FULL OVERVIEW OF MY 2,3M RENTAL PORTFOLIO WITH 14 RENTAL PROPERTIES IN GERMANY

[@feelgoodmusic8722]

Thanks for sharing these insights. I started to buy apartments in 2008 or so, but was very lazy with it. And I never bothered with such a sleek spreadsheet. Big mistake. Great work!

[@financeHans]

Wow. Congrats to you! I guess they're almost paid off?

[@karanyadav8437]

Rental yield is too low in most German cities. But your rental yield is pretty impressive and on average more than 5%. So can you please make a video about how you plan a refurb and increase the rent that high? What kinda things you keep in mind and how you find tenants . Etc please make a video about this .

[@financeHans]

Thanks! Will do!

[@wandenplafondschilder]

Hi Hans, Quick question: When you talk about refinancing, do you refinance your property based on its estimated value to pull equity out for new deals?

[@financeHans]

Hi! I didn't have to refinance any property yet but that's the plan, yes! Another option is to just refinance the then still outstanding debt at a lower interest rate to increase my monthly CF

[@Tv-gz6w8eh]

Thank you, Hans, for the detailed breakdown of your portfolio. I see that your focus is primarily on used apartments. Do you also plan to invest in new apartments due to their additional tax benefits? What would you recommend for someone who is new to real estate and has no idea about renovation costs?

[@financeHans]

I will maybe do a project building and investing in new apartments and applying the QNG standard. Stay tuned! I would say: still get a used apartment for now bc new apartments are just so much more expensive and the construction firms make a looot of money with it.

[@keine031]

How do you repeatedly get 100%-Finanzierung? with already high pre-existing mortgages?

[@financeHans]

As long as your negative CF is not too high and you have a solid income (eg. from your main job), your bank finances you indefinitaly

[@gr5125]

Great video Hans! 2 questions: 1) It seems that your cashflow calculation is cold rent minus the bank payment, but what about Housgeld or other monthly expanses as an owner? is the renter paying for them? 2) Are you managing all these rentals by yourself or paying a some Hausverwaltung?

[@financeHans]

Correct! The calculation also includes the part of the "Hausgeld" which you as an owner need to cover - also called "nicht umlagefähige Kosten"/non-allocable costs. For the allocable costs, the renter covers it. 2) I'm managing all by myself. It's not too much work though.

[@randock4663]

Hi Hans, bin vor Kurzem auf deine Videos gestoßen, echt top Content, danke dafür! :) Wenn du nach neuen Objekten suchst, legst du primär Wert auf (1) Kaufpreis unter Marktwert, (2) Ist-Mietrendite oder (3) perspektivische Soll-Rendite? Also ist dir der Cashflow im Hier und jetzt besonders wichtig oder eher der niedrige Kaufpreis, sodass du nach 10 Jahren mit möglichst hohem Gewinn verkaufen kannst? Wäre dir dankbar, wenn du hier noch etwas Einblick in deine Gesamt-Immostrategie geben könntest. Vielleicht auch lohnenswert für ein eigenes Video, fänd ich super spannend. Danke dir!

[@financeHans]

Hi! Vor allem Punkte 2) und 3), da Du damit deinen Gewinn schonmal gut abschätzen kannst. Über mein gesamtes Portfolio ist mir eine Mischung aus Beidem wichtig. Den CF brauchst du, um weiterhin Finanzierungen zu bekommen, aber wenn ich ein Objekt deutlich unter Marktpreis finde, das mir zwar heute einen negativen CF liefert, ich mir aber sicher bin, dass ich mit dem Kauf 40-80 TSD Euro verdiene, ist mir der neg. CF recht egal. Hoffe das hilft :)

[@iManiac7]

Im curious what the point to do this now with such high rates and not to just invest into stocks? As an investor the first thing i think is my time and the second is the risk. To take care of all of these things is not easy, broken pipes, idiots renters, who can destroy apartments or just stop paying and easily can live up to 1 year for free, etc. have you considered same effort to use earn more in consulting and free money invest? I feel im missing here something, do you get anything extra with buying property, like tax deductions?

[@financeHans]

Check out my upcoming videos, I will cover these topics in more detail. First, you have a way higher ROE if you invest in RE rather than stocks - due to the hedge. Next, I hardly have to do any repairs (other than the main renovations which I also do) and I have not had an bad renter either - I would guess this would only be 1 in 100 renters... The main benefit with RE is also the tax benefits - it's not comparable to stocks. This is how I reduce my taxable income from my main job to a minimum

[@iManiac7]

regarding tax you mean flats depreciation? It will be on the level of renter payments. So you would not pay much taxes on income from flats, but its really low, in your case its 1.3k, you get something like 400 euro. So it wont reduce your main income taxes. by time i meant all the work, find good deal, notar stuff, then find renters, then fix issues, it days and weeks, sometimes months.

[@financeHans]

Yes, things like depreciation, notary fees, broker fees, taxes and so on. You can basically deduct all expenses which are in relation to the property (car costs, cell phone costs, laptop etc.). But also renovations and so on of course. Also, if you have units with a neg CF, they reduce your taxable income as well. Example: a unit is being sold significantly below market price because it is rented out for a cheap rent. If I know the unit is worth 50+ k more than the purchase price, I buy it and deduct the negative CF I have from this unit from my taxable income. After a few years, this person moves out and you can sell the property tax-free (!) after 10 years.

[@financeHans]

Work overall is not too much. I do most of the work remotely and while I'm working for my main job.

[@iManiac7]

@@financeHansthanks for insights. I will follow your channel. Im still skeptical on effort/reward, but im thinking as part of portfolio and as an experience it worths to try!

[@KhushalBadhan]

Explains the housing crisis and increasing rents.

[@financeHans]

Lol

[@mav3ricktv]

Hi Hans, this video is really a dream material for me. I moved to Germany 4 years ago in VS, what a small world :) Some months ago I bought an apartment(48 sq meters) with my fiancee in St. Georgen im Schwarzwald. We negotiated the price for 80k EUR. We renovated it fairly cheap and moved in. The apartment looks fairly decent now, something I would pay 400e in cold rent easily. I know it is not exactly a students city or anything of that sort, but do you think it has a potential to invest in an apartment or two? There is not many apartments available at the moment and most of them that go online, get sold quick, at least on kleinanzeigen. If you catch some time, have a look at them. If it makes sense to invest we would maybe consider buying another one by the end of the year, maybe with your help/services. LG :)

[@financeHans]

Nice, congrats! Good to finally meet someone from the region! Well I find difficult to project how many people will still live in cities like St. Georgen in 20-30 years from now. I mean you can surely rent it out today but for what price in the future? That's why I try to mainly invest in/around Freiburg and VS but other than that not too far into the black forest.

[@prostmahlzeit]

St Georgen is cold and not very attractive. It's cheap for a reason in comparison to other nearby towns