Real Estate Investment blog

Insider updates on Eberswalde rental project

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Please welcome our freshly made updates of the Eberswalde rental project. What we have been up to and how it is moving towards a good-looking (read greater capital growth) property in Western Europe – find in this blog article. 

Before we start, let’s get to know this project a little bit better. 

Key facts about Eberswalde rental projects

  • Category – Rental project; 
  • Combined Yield: 12.5% (6.5% rental yield +6% capital growth);
  • Country – Germany; 
  • Collateral – Owned by our SPV;
  • Payment frequency – Monthly rental payouts as soon as property gets funded; 
  • Estimated duration – 24 months, but 4 has already passed;

After reading our explanatory articles about rental projects, You already know that capital growth is an important yield, which does not come out of thin air. Before selling the property – we will perform the renovation works, thus increasing the value of the property. 

In the case of Eberswalde, the annual capital growth of 6% is fixed, as we got the pre-agreements of exit. It means that investors will get a stable capital growth of 6% per annum and not lower. 

As for now, the two units of this project are already funded and generating income to all the investors participating. By the time of writing this article, the 3rd unit is open for investing in it and is funded for 41%. This unit also has the tenant and investors will start receiving the monthly rental yield once it is funded. 

See more details of this property and invest in Germany here.

The updates for 10.12.2021

The first building of this property is operational and is already rented out generating income. We started with the renovation process in the first 2 units and the plan is to renovate the building from the inside and outside, hence making a modern facility for short and mid-term rent. Its difference from the regular hotel is that it’s meant for renting a living place for a longer period.

Renting an apartment in Germany is a quite complicated process and a lot of employees, who come to Germany for 3-6-12 months have to live in a hotel for this period of time, which is quite costly. Taking that into account, this is the main audience, who is renting premises and we plan to expand the operations in this area as demand is stable. Also, the performance of rent is better than regular long-term rent.

Once the renovation is completed, both buildings will be operational instead of one. On the ground floors, it will have a dining place (restaurant or cafeteria) and reception.

As per the mortgages, they are installed and right now we are in the process of buying the 3rd unit. 

Below You can see the pictures of how we plan to renovate the outside of the buildings.

Refunding the entry fee

Recently Reinvest24 made changes in our fee structure, which led to removing the entry fee and introducing the exit fee. Despite the fact that initially, the no etry fee policy was applicable only to new projects, we decided to apply it on our ongoing projects as well.

As a result, the entry fee for the Eberswalde unit 3. was refunded to our investors.

The demand for the short-mid term rental premises in the area is growing and so are the prices for the real estate. Especially in the prime location of the city center and at the close proximity to the train station, where the Eberswalde project is located. 

Learn more insights about the German real estate market and investments in our German real estate market overview