Today, many households automatically equate real estate with home ownership. In practice, however, this view is only partially correct. Part of the construction finance goes to investors who want to earn money with a house purchase or a construction project. But families, as owners of a property, also repeatedly play the role of landlords.
Example: The offspring moves out and an apartment is suddenly empty.
If you achieve a return on your home ownership, you can also save on a building loan. And has other ways to save.
Yield: As a family, suddenly an investor
Sometimes it is simply not foreseeable that you will become a landlord from a self-owner. If, for example, you have acquired an apartment building from a forced auction, the question naturally arises as to what happens to it.
Or you can buy the dream property, which is partially rented. The tenants are taken over by the sale.
The return on such properties must always play a role in the purchase.
A distinction is made here, for example, between:
- Gross return
- Net return or
- Return on equity.
All of them are forms of return with which you first have to become familiar as a household. The easiest way to calculate the gross rental yield is generally. Here, the rental income is simply divided by the purchase price.
The situation with the net return becomes somewhat more difficult. This variant of the return results from the quotient of the net income value (rental income reduced by operating costs) and the total investment expenditure. Compared to the purchase price, this can be higher due to maintenance measures or renovation work.
Building loan: save on interest as a landlord
Where do households that become landlords save on building loans? At first glance, there are hardly any differences between renting and self-use. But: Whoever rents parts of their property generates income – and can, for example, claim the debit interest from the building loan against tax. At this point, we are dealing with the so-called advertising costs from renting and leasing. The latter are a collective item in which very different expenses can be accommodated.
And the landlord can reduce the tax burden by another effect. Depreciation can be made for the building fabric, which is considered an expense – and thus leads to a lower burden on the tax authorities.