ILLUSTRATIVE · NOT A LIVE ASSESSMENT
A promising yield. Almost no cash flow.
This entirely fictional €300,000 rental apartment has 5.8% gross yield, but the stated assumptions suggest almost zero cash flow after debt service, before income tax.
CASE 001 / FICTIONAL EXAMPLE
One property. A different picture.
At €1,450 proposed rent and a 70% fully amortising mortgage, vacancy, maintenance, management and other operating costs absorb most of the rental income after debt service.
Interpretation: These estimates demonstrate how a gross-yield headline can mislead. They do not establish fair value, achievable rent, or whether any real purchase should proceed.
Explore these inputs CASE OUTCOME · PRE-INCOME-TAX
5.8%gross annual yieldBASE / MONTH−€4
STRESS / MONTH−€442
Illustrative model only; figures rounded.
WHAT A CLIENT WOULD RECEIVE
An honest list of assumptions.
MODELLING INPUTS
- Price €300,000; one-off buying cost allowance €23,000
- Loan-to-value 70%; rate 3.6%; term 30 years
- Advertised or assumed rent €1,450/month
- Vacancy 5%, management 8%
- Maintenance reserve 0.7% of property price/year
- Condominium €75/month; IMI €550/year; insurance €250/year
WHAT WOULD NEED VERIFICATION
- Actual signed rent and relevant local lease comparables
- Updated loan offer and fees from the lender
- Current condominium, insurance and IMI documents
- Actual buyer-specific acquisition taxes
- Repair and refurbishment cost estimates
- Tax treatment based on the owner's situation
A CLEARER VIEW OF ONE PROPERTY
Transparency is the product.
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