Mixed-Use Investment Property with Strong Rental Yields in Goes City Centre

This investment property is located at Wijngaardstraat 5 in the centre of Goes, a city in the Dutch province of Zeeland. The property is offered at a price of 850,000 euros costs to the buyer. The building has a total living area of 400 square metres and is situated on a plot of 190 square metres. The construction dates back to before 1906, indicating a historic building character typical of many properties in Dutch city centres.

The property presents itself as a versatile investment opportunity that combines several types of real estate usage under one roof. At the front of the ground floor, there is a retail space measuring approximately 135 square metres. This commercial space is currently vacant, which means it offers immediate potential for a new tenant or could be redeveloped to increase the overall return on investment. The expected annual rental income for this shop space is estimated at around 36,000 euros per year, though this figure is a projection rather than guaranteed income.

At the rear of the ground floor, a pizzeria and shoarma restaurant is established. This hospitality business has been recently renovated and is rented out under a current lease agreement with a remaining term of approximately five years. The annual rental income from this horeca unit amounts to 19,200 euros. The presence of a long-term lease contract provides stability to the income stream from this part of the property.

The upper floors of the building contain nine rental rooms. The occupants of these rooms share communal facilities including kitchens, bathrooms and toilets. This type of room rental is common in Dutch student and young professional housing markets. The total annual rental income generated by these nine rooms is 48,000 euros. This represents a significant portion of the current cash flow from the property.

When combining the income from the horeca unit and the rental rooms, the current annual rental income stands at 67,200 euros. If the vacant retail space were to be let at the projected level, the total potential rental income could reach approximately 100,000 euros per year. This gap between current and potential income represents the value creation opportunity that the property offers to an investor willing to find a suitable tenant for the shop space.

The location of the property is described as being in the heart of Goes city centre. Goes is a medium-sized city in Zeeland with a well-maintained historic centre that attracts both residents and visitors. The Wijngaardstraat is situated within walking distance of various shops, restaurants and public transport connections. This central positioning contributes to the continued demand from both tenants and entrepreneurs looking to establish their businesses.

From a structural perspective, the building is classified as an end-terrace house, which typically means it is attached to neighbouring buildings on one side only. The total volume of the building is stated as 900 cubic metres. The building contains one residential level according to the listing details, though this likely refers to the formal classification rather than the actual physical layout, given that the upper floors accommodate the nine rental rooms.

The property does not currently have an energy label available. This is not uncommon for older buildings in Dutch city centres, particularly those that have been divided into multiple rental units over time. A prospective buyer should factor in the potential costs and requirements associated with obtaining an energy label and any mandatory energy efficiency improvements that may apply under Dutch legislation for rental properties.

The listing notes that the property is interesting for both beginning and experienced investors. For a new investor, the combination of an already income-producing horeca unit and room rental provides an immediate cash flow, while the vacant shop space offers a manageable project to increase returns. For experienced investors, the property presents a straightforward value-add opportunity through the lease-up of the commercial space.

The asking price per square metre of living space is 2,125 euros. When considering the potential total rental income of 100,000 euros against the asking price, the gross rental yield would be approximately 11.8 percent. Based on the current actual income of 67,200 euros, the gross rental yield is approximately 7.9 percent. These figures do not account for vacancy, maintenance costs, property taxes or management expenses, which would reduce the net return.

The transfer of the property is to be agreed upon between buyer and seller, which is standard practice in Dutch real estate transactions and allows flexibility regarding the completion date. The property is currently listed as available on the housing platform Funda.

In summary, this property at Wijngaardstraat 5 in Goes offers a mixed-use investment proposition with three distinct income components: a vacant retail space, an operational restaurant, and nine rental rooms. The building benefits from a central location in a Zeeland city with good amenities and transport links. The combination of immediate rental income and the potential to increase returns through leasing the vacant commercial space makes this a property that warrants further investigation by investors active in the Dutch regional commercial and residential rental markets.