It is time for the last post of the year! There is a little bit of time left to discuss Real Estate and some of our plans for 2018. Time for the Real Estate Report – December 2017 edition.
Real Estate Report – December 2017
Our rental income for December, in combination with a new private Real Estate investment loan, has rocketed our income to almost €3.400. During December we rolled two separate private real estate loans into one. Because the second loan only commenced halfway the month, the interest only reflects a portion of the total forward monthly income. The loan has already been used to purchase new real estate. Exciting times for all parties involved.
The monthly income overview is provided below:
The expense for December were very low again. The expenses consisted of the usual:
- Mortgage and loan payments,
- Management fees; and,
- We got some money back due to a corrected tax assessment! Always good news.
Maintenance on the heating systems of two units was done in late December, but the bills will come in January. Due to a lack of any other works, we have no maintenance expense this month.
The expenses for the month are as follows:
Real Estate Report – Overview
What better than to close the year with a big bang?! We made a total of almost €2.871 in net rental and loan income for the month of December (before taxes). The net cash-flow will come in at around €2.200 for this month.
Our total net rental income for 2017 came in at almost €23.617 (before taxes), the associated net cashflow is around €18.600. This is all much more than we expected last year when we made the forecast. This is all due to the delay in maintenance works for the exterior of two units, which is currently estimated at €6.500 (have the quote already). We were too late with getting stuff sorted and now have to wait for the next warm season.
Real Estate Report – Forecast
Ok, so the sale of one unit has started and is expected to close in March/April. Why that late? Because some of the parties will be abroad. Perhaps we can speed things up, but we have not looked into this at the moment. We also still need to complete assessments of the property to determine the final sales price and arrange a mortgage with our relative, who will be buying the property. Lots of fun stuff
Based on the existing situation, anticipated new tenants, the planned sale and the scheduled maintenance work. Here is a quick overview of the numbers for 2018.
- €38.500 rental and loan income (excluding any new investments)
- €20.000 expenses (includes €6.500 for large scale external maintenance for two units scheduled in April 2018)
- €18.500 net income (cash flow is considerably lower as the loan payments are not paid out but compound)
In short, we expect higher operating costs next year and therefore a slightly lower net income in 2018 than in 2017. Note that we don’t know how, or in what, we will invest the proceeds of the unit sale. Perhaps we will do another real estate loan, or we might purchase one of two units. Will keep you posted as always!
Best wishes for you and your family and all the best in Real Estate investing in 2018!