Here's the plan:
1. Take a residential mortgage for 2-room apartment (or take a loan in a bank and buy an apartment)
2. Rent it out to some people
3. Their rent will cover the monthly fee you need to pay to your bank
4. After a while, the apartment is 100% yours
Any pitfalls to this aside from the obvious "The tenants might leave any moment and you never know if you can quickly find a new one"?
I am tempted to do it.
The bank doesn't allow you to rent it out to other people, if they don't find out its a great idea
>>1174259
I'm in Russia. Banks don't care about this shit.
>>1174259
What? Why wouldn't they "let" you rent it out?
>>1174258
Congratulations, you have just figured out how small residential real estate works.
>>1174262
If they think it's an investment instead of a cost of living, there's a higher amount of risk associated with it.
You can borrow the money and never live there. But your interest rate will be higher
Landlord here - yes, you've discovered how RE investing works. The only catch is to ensure that you pay the appropriate amount for the actual property. You also will need to keep the place repaired, so your rent should be higher (preferably a lot higher) than your payment to the bank.
>>1174289
Well, in my country I can take a residential mortgage for up to 25 years with really small bits of payments.
What would you recomend me: 1 room apartment for one tenant or 2-3-rooms for different tenants? It can be a bother to find several different clients but 1-room apartment is not that appealing in terms of its actual worth and rent.
Question about this whole idea: is it worth it?
Seems like a long-ass investment. Does it pay off?
>>1174259
The fuck are you talking about
>4. After a while, the apartment is 100% yours
protip: there's a KPI called "Kaufpreismietverhältnis" in Germany. It basically translate to "how many years must you collect pre-tax rent from your residents that it sums up the the property price".
just do the maths, most of the time, the value is around 15-20. So: Even if you could use 100% of the rent to even the credit, it would take 15-20 years. But since you want to live off it and need money for repairs, tax and maintence, it would consume wopping 30+ years to pay of a property.
>>1174294
You need to look at the numbers. Put together a spreadsheet and judge the cashflow. But, from my POV, if you're saying that resale for a 2-3 br place is better, I'd do that.
But, also be aware of your loan terms. know as much as you can about the mortgage you can get.
>>1174383
deutschlandfag. who cares?
He would have his retirement income and strating e.g. with 30 still sets you at 60. You don't get rich for yourself you get rich for the next generation
