Is this income property worth it?
Calculated live from your inputs — honest, including the uncomfortable truths. Interest rate taken automatically from the ECB mortgage rate, every assumption overridable. Indicative and model-based — not an appraisal, not investment or tax advice.
Assumptions
Pre-filled with example values — set each slider to your property (e.g. from the exposé). Location prices by district: Property price analyses.
Transaction costs NRW 8.5 %, amortisation 2 %, operating costs per ImmoWertV Annex 3. LTV-dependent interest surcharge automatic.
For the “Holding Period & Exit” tab: exit commission 3.57 %, fixed-rate period 10 yrs (effective rate fixed), § 23 EStG automatic (≥ 10 yrs or owner-occupation → tax-free). The value-appreciation slider above applies to both tabs.
Critical — negative cash flow (-678 €/month). High leverage/negative carry; the math only carries with a great deal of equity.
Critical: negative carry and/or high leverage without sufficient income. In this constellation the math only carries with a great deal of equity — or with a markedly lower entry price.
All metrics calculated live from your inputs — model, not an appraisal.
Assessment · 6 weighted dimensions
Weighting documented · heuristicEach dimension is expandable: what it measures, your value, the benchmark. Property quality (yield, entry price, condition) weighs 55 %, financing structure 45 %.
Yield· 22 %38›
2,5 % net rental yield is too little ongoing income — the math hangs almost entirely on assumed value appreciation.
Benchmark: ≥ 3 % net is considered good, 4–5 % very good — documented heuristic (Finanztip/Sparkasse).
Entry price· 18 %33›
32,2 times the annual base rent is bought expensively — every further burden (interest, capex) hits an already thin calculation.
Benchmark: ≤ 20 attractive · 20–30 market-standard · > 30 expensive; major cities 2025: 25–38 — heuristic (immoverkauf24/Homeday).
Building condition / future· 15 %72›
Built 1995: young stock, energetically close to current standards — low risk of refurbishment surprises.
Benchmark: Year-built classes along the thermal-protection standards (1978 = 1st WärmeschutzV, 1995 = WSchV '95, 2010 ≈ EnEV) — heuristic.
Cash flow· 20 %0›
-678 €/month: you keep topping up (negative carry). Only someone who can permanently cover it from other income can carry this.
Benchmark: 0 € = break-even (score 50); positive margin = buffer for vacancy/capex — heuristic, measured size-independently as a margin.
Financing safety· 15 %0›
DSCR 0,57: the net operating income does NOT cover debt service — you pay the gap monthly out of your own pocket. Banks typically expect ≥ 1,2. (ICR, interest only: 0,86)
Benchmark: Banks typically expect DSCR ≥ 1,2–1,3; 1,0 = no buffer — heuristic (Dr. Klein Wowi/banking practice).
Loan-to-value· 10 %72›
LTV 81 %: moderate leverage — best interest terms achievable, buffer against value fluctuations in place.
Benchmark: ≤ 60 % best rate (Pfandbrief limit, BelWertV §4) · > 80 % interest surcharges · > 100 % atypical for banks — heuristic (banking tiers).
What tips the math?
The cash flow is already negative — break-even would be at 1,38 % interest rate.
Effect on the monthly cash flow, each factor varied on its own (largest lever on top). Exactly calculated, not an estimate.
What-if ⓘ
Equity return honestly broken down ⓘ
Prevents the leverage illusion: ongoing cash return kept separate from amortisation and (assumed) value appreciation.
Discuss this analysis with an expert
Your figures, put in context by Premises Fidelis — non-binding and honest, even if the property does not fit.
All figures are indicative and model-based — not an appraisal under § 194 BauGB, not investment, tax or legal advice and no recommendation to buy or sell. Results are based on your inputs and documented model assumptions; source and date are shown for every figure, heuristics/phases are marked as a model.