Apartment in a quiet green setting leased

Purchase price (for investors): 379000,-- plus 20% VAT

Rental income: € 1.047,27,-- net per month

Brief information for quick readers

• Living space: approx. 92 m²

• Floor: 1st floor (lift floor)

• Room layout:

  • Open living-dining-kitchen area

  • 2 rooms

  • Bathroom

  • WC

  • Storage room

  • Entrance hall

• Outdoor spaces: 2 balconies

• Heating: air-source heat pump

• Parking:

  • Covered: net € 15.000,--

  • Open parking space: net € 10.000,--

This modern new-build apartment is located in a quiet residential area in the Gneixendorf district, away from the federal road, in a well-kept side street.

The apartment is situated on the 1st floor of a 4-party house and impresses with a well-thought-out layout as well as bright, friendly rooms. The spacious open living-dining-kitchen area is open-plan and provides access to the two balconies. The 2 bedrooms are centrally accessible.

The air-source heat pump ensures energy-efficient heating and low operating costs. Currently, the apartment is rented until 31.11.2027, which makes it an attractive investment with stable rental income. The shown images can be digitally enhanced or virtually staged. The shown furnishings are not included in the purchase price.

Tax advantages of retirement apartments and formula and steps to calculate the yield

When buying a retirement apartment for renting, the buyer is considered a business for tax purposes. Therefore the paid value-added tax at the purchase can be reclaimed as input tax from the tax office. Savings about € 20.000–60.000, also the VAT on ongoing costs (repairs, management, operating costs, tax advice, etc.) can be claimed as input tax.

Although rental income is subject to VAT, the advantages of input tax deduction clearly outweigh this.

The rental income is subject to income tax, but can be significantly 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 consulting

Deduction of interest on external financing

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

Difference between gross and net yield

Gross yield:

To determine gross yield: monthly cold rent x 12 months = annual net cold rent = gross yield

Gross yield: annual net cold rent / purchase price excluding ancillary costs = gross yield

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

Annual net cold rent minus:

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

Calculate purchase-related costs:

Real estate transfer tax, notary and land registry costs, broker commission… about 10%

Calculate total investment:

Purchase price + purchase-related costs 10%

Calculate net yield:

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

The shown pictures may be digitally enhanced or virtually staged. The shown furnishings are not included in the purchase price.

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

The broker acts as a dual agent.