Lion & Land ROI Calculator
You can save up to 3 scenarios for comparison.
What are typical extra purchase costs in Bavaria?
In Bavaria, Germany, expect these mandatory additional costs when purchasing property:
- Notary fees: Typically 1-2% of purchase price (mandatory for all transactions)
- Land transfer tax: 3.5% of purchase price
- Registration fees: About 0.5% for land registry entry
How should I set the down payment?
The down payment affects your loan-to-value ratio (LTV). In Germany:
- At LION & LAND we can exclusively offer our clients 10% equity deals if requirements are met. Otherwise banks typically require 20-30% equity for investment properties.
- Higher down payments result in better interest rates
- Consider keeping reserves for unexpected costs
What’s the 2025 market outlook in Bavaria?
Key trends as of mid-2025 include:
- Price Growth: Average property price growth of 3-4% annually, driven by demand in Munich and rural areas.
- Rental Demand: High demand in urban centers, with vacancy rates below 2%.
- Interest Rates: Mortgage rates stabilized at 3.5-4% for 10-year fixed loans.
Net Profit = Sale Proceeds + Cumulative Cash Flow - Initial Investment
Compound annual growth rate (CAGR)
NOI = Gross Rent - Vacancy - Operating Expenses
Cash return on actual cash invested
Internal Rate of Return
Total cash return multiple
When investment is recovered
Total net gain from investment
When does negative cash flow make sense?
Properties might show negative cash flow but still be good investments when:
- High appreciation potential: Expected value growth outweighs short-term losses
- Tax benefits: Losses may be deductible against other income
- Strategic locations: Prime areas with long-term rental demand
Interpreting the sensitivity analysis
The tool shows how changes in assumptions affect your returns:
- Pessimistic: Rent/value growth 1-2% below your estimate
- Base Case: Your current assumptions
- Optimistic: Rent/value growth 1-2% above your estimate
Adjust these ranges using the percentage selectors for custom scenarios.
What financing options are available?
Options for funding your property purchase in 2025:
- Mortgages: Available in Bavaria (up to 80% LTV) and UAE (up to 70% LTV for expats) with competitive rates.
- Personal Loans: Short-term options for down payments, but higher interest (5-8%).
- Partnerships: Co-investing with family or investors to reduce initial outlay.
- LION & LAND Special: With our exclusive financing partner in Bavaria we can offer up to 90% LTV for qualifying clients.
What legal steps should I take?
Ensure a smooth purchase in 2025:
- Title Check: Verify property ownership.
- Contract Review: Hire a local lawyer when in doubt to review terms.
- Compliance: Adhere to national rental regulations (especially relevant when daily rentals are considered).
Marginal Tax Rate
This represents your personal income tax rate applied to deductible expenses. Expenses marked as tax deductible (with the % icon) will reduce your taxable income by that amount, resulting in tax savings that improve your cash flow.
Depreciation Deduction
This represents the annual depreciation expense that can be deducted from taxable income. This improves your cash flow through tax savings.
Inflation Rate
The annual inflation rate affects the growth of expenses over time. Unless you specify a custom growth rate for an expense, all operating expenses will increase annually by this inflation rate.
Expense Growth Rate
For each expense, you can set a custom annual growth rate. This allows you to model expenses that may grow faster or slower than general inflation. If left blank, the inflation rate will be used.
Currency Selection
Choose between EUR, USD, GBP, or AED to display all monetary values in your preferred currency. The formatting will automatically adjust to the selected currency's standards.
Value-Add Opportunities
Strategically improve your ROI through these approaches:
- Renovations: Targeted upgrades can increase property value and rental income
- Efficiency Improvements: Reduce operating costs with energy-efficient systems
- Lease Optimization: Adjust lease terms to match market conditions
- Tax Benefits: Maximize deductions and depreciation
Timing Your Sale
The optimal time to sell depends on:
- Market appreciation trends in your area
- Loan amortization progress
- Tax implications of capital gains
- Reinvestment opportunities available
Dubai
- DLD transfer fee: 4% of purchase price
- Property registration fee: AED 2,100 to AED 4,200 (including VAT), depending on property value
- Mortgage registration: 0.25% of loan amount + AED 290
- Developer NOC: AED 500 to AED 5,000
Abu Dhabi
- Transfer fee: 2% of purchase price (typically shared equally between buyer and seller)
- Mortgage registration: 0.1% of loan amount
- Admin/registry fee: AED 432 flat
- Developer/management NOC: AED 500 to AED 5,000
How does property ownership benefit my residency?
In 2025, property investment in Dubai or Abu Dhabi offers:
- Golden Visa: 2-year visa for properties worth AED 750,000+ (so far Dubai only); 5-10 years for AED 2 million+.
- Family Sponsorship: Eligible for spouse and children with qualifying investments.
- Renewal Ease: Automatic renewals tied to property ownership, no annual income proof needed.
