Project for the construction of apartment buildings in Munich, Bavaria, Germany

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Project for the construction of apartment buildings in Munich, Bavaria, Germany

1,000,000 €
194 € /m²
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  • Total area
    5,150 m²
  • Yield
    10.0%
  • Completion in
    2023
Details
Financial performance
  • Minimum owner's capital: 1,000,000 €
  • Annual income: 100,000 €
Transaction costs
  • Broker: 2.0% + VAT
Features
  • Redevelopment

Loan for a project for the construction of apartment buildings in Munich.

Description

The total investment is 5 million (minimum check — 1 million €).

Mezzanine loan from a German development company at 10% per annum with interest paid at the end of the project. The developer also participates in the project with its own capital.

Project term: 30 months.

Project 1: Converting a hotel into a student apartment and constructing a new building with 40 apartments.

Project 2: Demolition of the existing building and construction of a new building for 13 apartments with underground parking for 13 cars.

Project 3: Reconstruction of 2 existing buildings and construction of a new apartment building with underground parking for 21 cars.

Advantages

  • The ability to invest remotely.
  • There is no need to open an account in a foreign bank, register a company and notify about CFCs.
  • Tax residents of the Russian Federation pay only 13–15% of personal income tax on interest, no need to pay taxes in Germany.

Location

The buildings are located in Munich, in the Maxvorstadt, Moosach and Obergizing-Fasangarten districts.

Munich is the largest city in Bavaria and the third largest city in Germany, as well as a major industrial and research center of the country. Here are the headquarters of the world famous companies ”AGFA“, ”BMW“, ”Siemens“.

Annually more than three million tourists come to Munich.

Bavaria is a federal state in the south-east of Germany. With an area of 70,550 km² Bavaria is the largest German state by land area. With 13 million inhabitants it is Germany's second-most-populous state after North Rhine-Westphalia. Bavaria has one of the largest economies of any region in Germany, and in Europe.

  • 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.

The terms and conditions of our engagement depend on the condition and location of the property and are to be discussed in each particular case.

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
10.0%
8—10%
Investment budget
1,000,000 €
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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