Before and after
Before
After
What exactly was changed:
Strategic Floorplan Optimization:
Transforming layout inefficiencies into high-yield multi-unit living.
Total Structural Overhaul:
A "to-the-studs" renovation including brand-new electrical, plumbing, and HVAC systems.
Premium Asset Modernization:
High-spec kitchen and bath installs designed for durability and tenant retention.
Architectural Efficiency:
Intelligent balcony integration to maximize usable square footage and rental value.
The Initial Problem
The original apartment had potential, but not the right income structure
The apartment, built in the 1970s, showed clear signs of aging and required substantial modernization. Under a standard rental model, it would have generated only around a 2% yield, while parts of the available space remained unused. In addition, the lack of a tax-efficient structure limited the property’s overall performance.
By rethinking both the use of space and the underlying structure, we unlocked the asset’s full potential and turning it into a significantly more profitable and efficient investment.
The LDP Solution
The strategy behind the Nick case
We started by securing a property in a strong location, then redesigned the floor plan to maximize usable space and overall efficiency.
By introducing a co-living rental model combined with a fully furnished concept, we significantly increased the income potential.
At the same time, the renovation was structured in a tax-efficient way to further optimize returns.
From tenant acquisition to ongoing management, we took over the entire rental process, turning the property into a streamlined, high-performing investment.
The Numbers, Black on White
The key numbers from Nick’s case at a glance
approx. €600,000 total investment according to the case
approx. €52,560 renovation portion
approx. 73 to 74 sqm living space
3 individual tenants
€2,475 monthly cold rent
€27,225 annual cold rent
approx. €33,000 equity required
approx. €250 monthly out of pocket
approx. €23,000 first year tax relief
Financing and Cash Flow
Why this case was possible with relatively little equity
The project was realized with just a 5.5% equity contribution, made possible through a financing structure that already incorporated the renovation strategy from the start. By aligning the loan setup with the expected rental performance, the annuity was largely balanced by the generated yield. As a result, the investor was left with only a minimal monthly gap, while benefiting from a significantly optimized asset.
Tax Advantage
The real lever, the first year tax benefit
A big part of the upside came from how the renovation was structured. Instead of just increasing the property’s value, the costs were used in a way that created a strong tax effect in the first year.
On paper, this resulted in a negative income of around €57,000 — which translated into roughly €23,000 in tax savings for the investor.
In simple terms: while the property was being upgraded, it already started paying back through reduced taxes.
Proof and Documentation
Black and white proof, not empty claims
LDP Support After the Purchase
The purchase is not the finish line, it is where the real work starts
The real value is created after the deal is done. We take over the full operational side from ongoing rental management and administration to handling tenant turnover, re-letting, and coordinating maintenance.
Instead of handing over the keys and stepping away, we stay involved as a long-term partner. This ensures the property continues to perform, grow, and deliver results well beyond the initial purchase.
Exit and Long Term Perspective
Not just tax optimization, but real long term wealth building
Based on a conservative model assumption of 2% annual growth, this case illustrates how the property could develop over time. After 10 years, a potential sale price of around €715,000 is projected in this example scenario.
Due to the low repayment rate, a strong leverage effect on the invested equity is created resulting in a potential profit of nearly €200,000, which could be realized tax-free under current regulations.
This example highlights that the strategy goes beyond short-term tax benefits focusing on sustainable, long-term wealth building.
