Buy an apartment on credit and rent it out

Hello first today my friend told me that he would like to move into his new apartment from June. The landlord has now called and says he has to sue out his old tenants. Rent arrears

6-12 months rental loss on TOP, bailiff, moving company, district court costs.
Welcome risk-free renting

Thanks Nordanney for your calculation! I have never taken out a loan. Is it really the case that if I take out €50,000 at 2% with 5% repayment, I only pay €1,000 pure interest in the first year plus €2,500 repayment and from then on less and less, meaning in the second year only 2% on €47,500 plus the €2,500 repayment? Certainly not 2% on the €50,000 throughout the entire term?

It is definitely the case if you – and this is the rule with normal consumer loans – agreed on an annuity rate. The rate itself stays the same over the term. However, the composition of the rate changes from month to month, the interest portion decreases, the repayment portion increases. The interest portion of the respective year is tax-deductible. The exact amount is communicated to you annually by the bank. Getting it back is a good question, you reduce your profit from the property. You have to look at the property as a whole package, high profit = high taxes to pay, depending on your marginal tax rate.

6-12 months rent loss on TOP, bailiff, moving company, district court costs. Welcome risk-free renting

the most expensive will probably still come: completely trashed place!

the most expensive thing will probably still come: completely gutted place!

according to my friend it already looks bad now. However, he would renovate it himself as a craftsman, for which he would receive rent concessions.

The problem now is to get the current tenant out.

A place dismantled by a hoarder is not just quickly restored. Sometimes everything has to be replaced, windows, doors, radiators, kitchen, and not to forget disposing of the old garbage. The few wallpapers and floor coverings are harmless by comparison. But you are right, getting the hoarder out is not easy. The best way is probably to beat the hoarder at his own game.

If this were the egg of the Klumbus, probably everyone would do it.

But not everyone does. I wonder why that might be.