Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #21  
Old 24.04.2021, 11:53
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: How to get 7-11% return on housing in Europe?

Quote:
View Post
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.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #22  
Old 24.04.2021, 20:25
Member
 
Join Date: Feb 2020
Location: Zurich
Posts: 156
Groaned at 20 Times in 9 Posts
Thanked 143 Times in 79 Posts
spark is considered knowledgeablespark is considered knowledgeablespark is considered knowledgeable
Re: How to get 7-11% return on housing in Europe?

Quote:
View Post
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
Reply With Quote
  #23  
Old 25.09.2021, 01:05
martin959's Avatar
Forum Veteran
 
Join Date: Oct 2009
Location: St Gallen
Posts: 1,269
Groaned at 27 Times in 18 Posts
Thanked 578 Times in 330 Posts
martin959 has earned the respect of manymartin959 has earned the respect of manymartin959 has earned the respect of many
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?
Reply With Quote
  #24  
Old 25.09.2021, 10:36
Treverus's Avatar
Forum Legend
 
Join Date: Dec 2007
Location: Work in ZH, live in SZ
Posts: 12,351
Groaned at 363 Times in 293 Posts
Thanked 23,674 Times in 8,568 Posts
Treverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond repute
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.
Reply With Quote
The following 6 users would like to thank Treverus for this useful post:
  #25  
Old 25.09.2021, 13:57
Newbie
 
Join Date: Jun 2020
Location: Wallisellen
Posts: 9
Groaned at 5 Times in 2 Posts
Thanked 10 Times in 3 Posts
Bibicu has become a little unpopularBibicu has become a little unpopular
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.
Reply With Quote
  #26  
Old 25.09.2021, 14:25
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 32,503
Groaned at 2,578 Times in 1,840 Posts
Thanked 39,643 Times in 18,684 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: How to get 7-11% return on housing in Europe?

Quote:
View Post
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
Reply With Quote
The following 3 users would like to thank st2lemans for this useful post:
  #27  
Old 25.09.2021, 15:07
otec's Avatar
Forum Veteran
 
Join Date: Jun 2021
Location: Lugano
Posts: 644
Groaned at 249 Times in 110 Posts
Thanked 491 Times in 244 Posts
otec is considered unworthyotec is considered unworthyotec is considered unworthyotec is considered unworthy
Re: How to get 7-11% return on housing in Europe?

Quote:
View Post
which I would spend differently if the money was in an index ETF
imagine bitcoin
Reply With Quote
This user would like to thank otec for this useful post:
  #28  
Old 25.09.2021, 21:57
Member
 
Join Date: Mar 2010
Location: no longer in the forum
Posts: 190
Groaned at 4 Times in 3 Posts
Thanked 173 Times in 90 Posts
jim1 has a reputation beyond reputejim1 has a reputation beyond reputejim1 has a reputation beyond reputejim1 has a reputation beyond repute
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
Reply With Quote
This user would like to thank jim1 for this useful post:
  #29  
Old 26.09.2021, 11:57
martin959's Avatar
Forum Veteran
 
Join Date: Oct 2009
Location: St Gallen
Posts: 1,269
Groaned at 27 Times in 18 Posts
Thanked 578 Times in 330 Posts
martin959 has earned the respect of manymartin959 has earned the respect of manymartin959 has earned the respect of many
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
Reply With Quote
Reply

Tags
house, invest, realestate




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Epalinges - Housing crisis there too? Above Lausanne - easier to find housing? Lausanne345 Daily life 19 23.04.2014 01:41
Swiss TAX Return and Property Income from the UK and UK Tax Return edfollett Finance/banking/taxation 19 04.02.2014 17:00
Not Europe, Brits divided. And they are outside of decision making. Europe is united kashif International affairs/politics 97 06.01.2012 10:59
today only! book return Flights in Europe CHF 99,-- Swiss Int. Air Ittigen Travel/day trips/free time 0 16.02.2011 16:29
Housing agents / Sites for Housing in Sierre ganesh80 Housing in general 1 25.10.2010 11:58


All times are GMT +2. The time now is 08:58.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0