Buy an apartment on credit and rent it out

  • Erstellt am 2016-05-05 19:24:02

MaxPower90

2016-05-06 11:46:39
  • #1


In my opinion, there is no reasonable reason to first have owner-occupied residential property.

I am excited about the great contributions here and the information I have already gained, thank you!



Can you explain that to me in a little more detail?

When I look at my wage tax statement and divide my pure wage tax + solidarity surcharge by my gross salary, I come to about 17%. Can I therefore assume that I will pay about 17% tax on the gross rent as well? Health, nursing care and social insurances are not included, right?
 

nordanney

2016-05-06 12:17:16
  • #2
Simplified example of the interest. First, you have 1.5% interest on your €40,000 = €600 p.a. After 5 years, with 4% repayment, you have already paid back 20% of the loan. Interest is therefore only on €32,000 = €480 p.a. Your profit thus increases continuously over the years.

You do not need to look at the average taxes you pay on your salary (you do not have to pay social security contributions on rental income). You have to see what taxes apply to the income you earn additionally. That might be 30% or more (you can check).
 

HilfeHilfe

2016-05-06 13:18:59
  • #3


aha maybe with owner-occupied property you don’t have troubles with rent nomads and so on.

well, I can think of several reasons
 

qwertz1234567

2016-05-07 21:50:43
  • #4
owner-occupied property does not generate any returns either. The OP wants to buy a small rental apartment to build up wealth, possibly for retirement savings. Building up wealth through owner-occupied property is more than absurd. Property is and remains a luxury.
 

Elina

2016-05-08 01:17:28
  • #5
why ridiculous? If I have a paid-off property at retirement (so not me personally, but speaking generally), I do have assets, right? What is bad about not paying rent in old age, and why shouldn't you invest your money in a house today, considering the interest rates? The return would be the appreciation - if you pay attention to a future-proof location.
 

MaxPower90

2016-05-09 16:41:37
  • #6


Thanks Nordanney for your calculation! I have never taken out a loan. Is it actually true that if I borrow say €50,000 at 2% with 5% repayment, I only pay €1,000 pure interest in the first year plus €2,500 repayment, and less and less after that? Meaning in the second year only 2% on €47,500 plus the €2,500 repayment? Definitely not 2% on the €50,000 for the entire term?

And then I can deduct the 2% of X from my taxes? Approximately how much of that will I get back?



Yes, there are many good reasons to invest in homeownership; I would also like the feeling of having something of my own. What speaks against it for me is that I would have little money left for 30 years to invest or grow it somehow, and thus I kind of sell my freedom. In addition, I can claim everything I invest in a rental apartment for tax purposes. And of course, I am not spatially flexible if I live in my own property.
 

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