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you may consider that there may be more tourism if the Euro drops, but then again you may also loose that money again in the exchange rate, what about just renting out the property year round? and then just get a timeshare somewhere nearby? also from my limited knowledge of euro real estate, land is alot more scarce, so the property is less likely to loose alot of value (in euros), but it may be a bad time to sell based purely on exchange rates, maybe better to wait a few years for the dollar to fall, which will happen sooner or later
Sure, I could optimise rental income but even when I double I would only have 3%, which is still very bad. If we get a worse crisis tourism inland might go up but than price of RE will probably fall too.
The only thing that bothers me is discovering that real estate during the Argentinian crises in 2001 did not drop in value (US$). At least not the RE in good neighbourhoods.
But I just don't want to take the risk to lose half of the value and want to use part of the money for safer more balanced investments and part of the money for some riskier investments with higher chances of a big score.
It seems that for 450,000, with few rentals, that you should be able to get more than 10,000 rent? Especially if this is short term rentals.
But if prices are starting to come down, it might be worth getting rid of it now.
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Hi all,
I have an appartment in the Netherlands with beautifull seaside view. It is rented out to tourists during holiday season on a weekly basis. I have about €10.000 income but lose half due to costs (expensive cleaning each time, expensive management due to high turnover of visitors), so net rental income is €5.000
However the value of the property is €350.000
That means I get 70 times the price if I sell?!? Seems to be huge, is it not? I mean, one would have to rent it out for 70 years to get back his investment.
Or seen from a different angle, I get 1.5% net income from the property, after costs. Not a good investment if you think the value could start to fall.
However, I do have some emotional bond with the property. I've been going there for holidays since I was young and do meet my family there as they also each have an appartment in the same building.
However, this appartment represents half of my capital and I am so afraid that it will lose considerable value.
What would you do? Would you sell? Or keep it?
Thanks Patrick for your wonderfull website!