Joedreck
2021-05-26 18:15:22
- #1
Exactly for that reason. Now there is no speculation tax that would apply later. In addition, the rent only brings you additional income that must be taxed. And last but not least, you can actually realize profits – not just on paper. How is the market developing? How is the apartment worn down by tenants?
LOL, how do you calculate that? Purchase price €220k – let’s say €40k land portion = €180k for depreciation = €3,600.
Net cold rent €13k
minus depreciation €3.6k
= taxable at 40% = €3.8k tax
Remaining €9.2k surplus minus non-allocable operating costs (administrator etc.).
Of course, you can do that. On the other hand, you can sell and save €400k debt. At 1% interest, that is €4k per year. So in the end there is a small profit if you keep the apartment.
But then there is maintenance, renovation, tenant changes to pay for.
Of course, this is only a rough calculation, but it’s not a top deal.
Yes, fixed (rate) should be cheaper than variable.
Only that in the end both the house and the apartment are owned. And the costs can be claimed for tax purposes.
And after 10 years it can be sold tax-free anyway. And those are almost reached. Ultimately, the apartment produces a monthly cash flow. Besides the maintenance reserve for the apartment, the money can be wonderfully used for higher repayments or special repayments, which particularly saves significant interest in the first years. So the model isn’t that bad after all.