What prevents someone from buying houses with a mortgage and letting the tenant pay the mortgage in the form of rent? Why not do this with 50 houses?

This is sometimes done, but:

  • The mensuality is often higher than the rental income, so the owner has to adjust the difference.

It is then an investment for later.

  • Rental income is not guaranteed.
  • A property can be empty, you can have a tenant that does not pay, while the bank expects the money in the meantime. So you have to have enough reserves yourself and the bank will expect it too.

  • Banks do not like to borrow 100% or more of the value of the house (this is called the quotience).
  • Generally one will be difficult to do about a quotience higher than 80%. The higher the quotience, the higher the risk for the bank, so the harder you will be able to get the loan and the higher the interest is often. In practice, you will often have to fund a part of the value of the house (and the notary fees, which can also be high). If you buy an investment property of about 150 000EUR in Flanders, you will pay about 18 000EUR notary Fees (the majority of which are taxes). If you have a quotiency of 80%, you also have to pay 30 000EUR of the purchase value yourself. For a home of 150 000EUR you have to have at least almost 50 000EUR of your own capital!

    In summary, you need a lot of money, both as starting capital and as monthly reserves, to be able to do this.

    It is already very difficult to be a lender who wants to give you a mortgage for an investment property.They are not keen on it because of the risk: when landlord/mortgage holder can no longer pay the mortgage, the lender must sell the property, which is not (good) because tenants are in.

    Therefore, lenders also demand that the mortgage arrives at your own house instead of on the rental property.

    For an evt.Third or fourth house, this karinjeggo returns again.

    Lenders also do not give a mortgage on rental income.But only from work or turnover.

    So it is not simple.

    In addition, you must already be financially well-off: own house already redeemed and a lot of own money (50 -100 K minimum) to initially pay off, plus a thick income.

    And indeed: rental income are not sure either.Landlord can have temporary vacancy.

    OF COURSE Do!You will not be the first;) In the Netherlands, 30% of their own capital is needed and the bank has the consent of a mortgage. Talk to a good adviser, spit all the rules by (business or private), good luck.

    In addition, if your property is empty you will pay vacancy fees.(鈧?950/apartment/studio/room

    Your loans are also limited deductible

    There are many things that will deter someone from doing this.First of all, applying for a mortgage with the intent to arrange this is not easy. Let alone 50 mortgages!

    As a real estate operator you have all sorts of risks you need to live with.This way your house can get empty. In this case, you do not collect rental income and may pay for the mortgage costs.

    As a real estate operator, you are responsible for a large part of the maintenance.If you are lucky, this will come with you, but if you are unlucky, house maintenance can be very expensive.

    In addition, you should also make sure that you get neat tenants.As an operator you also run the risk that the House will be completely outlived by someone who then leaves with the Noorderzon or comes under the bus.

    Last but not least, you have to deal with the taxes you have to pay on the winnings you make.

    The exploitation of real estate can certainly be profitable but is by far not as simple as 50 take mortgages and rent 50 homes.

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