If I buy an 80m2 apartment for €100,000 and rent it for €650
The real estate investor has the advantage of deciding the monthly rent to ask the tenant. Conversely, it comes up against a more complex tax compliance system than a fixed income investor. What are the main outlays associated with a real estate annuity? Let’s see them.
At school they teach that gross never equals net. A concept that applies both in the case of weights (gross, net and tare, to be clear), as well as in terms of earnings. On all income from work and capital there is the part to be transferred to the tax authorities in the ways, times and forms established by law.
Now, for example, if I buy an 80m2 apartment for €100,000 and rent it for €650, how much do I really have left in my pocket?
The gross is never the same as the net –
The costs related to the investment in the brick
Anyone who decides to invest in real estate must consider a series of costs/riskssome sure and some not so.
Among the latter we think of the classic defaulting tenant. There are those who protect themselves with a bank guarantee, which however ends up increasing the cost of the rent and making the property less attractive on the market.
Then there is the risk of seeing thevacant property for 1 or 2 or more months. However, except in the most desperate cases (houses in poor condition or located in unwanted areas) then it is a remote eventuality. Given the shortage of homes on the market, a long-term vacancy will almost certainly depend on the exaggerated price charged by the owner.
In the end we mention the any expenses of theestate agencyi condominium works, possible natural damage, maintenance work on the building.
Among the certain costs there is the tax e the opportunity cost. A healthy balance between stocks and bonds could guarantee also 5% net per annum on the long term. Not a bad performance, to which is added the greater practicality of managing the movable investment compared to bricks.
Those who decide to invest in real estate must consider a series of costs – projections of the stock exchange. it
The main taxes related to an apartment for investment use
As for the Tax, on a second home these outputs are demolished:
- L’IMU, variable according to various parameters. A rough guess, for a house of 80 square meters in 2022 they paid a scant €400 between the down payment and the balance;
- IRPEF, variable based on the income received. For a property rented for 1 year at €650/month, the annual taxable income would be €7,800. 5% of deductible expenses (€390) are subtracted from it and the taxable amount is obtained (€7,410). If the rent were the only income produced, the relevant IRPEF rate is that of 23% (therefore €1,704.3);
- municipal and regional surchargesvariable from one place to another;
- registration taxi.e. 2% of the annual rent for the number of years of rent stipulated in the contract;
- stamp duty of €16 for every 4 pages of the contract or every 100 lines.
If I buy an 80m2 apartment for €100,000 and rent it for €650, how much will it stay clean at the end of the month?
However, the law allows you to opt for the dry coupon, a more favorable tax regime than the ordinary one. Basically the owner pays arate of 21% or 10% (for contracts with an agreed fee where applicable) on 100% of the rent. In this way, the coupon replaces both the IRPEF and the surtaxes.
Broadly speaking, therefore, a rent of €650 monthly would produce a net gain (of taxes only) monthly around €465/month. The actual collection will greatly depend on the particular tax regime applied.
