Four rented residential units, ongoing income from day one and a generous plot of land in the southern Berlin suburbs – an investment for investors looking for more than just a single condominium.
The property in Blankenfelde-Mahlow offers an attractive combination of regular rental income, risk diversification across multiple residential units and long-term real estate assets in the immediate vicinity of Berlin.
Originally built in 1939, the building spans three floors and comprises four residential units with a total living area of approx. 164 m². The spacious plot measures approx. 1,206 m².
Various modernisation measures have already been carried out in the past. Among other things, floor plans were optimised, bathrooms and kitchens were partially renewed, and parts of the electrical system were modernised.
A major advantage of this investment: the property is fully let and therefore immediately generates ongoing rental income.
The purchase price is €650,000. This compares to current annual net cold rent income of €39,360 or €3,280 monthly.
This results in a gross rental yield of around 6.1 % and a price-to-earnings ratio of approximately 16.5.
Particularly interesting is the distribution of income across four separate residential units. In contrast to a single condominium, the yield is therefore not dependent exclusively on a single tenancy. This creates a broader and more resilient income structure for investors.
Assuming an equity investment of €65,000, the underlying model calculation anticipates a positive after-tax cash flow of around €315 per month from the second year onwards. At the same time, monthly loan repayments of approximately €800 are factored in.
Based on these assumptions, the model shows a monthly wealth accumulation of around €929 from repayment and tax effects.
Naturally, these figures are sample calculations, the actual results of which depend on the individual financing and personal tax situation.
For investors with a long-term perspective, the combination of capital repayment, rental growth and potential capital appreciation is also attractive. Based on the annual capital appreciation of 2.5 % and a rent increase of 1.5 % assumed in the model, the modelled property value after ten years is around 832,000, as well as a cumulative capital repayment of approximately 115,000.
Capital growth and rental trends are assumptions and cannot be guaranteed.
An interesting capital investment for investors who want to acquire a small, already operating property portfolio directly instead of a single flat – with immediate rental income, risk diversification and long-term wealth accumulation in the Berlin commuter belt.
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