Newsletter April 2012


German Property For Sale – April 2012 Update


     

April German Property Update

 

Welcome

Welcome to our German Property market update. In this edition we take a closer look at the city of Wuppertal and the investment potential to explored there.

German Property has also hit the headlines with a number of institutions expressing confidence in the market.

As ever – please contact us if you would like any more information.

 

Wuppertal – The second part of our City Focus

In last month’s update , as part of our focus on the Rhine-Rhur area, we looked at Wuppertal, a University City with a strong manufacturing based economy and sustainable 10%+ yields (in the context of the economic outlook for the country, we think this city is one to take a much closer look at). This month we take a closer look at the numbers and at the City … read on to find out what makes Wuppertal worth a look.

German Market Grabs The Headlines, at Last…

Since 2007, ProVenture have been banging a little drum in our corners of Germany and highlighting the relative value the country’s property market offers. Capital values in many parts of the country are some of the lowest in the developed world, and the economy has grown significantly in the last 5 years during the financial crisis. Uniquely, the bank have been lending to high levels during this period, whereas mainstream investor funding has all but dried up else where. It is nice to see some articles from mainstream sources now banging a slightly louder drum than ours. Here’s a selection from this month:

Deutsche Bank

Typically ever-cautious, the bank here call property in Germany "Concrete Gold" and end by saying " house price valuations thus remain cheap and there is virtually no risk of overheating even if prices increase by 5% per annum until 2015. "

A very rare statement from a bank, with no caveats. Interesting reading, from one of the main lenders we use.

DB Article

Wall Street Journal

This international publication picks up on the story, focusing on big cities

Wall Street Journal – Germany on a Different Track

Financial Times

Here the report focuses just on Munich and reports an 100% increase in prices in past 6 years. This is interesting to read, as often German house prices are reported to be very stable and slow in developing and only in line with rent increases. This is not our experience in the markets in which we operate. When a price correction occurs, and confidence and bank lending build, prices have no such restriction. Our early investors in Leipzig and Berlin have enjoyed similar increases to that reported here.

FT Article (requires FT registration to read)

Money Week

A UK publication here, by a very well-respected journalist who made comment to the Berlin market back in 2007. The report cites the potential in the German market, and suggests "nipping over to Berlin to buy an apartment". Well, since this reporter tipped the capital 5 years ago, prices have rocketed so perhaps her advice will not be so good on this occassion. But pockets of Germany outside of the capital could follow the same story, that;s what we look for.

Germany’s house price bubble is only just getting started

Germany’s property gold rush

These reports, and the general economy, really gives us continued confidence in the markets in which we operate, and new ones which we are finding in Germany. We are set fair for a very busy couple of years in the country I am sure.


Latest Property Offers



PV460 Chemnitz – Schloss


350,000€ | Chemnitz
Potential Yield: 9.59%
Type: Residential
Approx. Size: 570 sqm

Here we present a purely residential unit in the in-demand suburb of Schloss-Chemnitz [the castle
area]. The area boast some of the higher rent level and demand in the city, being in close
proximity to park areas and the city centre. Population here has increased year on year by an
average of 1,5% since 2002 which supports tenancy well.
The property has 9 units, set over 5 levels and was fully refurbished, with the project finishing in
2002. The property is fully tenanted, with 5 of the units having balconies. The last tenant move
was in 2007 which shows good stability in the rental performance.


PV712


Now 650,000€ | Chemnitz
Potential Yield: 8.44%
Type: Residential
Approx. Size: 903 sqm

This property investment opportunity is located in Kaßberg, Chemnitz. With both commercial and residential tenants with rent levels at between 4.1 and 5.5 EUR psm, this Wihelminian-style building is situated in one of the most attractive areas in the city, but surrounded by good retail areas with many shops, restaurants, banks and schools nearby. The building is in excellent condition, and the staircase – refurbished in 2003 – features the original leaded lights inserted into modern frames. All ten units have balconies, south-facing onto a well-kept, and well-used back garden. All units were refurbished in 1994, although units 6 and 7 were re-done in 2004. It has a very well-maintained central gas heating boiler with recently-installed new pipes, and a new electricity system. Each unit has the original door in a refurbished state, mainly laminate flooring with some carpet, and two bathrooms.


PV464 Chemnitz – Kaßberg


29,000€ | Chemnitz
Potential Yield: 10%
Type: Single Unit
Approx. Size: 45sqm

This single apartment investment opportunity is in the north-west of the city, in the district of Kaßberg, the most popular residential area of Chemnitz. Situated on a quiet street, it is adjacent to an attractive park, and the city-centre – which is very appealing and has a good range of shops and amenities – is well within walking distance, although there is an excellent public transportation system, too.
The unit, built in 1900 and located on the 2nd floor overlooking the courtyard to the rear of the building, has a small hall, a living room with an open kitchen, a bedroom, bathroom and balcony. It is in good condition, having been refurbished in 2000 with a mixture of carpet and laminate flooring, (tiled bathroom and kitchen), and woodchip wallpaper throughout.
For a superb price of 645 EUR per square metre, and with an annual rent of almost 3.000 EUR delivering a yield of over 10%, this is a superb prospect in a city with a very bright future.




