WHAT IS THE INCOME FROM THE REAL ESTATE ABROAD? LONG-TERM LEASE

  1. Buy for rent:

A flat abroad is not just a chance to get closer to Europe, but a nice investment opportunity. Renting it out, you get a regular passive income of 8-15% per annum. And no special knowledge and need to participate daily in the management of this asset is required.

Certainly, additional rental income is a nice but non-compulsory option. You may decide to stay in the apartment yourself (or your family/friends), or just leave it empty. It's your personal preference. However, if you still intend to make the purchased apartment "work", use one of the three main ways.

 

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LONG-TERM LEASE
The most simple and clear way to generate rental income: an investor buys an apartment and makes a contract with the management company (agency — for example, Westarp or our trusted partners). It operates on his behalf by power of attorney later on.  The management company undertakes  searching tenants, accommodation, eviction, solving daily problems that may arise, receiving and transferring money to the owner. Its services are usually valued at 10% of the rent.

 

 

 

WHAT IS THE LONG-TERM LEASE PROCESS ABROAD?

An owner hands over the flat to the management company officer. The latter takes it over, records the meter readings, makes photos of the interior, develops the offer and publishes it in his partnership network and local rent aggregating agents (these are Idealista, Fotocasa in Spain, ImmobilienScout24, Immowelt, WG-Gesucht in Germany, Sreality etc. in CZ), arranges demonstration of the apartment. Searching the tenant usually takes 1-2 months. Once it is found, a rental contract is signed (with no owner participation). The transfer protocol, indicating the number of keys, the list of units of furniture, with photos showing the apartment conditions are attached to the contract. The tenant makes a deposit (1-3 monthly rent depending on the country), contacts the Home Unit Company and the utility services, signs the contracts for water, electricity supply, the Internet in his name. The usual term of the rental contract is 1-2 years, sometimes with tacit extension. Upon its expiry the inverse process starts: the manager checks the flat, records the meter readings, deducts some amount from the deposit to cover the damage and returns the rest to the tenant.

 

 

 

 

Advantages:

Disadvantages:

1. Regular all-year-round income;
2. Works for apartments of any squares, design, any town location;
3. Legally permitted in all European countries and cities;
4. Low cost of furnishing: basic comfort level (kitchen, bed, hygiene equipment, TV
5. air-conditioner is compulsory for Spain.

 

1. The lowest income level;
2. No possibility to come and stay in your apartment any time you want.

 

 

Rental income is a nice variant for those wishing to buy a flat abroad for a mortgage. Monthly rent payments tend to exceed mortgage contributions: for long-term lease -in the majority of cases, for short-term and Plus - always. Check this by assessing the approximate cost of the mortgage using the calculator on our website. That is, the lease can be used to repay the mortgage and even get a small income from the remaining funds.

 

ALL IN ALL

Real estate is the easiest and free-to-all investment tool. You can rent almost any apartment, and in case the right location is chosen, you can rent it out for a quite high price. No need to spend time understanding stock indices and securities, as well as to take the risk related to venture capital investment. Real estate brings a conservative income, but its advantage is that it will always be in demand and has no "shelf life". For example, debt securities will be repaid sooner or later, but the apartment can remain your property and generate income for decades.