How much money do I need to buy a property?

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Episode 1:

How much money do I need to buy a rented property?

In today's edition of our video blog, you will find out how much money you need to buy a rented property:

Investors frequently ask themselves:

  • How much equity do I need when buying a buy-to-let property?
  • What notary and court fees arise when buying a property?
  • What is the land transfer tax?
  • How much does professional management cost?
  • How high should my net income be when buying a rented property?
  • Can I buy a rented property together with others?
  • Can I use my owner-occupied property to buy a rented property?
  • What is the effort involved in buying a rented property?
  • From when do rented properties become worthwhile?

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

Here is the transcript of episode 1 to read through:
If you are interested in knowing from which monthly income and savings you can personally invest in passive income, you will find a few guidelines here.

As a single person, you can expect banks to finance you from around 2,500 EUR to 2,800 EUR net. As married couples or partners, you need approximately 3,500 EUR net. However, young people can start with slightly less income because they have much longer time to repay the mortgage. After all, the tenant has a longer period to pay off the property for you.

It is sometimes sensible to buy with someone else perhaps, for example if you do not yet earn enough money yourself or are still very young, but already want to generate property as passive income for yourself. Then it would make sense to buy a property together with siblings, with a male or female friend. Of course, parents can also be brought in to (help) out.

After all, parents aren't getting any interest on their savings at the moment anyway. When it comes to property, many say they would be very happy to help you get your first buy-to-let property. If you bring this up with your parents, you're sure to experience that too. They wouldn't give you money for a car or a holiday. But when it comes to property, parents are usually very enthusiastic.

Then there is still the question "How much equity do I need?".

If you don't own any property yet and are a tenant yourself, you can calculate as follows: you should invest between 10,000 EUR and 20,000 EUR of equity at the beginning. If you don't bring anything of your own to the table, you will pay a disproportionate amount of interest because the banks charge a very high price for that.

Therefore, we recommend having roughly €10,000 to €20,000 in savings. Then you are in a good position to generate passive income for yourself.

Keywords:
property purchase, purchase price, equity, financing, notary and land registry costs

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