PV469 – 2.6m portfolio


2,600,000€ | Leipzig
Potential Yield: 9%
Type: Residential
Approx. Size: 4240 sqm

This Leipzig 2.6m portfolio consists of five multifamily
house properties based in some of the most
popular districts of Leipzig, a city that is
expanding fast, both in terms of population and
economy.


PV443


55,300€ | Leipzig
Potential Yield: 10.3%
Type: Residential
Approx. Size: 91 sqm

This single 90 sqm unit is in Lindenau, an attractive suburb approximately 4.5kms west of Leipzig city centre. Lindenau has its own attractive market area, with a variety of shops and amenities, with the city centre itself only a 20 minute tram ride away. To the south of this unit, by only a couple of hundred yards, is Karl-Heine-Strasse, essentially the spine of neighbouring Plagwitz, a vibrant street initially attracting the student and art crowd, but now increasingly attracting young families looking for easy access to amenities as well as close proximity to the popular Klara-Zetkin Park, an important facility for tenants living in this area.
This unit, built in 1918, but extensively modernized in 1998 has one main bedroom, two children’s rooms, a kitchen, bathroom, and a balcony. It is currently tenanted.


PV433 Leipzig 66 unit Commercial Investment


12,380,000€ | Leipzig
Potential Yield: 10%
Type: Commercial
Approx. Size: 15,436 sqm

This property investment opportunity is a mixture of primarily commercial units located in Gohlis, an area 3
kilometres north-west of the city-centre. There are 66 commercial units, 3 residential units, as well as over
300 separate units including car parking slots and antennaes, all of which generates an income of 1.238.688
per year.
Built in 1994, this is a substantial complex in excellent condition. It’s largest tenant is the Office for
Unemployment which began renting in 2011, paying an average of 7.16 EUR psm. Their main office is
adjacent to the Axis-Passage, presenting a strong case for the permanence of their tenancy. The other
tenant is the BfA – a building refurbishment company, who also began tenancy in 2011, paying an average of
7.23 EUR psm. Between them, they represent 64% of the rentable space.



PV482 – Leipzig | Markkleeberg


690,000€ | Leipzig
Potential Yield: 8.52%
Type: Residential
Approx. Size: 862 sqm

This multifamily house is based in Markkleeberg, an extremely attractive area south of Leipzig.
Consisting of twelve residential units. This property has significant potential. Letting the final unit pushes up the yield up to over 8%, but
upon acquisition, it is recommended that any new investor instigates a rental review programme to
develop the rents above 5.5 EUR psm. The quality and appeal of this area would support further
developments during the period of ownership.



PV546 City Centre apartment in Bremen


45,000€ | Bremen
Potential Yield: 8.64%
Type: Residential
Approx. Size: 53 sqm

This apartment is just a stone’s throw from Bremen’s historic and touristy Old Town. Situated within a typical multi family house, this apartment is fully refurbished with a tenant in-situ. The house and grounds are maintained regularly and kept in a very neat condition. Overlooking the Bremer Shakespeare Company building and the tram stops, this building is extremely well located and is also close to the university and Becks Beer head offices.


PV438 Dresden – Cotta


300,000€ | Dresden
Potential Yield: 8.57%
Type: Residential
Approx. Size: 496 sqm

This property investment opportunitiy is located in Cotta, a small district just a few kilometres away from
Dresden city centre. Transport links are excellent, with regular buses running into town, as well as the nearby
Dresden Friedrichstadt train station for inter-city travel.
This building consists of seven residential units, ranging between the sizes of 44 – 101sqm and therefore of
interest to a broad range of the tenant market. The property is fully let, and the tenant list is very stable; two
of the tenants have been there for over five years, and all but one have been resident for well over two years.
Whilst the external of the building would require decoration in the short-to-medium term, the seven flats are
all in good condition with gas central heating, and wooden or lino floors. Contact us for more details.



PV811 Apartment – Berlin Charlottenburg


149,000€ | Berlin
Potential Yield: 4.45%
Type: Residential
Approx. Size: 70 sqm

This apartment is situated in a beautiful building in the very sought-after district of Charlottenburg. The five-story apartment house property was built circa 1900 and the attic was built out in 1986. This top floor apartment is an elegant 2-room apartment with a bright lounge, separate shower and bath tub in the bathroom, with mosaic tile design. In addition, it has a large south westerly facing terrace, on which you can enjoy a glass of wine on a summer’s evening, overlooking this beautiful district.