Lion & Land ROI Calculator
You can save up to 3 scenarios for comparison.
What are typical extra purchase costs in Bavaria?
In Bavaria, Germany, expect these mandatory additional costs when purchasing property:
- Notary fees: Typically 1-2% of purchase price (mandatory for all transactions)
- Land transfer tax: 3.5% of purchase price
- Registration fees: About 0.5% for land registry entry
How should I set the down payment?
The down payment affects your loan-to-value ratio (LTV). In Germany:
- At LION & LAND we can exclusively offer our clients 10% equity deals if requirements are met. Otherwise banks typically require 20-30% equity for investment properties.
- Higher down payments result in better interest rates
- Consider keeping reserves for unexpected costs
What’s the 2025 market outlook in Bavaria?
Key trends as of mid-2025 include:
- Price Growth: Average property price growth of 3-4% annually, driven by demand in Munich and rural areas.
- Rental Demand: High demand in urban centers, with vacancy rates below 2%.
- Interest Rates: Mortgage rates stabilized at 3.5-4% for 10-year fixed loans.
Net Profit = Sale Proceeds + Cumulative Cash Flow - Initial Investment
Compound annual growth rate (CAGR)
NOI = Gross Rent - Vacancy - Operating Expenses
Cash return on actual cash invested
Internal Rate of Return
Total cash return multiple
When investment is recovered
Total net gain from investment
When does negative cash flow make sense?
Properties might show negative cash flow but still be good investments when:
- High appreciation potential: Expected value growth outweighs short-term losses
- Tax benefits: Losses may be deductible against other income
- Strategic locations: Prime areas with long-term rental demand
Interpreting the sensitivity analysis
The tool shows how changes in assumptions affect your returns:
- Pessimistic: Rent/value growth 1-2% below your estimate
- Base Case: Your current assumptions
- Optimistic: Rent/value growth 1-2% above your estimate
Adjust these ranges using the percentage selectors for custom scenarios.
What financing options are available?
Options for funding your property purchase in 2025:
- Mortgages: Available in Bavaria (up to 80% LTV) and UAE (up to 70% LTV for expats) with competitive rates.
- Personal Loans: Short-term options for down payments, but higher interest (5-8%).
- Partnerships: Co-investing with family or investors to reduce initial outlay.
- LION & LAND Special: With our exclusive financing partner in Bavaria we can offer up to 90% LTV for qualifying clients.
What legal steps should I take?
Ensure a smooth purchase in 2025:
- Title Check: Verify property ownership.
- Contract Review: Hire a local lawyer when in doubt to review terms.
- Compliance: Adhere to national rental regulations (especially relevant when daily rentals are considered).
Marginal Tax Rate
This represents your personal income tax rate applied to deductible expenses. Expenses marked as tax deductible (with the % icon) will reduce your taxable income by that amount, resulting in tax savings that improve your cash flow.
Depreciation Deduction
This represents the annual depreciation expense that can be deducted from taxable income. This improves your cash flow through tax savings.
Inflation Rate
The annual inflation rate affects the growth of expenses over time. Unless you specify a custom growth rate for an expense, all operating expenses will increase annually by this inflation rate.
Expense Growth Rate
For each expense, you can set a custom annual growth rate. This allows you to model expenses that may grow faster or slower than general inflation. If left blank, the inflation rate will be used.
Currency Selection
Choose between EUR, USD, GBP, or AED to display all monetary values in your preferred currency. The formatting will automatically adjust to the selected currency's standards.
Value-Add Opportunities
Strategically improve your ROI through these approaches:
- Renovations: Targeted upgrades can increase property value and rental income
- Efficiency Improvements: Reduce operating costs with energy-efficient systems
- Lease Optimization: Adjust lease terms to match market conditions
- Tax Benefits: Maximize deductions and depreciation
Timing Your Sale
The optimal time to sell depends on:
- Market appreciation trends in your area
- Loan amortization progress
- Tax implications of capital gains
- Reinvestment opportunities available
Dubai
- DLD transfer fee: 4% of purchase price
- Property registration fee: AED 2,100 to AED 4,200 (including VAT), depending on property value
- Mortgage registration: 0.25% of loan amount + AED 290
- Developer NOC: AED 500 to AED 5,000
Abu Dhabi
- Transfer fee: 2% of purchase price (typically shared equally between buyer and seller)
- Mortgage registration: 0.1% of loan amount
- Admin/registry fee: AED 432 flat
- Developer/management NOC: AED 500 to AED 5,000
How does property ownership benefit my residency?
In 2025, property investment in Dubai or Abu Dhabi offers:
- Golden Visa: 2-year visa for properties worth AED 750,000+ (so far Dubai only); 5-10 years for AED 2 million+.
- Family Sponsorship: Eligible for spouse and children with qualifying investments.
- Renewal Ease: Automatic renewals tied to property ownership, no annual income proof needed.