Real Estate Report – July 2017

Austria - Castle

Here is the Real Estate Report – July 2017. Nothing much to report, still be slacking on the outstanding work, too busy with life and there is no urgent motivator either. Not good, but such is life. Still, a rather nice RE income this month for sure!

Rental Income

Our rental income for the month is now officially above the €3.000 barrier with the rental increase completed for one of the units. One more unit is due for a rental increase (should have been done per July 1), need to get this done ASAP. The other 3 units will remain the same for a while.

The monthly income overview is provided below:

Real Estate Update - July 2017 Income

Real Estate Update – July 2017 Income

Rental Expenses

The main costs for the month where water/sewage and garbage removal fees. Another significant expense was the quarterly payment of the various insurances. The interest expenses were the same, so were the costs for property management.

The expenses for the month are as follows:

Real Estate Update - July 2017 Expenses

Real Estate Update – July 2017 Expenses

Real Estate Report – Overview

We made a total of almost €1.896 in net rental income for the month of July (before taxes), a bit down from last month. The net cash-flow will come in at around €1.500. Our total YTD net rental income for 2017 is now about €13.298 (before taxes). That’s a lot of money!

Real Estate Update - July 2017 Overview

Real Estate Update – July 2017 Overview

Real Estate Report – Forecast

Stil no confirmation on the tenants moving out, they are awaiting their final approvals for loans/mortgages. But we still are anticipating them to move out. Too bad, nice couple and good tenants.

We had actually submitted an indicative offer on 5 rental properties, but the seller was not budging. Therefore no deal here, too much risk for the current asking price.

We have also requested more information on another property which currently has 12 units and shared kitchen/bathrooms. It appears interessting, but has (the usual) issues with permits and the potential for a large amount of outstanding maintenance. It does have the option to be upgraded to 16 units, which is good. Asking price per square meter is also reasonable. Still more work to be done here.

And, as noted here, we are also keeping an eye on potential German investments, but we have to sort our some taxes questions first.

Opportunities still exist, but it currently takes quite a bit of effort to find the one for us. Almost considering diverting the funds to other investments….

 

How is your RE life going? Any fun news to share?

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16 comments

  1. Team CF 2nd August 2017 at 10:06
    Thanks mate, how is your real estate journey going? Still weighing the various options?

    –> When the schoolyear starts, I will be looking more active for small places to buy. It will be hard to find something interesting because the prices are so damn high.

  2. I’m pretty dumb when it comes to real estate. It’s not my area of expertise. And the horror stories about tenants have kept me at bay from looking more into it XD It’s definitely a viable road to Rome though because I’ve seen a lot of people become very successful going this route. Good to hear it’s working well for you!

    1. They key is in the preparation, good screening and selection (even waiting sometimes to get the right tenant) is really key. It will pay itself back in the long-term.
      That being said, you cannot eliminate all risks, there might still be times when you are simply out of luck.

    1. Certainly cannot complain! But I’m not sure about the RE baron, that might need some more work 😉
      The castle is very nice, holiday destination in Austria a few years back

  3. Too bad the 5-unit rental didn’t work out. Are you only looking for multiple unit properties? That 12/16 unit sounds like a missive project!

    We have to receive the final offer for our mortgage, which we except in 1 or 2 weeks. From there on it’s just waiting until we become full owner (end of November) and can collect our first rental income.
    Looking at these reports, I can’t wait to have something similar build up in a few years 🙂

    1. Nice, glad to read it’s going well with you guys.
      No, we are not solely looking for multi unit properties or portfolios, we have looked at smaller single units too. But could not find anything we like so far.
      The 12/16 unit one is massive and will require to liquidate a portion of the portfolio in combination with a massive mortgage. Still, could be interesting. Awaiting some permit information.

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