How to lease the apartment abroad more expensively?
Lessors of the real estate abroad, as a rule, are two types. The first are those for whom leasing – end in itself, it can become an excellent source of stable income. The second agree to hand over the cozy apartments only for safety of housing and with the purpose to pay back utility payments or a mortgage. Agree profitable to hand over, it is worth purchasing the apartment or a country house at first profitable?! We will prompt as to make it.
When you only select suitable option, begin with search of the answer to 2 questions:
- where it is the most profitable to buy the real estate abroad?
- what housing (elite \inexpensive) will bring bigger income?
The countries where it is the most profitable to buy the real estate under leasing
By drawing up rating of analytics considered several factors: average cost of lease of housing with a total area of 100 square meters; income tax rate from property rental and average yield of the real estate. The last is meant as that amount on which the owner of housing before payment of taxes and additional expenses can count. As a result ten was headed by such states as Philippines and the UAE, and here the countries of Western and Southern Europe – is stable in the top ten.
Spain
Profitability of housing — 4.7%; a tax rate — 19%; the average cost of real estate lease of 100 square meters — about 2500 dollars a month. Increase in profitability from lease was provoked by crisis and falling of real estate prices from 2008 to 2015. Foreign investors apprehended economic problems of Spaniards as a successful opportunity! On an equal basis with housing, they actively buy up also a commercial real estate. So, it is possible to purchase the excellent building in the center of Madrid for 16,000,000 euros. Here apartments both with the 1st, and with two bedrooms and also penthouses with terraces are planned.
Germany
Profitability of housing — 3.99%; a tax rate — 2.71%; the average cost of real estate lease of 100 square meters — about 2000 dollars. Of course, even in a question of lease Germany justifies the image of the reliable country. According to experts, it is possible to come on the real estate market even with the average start capital here. A third of buyers of the real estate in the country look for objects from 60,000 euros.
France
Profitability of housing — 2.79%; a tax rate — 10%; the average cost of real estate lease of 100 square meters — 4500 dollars. Certainly, upon purchase of housing in France, it is worth paying attention to the resort real estate and urban elite development. Those who go to the country to carry out rest, want to see classical France, magnificent and in a cine way fine. By the way, it is possible to purchase excellent apartments overlooking the Triumphal arch for 1,130,000 euros for 79 squares!
The question is interesting to future lessor - what is the time it will be required to pay back the investments? Simple example: at profitability from lease in 5% your real estate will pay off in 20 years.
Elite or inexpensive …?
And now let's understand what housing it is better to buy under leasing: elite or inexpensive. When business concerns lease, you should not pursue low cost. Our specialists advise not to stake on extremely low project cost of the real estate. Similar housing will be more difficult to be leased and subsequently to sell. Give preference to more elite options: expensive apartment will bring you a bigger lease revenue, and utility costs will increase slightly. As a result – your lease revenue will be higher.
It is interesting to analyse that Russians prefer to buy abroad. It is necessary to tell that in the real estate market there were already certain traditions which are observed the last ten years. So, nearly two thirds of the Russian buyers purchase elite housing in Great Britain, Germany, France, Switzerland, Italy and Spain. Analysts of the large consulting company hold such opinion.
About 20% of requests are the share of Germany. Here the Russian investors buy generally in the large cities with "healthy" economy: Berlin, Hamburg, Munich. The wonderful apartment in a new building in Munich can be purchased for 1,200,000 euros.
Availability in apartments of 3 bedrooms and two bathrooms and also comfortable arrangement do this real estate extremely attractive to future tenants. Do not forget that Germany we take the second place in the EU on a share of tenants after Switzerland. According to Eurostat, in the large German cities the real estate is removed by vast majority of inhabitants: in Hamburg apartments are rented by 70% of citizens, in Berlin — 80%. In Munich 75 potential tenants, in Stuttgart — 77, in Cologne — 50 are the share of one apartment on average!
About 15% of Russians look after housing in France. And, here they it is justified stake on purchase of the real estate near resorts and also elite housing in the city. It is possible to purchase a tremendous country house in Seong Track for 29,000,000 euros.
Russians select housing according to the same principle and in Switzerland. The main demand is the share of houses and a chalet in the Alps here. In this plan look narrowly at the popular resort with the slozhnoproiznosimy name – Gshtaad. It is possible to purchase the wonderful apartment in the city of Shendrid on 83 squares for 1,058,724 euros here. Lease of such object can bring from 35,000 to 60,000 euros a week!
Investments into projects of added value
What else there are options for those who want to gain the bigger income from lease without the enormous original capital? The answer – to invest in projects of added value. We buy apartments at the average price, we repair and we lease. Such real estate objects not only become the most attractive to future tenants, but also grow in price at the subsequent sale. Such projects can bring incomparably bigger income – to 15–20% per annum on the invested capital less expenses on the operating team and the local taxes.
The large European cities are suitable for projects implementation of added value: London, Berlin, Hamburg, Munich, etc. Of course, the most perspective Germany in this plan. First, in the country there is an available financing. Nonresidents in Germany obtain the credits of 50% of real estate value under 1.5% per annum. Secondly, housing is very liquid here.
How does it look in practice? For example, you buy in a mortgage the apartment of 70 sq.m. in the center of Munich. An object is among busy quarters, nearby there are a lot of restaurants and night clubs. Housing price – about 600,000 euros. You decide to spend for repair and furniture of 50,000 euros. If planning allows, it is also possible to optimize space and to divide the placement on three certain bedrooms. It will allow to lease, for example, housing to three students that in fact a common practice. Besides, the expected increase in prices for the real estate lifts your apartment in the price to 800,000 euros. It is simple to count income which was brought by invested funds for several months.
By the way, pay attention to the wonderful apartment in Munich to the 136th a square for 949,700 euros. An object is located in the wonderful district of the city with the developed infrastructure.
Life hacks for lessors
- Remember that there are countries in which it is possible to lease housing and at incomplete payment of its cost. For example, in Spain the real estate can be handed over, having only made the first payment.
- For the subsequent leasing it is profitable to buy housing in apart-hotels. It is extremely profitable in the cities with permanent inflow of visitors: Paris, Rome, Vienna.
- Study state programs for attraction of private investments. One of them – Lizbek – in France. It is an opportunity to purchase the real estate with the guaranteed leasing on the conditions determined by the state. Profitability – up to 5% a year. Do you want something new? You were got by the made-up, young and inexperienced boughs? Or perhaps you wish to see as the woman permits to do with herself everything that her man will want? If yes, that you watch a house porn of mature quicker. Here you will find all this and even more. Zrelki fool around in front of their eyes here, tempt native sons and even teach the daughter to suck away to the new guy. At us you will find a porn on the taste. By the way, if housing is purchased on a lizbeka, the state will return you the VAT.
Process of purchase of the foreign real estate, as well as leasing, labor-intensive process. For own tranquility entrust it to specialists of AWAY REALTY.
