ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
REAL ESTATE INVESTMENT COMPARISON - GERMANY
2
Two Modernized Old vs Energy-Efficient New (EH40/QNG with 5%+5% Depreciation)
3
4
INVESTMENT PARAMETERSTwo Modernized OldEnergy-Efficient New
5
Total Investment€600,000€500,000
6
Structure2 × (€250k property + €50k modernization)1 × €500k EH40/QNG new build
7
Investment Difference€100,000 MORE€100,000 LESS
8
Initial Monthly Rent€2,400€1,900
9
Initial Annual Rent€28,800€22,800
10
Rent Difference (Annual)€6,000 MORE
11
Mortgage Terms4% interest, 1% repayment4% interest, 1% repayment
12
Annual Mortgage Payment€30,000€25,000
13
Depreciation MethodLinear 2% (property + modernization) × 25% degressive (§7(5a)) + 5% special (§7b) for 4 years
14
Year 1 Total Depreciation€12,000€50,000 (Base: €25,000 + Special: €25,000)
15
16
KEY METRICS COMPARISONTwo Modernized OldEnergy-Efficient NewDifference (New - Two Modernized)
17
18
AFTER 10 YEARS
19
Cumulative Net Cash Flow€23,365€65,078€7,808
20
Property Value€731,397€609,497€-121,899
21
Remaining Debt€527,963€439,969€-87,994
22
Equity (Value - Debt)€203,433€169,528€-33,906
23
TOTAL POSITION€226,798€234,606€7,808
24
WINNEREnergy-Efficient New
25
26
AFTER 15 YEARS
27
Cumulative Net Cash Flow€43,673€83,826€-14,458
28
Property Value€807,521€672,934€-134,587
29
Remaining Debt€479,858€399,882€-79,976
30
Equity (Value - Debt)€327,663€273,052€-54,610
31
TOTAL POSITION€371,336€356,878€-14,458
32
WINNERTwo Modernized
33
34
AFTER 20 YEARS
35
Cumulative Net Cash Flow€68,924€105,261€-42,037
36
Property Value€891,568€742,974€-148,595
37
Remaining Debt€421,332€351,110€-70,222
38
Equity (Value - Debt)€470,237€391,864€-78,373
39
TOTAL POSITION€539,161€497,125€-42,037
40
WINNERTwo Modernized
41
42
DEPRECIATION & TAX COMPARISON (First 4 Years with Special Depreciation)
43
44
YEAR 1
45
Two Modernized OldEnergy-Efficient NewDifference
46
Annual Rent€28,800€22,800€-6,000
47
Base Depreciation€12,000€25,000€13,000
48
Special Depreciation (§7b)€0€25,000€25,000
49
Total Depreciation€12,000€50,000€38,000
50
Interest Payment€24,000€20,000€-4,000
51
Taxable Rental Income€-7,200€-47,200€-40,000
52
Additional Tax€-2,477€-13,734€-11,256
53
Net Cash Flow€1,277€11,534€10,256
54
55
YEAR 2
56
Two Modernized OldEnergy-Efficient NewDifference
57
Annual Rent€28,800€22,800€-6,000
58
Base Depreciation€12,000€23,750€11,750
59
Special Depreciation (§7b)€0€25,000€25,000
60
Total Depreciation€12,000€48,750€36,750
61
Interest Payment€23,760€19,800€-3,960
62
Taxable Rental Income€-6,960€-45,750€-38,790
63
Additional Tax€-2,398€-12,702€-10,304
64
Net Cash Flow€1,198€10,502€9,304
65
66
YEAR 3
67
Two Modernized OldEnergy-Efficient NewDifference
68
Annual Rent€30,240€23,940€-6,300
69
Base Depreciation€12,000€22,562€10,562
70
Special Depreciation (§7b)€0€25,000€25,000
71
Total Depreciation€12,000€47,562€35,562
72
Interest Payment€23,510€19,592€-3,918
73
Taxable Rental Income€-5,270€-43,214€-37,944
74
Additional Tax€-1,832€-10,804€-8,972
75
Net Cash Flow€2,072€9,744€7,672
76
77
YEAR 4
78
Two Modernized OldEnergy-Efficient NewDifference
79
Annual Rent€30,240€23,940€-6,300
80
Base Depreciation€12,000€21,434€9,434
81
Special Depreciation (§7b)€0€25,000€25,000
82
Total Depreciation€12,000€46,434€34,434
83
Interest Payment€23,251€19,376€-3,875
84
Taxable Rental Income€-5,011€-41,870€-36,859
85
Additional Tax€-1,744€-9,750€-8,006
86
Net Cash Flow€1,984€8,690€6,706
87
88
89
90
91
92
93
94
95
96
97
98
99
100