How does the real estate investment pay off for me? After what period can I expect a profit?

We answer these and many other questions in our video blog editions.

Here is the transcript of episode 4 to read:

How does real estate pay off for you? It's simple: If you buy an investment property, you have expenses and income on your account every month. On the expense side is the bank rate (interest and repayment), as well as the non-allocable incidental costs (administration, reserves, ongoing repairs).

On the income side, there is rent and tax benefits. If you calculate this and the investment property costs, for example, €300 per month, the question might arise: "Why don't I have a surplus?

Let's assume that the property costs €1,200 a month in interest, repayments and ancillary costs. But tenants and the tax office together pay 900 €, so that you only have to pay 300 € yourself. If 3/4 of the savings are paid by others, you have generated passive income. And still the question arises: "What happens next?

The following has been noted time and time again when buying an investment property: With inflation, the management increases the rent by 10-15% every 3/6/9 years. I.e. if you pay 300 € today, after 10 years you will pay maybe only 150 € and after 15 years nothing at all.

You can assume that you will have to pay less and less yourself every year. Many landlords of an investment property already have a surplus after 15 years, although repayments are still being made. Ultimately, it can be stated that with a 400,000 € expensive rented condominium only 1/5, so 80,000 € must be paid by you.

So if you spend €400,000 on a property, but over the years you only pay €80,000 yourself, that's one of the best investments in your life.

If the topic interests you further, come to our seminars and see even more about real estate knowledge.

Keywords:
Real estate for ¼, inflation, real estate investment, renting, appreciation, tax savings, inflation protection, capital investment, real estate market, financing, consulting.