Hand over it immediately! In total about property rental abroad for rent of
Buying the house abroad, we perfectly understand that constantly to be there it will not turn out. Someone manages to send abroad parents, children, friends, but the majority faces a problem: how to lease foreign housing?
Rent is not only pleasure from the fact that the house is not empty. It is an opportunity to ensure safety of housing, and also to pay back utility payments or a mortgage. However property rental can become also end in itself as it is capable to bring in the good income. What?
How many it is possible to earn from leasing?
rent brings to
In Bulgaria about 4 - 6% per annum. Promise quite often potential buyers at least 6 - 8% of the income, however professionals of the market warn to trust such statements, including their incorrect. For Finland, in particular, Helsinki, normal is considered the income from rent of 4,5 - 6,2% per annum, for Italy, depending on the region of the country, - 3,2 - 6,1%. In Germany in the market it is possible to meet offers with the guaranteed income of 9,4%. In Great Britain profitability can be not really high - only 2,9 - 5,3% per annum.
profitability of 5% is considered
In Sakhl Hashishe (Egypt) too low. On such conditions of the company - builders suggest to sign contracts of the guaranteed rent with payment of percent of times a year. Considerably the best option rental housing through real estate agencies is considered. In this case the income will make 7% per annum and above, and payments will be made on the settlement account of the owner monthly. > What is the time it will be required by
to p to pay back investments? The payback period is by simple arithmetics. For example, at profitability of 5% the real estate will pay off in 20 years. Let`s pass from the theory to practice.
How many it is necessary to enclose successfully to lease?
Quite often buyers upon purchase are guided only by the object price. However realtors advise to abstain from acquisition of too cheap housing by the principle “if only the roof over the head was“ as it is necessary to look forward - in further such housing will be very difficult to be leased and sold. If the apartment is more and more expensively, the profit on rent quite explainably too will be higher, at the same time maintenance costs of housing will slightly increase, and as a result will make smaller part of the income.
the Minimum cost of the objects interesting from the point of view of the income from rent, over the countries - leaders of sales is specified in the table.
Budget of purchase, one thousand. euro
Bulgaria (Solar Coast)
Spain (Costa - Blanca)
70,0 - 80,0
Italy (Madzhore`s lake)
90,0 - 100,0
of the USA (Florida)
Montenegro (Herceg - Novi)
the Czech Republic (Prague)
For how many can be handed over to
? What rent can appoint
for housing, depends on a set of factors. And if the owner is not forced to hand over that already bought, and just looks for the most successful option for further delivery, with special care it is necessary to approach the choice of the region.
we Will take
the Czech Republic. In Prague the apartment 1+1 (one room and one bedroom) in the brick house on the suburb surrenders at the rate from € 350 in a month taking into account utility payments. For similar apartments in the center it will be possible to request already € 850 in a month.
If acquires housing in ski resorts of Bulgaria, for New year it is necessary to forget about own rest - on New Year`s vacation rental rates and, respectively, profit are the highest. If to speak about regions, Bansko in general is dearer than Pamporovo. Besides, in Bansko the international mountain skiing competitions are annually held that also increases demand for rent.
In Finland can lease the house for full-time residence for € 1 - 1,5 thousand. in a month, a cottage for rest on the bank of the lake - from € 500 in a week. Dispersion of rental rates on apartments enormous. If in the Helsinki center the three-room apartment can be leased without effort for € 1 - 1,2 thousand a month, in Lappeenranta - from € 300.
Persons interested for the period of rest in Italy to stop in removable housing, will mean first of all “classical“ Italy, that is coasts of regions Rimini, Tuscany and Laguria. Therefore you should not get for leasing, for example, Calabria. Here the small apartment in 15 - 20 quarter are more than m than for € 500 in a month not to hand over even in August.
that the season in many resort countries not infinite, and quite can turn out so that at least half a year the apartment will be empty, and even during a season it will not be possible “to hold“ the maximum rental rate. Let`s say in Spain on Costa del Sol during the peak period it is quite possible to gain for qualitative apartments € 700 in a week. However if the contract for long term is signed, the payment goes down.
What taxes on the income from rent will be required to be paid
considerably differ in
of the Rate of taxes on the income from rent over the countries. As a rule, the extent of taxable base can be reduced due to subtraction of a real estate tax, expenses on repair and the maintenance of housing, payments for condominium services.
of the Rate of a tax on the income from leasing is given in the table.
a tax Rate
of the USA
the Czech Republic
A here in Turkey the owner is exempted by
from 25% from payments of income tax from rent. However, only in case only one real estate object - the apartment or a country house is given.
