Facts
Sample calculations
Cash payer
- Purchase price: € 160,936.00
- + land transfer tax: € 9,656.16
- + notary and court costs: € 4,023.40
- = Total purchase price: € 174,615.56
- + rental income: € 6,598.44
- - Administration: 360,00 €
- - Maintenance (€2/sqm/year): €87.83
- = Rental surplus/year before tax: € 6,150.60
- = Rent surplus/month before tax: € 512.55
Financier
- Purchase price: € 160,936.00
- + land transfer tax: € 9,656.16
- + notary and court costs: € 4,023.40
- = Total expenditure: € 174,615.56
- - Equity capital: € 20,000.00
- + rental income: € 6,598.44
- - Interest expense 2.5% + repayment 2.5%: € 7,730.78
- - Administration: 360,00 €
- - Maintenance (€2/sqm/year): €87.83
- = Own expenses/year before tax: € 1,580.18
- = Own expenses/month before tax: € 131.68
Return on equity*
- Rent: € 6,598.44
- - Interest 2.5%: € 3,865.39
- - Administration: 360,00 €
- - Maintenance: 87,84 €
- = Surplus before repayment: € 2,285.21
- Return on equity:
Total expenditure in the year before repayment - - Surplus: € 2,285.21
- - Equity: 20,000.00 € = 0.1143
- = Return on equity: 0.1143 x 100 = 11.43 %
* Based on the sample calculations