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Property financial analysis

Financial Analysis Perspective

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Investment Summary

Gross Yield

4.15%

€25,920 annual income

Net Yield (After Costs)

2.34%

Before mortgage payments

Monthly Cash Flow

-€295

Monthly contribution needed

Annualized ROE

6.01%

Over 20 years

Investment Calculator

Calculate your rental yield and return on equity

Property & Income

Purchase Price€625,000

Total property cost

Rental Type

Expected Monthly Rent€2,400

Monthly rent at 100% occupation

Occupation Rate90%

Effective monthly rent: €2,160 | Annual income: €25,920

Gross Annual Yield

4.15%

€25,920 annual income

Net Yield After Operating Costs & Taxes

2.34%

€14,650 after tax, IMI, condominium & mgmt fee

Rental Profit After Operating Costs & Taxes

€1,221 / €14,650

Monthly / Annual (before mortgage payments)

Net Rental Profit

-€295 / -€3,544

Monthly / Annual after taxes, operating costs & mortgage

Net Yield After Operating Costs, Taxes & Interest

-0.57%

With 2.80% interest rate

Financing Parameters

Down Payment30%

€187,500 upfront

Loan Term40 years

Loan duration

Interest Rate2.80%

Bank nominal interest rate

Loan Amount€437,500
Down Payment€187,500
Mortgage Payment€1,516/mo

Based on 2.80% interest rate

Upfront Costs & Taxes

VPT (Tax Property Value)70% of price

VPT: €437,500 — Used for calculating IMT and IMI

IMT (Transfer Tax)€22,843
IMI (Annual Property Tax)€1,313/yr
Stamp Duty (IS)€5,000
Legal & Notary€2,350
Furniture€25,000

Initial furniture & equipment costs

Total Upfront Costs€55,193

Operating Costs (Annual)

IMI (Property Tax)€109/mo · €1,313/yr
Condominium (Monthly)€250

€3,000 annually

Management Fee (%)8%

€2,074 annually

Total Operating Costs€6,386

Rental Income Tax (Annual)

Tax Rate

Taxable Income€19,534

Rental Income - Operating Costs

Rental Income Tax€4,883