Built 2 years ago, now an additional condominium

  • Erstellt am 2017-10-13 10:32:16

Rollo83

2017-10-20 08:49:56
  • #1
- Return
- Increase in value (although I don't really expect that now)
- Tax advantages
- Sensible expenditure of equity even if it is not that much money
 

Deliverer

2017-10-20 09:10:08
  • #2
- Return
--> Rarely to never present, unless you buy apartments on a large scale and then let them be lived out.
- Appreciation (although I don't really expect that now)
--> Possible if it is well maintained.
- Tax advantages
--> Practically non-existent with the current interest rates.
- Sensible use of equity even if it is not that much money
--> Sure - that can be debated. Personally, I would rather keep the ~30k as a backup reserve. For when the car and heating break down on a Tuesday again... Or to (partially) pay off the mortgage when the first contracts expire. Or the stock market. Or coke and hookers. EVERYTHING. Just NEVER a rental apartment.
But that's just my opinion ;-)
 

Musketier

2017-10-20 09:18:59
  • #3
Just a quick note, as I had also briefly entertained such a thought:
A large portion of private condominium landlords end up with no or a negative return at the end of the day. The additional effort is not even taken into account.
Complete apartment buildings tend to bring returns, and this also diversifies the concentration risk.
As long as you can still make special repayments on your loan, you have a guaranteed return equal to the interest savings and don’t even have to pay tax on it.

Here is an excerpt from the FAZ:
 

Rollo83

2017-10-20 10:26:09
  • #4
Thank you for the input, as I said I am still considering it. One consideration is still an additional special repayment for my house, where I would be at 2.09%. My car is new, there should be no defects, if not there is still 1.5 years warranty left, and I also hope that the heating in my new building does not give out. Since I am a civil servant and pay a relatively low income tax (about 20% in tax class 1 and about 13% in tax class 3), I thought I might have an advantage there since the rent is also taxed with it. As a non-civil servant I would be at roughly 40% income tax. But as I said, all just considerations and I am still in the phase of finding out. The problem is also that I am interested in sports cars from Zuffenhausen and well, what can I say ...
 

Musketier

2017-10-20 10:31:36
  • #5
Wrong way of thinking. You have to consider the marginal tax rate, not the average tax rate.
 

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