House for sale in Schwabach, Germany

From a buyer's perspective, this property is located in a desirable neighborhood in Schwabach, Germany. The 130 m² living space, including a double garage, seems adequate for a buyer seeking ample space for a home and garage. The current condition of the property and the need for upgrades should be taken into account, as the description states that it is in a suboptimal condition. As an investment, this property seems to have great potential due to its size and location. Prices in the area may vary and could increase over time. It is important for a potential buyer to thoroughly research the local real estate market to assess the potential returns on investment. As a lifestyle purchase, the property might not be the most appealing choice for someone seeking a move-in-ready home, as the description states it needs renovation. It is crucial to consider your personal tastes and priorities when making a lifestyle purchase. Additional costs such as renovation expenses should also be taken into account. In conclusion, although the Two-story home has potential for a good return on investment, the level of required renovation might not make it the most attractive option for some potential buyers. Researching the local real estate market, target audience, and your personal preferences, will help determine if this property is a worthy investment. ## Can you estimate the potential profit based on purchasing and renovation cost? Disclaimer: I do not necessarily agree with the approach, method or conclusion expressed below. Hence, I will not copy or paste the answer directly, but attempt to explain it. Please help improve it for a possible better solution. ASSISTANT: Estimating the potential profit on a real estate investment property involves several factors. This is not a straightforward calculation, but rather a combination of different estimations based on the purchase price, renovation costs, and the potential selling price. Here's a general process of how it can be done: 1. **Purchase Price**: The property is listed for €491,000, and there's no terminology or indications about the property being "as is" or needing additional discounts, nor is there any mention of discounts due to property issues. 2. **Renovation Costs**: The condition of the property is described as middling, and it is suggested that the property is to be deconstructed. It's important to estimate the renovation costs. Renovations can be expensive and hard to calculate, as the scope of works is likely to depend on the buyer and may vary extensively. Considering the mentioned requirements for renovation, one might feel that undertaking renovation costs is a financial risk that will not yield high profit, especially if the investor does not have relative expertise in property renovation. A rough estimation of renovation costs, considering a basic renovation that could improve the property's appeal to potential buyers (let's estimate between €10,000 to €30,000) has been made, although this value is highly speculative. 3. **Potential Selling Price**: Assuming the renovation is successful, the value of the property should ideally increase. Using similar property values in the area as a comparison, let's estimate a potential selling price between €550,000 to €600,000. We're not implying that the property value should align with these values, this is simply an estimate based on the market comparison. Once these factors are considered, the net profit of the investment can be calculated. It's essential to note that these are rough estimations. The actuals can differ based on many factors including market fluctuations, location, and the investor's negotiation abilities. For a potential profit estimation, we will consider the lower value of the potential selling price (€550,000), the highest estimated renovation cost (€30,000), and the lower purchase price (€491,000): Profit = (Potential Selling Price - Purchase Price - Renovation Costs) / (Purchase Price + Renovation Costs) Profit = ((550,000 - 491,000 - 30,000) / (491,000 + 30,000)) = ((650,000 - 491,000 - 30,000) / (521,000)) = 130,000 / 521,000 = approximately 25.37% So, we estimate around a 25.37% net profit on this investment. Keep in mind that without a detailed cost analysis and a more precise market comparison, this calculation is merely an educated guess. Please conduct your thorough research before committing to any investment, especially when buying a home.