Where to put money? Long-term financial planning including real estate

The property has meanwhile been listed with the local bank as a sales object.

Let's take a look at it as well. Then you can get even more tips.

Was it deleted or did I just not send it.... so here is the 2nd attempt

Deleted. It's a link after all... :rolleyes: My notes: 1. Location looks okay 2. Rental sign in the display window of one unit? Not such a good location overall or turnover? 3. Extremely moderate rent for a bakery 4. Lease term with the bakery? In the commercial sector, long-term leases are often concluded. 5. Indexation of the lease? 6. Baker’s plans for the future – such things are discussed in advance by the buyer with the tenant. Or directly negotiate a lease extension 7. Extremely high commission for the buyer – usually done only if the property is extremely in demand or extremely difficult to sell. Because the seller also has to bear their share…

What I have noticed about renting out properties:

I personally handle problems that I have to manage/supervise myself extremely poorly. I immediately get sleepless nights when there are issues to worry about, even if the solution, for example, is not even up to me. (For example, water damage to the house. Hire a craftsman and done... actually. Still, I don’t sleep for two weeks.)

That "costs" me so much that owning real estate has now become really unattractive to me, regardless of any further risk/opportunity considerations. On the other hand, I can sleep wonderfully when the DAX or MSCI World drops, even though I am invested...

To me, it looks like the bakery itself is exactly the one for rent. Therefore, check the contracts, as maybe only the end of the rental period is now running out.

Deleted. It’s a link after all... :rolleyes:

My remarks:
1. Location looks okay
2. Rental sign in the shop window of one unit? Not such a good location overall or high turnover?
3. Extremely moderate rent for a bakery
4. Lease term with the bakery? In commercial real estate, long-term leases are commonly concluded.
5. Indexation of the lease?
6. Bakery’s plans for the future – as a buyer, you discuss this with the tenant in advance. Or directly negotiate a lease extension.
7. Extremely high fee for the buyer – usually done only if the property is extremely in demand or extremely hard to sell. Because the seller also has to pay their share...

I had made sure that it wasn’t a link, but the note was apparently forbidden as well...

Well, okay...

I’ll respond to your points:

The location is actually quite good. The bakery was a tenant for 15 years and terminated its lease. The reason: to the left and right, 100m in one direction and 250m in the other, two large modern bakeries with cafés opened, so he had no chance anymore.

According to the bank employee, there are currently several applicants for a lease; they want to involve the new owner when choosing the tenant.

I’ll take a look at the lease agreements themselves; we work with a minimum of 5-year contracts, corresponding renewal options, and indexed rents.

The moderate rent surprised me personally as well.

The neighboring businesses have been there partly since the building was built. I know the location very well and have never noticed a longer vacancy.

I also find the fee pretty high!

I personally handle problems very poorly that I have to manage/supervise myself. I get immediate sleepless nights if there are issues to worry about, even if the solution is not with me, for example.

I would have had that “problem” until a while ago as well, but I have been working in property management for several months now, so I don’t have any problems with that :)

For me, it looks like it is precisely the bakery that is up for rent. So check the contracts, maybe the rental term is just about to expire.

That’s how it is too. After 15 years he had to give up his business.

According to the bank advisor, there are several interested parties for the lease, including a realtor, a tailor, and an insurance office or something like that.

I will inquire about that in detail tomorrow as well.

For moral reasons, only the seamstress would remain. For financial reasons, one would probably choose the insurance office. I would rather stay away from the real estate agent, generally too fluctuating income and they will have a hard time in the future...