Is real estate rental profitable?

  • Erstellt am 2021-10-27 10:46:08

Steffi33

2021-10-27 10:46:08
  • #1
In another post I just read that people like to buy real estate with money they have left over, which is supposed to generate a return through renting. I am a complete novice in this field. So far, we have achieved returns mostly through investments in the securities market. I have often wondered how renting works.. Do you earn returns through rental income? Or rather because you save some taxes? Does it actually pay off in the end? Maybe someone here can enlighten me?
 

Rumbi441

2021-10-27 10:57:58
  • #2
What kind of question is that: If your income is greater than your expenses, then you are making a profit...

You can make money with real estate rental, but you also might not.
 

Steffi33

2021-10-27 11:04:49
  • #3


Aha.. so it seems quite simple...

Please explain it to me with an example: I buy (or finance) a house for 200,000 EUR and want to rent it out. How do I achieve a reasonable return?
 

Rumbi441

2021-10-27 11:23:23
  • #4
Yes, it is easy if you want to do it.
Do you want to know now how to calculate it?

There are ZILLIONS of pages on the internet and also books that explain it to you.
Just Google: rental yield calculator

Since you mentioned tax saving, it would be advisable to go to a tax advisor. Depending on your level of suffering and "criminal" energy, there are countless models. From simple depreciation to setting up a company abroad, of course also assuming that your tax burden in Germany would be high enough to make it worthwhile.
 

Steffi33

2021-10-27 12:07:54
  • #5
Briefly skimmed.. I read on the internet, in the examples, about net yields between 3 and 4%. Is that what one can expect from renting?? That wouldn't really convince me..
 

11ant

2021-10-27 13:51:45
  • #6
Okay, because it's you ... otherwise I’d rather stay away from the financing section here:

Rental income, yes, also. But it’s the mix that counts. And that also includes tax arrangements, which in turn include renovation and maintenance costs.

Exactly the basic idea with which real estate (fund) brokers push junk properties: with success stories from people who are dumb and almost made it from nothing: "then you can do it even more so!" :)

Oh, 200K EUR: even as a rundown old place it won’t be much, but maybe enough for a split into workers’ apartments. Properties that can be filled with refugees require a certain size. Simply put: no matter in which segment you want to rake in money as a landlord and in which mix (renting, investing & depreciation etc.), if you have fewer than ten residential units you’re among the small fish and can only keep looking at Bugattis for a long time ;-)
Where actually is , who is the most competent here on the topic?
 

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