Buy second apartment / studio room / investing

Real Estate
1

Hello!
My first post in the Forum :slight_smile: Great Community, tons of useful advices. I need one now :slight_smile:

250K available at the moment, parked into an account with no interest. 4 options.

  1. Ask the bank to finance second apartment: 700K, downpayment 250K. Renting ±30K. Return: ± 17K/year
  2. Buy (cash) Atelier/Studio (±240+45 garage). Renting ±13K. Return ± 9K
  3. Nr 2, but with hypo (e.g. 50 downpayment and 200 mortgage). Renting ±13K (2.5K mortgage) Return ± 7.5K + 200K investing.
  4. Invest 250K.

In terms of renting the aparment has more likelihood to find a tenant: I can’t say for the Atelier (Studio Room). There is an idea to use it for a possible future business (Gallerie). In this case, the 9K will be gone, but (maybe) compensated.

Investing, might have same performance (in 8-10y) if not even higher. The only PROS for the real estate is an increase of the value - which is not always given - and for the Atelier, a possible investment for my wife future business.

My wife is more in favour for the real estate. Myself for the investment.

Any thoughts?

Thank you!

2

If this is an investment that you will need to do anyway, I would do it now. How would you do the investment later if you have already spent/invested the 250k otherwise?
Personally, I would only do real estate for profit if you are planning on using it yourself later on, or if you treat it as a real side husstle and are willing to invest the time.

1 Like
3

There are no concrete plans, for that business - as my wife has already a full time job, looking after our 2 kids. The idea, medium term (let’s say, 3-4 years once both kids are in KiGa), is for a part-time job for her. As she sacrified her profession to grow up our kids, I am willing to consider this investment for her.

The option for the Atelier is coming up just because it is relatevely close to our place (5 min walk). I could even use it as an office when I do remote work, or even as an (expensive) hobby raum. Same for the parking: altought we already have 2 spots on hour building, this one - as very close - could be rented. There are 10 apartmetns, 4 atelier and 23-parkplatze (one only spot for besucher): on average, each apartment takes 2, but having just one spot for the guests, the 23 spot in the tiefgarage could be likely rented or in the future, even sold.