Immobilien: Kauf einer Mietwohnung – Das verdienen Vermieter tatsächlich

Many Germans worry about receiving insufficient pensions in old age and seek alternative ways to secure income during retirement. Investing in apartment rentals within a multifamily building appears lucrative, especially as many affluent individuals and family offices have been investing in real estate for years. However, a recent survey by the homeowners' association, Haus & Grund, revealed that many private landlords either break even or even incur losses with their properties.

Considering the current landscape of rental regulations, high property prices, and rising interest rates, what is the actual profitability of renting a multifamily house in today's market? Below are three example calculations and a costly mistake to avoid when purchasing such a property.

Schick Immobilien's Geschäftsführer, Jürgen Michael Schick, warns that the biggest mistake when purchasing a property as an investment is setting the object as the benchmark for valuation. He advises prospective buyers to consider whether they would personally like to live in the area, if their children could move in, and if the location meets their preferences.

This approach helps avoid choosing a neighborhood that is too expensive or a property that costs more than necessary. Schick emphasizes that a simple to mid-range house in a normal neighborhood offers a good return on investment, while prestige and aesthetics often come at a higher price.

Immobilieninvestor Gerald Hörhan adds that investors should focus on economic aspects rather than aesthetics. Small, functional apartments in a well-placed location provide the key elements needed for a successful investment: predictable rental income, solid demand, and manageable risks. Schick advises buyers to research the area, ensure the building is in good condition, and look for cities with population growth potential. However, he cautions against relying solely on personal taste when making a purchase decision.

According to Schick and Hörhan, a model calculation was created by the Handelsblatt for the purchase and subsequent rental of a multifamily house. The theoretical house is located in a German large city away from major metropolises, with a purchase price of one million euros and annual property taxes of 10 percent. The building yields a net yearly rental income of 44,000, 55,000, or 61,000 euros in three different cost scenarios, reflecting varying levels of maintenance and repair expenses.

In this example, the annual net lease expense is assumed to be 44,000 euros, representing three different maintenance cost levels: 11,000, 20, and 18 times the annual net lease, respectively. The calculations for the other two factors are available in the graphic.

The maintenance costs are deducted from the net lease income, and the remaining net income after expenses is calculated. Over a ten-year period, the property is not fully paid off, but after ten years, the speculation period for real estate ends, making any potential profit from selling tax-free. In model calculation 1, with an initial investment of 200,000 euros in equity, the remaining cost amounts to 900,000 euros financed through a loan.

With an annual interest rate of 3.5 percent and a 1.5 percent principal reduction, the buyer must generate 31,500 euros annually for interest payments and 13,500 euros for principal reduction. After deducting 11,000 euros in non-recoverable costs, the net annual profit is 44,000 euros. Subtracting the 31,500 euros in interest expenses leaves a profit of 12,500 euros on the initial investment, resulting in a return on equity of 6.25 percent.