Inheritable building right: 3 family house in a quiet Rödelheim location

ZIP Code: 60489

City or town: Frankfurt am Main

Number of residents whole community: 750.000

Federal country: Hessen

Asking Price: € 595,000.00

Comment on purchase price: Price does not include the plot of land because it has heritable building rights

Price per sqm living or other space: € 2,621.00

Parking possibility: There are two garages on the property, which is included in the purchase price

Brokerage commission to be paid by buyer incl. VAT (% of notarized purchase price): 5.80 %

Commission payable by: Buyer

Note on the commission: The buyer pays at the conclusion of the notarial deed a commission in the amount of 5.80% of the authenticated purchase price.

Purchase extra costs: Maklerprovision 34.510
Notar, Gericht ca 6.200
Grunderwerbsteuer ca. 2.940
Genehmigung Erbbaurechtsgeber ca. 600
ca. 44.250 gerundet ca. 45.000 €
(ohne Gewähr)

Type of Land plot: Inner city

Size of Landplot: 562.00 m²

In a nutshell:
Heritable building right remaining term 39 years, annual lease rent € 2,992; with full letting approx. € 27,000 annual net rent income

Year of construction: 1962

Detailed description of the object:
Three-family house with two full storeys, developed attic. Ground floor and top floor rented, 1st floor free and renovated. Partly insulated (on the weather side).

Features:

The ground floor and first floor were completely renovated in 2014 and 2015 (new surfaces, ceilings, walls, floors, new electrics, new radiators, insulated radiator niches, new water and sewage pipes, a new bathroom by merging the old bathroom and toilet, a new one Storage room was also created in this way.
The heating system was renewed in 2019, the loft, the basement ceiling and the north facade were insulated as insulation measures. The chimney head was renewed in 2018, the garage roofs in 2016.

Type of energy performance certificate: Residential building consumption certificate

Residential Building - Final Energy Value: 198.00 kWh/m²a

Main energy source: Natural gas

Year of construction of building according to EPC: 1964

Year of Construction of the heat generator according to EPC: 1985

Energy consumption for hot water included: included

Energy efficiency class: F (< 200)

Date of Energy Performance Certificate: 14 Aug. 2018

Description of location:
The house is located in a quiet side street of Rödelheim. Local supply centers are easy to reach. Brentano-Bad, Rewe, Aldi etc. are also within walking distance. The Nidda is only a few hundred meters away.

City district: Rödelheim

Public transport connection:
Rödelheim train station with S 3, S 4, S 5 is only about ten minutes away. From there also city buses in different directions.

General noise level of location: Quiet

MFH Number of residential floors total: 3

Living area: 227.00 m²

Type of construction: Solid

Number of flats (apartments) in building: 3

Number of flats (apartments) per full size storey: 1

Attic storey developed: yes

Basement (cellar area): Full cellar

Heatable living or usage rooms in basement: no

Number of full sized storeys: 2

General information on the renting situation:

Ground floor tenant € 780 cold rent for 83 sqm, + € 50 for a garage. Unchanged since rental began on November 1st, 2014.

One of the two original tenants in the attic has been in the apartment since 1.1.2000. With a new lease, the apartment was taken over to one of the original tenants on March 1, 2014, but now in a shared apartment with another tenant. According to the rental agreement, the basic rent is € 460; since 1.1.2020 increased to 500, - € cold. From January 1st, 2022, it will be increased to € 530. The garage was rented for € 50.

The apartment on the 1st floor is free.

The annual net rent can be increased to € 26,880 when renting the 1st floor at the same conditions as the ground floor. After deducting the annual ground rent, this means a return of 4% on the purchase price!

Other information or specialties:

Yield calculation (no guarantee!)

Purchase price € 595,000
Due to the leasehold contract, a maximum loan of 80% is possible.
-> Financing: € 476,000
Incidental acquisition costs:
Reduced property tax: 2940, - €
(€ 2,992 * 16.386 compounding factor for the remaining term of the leasehold contract 39 years)
Notary and court including order mortgage: € 7,590
Broker's commission (5.8% on purchase price): € 34,510

TOTAL PURCHASING EXPENSES: € 674,550
Less borrowed capital € 476,000 = 198,550

Rounded equity costs: approx. € 200,000

Return calculation for equity expenditure:
Cold rental income pa 29,000.00 €
Less 12% rent default risk, administration, maintenance
= € 3,500 per year
Less 4% interest and repayment on loans of € 476,000
= € 19,040
Remaining as interest on the equity employed:
€ 6,460
And 3.23%, respectively.

Tax aspects such as depreciation and interest loss deduction as well as repairs and non-allocable operating costs (administration, material costs, etc.) are not taken into account here. These may improve the return a little.

The costs for the notary, court, land charge as well as the reduced real estate transfer tax in the case of leasehold are to be checked again in the event of purchase or verified by a notary and tax advisor.

Is there an inheritable right of lease?: Yes

Start of heritable building right: 1. Januar 1962

End date heritable building right: 31. Dezember 2060

Ground rent p.a. at acquisition: € 2,922.00

Agreed adjustment mode: Depending on the development of land prices

Agreement concerning end of contract: Compensation for two-thirds of the common value of the building to the leaseholder

Standard land value : € 505,800.00

Other contractual agreements: Leasehold contract exists and can be viewed by interested parties.

Explanations to the inheritable right of lease: The leaseholder is the St. Katharinen- und Weißfrauenstift in Frankfurt am Main

Reduced purchase tax: Approx. 2940 € (without guarantee)