This 5 storey building, constructed around 1880, is
very centrally located on a quiet street in the popular
Tiergarten area. The property includes beautiful stucco faηade
detail and internal period features including cornicing on
the front building and internal hallway and doorway
features. The internal courtyard is south facing offering
residents a calm and sunny aspect.
A complete refurbishment programme is underway and will
be completed in May 2007. Over 1.3m has been invested
to include new central heating, rewiring, replumbing,
window replacement /repair and reroofing. These repairs
will carry a 4 to 5 year guarantee from suppliers. All
external and internal facades and common areas will be
redecorated and internal courtyards paved and landscaped.
All apartments will be entirely renovated including new
bathrooms with Grohe fixtures. New balconies will be
erected on 15 apartments. This condition will attract good
tenants and should reduce maintenance to an absolute
minimum for the next ten years granting valuable peace of
mind.
This property will be offered fully rented with initial
rents of circa. 150kpa. The price of this property is
2.4m (1,088 /m2). This is an initial yield of 6.25%
(150k/2,400k). In addition the purchaser will be required
to pay agent fees, stamp duty (3.5%) and notary fees (approx
1%).
Loans of circa 60% of purchase price (60% * 2.4m =
1.44m) should be available subject to purchaser credit
approval at the following rates (330k@ 1.8% , 570k@ 3.8%,
540k@ 5%). This is a weighted rate of 3.8% pa fixed for 10
years (of which 900k can be repaid anytime without penalty).
With an initial yield of 6.25%, a good margin exists for
capital repayments.
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Equity
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960k (2.4m purchase price less loans 1.44m
)
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Rent
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150k pa
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Less Interest
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54k pa
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Net Income
|
96k pa
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Projected Return on Equity before capital appreciation
96k/960k = 10% pa .
Key Features
- Very central location. Close to new Berlin Central
Station (HauptBahnhof opened May 2006) and Reichstag.
Comprehensive refurbishment with supplier guarantees
completed.
- Assignable low rate loans providing good net return.
- Good prospects of rental and capital increases with
any upswing in German economy.
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