Buy a condominium with 1 1/2 rooms - what to consider

Greetings! Hopefully this fits here. As already mentioned in the title, there is a (still) rented 1 1/2 room apartment with 39m2 within walking distance to the workplace of one of our sons available for purchase for €66,000. Location - 5 minutes on foot to the tram and about 15 minutes by tram to the city center. To the workplace it would be about 10 min on foot. The small apartment would initially remain rented, because our son usually commutes by car depending on traffic 40 to 50 min to work and stays overnight at most 10 times a year at his brother's place in the city if necessary. At some point over the next 10 to 20 years, however, he will need his own occasional overnight accommodation in the area. When I add agent fees and purchase incidental costs and divide by the (not yet increased) net rent, it comes to 18 years. Is this return good or bad? Is it better to pay from savings or to take out a loan and possibly save taxes because of it?

What do the reserves of the [Weg] look like? What do the minutes of the owners' meetings say? Are any renovations coming up soon?

If I add the broker fee and additional purchase costs and divide by the (not yet increased) net rent, it comes out to 18 years. Is this return good or bad? Is it better to pay from savings or take out a loan and possibly save taxes this way?

What about the service charges? There are things included that cannot be passed on. Furthermore, you cannot expect there to be no special assessments over 20 years.

If I add the realtor's fee and incidental purchase costs and divide by the (not yet increased) net rent, it results in 18 years. Is this yield good or bad? Is it better to pay from savings or to take out a loan and possibly save taxes that way?

You just have to calculate precisely. Give some numbers so we can help you (annual net cold rent, non-allocable operating costs, your marginal tax rate, interest for financing or foregone interest in case of a cash purchase, depreciation, etc.) P.S. Saving taxes doesn't really work through the purchase, since you first have to pay additional taxes on rental income!

At some point over the next 10 to 20 years, he will need his own occasional overnight accommodation in the area.

Is that so or is that what you think? A lot will happen in 10 years, the son will be 10 years older and certainly will require more space with a family than 1 1/2 rooms. He will be grown up :) Do what you want, but don't expect that the current need will still exist in ten years.

Is that so or do you think that? A lot will happen in 10 years, the son will be 10 years older and will certainly need more space with a family than 1 1/2 rooms. He will be an adult :) Do what you want, but don't expect that the current need will still be the same in ten years.

Even if the need remains unchanged in 10 years, I would consider whether it is worth leaving the apartment empty for the rest of the year just because he stays overnight 10 times a year.