Apartment in a quiet location near the city center with two balconies

Purchase price (for investors): 359000,-- plus 20% VAT

Rental income: € 948,-- net per month + parking net € 35,--

Brief information for busy readers

• Living area: approx. 92 m²
• Layout: open living-dining-kitchen area, 3 rooms, bathroom, WC, storage room, entrance hall
• Outdoor spaces: 2 balconies
• Heating: air-source heat pump
• Parking net: covered: € 15,000,--, open parking: € 10,000,--

monthly costs incl. VAT

• Operating costs 143,87.--
• Elevator operating costs 76,48.--
• Heating costs on account 111,65,--
• Reserve 54,49,--

This modern new apartment is located in a quiet residential area in the Gneixendorf district, away from the main road, in a well-kept side street. The apartment is on the 1st floor of a 4-unit building and impresses with a thoughtful layout and bright, friendly rooms. The generous open-plan living-dining-kitchen area is open and provides access to the two balconies. The bedroom is centrally accessible, the bathroom is barrier-free. The air-source heat pump provides energy-efficient heating and low operating costs. Currently the apartment is rented until 31.07.2029, making it an attractive investment with stable rental income.

The depicted images can be digitally optimized or virtually furnished. The shown furnishings are not included in the purchase price.

Tax advantages of Vorsorgewohnungen and formula and steps to calculate the yield

When purchasing a Vorsorgewohnung for rent, the buyer is treated for tax purposes as an entrepreneur. As a result, the value-added tax paid at purchase can be reclaimed from the tax office as input tax. Savings approx. € 20,000–60,000; also the value-added tax on ongoing costs (repairs, administration, operating costs, tax advice, etc.) can be claimed as input tax.

Although renting is subject to VAT, the advantages from the input tax deduction far outweigh this.

Rental income is subject to income tax, but can be greatly reduced by:

• Depreciation of the property: 1.5% annually (on the building value)
• Depreciation of furnishings (e.g., kitchen) over 10 years
• Deduction of ongoing costs such as repairs, administration, tax advice
• Deduction of interest on external financing

The tax advantage of Vorsorgewohnungen arises not only from the input tax deduction, but also from ongoing depreciation and deductible costs.

Difference between gross and net yield Gross yield: Annual net rent divided by the purchase price excluding incidental costs = gross yield

Net yield: Determine net income and purchase-related costs to calculate the net yield

Annual net cold rent minus:

• Maintenance costs (maintenance reserve, repair costs, fees of the property management 5% -10% of the annual net rent for new builds, otherwise more)
• Rental vacancy risk (vacancy, arrears… 5% in good locations) (Assumption maintenance costs and vacancy risk total 10% of the annual net rent)
• Annual net rent - 10% = net income

Determine purchase-related costs:

Transfer tax, notary and land registry costs, broker commission… approx. 10%

Calculate total investment:

Purchase price + purchase-related costs 10%

Calculate net yield:

(Net income / total investment) x 100 = net yield in %.

We would like to point out that there is a familial or economic close relationship between the broker and the client.

The broker acts as a dual agent.