax is 5%.
Brokerage fee is 6% + VAT 19% (total 7,14%).
The cost of ownership
The cost of the services of the management company will be 15,000 €/year.
The property is located in the federal state of Rhineland-Palatinate, in a town with a population of more than 20 thousand people. 1/5 of the population of the town are people over 65 years old.
Shops are located nearby. A good access to autobahns, it takes about 30 minutes to get to Mainz and about 40 minutes to get to Frankfurt Airport.
The distance to Frankfurt is about 70 km, which will also provide an influx of elderly people in a quiet and peaceful town.
Rhineland-Palatinate — the land in the south-western part of Germany. The capital is the city of Mainz. The population of the region is more than 4 million people.
Rhineland-Palatinate is ahead of all German lands in terms of export. Important sectors of the economy are the winemaking, chemical, pharmaceutical industry and the production of auto parts. The main employer is the chemical and processing industry, which is represented by BASF in Ludwigshafen. There is the Gas Industry Training Center (jointly with OAO Gazprom) in Rheinland-Pfalz.
Forests occupy about 42% of the entire Rhineland-Palatinate (the largest biosphere reserve in Central Europe).
The region is attractive for tourists due to a large number of museums, castles (over 200), churches, exhibitions.