Apartment building with a guaranteed yield of 4.2% in Berlin, Germany

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Apartment building with a guaranteed yield of 4.2% in Berlin, Germany

4,200,000 €
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  • Yield
    4.2%
  • Rental rate (m²/month)
    21 €
  • Completion in
    2022
Details
Property parameters
  • Leasable area: 700 m²
  • Land area: 1,000 m²
  • Total apartments: 20
  • 3-floor building
Financial performance
  • Minimum owner's capital: 4,200,000 €
  • Annual income: 175,000 €
Tenants
  • Fully let
  • End of lease: 2037
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 6.0%
  • Broker: 6.0% + VAT

The apartment building construction project in the Altglinicke area of Berlin.

Description

The three-storey building with a leasable area of over 700 m² includes 20+ fully furnished service apartments

All apartments offer fully equipped living rooms, bedrooms, kitchens, bathrooms, balconies, and a workspace with internet access.

Completion date: 2022.

Financial performance

The annual income is 175,000 €.

The yield is 4.2%.

Tenants

The property is fully let.

The lease agreement is valid until 2037 with the extension options 2x5 years.

Advantages

  • Above-average yield: more than 4% p. a. vs. 2–3% if rented for a long term
  • High liquidity: residential real estate has high liquidity
  • Problem-free maintenance: a management company will be in charge of all issues related to the property and its tenants
  • Forward Deal: the buyer doesn’t have the development risk
  • Share Deal: the ability to avoid paying tax on the transfer of ownership
  • Location: the proximity of the Adlershof technology park and the airport

Transaction costs

Notary (state registration) is 1.5–2%.

Acquisition tax is 6%.

Brokerage fee is 6% + VAT 19% (total 7.14%).

Location

The property is located in Berlin Altglienicke Thanks to the S-Bahn, tram and several bus connections, Altglienicke has excellent access to public transport. The bus stop is only 350 m away. The proximity to the Adlershof technology park also makes Altglienicke a top business location. Shops for daily needs, restaurants and cafes can be found in the immediate vicinity of the property.

Berlin is the capital and largest city of Germany by both area and population. Its more than 3.5 mln inhabitants make it the most populous city proper of the European Union.

Many German and international companies have business or service centers in the city. For several years Berlin has been recognized as a major center of business founders.

  • Property on the map
    Location right down to the building, street or city
  • Other properties
    Other offers nearby

Tranio helps to manage property after purchase

Our local team at Tranio in Germany will take up property management or recommend professional German partners.

Find out more
  • icon Property maintenance and insurance
  • icon Search for tenants, contracting, and control over rent collection
  • icon Arrangements for bookkeeping and tax advice

Сonstruction loan as an alternative to commercial property investment

Developers with a good track record that give warranties or procure a record in the land register.

There is no need to incorporate a legal entity or open an account in Germany.

No extra charges to maintain or operate the property.

Comparing a apartment building purchase with a construction loan

Investment vehicle
Apartment building
Construction loan
Yield per annum
4.2%
8—10%
Investment budget
4,200,000 €
from 300,000 €
Buying expenses
10—15%?
  • 1 – 1,5 % — lawyer
  • 2,3 – 3,2 % — notary and state registration
  • 3,5 % – 6,5 % — acquisition tax
  • 3-6% + VAT — broker's fee

Percentage of the property value

0—2%?

The expenses on an independent legal review of the project

Investment term
from 5 years
to 3 years
Risk level
Low
Moderate
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