Real Estate Report – February 2018

The last week has been a bit real estate themed. We first looked at our (and others) housing history, next we explored living on a boat. To continue this trend, here is the Real Estate Report – February 2018 edition.

Real Estate Report – February 2018

Rental Income

Our rental income for February 2018 was the same as for January, which means we are well over €3.600 in real estate related income.

The monthly income distribution is provided below:

Real Estate Report - February 2018 Income

Real Estate Report – February 2018 Income

Rental Expenses

The expense for February 2018 were quit high due to a one-off expense item. The expenses consisted of the following:

  • Mortgage and loan payments; and,
  • Management fees.

There were no insurance fees this month, no maintenance either (yay) and the taxes are not due until April. The major expenses were the property management fees due to a new tenant moving in in early February. The screening and contracting fees are expensive at one month rent + value added tax. We then also hope our new tenant sticks around for a while! The one upside, no vacancy between tenants and thus no additional expense here either.

The expenses for the month are as follows:

Real Estate Report - February 2018 Expenses

Real Estate Report – February 2018 Expenses

Real Estate Report – Overview

The net rental and loan income for February was €2.210. The net cash-flow was a bit lower at €1.157. The explanation lies in the fact that we provided a private real estate investment loan that does not pay out the monthly interest. We will get this once the loan matures in late 2020.

Real Estate Report - February 2018 Overview

Real Estate Report – February 2018 Overview

Real Estate Report – Forecast

Lots is going on the real estate front. We have been trying to get various quotations in for the paint removal and subsequent placement of stucco on two investment properties. It turned out that adding about 6 cm of insulation saved the costs for old paint removal and made installation of stucco easier. It was therefore only marginally more expensive, so we decided to go for this route.

There are a few benefits too, the insulation lowers the heating bill and also would allow higher rental rates to be charged. Because the Dutch government also plans to go without heating gas as of 2050, we will be making the first step to making these properties future proof too. It all seems a logical decision to us 🙂 We also already got the municipal approval to preform the works, which we are planning for  during the summer.

After some negotiations we selected a reputable company which will charge us €12.000 for the works. Because we will sell one of the properties to family (sale is now also delayed to this summer), we won’t pay for the full amount. The plan is to also replace two windows and paint the remaining window sills, so the property is in perfect condition. Remember that we will move into this property ourselves in the future, so it makes sense to invest some extra money into this property!

New Property?

We have also been looking at a new property last Friday. It’s a double unit that has been on the market for a while, but they just dropped the price (again). It’s promising, but we are awaiting a few clarifications on various questions that arose during the viewing. If we can come to an agreement (and no other party snatches it from under our noses), the sale is likely in Q3 of 2018. Bit excited about this opportunity to be honest!

I wrote this post already on Tuesday, had a call with the real estate agent Wednesday afternoon. He came with bad news as the property is as good as sold, it also had a few issues that we were afraid off. It would have made the conversion more expensive and we therefore could not compete with the other offer. Darn….

 

How did you do in February?

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10 comments

      1. My brother warned me already, there must be a snake under the grass somewhere. Still haven’t found it.

        See you in Utrecht 🙂

      2. Been searching for that same snake now for the last 4 years, beginning to think it does not exist. Time and perseverance are the only two things you need (well and money to invest, obviously).

    1. Hey Troy, that’s still one very healthy profit! Any particular reason why you don’t invest into real estate? Like the stock market, it’s got is perks and drawbacks, just the cashflow is so nice to have 🙂
      As always, thanks for the comment!

    1. We are always looking at new properties, just are not having much luck. The red hot real estate market and limited number of properties available in our preferred segment make this a difficult time to expand the portfolio.

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