Can I move into the property myself?
In today's edition of our video blog, you'll learn a lot about whether you can move into the property yourself.
Start the video here:
Frequently, capital investors ask themselves
We answer these and many other questions in our video blog editions.
Here is the transcript of episode 11 to read:
Basically, you can say that legally you can move into your rented property at any time. However, there are a few deadlines that must be observed. If you give notice, you or the administration must give notice on your own behalf and this can take a little time.
But you and your family are allowed to terminate the lease and move into a rented property. Whether that makes sense is another question. Because your tenant then no longer pays off the property for you. If the income is missing, the idea of passive income is gone and there are no tax advantages for the owner-occupied property.
Because only if you are a landlord, you get tax benefits from the tax office. But what if your property is paid off by tenants and the tax office? Should you then also not move into your property?
Of course you can move in. But then the rental income is lost. And in practice, experience has shown that after 20, 25 or 30 years, your idea of living in old age may have changed. And then you prefer to rent a nice apartment in Spain, where you spend the cold winter in retirement. There you pay 1,000 € rent and continue to collect the 1,000 € every month in your rented property.
Thus, your tenant in Germany pays you the rent of the property in Spain. With a rented property you have every freedom: move in yourself or continue to collect the rents and then rather rent what you just enjoy.
And if you want to spend a few months every year in Florida, then you rent a property in Florida and your tenant in Germany pays you the rent of this property in Florida. It remains your decision what you want to do with your rented property: rent it out and have a nice living environment somewhere else through the rental income in old age or move into the property yourself. You have the choice!
Own use, rental income, passive income, tax advantages, living environment in old age, real estate investment, renting, tax savings, capital investment