Berlin Investment - Opinions?
Tom H (PRO Member) Berlin Investment - Opinions?
Posted: Nov 12 06 07:03
Total Posts: 0
Users Rating: unrated

I'm looking at a possible investment in Berlin, and I wanted to get some opinions on it.There are some apartments for sale (individually) in an existing development in the Charlottensburg - Wilmersdorf area. Prices work out at about 1475 Euros per sq.m which seems to be about right for the area as far as I can see.The unusal thing about them though, is the management deal. There is a 10 year guaranteed rental in place, with 10 years free management, maintenance and repairs. The rental income is enough to service a 60% LTV capital + interest mortgage, so it's the kind of deal you can just set up and forget about. The downside is there is no provision for regular rent reviews so there's no guarantee that the rents will increase over time. This is presumably how they can offer a "free" management service. In the long term, I think it could do very well, I'm just a little unsure on the management deal.Anyone got any opinions on this?

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