What conditions are possible? Capital investment; 6 apartments

Sometimes I think people occasionally confuse the requirements between private individuals and companies. :)

What is the difference between owning several income properties and a company that is supposed to generate profit?

Somehow we keep moving further into the tax corner. I actually just wanted to know approximately how high the interest rate will be. Even if the house is paid off in 5 years, we will still have the depreciation (AfA) for many more years. Something different: Would it theoretically be possible to repay a loan in less than 5 years if the interest rate is fixed for 5 years? Or do the banks not go along with that?

Somehow we keep drifting more and more into the tax corner. I just wanted to know roughly how high the interest rate would be. Even if the house is paid off in 5 years, we still have the depreciation for many more years. Something else: Would it theoretically be possible to repay a loan in less than 5 years if the fixed interest period is 5 years? Or do the banks not go along with that?

1. Only a bank or financing broker can give you an indication! 2. No, repayment in less than 5 years with a 5-year fixed interest period will not work, because otherwise the bank would have a refinancing loss.

How long is the minimum fixed interest period? Is it 5 years or can it be shorter?

Not necessarily. You can also just pay off the essentials and save the surplus to build new equity for the next purchase. The advantage: 1. You get the tax savings and 2. The next property can be acquired much sooner and thus generate returns again. For this to work, the debt must have a lower interest rate than the overall return (yield) of the property. Check online under leverage effect or interest rate leverage.

I don't quite understand. What is better for building wealth? Paying off quickly so you can then put the rental income into another house. Accordingly, the risk that something might go wrong is also low. Or, as described here, possibly even having several unpaid houses running in parallel?

What is the difference between owning multiple income properties and a company that is supposed to generate income?

The basic prerequisites between private individuals and companies.
A private individual can, for example, simply buy real estate and rent it out because they consider their equity to be safer invested that way than in the bank.

If a company does not make profits, it will eventually go bankrupt. Of course, a company has incentives to keep its EGT (earnings before taxes) correspondingly low. Whether a private individual has the same incentives, I dare to doubt. ;)

Ultimately, as a private individual with a rental property, you can always arrange things for tax purposes so that you pay little or no taxes (until I reach the limits of hobby business, etc.). Does it always make sense? I don’t think so...