1. Property Overview
The subject property is a multi-family residential building constructed around 1893 with subsequent modifications. It comprises:
• Main Building: Presumed 1 office unit and 7 residential units (total 546.63 m²).
• Ancillary Structures: 5 garages and a carport with 2 parking spaces.
• Land Area: 1,854 m² (Flurstück 42) + 179 m² (Flurstück 498).
2. Valuation Methodology
The valuation was conducted using the income approach (Ertragswertverfahren) due to the property’s rental income potential. Key factors:
• Rohertrag (Gross Income): €42,033/year (based on local rent benchmarks).
• Bewirtschaftungskosten (Operating Costs): 28.4% of gross income (€11,937/year).
• Liegenschaftszinssatz (Capitalization Rate): 4.3%, reflecting market conditions for multi-family homes in Bottrop.
• Risk Discounts:
o 15% for unknown interior condition (€49,000).
o 7.5% for unclear legal status of modifications (€25,000).
3. Technical and Structural Insights
• Construction: Masonry walls, wooden roof structure, and concrete roof tiles. Partial modernization attempts (e.g., 2004 renovation plans for soundproofing and statics).
• Deficiencies:
o No interior inspection was possible, raising uncertainties about plumbing, electrical systems, and potential hidden defects (e.g., wood rot, asbestos).
o Unresolved building permits for 2004 modifications (risk of non-compliance).
• Restnutzungsdauer (Remaining Economic Life): 25 years, assuming standard maintenance.
4. Investment Potential
• Strengths:
o Large plot size (2,033 m²) with development potential (subject to zoning laws).
o Existing rental income stream (if units are occupied).
o Proximity to basic amenities and major roads (A42 highway ~4.5 km).
• Risks:
o High vacancy risk due to outdated infrastructure and lack of modern amenities (e.g., energy efficiency, elevators).
o Potential remediation costs for pre-war construction (e.g., lead paint, insulation).
• Market Positioning:
o Target budget-conscious tenants (students, young professionals) given the mid-tier location.
o Highlight proximity to city center and transport links.
6. Neighborhood Context
• A mixed residential-commercial area with:
o Advantages: Affordable property prices, good road connectivity.
o Challenges: Industrial heritage (former mining) may deter luxury buyers.
7. Estimated Costs for Renovation
• Basic Refurbishment: ~€100,000–€150,000 (cosmetic updates, plumbing/electrical fixes).
8. Long-Term Outlook
• Value Appreciation: Moderate, tied to Bottrop’s urban renewal efforts.
• Rental Yield: ~5–6% post-renovation (current yield impacted by risk discounts).