Geld. Leben. Looman.: Warum Sie sich den Kauf einer Ferienwohnung dreimal überlegen sollten

Moin liebe Landratten! If you are considering purchasing a vacation apartment in the North Sea or Baltic Sea area, you should read this article with great attention. It aims to make you aware of the potential pitfalls and expensive mistakes that could result from making such a purchase.

I recently spent a weekend on the island of Wangerooge and encountered a Wuppertal real estate agent offering an "immortal jewel" with the enticing words, "more sea does not exist." The property, priced at 1,100,000 Euro including usual freight and delivery costs, such as property transfer tax, real estate agent fees, and notary fees, totals 1,200,000 Euro.

Do you think it is reasonable to spend that much on a 87 square meter, three-room apartment? Please, do not envy the situation! There are people who not only swim in the sea but also swim in money. They have the means to spend 1,200,000 Euro on such a property, and they allocate significant amounts annually for stays in these kinds of apartments, including two weeks for Easter, a month during summer, and 14 days over Christmas and New Year's Eve.

This article is not only about the financial aspect but also about the emotional impact on one's leisure time. The financial implications are significant. If the property is exclusively used for personal purposes, it is a financial disaster. Moreover, it is a risk if rented to third parties. You may not believe it, but let's calculate it together for a period of ten years: The initial price amounts to 1,200,000 Euro.

The returns are the "saved" rents. Apartments of this type and in such locations cost around 500 Euro per day during peak season. Therefore, the returns for pure self-use amount to ten times 30,000 Euro. The end value is rounded up by the outstanding payments. The object is 25 years old, so I doubt that its value will continue to rise.

Meticulous interest If the apartment is sold for 1,100,000 Euro in ten years, the return would be 1.73 percent per year. If rental income increases by two percent annually and the value of the property increases by one percent, the annual interest rate would be 2.84 percent. In either case, investing the 1,200,000 Euro in bonds and stocks would be more advantageous.

The investor could potentially earn an annual interest rate of five percent, minus a tax rate of 26.375 percent. Additionally, the property must cover the annual costs of 30 stays, starting at 30,000 Euro and increasing by two percent each year. If the calculation is correct, the value of the securities would be around 1,336,000 Euro in ten years, making the investor better off with the rental income.

Of course, I will not judge those who are passionate about sailing and prefer to spend their vacations in their own homes rather than in foreign beds. However, I wonder if it is really necessary to acquire thirteen cows and run a dairy farm when one only wants to drink an occasional glass of good milk. Nevertheless, we must examine the numbers if the apartment is rented for an additional 90 days per year, for example, in June, July, and August.

Additional annual income of 45,000 Euro is possible. The ratio of self-use to rental time is 40 to 60 percent. Consequently, three-fifths of the building value (720,000 Euro) can be deducted at a rate of two percent per year, resulting in a reduction of 8,640 Euro in taxable income. The payment plan for the "mixed" property begins at 1,200,000 Euro.

Initial annual returns are 75,000 Euro, reducing to 56,250 Euro after deducting maintenance and management costs. Rental income also increases by two percent annually. Taxes must also be considered, starting at 16,000 Euro and rising to 20,000 Euro by the end of the rental period. After accounting for taxes, the return is 3.67 percent per year, which is excellent but not higher than the return on the deposit.

Consider the emotional costs as well. You are purchasing a property that you will use at least 60 days each year and must make available to others for at least 90 days. Are you really going to visit an island in the North Sea every year until 2038, or would you rather visit Heringsdorf again to enjoy Kaisers Bath? Do you really want to constantly interact with people who will be enjoying your beautiful domain? And please remember, you will become part of a property association.