ᐅ Is real estate rental profitable?

Created on: 27 Oct 2021 10:46
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Steffi33
In another post, I just read that people often invest leftover money in real estate properties that are supposed to generate a return through rental income. I am a complete beginner in this area. So far, we have mostly earned returns through investments in the stock market. I have often wondered how renting out properties actually works. Do you achieve returns mainly through the rental income? Or is it more because of some kind of tax savings? Does it really pay off in the end? Maybe someone here can clarify this for me?
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Benutzer200
1 Nov 2021 14:56
RomeoZwo schrieb:

Please note that when renting out a garage without a dwelling, value-added tax (19%) must be paid.

Uh, no. As written, that’s not correct.

It’s similar to the photovoltaic system situation. It’s comparable to the small business exemption rule. Usually, as a private individual, you would need to operate a whole garage facility or a small parking garage to reach the required turnover (for example, 20 garages at €75 per month is still a low amount). However, if you already have a photovoltaic system on the roof and have opted for VAT registration, you are already considered a commercial garage lessor.