Mixed property: Advantages or disadvantages? - Experiences?

Hello
This week we were offered a property.
On the upper floor there is the very spacious apartment and on the ground floor in the front area there is a retail business ([Feuerschutzfirma]).

Of course I know that it is an effort because you also become the landlord directly, but we were assured that the lease has been running for a long time and that the tenants are very, very reliable.

Now the question: How do you see it? Is something like this worthwhile? What things must be considered with one’s own property.

Regards
Ben

Now the question: What do you think? Is something like this worth it? What things must be considered with your own property?

How are we supposed to know if it is worth it? You do not provide any figures, so the answer can only be yes or no.

You initially do not have much effort as a landlord. But if the tenant moves out, you need a new one or must be able to bear the missing rent (plus possible renovation costs for the commercial unit).

are 150 sqm of living space (purchase price 450,000) The commercial space has 110 sqm and has been paying 800€ cold rent for years. I would be more interested in the tax factor and also the additional costs. Maybe someone has experience with that.

Generally not a good idea, the disadvantages outweigh the advantages imho. Banks see this much more critically than a pure residential property. The resale value is significantly lower than a comparable property without a commercial share. If it is not the perfect apartment and on top of that a bargain, I would stay away from it.

Can you explain that to me further? I only see the disadvantage that you are not really "alone" in the house and that you have to take care of the tasks that arise.

The prices in our region are actually plus or minus 5% without a business license.

Of course, I see the advantage that the tenant practically pays off half of my loan. The question is what realistically remains of the 800 cold rent per month.

Resale value is significantly below a comparable property without a commercial portion.

Doesn't matter, the current purchase price should then also be correspondingly low - it is the resale value of the current seller. Thus, no disadvantage.

Banks see this much more restrictively than a pure residential property.

Not really.

the disadvantages outweigh in my opinion

Which disadvantages?

Commercial space has 110 sqm and has paid 800€ cold rent for years.

From the 800€, the advertising costs are deducted (non-allocable operating costs, maintenance costs, financing costs, depreciation, etc.). Now it is up to you how you allocate the financing costs and which invoices you have for the rented unit. You have to pay taxes on the rest, just calculate with 42%.

Simplified calculation: The commercial portion accounts for €190K (purchase ancillary costs not considered) and generates gross €9.6K p.a. (before taxes and operating costs) - thus 5% gross yield. With this, even after taxes (which you can partly influence yourself if you are creative), a good contribution for your own apartment should remain.