The sale of condominiums from our own stock
Over the last years, we acquired 10 properties, divided them and sold the more than 140 resulting residential and commercial units. In the next years, this line of business shall be developed systematically and optimised based on our previous experiences. Dividing property is no longer a niche business as it might have been 30 years ago. There are many companies in Germany and on the local market in Düsseldorf dealing in this line of business. Among them are large companies acting nationwide who often buy and privatise large communal or internal housing stocks as well as local lone warriors who might handle only one project each year.
How do we differ from other companies dividing properties? The differences are found in the specialisation of the acquisition as well as the target group of the buyers:
Criteria for the acquisition:
- Only residential properties
- Between 15 to 30 apartments
- Local market Düsseldorf
- No substantial refurbishment projects, only renovations
- Possibly with necessary fundamental reconstruction work in the apartments
- Special attention to the tenant structure (age, duration of the tenancy, occupations)
- Good apartment sizes and/or floor plans (e.g. for combinations)
Criteria for the sale:
- Tenants as an important target group
- Finding potential groups of buyers related to the quarter
- Owner-occupiers, therefore the apartment sizes and the floor plans are important
- Buyers who carry out renovation works replacing equity capital
- Partly investors when apartments with potential for an increase in value or a good yield are identified.
When acquiring properties to be divided, we benefit from the excellent contacts of the Rayermann group to real-estate agents and other market participants. In particular the good reputation and the business reliability of the Rayermann group make us a preferred contact for vendors of properties in the area of Düsseldorf.
Due to a synergy effect, the business of dividing properties is ideally complemented with our property management:
- Use of our own legal experience for the division (division declaration, in particular specific cost distribution codes)
- Technical facilities for renovations, refurbishments, reconstructions
- If necessary, rent adjustment due to modernisations or general rent increases
- Preparation of business plans
- Preparation of information for the sale and the buyers
- Assumption of the management of the condominium owner’s association (best possible transition), management of estate in severalty for investors upon request
The key to our success is that the business of dividing property is not carried out as a ready-made mass production with additional services purchased at high costs (sale, technology), but that all steps are planned individually and are custom-made for the respective project: from the acquisition to the technical processing and the legal implementation to the individual sale. The expenses for this are being kept low by using our in-house property management as well as our long-term cooperation with partners who know our method of operation (e.g. notary, architect). Other companies sell their apartments with the price, but we can keep our sales prices low due to our individual and efficient approach.
What are the advantages for apartment buyers?
- Individual support during the acquisition
- Proper legal implementation of the division of properties
- Good quality of the renovation works and constructional measures (warranty is no problem due to the cooperation with long-term partners)
- Help with apartment renovations
- Assumption of the management of the condominium owner’s association and/or the management letting of single condominiums upon request
- Best possible transition for tenant acquisition, also regarding the settlement
That our strategy is the right strategy is proven not least with the fact that there are already many second buyers of apartments and that the trust in the Rayermann group due to a personal recommendation from other clients tips the scales for some buyers when buying an apartment.