Question 1

How do I calculate my monthly mortgage installment?

Accepted Answer

Enter the purchase price, ancillary costs (notary, land registry, transfer tax), your equity/down payment, the annual interest rate, and the loan duration. The calculator uses the annuity formula to give you the exact monthly installment.

Question 2

What are ancillary costs when buying real estate in Germany?

Accepted Answer

Ancillary costs (Kaufnebenkosten) typically include real estate transfer tax (Grunderwerbsteuer, 3.5–6.5%), notary and land registry fees (~2%), and optionally a broker commission (up to 3.57%). Total ancillary costs are usually 9–15% of the purchase price.

Question 3

How is real estate ROI calculated?

Accepted Answer

ROI = (Equity built up + Cumulative net cashflow − Initial cash invested) / Initial cash invested. Equity grows as the property appreciates and the loan is repaid. Cashflow is rental income minus installments, management, and maintenance, plus tax savings from interest deductions and AfA.

Question 4

What is AfA depreciation for real estate?

Accepted Answer

AfA (Absetzung für Abnutzung) is the tax-deductible depreciation allowance for investment properties. Residential buildings built after 1925 qualify for 2% per year over 50 years. New builds completed after 2022 can claim 3% per year. Only the building value (not land) is depreciable.

Question 5

How do tax savings improve real estate cashflow?

Accepted Answer

For investment properties, mortgage interest payments and AfA depreciation are deductible from rental income under § 9 EStG. At a 42% marginal tax rate, every €1,000 of deductible expenses saves you €420 in taxes, directly improving your monthly net cashflow.

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