Vienna 2-bed at €671,600 and €2,279 rent: does the financing kill it?

My spreadsheet order would be: base rent; less realistic collection loss; less landlord-only recurring costs; less management and repairs; less annualised major works. Divide that result by the full acquisition basis, then introduce financing.
 
A single “bad year” reserve may be misleading. Several moderate items can cluster without one dramatic failure. I’d test recurring overruns as well as one large expense.
 
Before committing, request recent building accounts, meeting records, planned expenditure, unit-level bills, insurance details and the tenancy paperwork. Missing documents should not be replaced with optimistic spreadsheet assumptions.
 
Vacancy timing matters too. One empty month followed by a full year is not the same cash experience as vacancy immediately after purchase while loan payments and initial work begin.
 
Tenant turnover deserves its own line rather than being buried under vacancy. The condo may be empty briefly yet still require preparation and management expenditure between occupants.
 
For financing sensitivity, solve for the maximum annual debt service the property can support after operating costs and your desired buffer. Then compare that ceiling with actual loan proposals, not an assumed headline rate.
 
Keep the building reserve and your unit-maintenance reserve separate. Money held for common property may not be available for appliances, internal finishes or tenant damage inside the condo.
 
I would ask who pays each heating, hot-water and common-area item under the intended lease. Don’t classify them from a generic Vienna template; classify them from the actual bills and contract.
 
Insurance is usually predictable compared with major works, but confirm both the building policy and whatever unit-specific cover you expect to carry. The concern is duplication or a gap, not just the premium.
 
At this price, negotiation could matter more than refining tiny expense assumptions. If conservative net income does not support €671,600, the answer may be a lower price rather than a thinner reserve.
 
Agreed. Don’t reduce vacancy or maintenance merely to make the asking price work. Derive a value from defensible net income and financing stress, then compare it with €671,600.
 
There’s also a currency-matching advantage because the price, rent and likely expenses are all stated in euros. That does not solve financing risk, but it keeps this particular model from needing an exchange-rate assumption.
 
So far the unanswered items are substantial: composition of €2,279, evidence for that rent, landlord-only building costs, association plans, tenancy status, acquisition expenses and loan terms. A target net yield before those are known would be false precision.
 
If the investor is not resident in Austria, personal tax treatment and financing availability may differ. That needs jurisdiction-specific advice, but I would keep tax outside the property-level comparison initially.
 
Aaliyah’s point about rent rules should not be treated as a footnote. The unit’s characteristics and tenancy arrangement need to support both today’s rent and the re-letting assumption.
 
On the numbers supplied, I would not proceed merely because 4.1% sounds respectable. The spread is too thin to accept uncertain rent composition, unknown shared works and unpriced debt.
 
We still haven’t heard whether €2,279 is rent alone. Until that is answered, every downstream net-yield estimate is potentially overstated.
 
Does the 2-bed layout suit one likely tenant type or several? Without predicting demand, it is still worth comparing similar layouts and noting how long realistic alternatives remain advertised.
 
A simple downside test: if achieved rent were 10% below €2,279, annual rent would be about €24,613 and gross yield about 3.7% before expenses. Would the deal survive that?
 
Financing can obscure the asset result in both directions. I’d calculate cash purchase economics first, then layer each proposed loan over the same net operating assumptions.
 
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