Make use of the tax benefits when purchasing a landmark property
This is regulated in §7i of the EStG. As a buyer of such a property, you can amortize the reconstruction costs over 12 years to 100%. More precisely, you can claim 9% in the first 8 years each, then 7% each of the modernization costs for tax benefits.
Oftentimes, the rent in relation to the purchase price of such properties is less favorable than in the case of investment properties. Instead, the tax benefits have quite a kick! In the calculation it is often the case that, due to the high tax benefit, the revenue side is depicted higher than the expenditure side.
Landmark Properties offer a reasonable addition to already existing financial investments or investment properties.
Here, it's of special importance that the initiator and real estate developer brings along the appropriate experience for the refurbished building. It is needless to say that beautiful landmark properties are often found withing the best, urban locations. A great rentability and a respective accretion of the property are possible here! Inflation is once more a good helper in this form of financial investment.
For you, this entailed great accretion possibilities of your financial investment, with which the revenue board is helping you massively. Here, extraordinary returns of equity are also possible.