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24.04.2021, 11:53
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| | | Re: How to get 7-11% return on housing in Europe?
| Quote: | |  | | | Yes but the forward yield curves all show that rates will be low for many years in the forward. You can even fix mortgages for 10 years at 3% in the Uk these days | | | | | Not for a rental property, you would be looking at nearer 4.5% for a 5 year fix, then with 'fees' nearer 5%. Thats assuming a min of 35% deposit & being a UK resident. Rent has to be 125%-140% of mortgage monthly cost.
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24.04.2021, 20:25
| | Member | | Join Date: Feb 2020 Location: Zurich
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| | | Re: How to get 7-11% return on housing in Europe?
| Quote: | | | | | 7% -11% is a poor return on a high risk asset class in which you are forced to fore go diversification. | | | | | Speak for yourself. There are still plenty of countries where a piece of real estate doesn't cost a fortune by western standards. In my home town in eastern europe a small studio or 1bd goes for around $20-40k and yields 6-7+%. I have more invested in just AAPL alone through S&P500 ETFs than that
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25.09.2021, 01:05
|  | Forum Veteran | | Join Date: Oct 2009 Location: St Gallen
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| | | Re: How to get 7-11% return on housing in Europe?
So, in the end... Where is it a good option to buy to let? Italy? France? Spain? Germany?  |
25.09.2021, 10:36
|  | Forum Legend | | Join Date: Dec 2007 Location: Work in ZH, live in SZ
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| | | Re: How to get 7-11% return on housing in Europe?
I have a property in Germany with rental income close to 7% of what I paid for. It was never intended as an investment- we lived in it ourselves. The rental income is the smaller part compared to the increase in market value in recent years. However: what this upside doesn’t tell you is all the trouble renting out a property comes with. My current tenant messed up the property to an extent I have never seen or even thought possible. Within six months does a well kept house look like an absolute dump. I never understood why landlords have issues with pets, now I do: just because I know how to keep dogs properly doesn’t mean your tenant does…
So I have to drive there, find a new tenant, sort out renovations, deal with all the financial arguments… cost me several weekends which I would spend differently if the money was in an index ETF. And good luck trying this in Ukraine on your own.
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25.09.2021, 13:57
| | Newbie | | Join Date: Jun 2020 Location: Wallisellen
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| | | Re: How to get 7-11% return on housing in Europe?
The yields in Eastern Europe are dropping fast. On the property bought in 2018 i have a rental yield of 7% per annum. On the property bought this year i will be happy to get 4%. Overall i will get around 24k per year from rents and i invested 430k. The overall rental yield is 5%. Not bad at all if ask me. And i plan to buy more as long as I have money to invest.
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25.09.2021, 14:25
|  | Forum Legend | | Join Date: Dec 2010 Location: Lugano
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| | | Re: How to get 7-11% return on housing in Europe?
| Quote: | | | | | So, in the end... Where is it a good option to buy to let? Italy? France? Spain? Germany? | | | | | Never buy in a country that you don't live in.
Tom
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25.09.2021, 15:07
|  | Forum Veteran | | Join Date: Jun 2021 Location: Lugano
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| | | Re: How to get 7-11% return on housing in Europe?
| Quote: | | | | | which I would spend differently if the money was in an index ETF | | | | | imagine bitcoin
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25.09.2021, 21:57
| | Member | | Join Date: Mar 2010 Location: no longer in the forum
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| | | Re: How to get 7-11% return on housing in Europe?
My very simplistic conclusion is that Buy to Let is a concept that can work in US & UK
Most of the investment advice and blogs online comes from those countries
In WE outside UK there seems to be high purchase taxes and stricter tenant protection laws.
Even in the UK BTL landlords are now becoming labelled as something of a public enemy for “increasing prices and making it impossible for young people to get on the property ladder” and Taxes have been increased
It has been possible to do Airbnb in some European cities. Beside being a lot of effort that is now that is being clamped down on by politicians too
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26.09.2021, 11:57
| | Forum Veteran | | Join Date: Oct 2009 Location: St Gallen
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| | | Re: How to get 7-11% return on housing in Europe?
I think it can still be done, but again, not in switzerland...
In my home country there are a lot of flats under development that cost around 75k and can leave you with 5% of ROI per year, which seems pretty good  | |
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