Mega contribution🔥
But I would have 1 point:
Often 2% of the property value is used for maintenance - this is how the state does it, for example, when calculating the loss in value of properties. You are also at just under 2%. However, this always refers only to the value of the building excluding the land. So I think the maintenance reserves should be set a little lower.
In addition, most buyers of new properties would set aside less for maintenance in the first 10 years, as little needs to be done. So maybe 1.5% maintenance in the first 10 years and then 2.5% in the following 10 years🤔
But I would have 1 point:
Often 2% of the property value is used for maintenance - this is how the state does it, for example, when calculating the loss in value of properties. You are also at just under 2%. However, this always refers only to the value of the building excluding the land. So I think the maintenance reserves should be set a little lower.
In addition, most buyers of new properties would set aside less for maintenance in the first 10 years, as little needs to be done. So maybe 1.5% maintenance in the first 10 years and then 2.5% in the following 10 years🤔
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@TresComas Thank you for reading carefully 🙂. In fact, I already include the estimated production costs of the building excl. land in the calculation. More on this in part 1.
Yes, it is very likely that a buyer will set aside less for maintenance at the beginning. However, this is probably a milquetoast calculation, as even more will have to be put aside later on. The reserves can be invested in an ETF, for example, and thus generate returns.
Yes, it is very likely that a buyer will set aside less for maintenance at the beginning. However, this is probably a milquetoast calculation, as even more will have to be put aside later on. The reserves can be invested in an ETF, for example, and thus generate returns.
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@TresComas By the way, the younger buildings (example from the 2nd part + Berlin) are calculated with 1.5% until the 50th or 60th year. Only the building that is already over 70 years old is calculated at 2.5%. Of course, the maintenance reserves are adjusted to inflation over time, as tradesmen's costs and materials naturally also become more expensive. Your proposal (1.5% for the first 10 years and then 2.5%) would therefore further benefit the tenant in the examples.
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•@DonkeyInvestor would like to see the Excel😂
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•@TresComas I can offer you the source code of a quick & dirty (but well tested) program. I started with Excel, but at some point it became too complex and imprecise. So I programmed myself a small tool.
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@TresComas In the (audio) book Kaufen oder Mieten by Gerd Kommer there is an Excel file in the supplementary material for a comparison. It's not as good as my program, but it's definitely useful 😁. If you have an audible subscription or something, you can get it. It may also be enough to do some good googling 😉
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•Thanks for the Tipp👌🏻
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