Is real estate rental profitable?

I was actually thinking of something very normal, everyday: I own a house.. a young family is looking for living space. In the end, a bit of money is left over... I already realize, I probably won't warm up to this in the future either.. ;)

The topic of renting is very versatile. You can't really sum it up quickly like that. Your own individual situation also has a big impact on the return calculation, such as your own income tax rate. Or you think in terms where you buy the properties directly in an asset-managing GmbH, etc.

Basically, it is a type of investment, but it also involves quite a bit of work if, for example, you do the utility bill settlements yourself. Take care of craftsmen yourself, and do not have a property management for your multi-family houses, etc.

Much of the return lies in good purchasing. You should be able to assess the building fabric well, etc.

And then there is the unpredictable risk of value development... so the topic is endless :D

He had said goodbye after all. I think the corresponding post was also deleted.

Although completely off-topic, the post can still be found via the Google cache --> "Farewell @n... after second account deletion" Really a pity.

But one more thing on the subject: Of course, "real estate rental is profitable." However, you need to know the relevant markets, especially beyond the rental of residential properties. Logistics properties have been one of the winners in recent years, retail properties are currently and in the future difficult, as are hotels (obviously...). Such an investment is usually made professionally or with professional support.

I think, unless it is your own granny flat or the 3-family house in your hometown, the entry barrier to the stock market is significantly lower and, of course, so is the concentration risk.

Where is actually @nordanney, he is the most competent on this topic here?

I'm back. However, under the fourth alias (please don't snitch ;)) and still via VPN. Everything else was blocked :cool:

I just read in another post that people like to buy real estate with extra money, which is supposed to generate a return through renting. I am a complete layman in this area. So far, we have mainly achieved returns 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 on some taxes? Does it actually bring anything in the end? Maybe someone here can enlighten me?

Well, you can make money with real estate in two ways. 1. Liquidity first ==> these are properties (preferably condominiums, single-family homes are a disaster in terms of returns), whose returns can simply be determined by a surplus of rental income after costs (loan and maintenance as well as individual taxation). There can even be a 10% return, for example, if you buy in the Ruhr area. 2. Security and preservation/appreciation of value ==> Land. Also similar to 1. rental yield after taxes but rather 2-3% (if at all). However, there is the prospect in good locations that the property will increase in value over time. So first you have to consider which risk profile you choose. Like with securities - fixed-income versus speculative papers. Then there's the question of what kind of investment you're talking about. Can you afford not to have any returns sometimes or even put money into the property (vacancy, renovation, refurbishment, problem tenants, etc.) Tax saving is always a nice phrase. Of course, you can "save taxes". But only if the property generates a loss on the tax return. Unfortunately, it is often the case that it also hits your wallet noticeably before the tax reduction. Overall, not a simple topic. I personally tend to go for 1.

.. great that you are back on board ... in this annoyingly managed forum