The best solution for investment is to purchase a building with apartments that are leased. In Europe, this business option is quite common. It is beneficial to purchase a profitable housein Germany areas where there is high demand in the rental housing market. A striking example is Westphalia, which is a densely populated area with developed industry.
Westphalia is located in North Rhine. The most popular here are three or four-story buildings, designed for 7-8 apartments. The minimum cost of such a profitable house is 200 thousand euros. The price of objects in 25-30 apartments can be up to € 1.5 million. On average, this type of property can be purchased for € 300-400 thousand.
Houses of this type are typical buildings of the region. There are buildings in Westphalia that are 100, 50 or 20 years old.
It is profitable to buy apartments in major cities of the region — Düsseldorf, Bonn or Cologne, as well as in populated areas that are located 30-50 km away from them.
High yield from such houses is considered 7% of the total cost of housing. In large cities, this figure will be 4-5%, due to high prices for the purchase of the object itself.
It is necessary to take into account changes in the domestic real estate market of the region. If a few years ago, the delivery of housing in Essen gave 7-8% per annum, now the figure has dropped to 5%.
The profitability of the house can reduce negative factors:
● mold and dampness, groundwater outflow;
● condition of the building, the need for repair.
It is important when buying an object to pay attention to the roof and basement — their repair will cost a decent amount. Additional costs also entail breakage of the heating boiler.
Do not panic, if in the house you want to buy, for 5-6 apartments alone is not rented. If there are more vacant apartments, it is worth thinking about the expediency of the transaction.
After buying a profitable housein Germany, it may take 1-3 months to rent housing. This is influenced by its location, area, state.
Many buildings of this type have commercial premises that also generate income. Owners of small grocery stores or medical offices can act as tenants of space.
The costs of managing the property in which the commercial premises are located will not differ from the maintenance of the apartments. In case you rent an area to a restaurant or a supermarket, this amount is included in the monthly rent.
Buying a profitablehouse in Germany, in the Westphalia region is an advantageous option for obtaining stable capital. But in order for the object to bring a high percentage, it is important to carefully approach the choice of real estate and its location.