Just came back from a public court foreclosure auction in Berlin Weissensee, which I found on the website
foreclosures-germany.com.
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| Note: This is how the street looks like, but not the property. |
The properties public appraisal value was at 678 €/m² and the final bid was at 582 €/m² this is 85,78% of the appraisal price.
The property is rented ~50% and the average rent is 5.10 Euro/m².
In this area and on this trafficed corner 6.50 Euro/m² is achivable.
Nevertheless the new owner has to put money into the unrenovated part.
But even if we calculate with a high 200 Euro/m² he spent 782 Euro/m² in total (plus buyingcosts/landtransfertax, etc.)
Depending on how fast he will achive the 6.50 Euro/m² for all the space his new property is a factor 10 to factor 12 property. This is 7.8% up to 10% yield.
All calculated without any capital appreciation which will add even more to the ROI in a nice location like this, close to all ready hip Prenzlauer Berg.
Well done ! Congratulations.
