D
Dud
Guest
A commercial space, divided into two separate units, both occupied with long term leases (until 2017) is offered for sale by the owner (me).
The object is in a very close proximity to "Schloss Charlottenburg" (or Charlottenburg palace) in one of the better neighborhoods of west Berlin and is facing a subway station (i.e. lots of traffic).
The 2 tenants are a bakery/newspaper shop and a lunch room (or "imbiss" in German).
Total space for both units 272 m2 (including separate storage areas for both units, WC's, etc.).
Net annual income (for both units): €16800.
Both tenants have a 5% compound raise in their rental contracts beginning end 2007, reaching an annual net income of € 27365 in 2017 (a 63% rise in 10 years)!
The German tax rules allow the sale of properties owned more than 10 years without being subject to capital gains tax (i.e. tax free!).
The above also means that because the price of an investment property is determined mostly by the income it generates, one could sell the property after 10 years with a substantial appreciation and without paying Capital Gains Tax at all!
The property is offered at € 239,900 or 7% annual net yield.
By 2017 annual net income will reflect 11.4% net yield (this without taking any capital appreciation into account)!
This property is offered directly from the owner, saving you the costs of a real-estate agent.
Typical purchase costs would be around 5% (3.50% property transfer tax and around 1.50% notary’s fees), both paid by the buyer.
Typical real-estate agent's fees in Germany are 6% (plus 16% VAT) and one is free, off course, to appoint one to assist him/her with the purchase of the property.
The whole building (27 apartments and one more commercial space besides mine) is regularly run very efficiently by a management company (as is obliged by the German law). One could appoint the same management company (or other) to look after the daily administration and rental payments of the two tenants. This should cost around €50 a month and will save you the trouble of dealing with the daily administartion, small nuisances and/or tenanats being late with their monthly rental payments as well as skipping the language barrier.
For more details, please send me a PM or if of interest to all, you are welcome to post a messaage on this thread.
Cheers,
David
The object is in a very close proximity to "Schloss Charlottenburg" (or Charlottenburg palace) in one of the better neighborhoods of west Berlin and is facing a subway station (i.e. lots of traffic).
The 2 tenants are a bakery/newspaper shop and a lunch room (or "imbiss" in German).
Total space for both units 272 m2 (including separate storage areas for both units, WC's, etc.).
Net annual income (for both units): €16800.
Both tenants have a 5% compound raise in their rental contracts beginning end 2007, reaching an annual net income of € 27365 in 2017 (a 63% rise in 10 years)!
The German tax rules allow the sale of properties owned more than 10 years without being subject to capital gains tax (i.e. tax free!).
The above also means that because the price of an investment property is determined mostly by the income it generates, one could sell the property after 10 years with a substantial appreciation and without paying Capital Gains Tax at all!
The property is offered at € 239,900 or 7% annual net yield.
By 2017 annual net income will reflect 11.4% net yield (this without taking any capital appreciation into account)!
This property is offered directly from the owner, saving you the costs of a real-estate agent.
Typical purchase costs would be around 5% (3.50% property transfer tax and around 1.50% notary’s fees), both paid by the buyer.
Typical real-estate agent's fees in Germany are 6% (plus 16% VAT) and one is free, off course, to appoint one to assist him/her with the purchase of the property.
The whole building (27 apartments and one more commercial space besides mine) is regularly run very efficiently by a management company (as is obliged by the German law). One could appoint the same management company (or other) to look after the daily administration and rental payments of the two tenants. This should cost around €50 a month and will save you the trouble of dealing with the daily administartion, small nuisances and/or tenanats being late with their monthly rental payments as well as skipping the language barrier.
For more details, please send me a PM or if of interest to all, you are welcome to post a messaage on this thread.
Cheers,
David