Amsterdam 3-bed at €391,000 and €1,900 rent — does it stack up?

[asha.finch]

I have checked the basic income and expense assumptions, but the building’s financial position is still unclear. The property is a three-bedroom coastal home in Amsterdam at €391,000, with projected rent of €1,900 a month—about 5.8% gross.

My figures include expected gaps between tenants, management, normal upkeep and a reserve for a larger repair. What could still change the answer is the building’s regular charges, insurance position or an extra owner contribution if its reserves are weak. I also need to test whether €1,900 is achievable through tenant turnover. What net return would justify proceeding once those points and the financing are known?

 

[measureTheFinch]

I would focus first on the building’s regular charges, reserve position and possibility of extra owner contributions. A low purchase price can look attractive until those costs are included. Also confirm that €1,900 is actually achievable and permitted for this specific home, rather than relying on a listing estimate. Personally, I would want around 4% net before financing, with the assumptions stress-tested rather than rounded.

 

[HonestHorizon]

The 4% target is too neat without knowing the financing. A modest change in borrowing cost could matter more than vacancy or insurance here. Are you buying with cash, and does your €1,900 figure assume the tenant pays any utilities or other occupancy costs?

 

[LongChalk]

I agree financing sensitivity belongs in the model, but the rent deserves equal scrutiny. At €22,800 annually, there is not much room between the 5.8% gross figure and a disappointing net result once management, turnover, insurance, property charges and building costs are deducted. I’d request the building accounts and planned works, verify the letting position and realistic rent, then run scenarios for lower rent, one vacant month and a large owner contribution. If the deal only works in the optimistic case, pass.