Rented condominium financing - your assessment?

Hello everyone,

I am currently considering purchasing a condominium. The framework conditions are as follows.

My father already owns a unit in this apartment building (built 2002) and is also the property manager. Now I have the opportunity to purchase another unit (55 sqm) in the property.

No backlog/tenants will be taken over/central sought-after location, experience with vacancy approx. 20 applications within two weeks.

About the apartment:

Solid construction, direct downtown location opposite the shopping center, built 2002, 5 residential units, 55 sqm with garage and balcony on the 1st floor, no defects, tenants have been living in the apartment for 10 years and are to be taken over. Rental income 320 EUR cold.

Purchase price approx. 62,000 EUR for the apartment and 7,000 for the garage, no commission since the seller is known, so about 10% additional costs.

About my prerequisites:

Permanently employed since 2011, average net income (12 months) 2,550 EUR, I live in a rental with my partner (350 EUR warm my share), a car loan (25,000 EUR, 0.00%, 274 EUR monthly), no other loans, fixed costs including everything 1,500 EUR, so around 1,000 EUR left over. Equity 3,000 EUR fixed deposit / pension insurance surrender value approx. 3,000 EUR, guaranteed maturity benefit approx. 60,000 EUR (150 EUR savings rate).

I would actually like to do full financing including additional costs and the monthly installment should be about the same as the cold rent. Is a 110% financing possible under these conditions, or what would you advise me?

I wouldn't do it purely based on the numbers.

You need about 18 years for the rent to cover the purchase price, not considering financing costs and additional expenses.

You can't put the rental income fully into repayment, or who pays the [Hausgeld] and thus the reserves? This cannot be passed on to the tenant. In addition, taxes are due on the rental income.

For rented property, many banks require at least 10-20% equity plus additional costs.

I would cover the [Hausgeld] of about 80 EUR, special repayments would be possible annually (roughly 2,000-3,000 EUR) from bonuses.

I only became aware of the apartment because the conditions (rented, father is the property manager, quickly found new tenants, great location, direct sale without an agent) fit, and I wanted to contribute something extra for retirement provision. (I will also take over the second apartment in the building from my father in the distant future)

Is the prime location worth a sacrifice of returns for the next 18+ years to you? And what about the taxes on V+V?

I actually think less about returns in the next 20 years, as I said it would be an additional pension scheme for me. Since there is no significant additional monthly burden for me, I am just considering it. I have not had the matter calculated for tax purposes yet.

Then calculate that, then comes the sobering reality.