7% return on investment with historical charm: First occupancy after renovation, special depreciation allowances for listed buildings.

The apartment features four bright, flexible rooms that, thanks to the historical ceiling heights and the large new windows, offer a light-filled and inviting atmosphere. As part of the renovation, high-quality new flooring will be installed, and new windows will be fitted. A significant advantage in terms of efficiency and future-proofing is the new central gas heating system that was installed in the building this year. The apartment is suitable for personal use or, due to its favorable layout, as a shared living space (WG). The four separate rooms, ranging from 16 to 19 square meters, are arranged around a spacious hallway, allowing each room to be accessed independently and offering a true retreat – a quality feature that many shared apartments lack. The kitchen and dining area are available as a shared space. Located in the heart of Witten, the apartment offers easy access to shops, restaurants, and public transportation, as well as proximity to the University of Witten/Herdecke and the Ruhr University of Bochum. This location results in a stable and long-term demand from students, apprentices, and young professionals. For investors, this represents a rare combination: a recently renovated property with a new heating system, new windows, and new flooring. The building is a listed historical landmark. In addition to the standard depreciation for buildings, special depreciation is possible on the portion of the costs related to the renovation (Section 7i of the German Income Tax Act): eight years at 9%, followed by another four years at 7% – a total of 100% of the eligible portion over twelve years. Key performance indicators (with €20,000 of equity):

KEY INDICATORS
Purchase price: €259,000 (€2,442/m²) | Rent: 4 x €370 = €1,480/month | Annual net cold rent: €17,760 | Price factor: 14.6 | Gross rental yield: 6.86% | Net rental yield: 6.13%

EXAMPLE CALCULATION WITH €20,000 OF EQUITY
Purchase price: €259,000 + Property transfer tax: €16,835 + Notary/Land registry fees: €5,180 = Total investment: €281,015 | Minus €20,000 equity = Loan: €261,015
Financing: 4.5% interest rate, 1.5% initial repayment = Monthly annuity: €1,305
Ongoing income: Rental income + €1,480/month | Maintenance fees (not deductible): -€44/month | Annuity: -€1,305/month → PRE-TAX CASH FLOW + €131/month
Tax implications. a: Rental income: €17,760 | − Depreciation: €11,943 | − Interest share (Year 1): €11,746 | − Service charges: €531 = Taxable result: −€6,460 | Reimbursement at a 42% marginal tax rate: +€2,862 → POST-TAX CASH FLOW: +€369/month.

This is an example calculation. The tax considerations assume a 42% marginal tax rate, a building share of 85%, and a remaining useful life of 20 years. The actual impact depends on individual circumstances. All information is provided without guarantee. No tax, legal, or investment advice is given.

The apartment is centrally located in the city center of Witten. Shops for daily needs, restaurants, doctors, and services are all within walking distance, as are public transportation stops with connections to Bochum and the entire Ruhr region.

The location is particularly relevant for a shared living arrangement (WG): Witten University/Herdecke and Ruhr University Bochum are easily accessible by car. This results in a stable and reliable demand from students, trainees, and young professionals over the years – a foundation for consistently low vacancy rates.

Witten itself, a city with approximately 95,000 inhabitants, combines proximity to the Ruhr region with the nearby recreational area of the Ruhr Valley and the Hohenstein forest.