If you want to build up wealth with property in the long term, you should not just look at the current yield. Location, marketability for rent, structural condition and an investment concept that also takes tax and long-term aspects into account are crucial. This is precisely where this capital investment in Berlin-Wilmersdorf comes in.
The offered 3-room apartment is located on the 3rd floor of a residential building and has a living area of approx. 58 m². According to the provider, the building was rebuilt in 1953. The apartment will be comprehensively refurbished as part of the investment concept and subsequently furnished, creating a modern and contemporary living product.
The purchase price is €345,000. A further €49,300 has been budgeted for the planned refurbishment, and €13,500 for furnishings. This brings the total investment, excluding incidental purchase costs, to €407,800. The calculated monthly rent (excluding service charges) of €1,740, or €20,880 per annum, thus represents a gross return on the total investment of around 5.1 %.
The concept is particularly interesting for investors with a corresponding personal tax burden. In the provider's model calculation, the renovation costs of €49,300 are set in the first year as immediately deductible maintenance expenses. In the example calculation, this results in a one-off tax effect of €24,784.
However, whether and to what extent this can actually be realised depends on personal tax circumstances and, in particular, the classification of the renovation costs, and should be checked with one's own tax advisor before purchase.
In addition, with financing, ongoing repayment works towards building up assets. In the present example calculation, from the second year onwards, a monthly repayment of around €493 as well as a positive modelled cash flow after tax of around €128 per month are shown. From this, the provider calculates a monthly wealth accumulation from repayment and tax effect of around €833. Naturally, this is also a model calculation based on the underlying financing and tax assumptions.
Another aspect is the property itself: the apartment is part of a listed residential complex. The Berlin monuments list includes this location as part of a housing estate whose original planning from 1926/27 is by the architects Mebes & Emmerich. Thus, the investment combines an established Berlin residential location with historically grown architecture.
An investment for investors who do not simply want to acquire a flat, but are looking for a well-conceived interplay of Berlin tangible assets, letting, tax potential and long-term wealth accumulation.
English