Evasion from taxes - process senseless, especially in Europe. “Perhaps tax administrations about me do not know the principle“ does not work as, paying taxes upon purchase of housing, the owner already gets to base of taxpayers. And the option that the fact of leasing will remain the relevant services “unnoticed“, is almost excluded.
the Penalty for evasion from payment of a tax on the handed-over real estate, for example, in Spain makes
we Will count 30 thousand
Being guided by the minimum cost and expecting to lease at least partially housing, the small apartment in Bulgaria on the coast can be got for € 30 thousand. The high season lasts only two months - July and August. The most similar apartments can be handed over for € 40 in days. It is considered good luck if it was succeeded to lease housing for the entire period. However the most realistic option when it turns out to lease housing for only one month. As a result you receive € 1,2 thousand. From the got profit you pay the annual content of object (cleaning of the pool, cleaning of the territory etc.) - is minimum € 200, and also annual tax, about € 50. From the remained money 10% income tax are paid.“ Pure“ you receive € 855. These are only 2,85% per annum of the income. The apartment on the first line by the sea can be leased much more favourably, but it is, naturally, more expensive.
whom to address?
Option first (for fans of risk): to hand over real estate most, without intermediaries. Plus in this situation is the economy on the fee of agency. On it advantages come to an end. Also there are questions: how to find the tenant in the country with other mentality and often unfamiliar language? How to organize payment process? How to solve possible problem situations?
Option second (for own tranquility): to entrust delivery process to the intermediary - management company. As a rule, it is the structure of the builder created in rather large projects. Besides leasing management companies deal with issues of operation of the building (planned and emergency repair work), cleaning of the territory, cleaning of pools, a hairstyle of lawns, and also provide room - service. The cost of services of management company depends on what belongs to its duties. For example, in the Czech Republic the following option is possible: the owner pays to managers 15% from the income and “forgets about everything“. The only thing, it will be necessary to pay taxes independently.
in the exotic countries should approach
process of leasing with bigger care. Professionals of the market note that difficulties with management company at housing commissioning are possible to foreigners, and more personal participation in process will be required.
Besides management companies, it is possible to address local real estate agencies. The cost of services of agency on search of the tenant is equal in the same Czech Republic to a monthly rental rate. > As it is correct to p to hand over
the Lessor and the tenant sign the lease contract. The contract contains details of the parties and the handed-over object, terms and cost of rent, the right and an obligation of the parties. If leasing is carried out through management company, terms of rent and the amount of payments are specified in the contract.
If the owner leases housing independently, it is necessary to know some nuances. In - the first, the tenant, as a rule, posts bail. For example, it can be equal to a monthly rent. Pledge is a guarantee of safety of furniture, finishing etc. for the owner. In case something is damaged, pledge does not come back to the tenant at departure.
In - the second in case the tenant intends to move down before the term stipulated by the contract, he is obliged to warn the lessor about it in advance. As well as the lessor has no right to dissolve the contract before term. For example, the law is in Germany on the party of the tenant. If the owner suddenly decides to interrupt the lease contract and to drive in own housing, it will be extremely difficult to make it. Especially, if the tenant regularly brings a rent, and the owner constantly lives in Russia and this real estate is not his only housing. In the USA, on the contrary, nobody will begin to have legal proceedings with the tenant who “ran away“ before the termination of the contract. However, it concerns only housing in an inexpensive segment. And in Italy you will be able to lease housing to nonresidents for the term of no more than three months.
As well as in the sphere of residential real estate, in a segment of commercial objects also features exist. For example, in Spain at rent of small business (cafeteria, not returned payment - traspaso (traspaso) exists a hairdressing salon). Its size makes from € 25 thousand. In case of refusal from rent continuation the tenant loses this deposit. The only way to return pledge is to find the new tenant. If further it is planned to redeem the rented real estate, there is an opportunity to agree with the owner about inclusion traspaso in cost.
Rent cunnings. it is far more favorable to enclose?
of Kondo - hotels.
the Buyer gets separate inhabited units for further leasing. Regions with a year-round flow of tourists are most favorable: Prague, Vienna, Rome, Paris. The annual income makes 6 - 10%.
Lizbek (Leaseback) - a unique state program for attraction in real estate of private investments in France. In other words, it is a way of purchase of housing with the guaranteed leasing on the conditions determined by the state. The income makes 3 - 4% per annum.
can Lease to
housing, having paid only part of its cost. It is defined by the legislation. Leasing after introduction already of the first payment for real estate is possible, for example, in Turkey and Spain. And here in Montenegro, Serbia and Croatia it is allowed to lease housing only after full payment.