Do you know how the profitability of your rental property is calculated? Enter numbers if you have a rented house or if you plan to buy a flat as an investment. In our collaboration in Invest You have the keys that will let you know. That rAvailability can be obtained via rent or revaluation.
But everything is not so easy. A rented flat, (except if it comes from inheritance and also has its expenses), usually has an initial investment, periodic expenses and a monthly income. With these wickers you can calculate what benefits you get.
To calculate the profitability of a rental house, you must take into account these variables: investment, periodic and punctual expenses and monthly income. A good analysis and a good choice are the perfect combination to obtain an adequate return. And it's possible.
Gross and net profitability
And the simple rule: divide the monthly income between the total cost of the property. The result is the gross profitability. Butwhat is the net? To the total income it is necessary to subtract all the expenses that the property entails: community quotas, taxes, insurance or some expenses of maintenance or reforms, etc. Without forgetting the mortgage, if it had it.
The net result is what you get in your pocket, but then comes Estate. Revenue from rentals increases the tax base in the income tax. And although when it comes to housing, a good part is exempt, some taxes have to be paid for this income.
Profitability by revaluation
It is another option to have benefits. But, first buy, then sell and then subtract taxes and expenses from the sale. It is good to do the calculations well to really know what you are getting. The difference between buying and selling must be important.
We invite you to read our colaboración in Invertia where we have assumptions of rent and sale. You can see what profitability you get or you can get if you buy as an investment.
And in this last point remember that not everything is worth. Before buying it is good to do an analysis, as we already have in another post: aspects that must be taken into account.
Information produced by FGold Real Estate Consultants
And if you are looking for a house, do not miss our wide range of properties in Foroprovivienda
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