mapTheBench
Property investor
If the costs are only slightly higher than expected, this could become an expensive way to earn a modest return. The villa is a 4-bed in Helsinki, priced at €791,200 after 118 days on the market. Rent is estimated at €2,994 a month, which puts the gross yield near 4.5%.
I have included ordinary maintenance, vacancy between tenants, management charges and some provision for major work. The figures become thin once I add insurance, financing and property tax, especially if a tenant leaves after one year and the villa needs decorating before it can be let again.
Which ownership expense tends to catch Helsinki villa landlords out? I would also like to know what documents or past bills to request so I can verify the property tax and running costs rather than rely on the selling agent’s estimates. Before finance and tax, what net yield would make this risk worthwhile to you?
I have included ordinary maintenance, vacancy between tenants, management charges and some provision for major work. The figures become thin once I add insurance, financing and property tax, especially if a tenant leaves after one year and the villa needs decorating before it can be let again.
Which ownership expense tends to catch Helsinki villa landlords out? I would also like to know what documents or past bills to request so I can verify the property tax and running costs rather than rely on the selling agent’s estimates. Before finance and tax, what net yield would make this risk worthwhile to you?