2% rule seems excessive to a German
Hey everyone,
I just read about the 2% rule and I'm wondering if anyone can tell me why that even works in the US. So as you know, the 2% rule states that you should aim for a property that has a gross monthly rent of about 2% of the purchase price. Now that just threw my out of my chair, because I'm from Germany and over here that is an absolutely impossible return. Following the rule, you should get 2000$ in rent on a 100k apartment. Over here you are already getting a really good deal if you get 600€ on a 100k apartment. Now I'm wondering how real estate returns can be that different in two very developed countries.
Does anyone have an idea?
Thanks in advance for any replies!