Rates & bond yields — at a glance

Financing costs and safe alternative yields decide what property must deliver. Source: Deutsche Bundesbank (SDMX).

What brokers often understate

Closing costs are often the invisible second purchase price

Listings show the purchase price. In practice you also pay real-estate transfer tax (varies by federal state), notary and land registry fees, and—where agreed—broker commission. Those closing costs are rarely financed like the sticker price; they come from equity or expensive bridging. Anyone who only models the monthly payment on the purchase price systematically understates capital employed.

PrismPlan therefore shows closing costs separately and folds them into equity and yield metrics. Always ask: what is the all-in amount until the property is registered—and how much cash must sit on the table?

Commission after the reform: who pays is negotiable — not a free lunch

After the German broker-commission reform for owner-occupied homes, equal sharing often applies when the broker acts for both sides. That does not mean commission disappeared—it is redistributed. Investment deals and other setups can differ. Read the listing and contract: percent of price, when it is due, and for whom the broker acts.

A “commission-free for buyers” flat may mean the seller paid the broker and priced that into the asking price. The sticker is not magically cheaper; the cost moved elsewhere.

A renovated kitchen distracts — deferred maintenance decides the next decade

Viewings highlight paint and photogenic kitchens. Long-term cash flow often hinges on roof, facade, heating, wiring, plumbing, and—for condominiums—the whole building’s plans and meeting minutes. A low price with heavy deferred maintenance is not a bargain; it is a capital queue with uncertain size.

Ask for the energy certificate, recent owners’ meeting resolutions, maintenance reserve, and known special assessments. Model maintenance and upgrades conservatively—not with the sales line that “a light refresh will do”.

Energy class is not a sticker — it is future regulation and cost

Poor efficiency does more than raise utilities. It can create retrofit pressure as subsidies, regulation, or buyer preferences shift. Pricing only today’s purchase without an energy roadmap risks special assessments and discounts versus efficient stock later.

Treat the energy certificate as a starting point. Check heating type, insulation, and realistic retrofit costs—and put a reserve in the model instead of treating optimism as the neutral case.

Rent brakes and local references cap upside — “market rent” is often wishful

Asking rents on portals are not a guarantee of what is enforceable. In rent-capped markets, existing tenancies, or local reference systems, achievable rent can sit well below the listing dream number. A yield sheet with inflated cold rent looks good in a PDF and fails in year one.

Model the rent you can defend contractually and locally—and show vacancy and reletting cost. PrismPlan makes vacancy and running costs explicit; use that instead of polishing the gross yield.

Gross yield is a poster — after-tax cash flow is the truth

High gross yield sells easily. What matters is whether anything remains after interest, principal, condo fees, reserves, maintenance, tax, and equity—or whether you top up every month. Mortgage rates and bond yields move that equation: higher financing costs or better alternatives make thin cash flows uncomfortable.

Always compare scenarios: owner-occupancy, rent plus capital markets, rent plus letting. Stress interest and rent—those charts and the calculator exist for that reason.