• Block of 7 apartments which are ¾ finished. Remaining work is mainly internal fit-out and cosmetic. The large items such as re-roofing, electrics, internal walls, plumbing etc.. are completed. • Dortmund is in the former West Germany and is a prosperous city with a lot of recent inward investment. • Cost = 270,000 euros (220,000 euros to purchase the property as it stands and 50,000 euros to finish the renovation) • End value – 500,000 – 550,000 euros. • Equity at end of deal 46 – 51% (depending on bank valuation) • Cold rent – 36,252 (based on Mietzspiegal – rents set by the state) • Yield on cost = 13.4% • Approximately 80% of Germans rent, there is a renting culture in Germany and most of Europe. • Company can manage the end of the renovation. • Lettings are good in the this area. I have met a local letting agent who is happy to manage the properties.
The summary of the deal is:
• Block of 7 apartments which are ¾ finished. Remaining work is mainly internal fit-out and cosmetic. The large items such as re-roofing, electrics, internal walls, plumbing etc.. are completed. • Dortmund is in the former West Germany and is a prosperous city with a lot of recent inward investment. • Cos...