Build a house and then rent it out?

Hello, I want to build a house to live in initially. However, it is very likely that in about 15 years I will move out (taking over parental home, abroad, etc.) and then want to rent it out. Is something like this advisable? So building for 10-15 years of personal use and then renting it out? Or is it a huge loss-making business? P.S. I currently need an investment, so renting for myself is also not an option. Thx for feedback! Jago

Hello!

If you have too much money and don't want to give your landlord anything, then go ahead! After 15 years, the "quirks" start, and you have to invest money again. It can also be difficult in some regions to rent out an entire house, let alone have it managed.

According to current legislation, this is rather unfavorable from a tax perspective. Now that you (presumably??) have loan interest, you cannot deduct it as an expense. In 10-15 years, when you might be able to deduct the interest from renting, most of the loan will probably already be paid off and you will have to pay more taxes. However, to clarify this somewhat accurately, you should perhaps consult a tax advisor.

I would not pay loan interest - on the contrary - I need an investment. Hence also the idea and question.

These are then calculation examples that cannot be assessed without background and data, let alone here in the forum. In 10 - 15 years, so much can also change. In 15 years, it might then make sense again to sell the house and invest the money at 5% fixed, or sell the single-family house and buy a multi-family house because the returns are much better there, or or or.

There was just a study that was spread through the media last month: If interested, then just google it: "Viele Privatanleger erzielen mit Immobilien kaum Rendite" Compared to private investors, institutional investors apparently have the advantage that they buy/build the properties cheaper, as multi-family houses are often cheaper per m² than individual apartments or single-family houses.