With this blog post, we will keep you updated on the latest news of our Germany rental and renovation project Eberswalde. This project was diveded into 2 different type of projects. The rental project was financing the acquisition of the property, offering investors monthly rental income and capital growth at the exit. The property required some renovation works for successful exit, the construction costs were financed on the platform as development project, offering investors fixed interest that is paid out monthly.
Key facts about Eberswalde rental projects
- Category – Rental and development project;
- Combined yield for rental units: 12.5% (6.5% rental yield +6% capital growth);
- Interest for renovation stages: 12%
- Country – Germany;
- Collateral – Owned by our SPV and secured with mortgage;
- Payment frequency – Monthly interests and rental payouts;
- Estimated duration – 24 months
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.
The updates for 17.02.2023
The renovation progress is moving rather slowly. The works are mostly happening in the second building, while the first building is partly rented out and is generating monthly income. The renovation is planned to be finished in 2023. The process would also require doing some paperwork and performing changes in the real-estate registries. To get commissioned, the building needs to get a second fire escape stair, and also with the time the insolation requirements have been changed for the building, so we’ll need to make some changes to the windows to improve insolation of the rooms.
The updates for 10.10.2021
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.