Newby Posted March 8, 2016 Report Share Posted March 8, 2016 I found a company in Germany (http://prophaus.de/) that offers high yields, but the investment necessary is too high for me (about 3 M. HK$), and I am checking if anybody wants to buy the property with me. This is a short list of pros and cons. I have some brochures I can send to anybody who wants to check the information in more details. Each property is a building with residential and sometimes also commercial units. Often about 10 to 15 different flats. They are mostly located in secondary cities, with a population of about 500,000 or so. No Berlin, Hamburg, Munchen, etc. The down payment is 300,000-350,000 Euros (each building of course has a different price, it goes from 250,000 (very rare) to over 400,000 Euros. Then there is the mortgage, at 70%, for only about 2.1% yearly, fixed for 10 years. I think the fact that the mortgage rate is fixed is particularly attractive. Even if there is hyperinflation, the mortgage rate won’t change. The buildings are fully let when they are rented out, and since they include 10-15 flats, I think the risk of loss due to vacancy would be extremely small. The yield is about 10% yearly, adding the money that one get from rent (in cash) and the money that goes towards repaying the mortgage. After 10 years, when the fixed mortgage rate is finished, we can discuss whether to make another mortgage, sell the building, or repay the mortgage and get the cash from renting the flats. The building will be owned by a limited company, which will own 94% of the building (the other 6% will be owned by prophaus). It will be easy to have different investors investing in each building, each investors owning a bunch of shares. I don’t think there will be scope for disagreement. This is just a commercial transaction. If, for example, I own 30% and another 8 people own about 8% each, in 10 years I can buy out some of the other investors, or we can sell the property, etc. If anybody is interested, can you please let me know through a pm? I have a couple of brochures of properties they are selling, and I also have a brochure of the company, explaining how they work. I am not an agent of this company. I would like to invest, but I can’t invest 3 million (it’s too much for me). I am looking for other people who want to put some money into it, and together we can buy one or two buildings. Cheers, New guy Link to comment Share on other sites More sharing options...
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