PV812 Apartment – Berlin Charlottenburg


83,995€ | Berlin
Potential Yield: 5.53%
Type: Residential
Approx. Size: 49 sqm

This apartment building is situated in a quiet side street off Spandauer Damm, in the popular, and very pleasant, residential district of Charlottenburg, Westend. This 3 storey multi family house was built in 1951 is in excellent condition. The apartment is 1.5 rooms and is 49 sqm, bright and airey, and situated on the second floor. Ideal for a single person, whilst still affording enough room if your guest remains for breakfast! Completely renovated at the end of 2011, a tenant can move in without any need for renovation. There is a small south facing balcony and a modern and stylish bathroom with walk in shower and towel rail.



PV813 Apartment – Berlin Charlottenburg


149,000€ | Berlin
Potential Yield: 3.29%
Type: Residential
Approx. Size: 48 sqm

This offering is situated in a beautiful building in the very sought-after district of Charlottenburg. The five-story house property was built circa 1900 and this apartment was refurbished in 2007. This 1st floor apartment is an elegant 2-room modern and luxurious apartment with a bright lounge, containing a fire place, finished to a very high spec; parquet flooring throughout and marble tiles in the bathroom is an example of this.



PV814 Single Apartment, Berlin Tiergarten


65,000€ | Berlin
Potential Yield: 6.83%
Type: Residential
Approx. Size: 50 sqm

This attractive residential building is situated in the district of Moabit, Tiergarten. This apartment is a two room, 50 sqm, unit that would suit a couple or single person, who would enjoy being centred very close to all local amenities and transport links. The apartment is fully refurbished and ready to move in to.



PV815 Apartment – Berlin Tiergarten


148,000€ | Berlin
Potential Yield: 3.54%
Type: Residential
Approx. Size: 59 sqm

This beautiful residential building is situated on the east side of the district of Tiergarten, close to Mitte. This apartment is a two room, 59 sqm unit, situated on the 3rd floor. that would suit a couple or single person, who would enjoy being centred very close to all local amenities and transport links. The apartment is fully refurbished and ready to move in to. Situated very close to Berlin’s biggest park, here you can feel like you are living in the countryside, despite being in the centre of one of Europe’s biggest cities.




PV805 – Wuppertal, Attractive Multi Family House


385,000€ | Wuppertal
Potential Yield: 9.77%
Type: Residential
Approx. Size: 739 sqm

Situated in the bustling city of Wuppertal, this property contains 7 residential and 2 commercial units is located close to the famous cable car, numerous green areas and in the central location of Wuppertal-Langerfeld. Built in 1909, it is in need of some renovation to modernise the apartments are tenants leave, but the structure and façade are very sound. The heating is presently gas centralised and the windows are PVC double glazing.



PV806 – Attractive Res Building, Wuppertal


279,000€ |
Potential Yield: 10.15%
Type: Residential
Approx. Size: 505 sqm

Situated in the bustling city of Wuppertal, this residential property, set over 5 floors, contains 9 apartments. is located close to the famous cable car, numerous green areas and in the central location of Wuppertal-Elberfeld. Built in 1957 it underwent renovations to the façade, electrics, flooring and some bathrooms in 2010. The apartments all have decentralised gas heating.



PV808 – Residential Portfolio – can divide


1,389,000€ |
Potential Yield: 10.52%
Type: Residential
Approx. Size: 2662 sqm

Situated in the bustling city of Wuppertal, this residential property portfolio, set over 5 properties, contains 39 apartments. The houses are all along the same street in straight succession, and are located close to the famous cable car, numerous green areas and in the central location of Wuppertal-Elberfeld. Built in 1929 , the houses have undergone extensive refubishment, with 80% of the apartments fully modernised. Between 2005-11, 300.000 Eur was spent on new bathrooms, floors, ceilings and heating. The apartments all have decentralised gas heating, installed between 1995 and 2011, and all apartments have a balcony.


PV810 – Small attractive MFH in Wuppertal


195,000€ |
Potential Yield: 11.7%
Type: Residential
Approx. Size: 326 sqm

Situated in the bustling city of Wuppertal, this beautiful heritage property, set over 5 floors, contains 5 units; 4 apartments and 1 office unit. Is just a short walk to the famous cable car, numerous green areas and in the central location of Wuppertal-Elberfeld. Built circa 1900, the building underwent extensive renovations between 1993 and 1999 and since then maintenance has been well kept up The apartments all have decentralised gas heating.


PV809 – Small attractive MFH in Wuppertal


169,900€ |
Potential Yield: 11.3%
Type: Residential
Approx. Size: 307 sqm

Situated in the bustling city of Wuppertal, this residential property, set over 5 floors, contains 5 apartments. Is just a short walk to the famous cable car, numerous green areas and in the central location of Wuppertal-Elberfeld. Built in 1912, the building underwent extensive renovations between 1993 and 1999 and since then maintenance has been well kept on top of. The apartments all have decentralised gas heating.



   
 


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