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That might be true for the US, but it certainly is not for most of Europe. I guess that difference has at least something to do with differences in fiscal regim
by markvdb 11y ago
That might be true for the US, but it certainly is not for most of Europe. I guess that difference has at least something to do with differences in fiscal regime.
I dare you to find me real estate with a 10% gross yield in Belgium for example...
- mutatio 11y agoIt's the same in the UK, banks won't even look at you if your projected yield isn't at least 6%. The fact buy-to-let mortgages have this requirement for mum and pop landlords means that even if you have the liquid assets (large hedge funds, investors, mega-rich) you might as well extract the 6% minimum yield. Result: astronomical rental costs growth in London, gotta feed the system somehow!
- ars 11y ago> I dare you to find me real estate with a 10% gross yield in Belgium for example... Does Belgium have no property tax? That's the only way such low rents could work.
- markvdb 11y agoTaxation is very low compared to other taxation in Belgium: http://www.globalpropertyguide.com/Europe/Belgium/Tax-Pages http://www.globalpropertyguide.com/Europe/Belgium/Tax-Pages Round trip transaction cost is sky high though. My experience is that the 21.10% estimated here is a gross underestimate: http://www.globalpropertyguide.com/Europe/Belgium/roundtrip-cost http://www.globalpropertyguide.com/Europe/Belgium/roundtrip-...