Buy to Let calculator for Germany
Does buying an investment property in Germany make sense? Calculate your rental yield, appreciation, and tax benefits for investment properties in Germany.Published on Feb 19, 2025 . Updated 20 minutes ago
Does buying an investment property in Germany make sense? Calculate your rental yield, appreciation, and tax benefits for investment properties in Germany.
Your Property Investment Story
Projected Financial Outcomes
Loan-to-value (LTV) 95 % | Interest rate 3,17 % | Rental yield 4 % |
Since your property qualifies for the Sonder-AfA condition and with the loan amount of 237.650 €, your projected total gains over various periods are as follows:
Over 10Y | Over 15Y | Over 30Y | |
|---|---|---|---|
Appreciation | 85.979 € | 139.492 € | 356.816 € |
Tax benefits | 45.329 € | 57.127 € | 90.994 € |
Operational profit | -17.499 € | -5.805 € | 84.121 € |
Total profit | 113.809 € | 190.814 € | 531.931 € |
The internal rate of return (IRR) over these timeframes is estimated as:
IRR over 10 years 20 % | IRR over 15 years 17,2 % | IRR over 30 years 12,21 % |
Visualizing Your Investment
To help you analyze your financial projections, here are three key insights:
How your loan and equity will cover your purchase
For your desired property, the costs you have to consider the following purchasing costs are notary fees of 2 % and property transfer tax of 6 %. In total, you will have the purchase fees of 20.650 € for this property.
Average monthly cash flow projection
Cumulative net worth over time
Your Projected Payment Plan
Year | Mortgage (out) | Maintenance (out) | Rental income (in) | Tax refund (in) |
|---|---|---|---|---|
1 | 255 € | 0 € | 0 € | 0 € |
2 | 570 € | 61 € | 380 € | 103 € |
3 | 738 € | 125 € | 783 € | 507 € |
4 | 738 € | 129 € | 806 € | 677 € |
5 | 738 € | 133 € | 830 € | 633 € |
6 | 1.004 € | 137 € | 855 € | 590 € |
7 | 1.004 € | 141 € | 881 € | 230 € |
8 | 1.004 € | 145 € | 907 € | 202 € |
9 | 1.004 € | 150 € | 935 € | 173 € |
10 | 1.004 € | 154 € | 963 € | 144 € |
11 | 1.020 € | 159 € | 992 € | 117 € |
12 | 1.020 € | 164 € | 1.021 € | 109 € |
13 | 1.020 € | 169 € | 1.052 € | 49 € |
14 | 1.020 € | 174 € | 1.084 € | 32 € |
15 | 1.020 € | 179 € | 1.116 € | 14 € |
By carefully planning your property investment, securing favorable financing, and optimizing tax benefits, you are setting yourself up for long-term financial success. This strategic approach ensures that your investment aligns with your financial goals and maximizes your returns over time.