Real Estate Report – November 2017

After figuring out that the journey to FIRE is horrible and all the talk about FIRE and ethics, its time to look at the cold hard cash we received. It’s time to take a look at the Real Estate Report – November 2017 edition.

Real Estate Report – November 2017

Rental Income

Our rental income for November remains well above the €3.000 mark. There are (unfortunately) no new developments to report. Still looking at ways to expand our portfolio, one way or the other (yes, we are picky, so it takes time). If you want an example of how this works, this comes to mind:

The monthly income overview is provided below:

Real Estate Update - November 2017 Income

Real Estate Update – November 2017 Income

Rental Expenses

The expense for November were quite low again. The expenses consisted of the usual:

  • Mortgage and loan payments,
  • Management fees; and,
  • Maintenance on the heating systems of two units (the other 3 are done in December).

The expenses for the month are as follows:

Real Estate Update - November 2017 Expenses

Real Estate Update – November 2017 Expenses

Real Estate Report – Overview

We made a total of almost €2.281 in net rental income for the month of November (before taxes).  The net cash-flow will come in at around €1.800 for this month.

Our total YTD net rental income for 2017 is now about €21.129 (before taxes), the associated net cashflow is around €17.000.

Real Estate Update - November 2017 Overview

Real Estate Update – November 2017 Overview

Real Estate Report – Forecast

One of our relatives who is renting one of our units has decided to buy the place. This is good news for us as it give us the opportunity to cash in on some of the capital gains made. This also gives us the ability to invest into higher yielding RE investments. It is one of our first investment properties, albeit not a bad investment, there are better options out there (even now).

We now need to start the process of mortgage assessments, pricing, any land registry items and some outstanding maintenance works. Don’t believe there will be any issues as we made clear deals with our family member how to proceed. Not sure how long this is all going to take, but we should have quite a bit of money next year to play with. Perhaps the investment loan as noted in last month’s real estate report will be a good option. Still to write a post about it, perhaps I can find some time in December.

 

What’s up with you? Any cool stuff to share?

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8 comments

  1. Wow congratulations! That is a great portfolio, I could basically retire on your cash flow 🙂 Would love to chat offline about how you get into this and how to get into multifamily specifically.. though I’m sure US is quite a bit different. Looking forward to following along and seeing what you do with the influx of cash from sale.

    1. We are getting close ourselves being able to live off the cash flow, would need another 2 or 3 properties and we would be done!
      We can definitely chat offline, would love to! But realistically as far as advice goes, you are better off chatting to Cubert or other US landlords, the markets are quit different on either side of the big pond. Not to even mention the tax system. That being said, think you are in a better position to build up a RE portfolio.

  2. Congrats on being able to offload one of your properties and “cash in”. Curious – do you have to pay back any depreciation recovery in Holland, like here in the states? That’s one of the disincentives of selling off rental properties here. One way around it is to actually make the place your primary residence for two years or something.

    1. Hey Cubert, we only have wealth tax (ignoring the dividend tax for a moment, as it’s reworked into the wealth tax). This means that it does not matter what we do during the year, our wealth is taken as of January 1 of each year. Wealth is defined as all assets minus liabilities. For properties that are rented out, the value is determined based on the government asssessed value multiplied by a factor (commonly 0.85) = our asset value. So we can buy and sell (and make profits) and it’s NOT taxed (no depreciation recovery either, as it does not apply for privately held properties). However, we will not sell this particularly property before year end, as the assessed value is lower than the value in cash = less taxes.

  3. Steady report, as (almost) always. Nice to see some development, although it might not was what you guys expected. We have received two set of keys this weeks, so it’s finally going to bring some cash flow on our side!

    1. We don’t have an answer back yet, but we are expecting an big NO (hence the tweet). But you never really know what a seller is thinking.
      Congrats on receiving he keys! Exciting and finally some well deserved cash-flow coming in. Happy for you guys!

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