MONTHLY CASHFLOW OF 500 EURO - 95k Investment into a Rental Property in Germany: Financial Analysis
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- čas přidán 18. 06. 2024
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Hi guys, check out this video in which I show you how I was able to generate a monthly cashflow of 500 Euro with just a single apartment. I will show you the full financial analysis and due diligence of my rental property in Germany. Have fun watching it!
Tags lol:
Rental property analysis, buying a house in Germany, buying house in Europe, rental property in Germany, financial analysis of a rental property, financial due diligence of a rental property, generating positive cashflow, side-hustle with real estate, investing in Germany, how to buy a house in Germany, how to buy an apartment in Germany
Great Video! 94k Is an absolutely amazing price for what you got!
Thanks! Are you investing in RE yourself?
Hi Hans, great to see you back making videos ;)
Thanks for this Hans! I learned a lot from you. I'm also planning to buy multiple apartments for my investments in the future somewhere here in Hamburg. Danke!
Great, good luck! Let me know if you're interested in buying one from me!
Can you make a video about explaining the excel sheet?
Hello, Hans! Thank you very much for this video! If you could tell more details about tax system in particular: how did you get that small taxes and what the high depreciation mean? Thank you and I wish success to your channel! keep it up!
Will do shortly!
Hans, thanks for the video and for sharing all the details about the expenses! And thanks for making this in English. We are just moving to Germany, and it will definitely take some time to learn German language. But because of your channel we can learn a bit more details about passive income in Germany already now
Glad you like it! Do you have any specific questions related to the buying process?
@@financehans6432 For now not really about the process itself. Mostly about taxes. 1) Property transfer tax during the purchase is huge. Was it possible somehow to cut them for your, or it is fixed? 2) Does the tax you pay while renting an apartment depend on your current tax class in Germany? 3) Could you recommend some books/materials to read to get to know German taxes faster? (everything related with passive income). Many thanks!
Regarding 1): Nope, that one is fix, unfortunately. But if you rent out the apartments (and are not living in it after you bought it), it can be included in the overall depreciation of the house (2% per year of the buying price of the apartment + notary costs + real estate agent + property transfer tax and other costs). Regarding 2): If you generate a taxable surplus due to the apartment, you have to pay taxes based on your tax class, yes.
@@financehans6432 Thanks a lot!
@@financehans6432 Yes. For example, the purchasing contract is about 18-20 pages. Which points we need to pay attention? :-) I would love to watch a dedicated video on this!
Hey man, amazing video keep it up love watching from you to learn also could you please send the EXCEL
Glad you liked it! Here is the link to the document: tinyurl.com/financehans1996
If you wish to support my work, videos and content, I would be really thankful if you would donate a few dollars via this link: paypal.me/financehans
Hi Hans, I have recently came across your channel. Very interesting and educating, thanks.
As you mentioned in this video, when do you plan to upload the video to walk us through the excel in great detail? It's been almost 3 months. You must be busy with acquiring more properties, I guess :)
I am indeed - what are you interested in in particular?
Nice information and well explained 😊 please share the excel Hans. Thanks in advance.
Glad you liked it! Here is the link to the document: tinyurl.com/financehans1996
If you wish to support my work, videos and content, I would be really thankful if you would donate a few dollars via this link: paypal.me/financehans
Hi Hans,
I am aiming for 3 room apartments for small families. However, the rent value might never be as high as yours! Looks like your rent-to-loan value is around 10.15% which is crazy! Never heard such a ROI from rent before in my life! Instead, I would expect a decent 5% ROI, which would make the rent as low as 492 Euro per month. How did you manage to rent it x2 of the expected value? This is insane! I wish you all the success!
Yeah its between 10-12% on this one.
I also got 12% on another apartment. Overall I have 7 apartments and these are the "best" ones in this regard. Others have between 6%-8%
Love your videos. I am looking to find a suitable rental property for investment. Your videos help 🎉
In which area are you looking to invest?
@@financehans6432 do you think is it possible to find something like that in Hamburg area?
Hi Hans,
Thank you for the information! I am preparing my first investment around Darmstadt with your videos!
Additionally, IMHO,
1-) Get rid of the background music.
2-) Better sound quality investment might be good for your channel (no echo-ing).
3-) Better lighting and background.
Kind regards.
Will do, thanks! :)
i believe this type of content is so precious that sound quality doesn't really matter
Congrats
Thanks!
Hi han, can you do a video about all the documents that is required and all the paperworks to aquire a property in germany
Yes, will do in 1-2 weeks! Make sure to subscribe ;)
Another video 🫶🏾🔥🔥🔥
Hans, in your finance model taxable income (rent) is decreased by amortization which is 12% of apartment cost per year 😮 I thought 12% amortization can only apply for some buildings which are historical monument, for the majority of apartments you can apply only 2-2.5% amortization. Is it true?
Yes, that's true!
Hii hans,
Very nice explanation. Can you share please your calculation excel sheet ???
Glad you liked it! Here is the link to the document: tinyurl.com/financehans1996
If you wish to support my work, videos and content, I would be really thankful if you would donate a few dollars via this link: paypal.me/financehans
hello hans, how do you go about deciding the rent price in Germany because i think i read theres a cap on it, depending on the place?
Yes, there is the Mietspiegel which you have to obey by. You can go 10% above it
@@financehans6432 is there any official reference for the mietspiegel per location?
Hans, you said bank evaluates current market value of this property at 170k, but you have invested only 120k. To maximize your capital growth obviously you should sell it now and repeat again. So if you would sell it now for 170k how much taxes you would have to pay?
Unfortunately I'd have to pay 42% taxes on it since I'm in the top tax bracket already. It doesn't make sense to sell at the moment
Nice video, please can you share the excel for the calculation?
Thanks! Sure, if you start subscribing ;)
Glad you liked it! Here is the link to the document: tinyurl.com/financehans1996
If you wish to support my work, videos and content, I would be really thankful if you would donate a few dollars via this link: paypal.me/financehans
Nice video, Hans. Could you share the sheet?
Ah found it below. nvm, tnx.
See my other comments
Hey, when you say you charge 1000euro warm rent and if its warm rent, I Assume you have heating, water, internet,electricity cost that the tenant use. It roughly cost 300 to 400euro per month here in berlin, 2room apartment. How come you do not have to pay these cost by your pocket if you charge 1000euro warm rent.
No, not all of these costs are included in the warm rent of this apartment. For example, water, taxes, trash fees are included, electricity, gas for heating etc is not. That may always differ from apartment to apartment. My renters usually get their own contract to receive electricity and gas. However, in some of my other apartments, gas is included. Hope that helps!
I noticed that you have good-quality videos but the videos are not getting views and subscribers are not increasing.
I found some problems with your channel.
1. SEO Score is very low 2. Tag SEO friendly 3. No Share Social Media Platform and many problems on your CZcams Channel.
You need to optimize your channel and do video SEO to reach your target audience. Otherwise, if you upload videos to your channel throughout the year, none of your videos will get viral views.