Advice Discussion (Sell/Rent)

4 Replies

Hi all,

Thank you for taking the time to read this.


I purchased a new house, which I will be entering the 9th of July. I now live in a 4-room appartment.

I'm close to renting out my current appartment since the calculations were quite good (7.7 ROI).

The appartment area is wanted and the rental demand is high.


The selling-market is quite hot aswell, which means I could sell the appartment for 70K profit.

Bought 3 years ago for 141K, now worth 210K/215K.



If I rent out the appartment, and all goes well, I will made 70K profit in 9.5 years. 

The 20 years from that moment will be pure profit compared when selling now. So long-term (probably) the better option.

+ Rental income can be used for buying new Real estate.

- Short term costs (5.5K for mortgage transfer and misc. costs).

- When there's a price dip or market stabilisation the break-even point stretcher longer


If I sell the appartment for 70K profit, the mortgage on my new home gets cut by 70K, so less mortgage-rent.

When the market stabilizes (whenever that might be), I could refinance the new home, take the cash out/use savings, and buy an appartment rental for probably less than 210K/215K.

+ 70K profit right now, which means paying less mortgage-rent.

Help/Advice Wanted (Sell/Rent)

You can understand my doubts, since both sides have their plusses.

I would love to hear your stories, what you would do in my situation.

Thank you in advance.

As Jay mentioned there are tax implications if you hold it.  You need to look at the numbers.  How much will you get for rent, what are the holding costs (mortgage, taxes, insurance, repairs, etc)?  Many times houses we buy to live in are not the best rentals based on the numbers.  How long ago did you buy it?  Your post says 3 years in one place and 9.5 years in another.

If you do sell, rather than putting a lump sum payment onto the mortgage for your new home, why not look at buying a rental?

Hey Theresa,

Selling this appartment + buying a new appartment is also an option. 

The market is quite hot right now, so finding a appartment (with good numbers) could take a while. Or I could wait for a correction and then jump in (could be 6 months, could be 5 years).

I lived in the appartment for 3 years. The break-even point of earning the 70K with rental-income is around 9.5 years from now (nett. income out of rental).

Below are the numbers of the appartment as a rental.
I think I can push the rent up to 1300, but kept the calculation on the 'safe' side.

Costs and Income
One Time Costs Yearly Revenue
House Value € 215.000
Rental income¹ € 14.400
Buying Costs € 5.500 + Exploitation costs € 1.300
Repairs + Misc. € 500 + Mortgage costs ¹ € 3.719
Total Investment € 221.000
Exploitation Result¹ € 9.381
Mortgage Loan¹ ² € 99.081
Own Investment ¹ € 121.919