5 great reasons to invest
Household sizes in Leipzig
Great demand for small apartments
Leipzig has had 600,000 inhabitants since the end of October 2019, making it the eighth largest city in Germany. Especially the students of the University of Leipzig and the numerous temporary employees of large companies create a great demand for small and compact apartments.
High rental yield of up to 4.8 % p.y.
Due to the small living space, relatively high rents are possible. This is because the residents have everything they need in a small area. This leads to high rental yields of up to 4.8% per year for the landlord. These are not fictitious rental expectations, but rather concrete promises of a commercial tenant who wants to rent the apartments after completion. The final decision lies with the buyer.
Land transfer tax only 3.5 %
Whoever buys a property has to pay land transfer tax to the tax office. Leipzig belongs to the federal state of Saxony, where real estate buyers pay one of the lowest land transfer taxes. This is 3.5 percent as of August 2020.
Location with potential
The current unemployment rate in Leipzig is 6.1 percent. Five years ago it was 9.4 percent. This positive trend was mainly triggered by Leipzig’s expansion into a logistics location. In recent years, companies such as BMW, DHL, Porsche and Amazon have set up large sites. Other wellknown employers include the Federal Administrative Court, the MDR broadcasting company and the University Hospital.
A commercial tenant has already promised to rent the units for all apartments in the FOX CUBE and has guaranteed concrete cold rents. The yield figures per apartment are based on these cold rents. As a capital investor, you have the certainty that you have a tenant already at the time of purchase. However, this is only an offer that you do not have to accept.