10.07% Net Yield, Leck,

Features of this property

• 4 blocks - 4610 sqm - 2,100,000 EUR
• cold rent 211,479
• 56 apartments (3 empty)
• Year of construction : 1973
• Price per sqm : 455
• Cold rent yield 10.07 %

Property Description

Leck is in Schleswig-Holstein / North Friesland. It is a charming little town in a beautiful environment. It is very much a family orientated town with an extensive range of schools, shops, good public transport, adventure park and a golf course (to name but a few). 10km from Niebüll and the North Sea, 30 km from Flensburg and 15 minutes from Denmark. The population is 7680 in area of approx 30 sqm. Unemployment is very low relative to the rest of Germany (349 people or 4.54%). It is a very popular holiday location.

All apartments have 2 or 3 bedrooms. Part of these blocks (1950 sqm) were built in 1973/1974 and the remainder 1971/72. It has gas central heating. As well as being a nice green area (and next to the countryside) there is a small children’s playground and car parking.

This is a video of the town. The pharmacy you can see at the beginning of the video is a short walk from the blocks: http://www.schleswig-holstein-video.de/#/NordfrieslandLeck.

Rent is controlled (as is the case for most of Germany) by the mietspiegel. The official rent ramge for this address is 3.82 - 4.97 EUR per sqm. The majority of rents are actually below the official minimum so rent can only increase. There is probably room to negotiate the price so it may be possible to buy with an 11% yield. German banks calculate how much they will lend based mainly on the cold (net) rent and because the rent is very high here you can estimate to borrow 75% of the cost (current rates - Sept 08 - approx 5.8% fixed for 10 years).

The blocks have been owned by the same company for 17 years and have been well maintained.