13/03/2023
When is it better to buy a house than rent it?
Avoid investing in rental apartments in cities where rental demand is low. My advice is to do it in centers with valid poles of interest which can be:
Tourist attraction such as Sanremo for example
Buying a house to rent it using the first home subsidy
If you want to buy a house to rent it, you can also use the first home subsidy. You do not lose the tax advantages if you keep your residence in the municipality where you bought it, even if in another property.
However, you lose the opportunity to take advantage of the dream home subsidy if you don't sell the one you bought first and if you do it before the age of 5, you pay a lot of taxes.
I advise you to keep the first home purchase separate from investment purchases, except for specific needs.
How much to pay for the house
You have to pay the useful price to obtain a minimum profitability of 5% gross annual and now I'll explain how to do the calculation.
Start from the rent that you are sure you will be able to receive once rented, let's say it is €700 per month.
700 x 12 months = €8400 gross per year from which you will then have to subtract taxes such as dry coupon or personal income tax and obviously the costs for unexpected maintenance
To calculate gross profitability at 5% you will need to apply this rule:
(Annual fee x 100)/5 or = €168,000 which is the maximum investment to make based on the fee that you can obtain.
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