french property crash

before buying an investment property for rental, it is always a good idea to calculate whether it is cash-flow cash-flow positive or negative. This is the generation of an income (positive) or there is a monthly cash injection (negative)?

This article will briefly outline and describe many of the main shopping and holding an annual cost, with the purchase of a rental property. Please note that these items will vary from country to country, and they do not take into account the personal tax implications.

- Acquisition

Sale price - the agreed price for the property exchange hands.

Renovation costs - money in the budget for the renovation before the property available for rental.

Agents fees - in some countries it is customary for the buyer to pay some or all of the real estate agent selling fees / Commission. But in most cases, these fees are charged by the supplier.

Stamp duty - the duty to cover the purchase of a property, which the local government for the registration of ownership in the new owner's name.

Mortgage fees - from lenders to be ordered to secure a loan to purchase the property.

Travel - flights, car rentals, hotel and costs, if they are personally inspect a property.

Solicitors fees - to the attorney for all legal work for the transfer of ownership.

Research - Books, Reports suburban train bought a suburb.

Accountants fees - the property purchased in the name of a Trust or Company. It can also be a crossover here with the lawyer of the charges.

Council Rates Cutover - A supplier can be paid up to a period after the transfer of ownership. The amount will be between the buyer and seller on a pro rata basis.

Independent Evaluation / engineers report - a supplier may choose to pay for their own independent assessment or engineers report on areas of concern.

Miscellaneous - including postage, telephone, etc. It is also useful to an unforeseen Should some of the above costs will be more than expected.

- Annual cost of holding

Mortgage repayment - payable to the mortgage lender the repayment of the loan for the purchase of property.

Property management fees - where a professional property manager will be appointed either a percentage of the rent or a monthly fee.

Council / Municipal Rates - for collection of waste and the maintenance of local services. Sometimes these are paid by the tenant.

Maintenance - the cost of repairs and maintenance on the property and it is operating and office equipment.

Bank fees - Account maintenance fees from the bank.

Landlord Insurance - protection against theft, damage, non-payment of rent, legal fees and court costs.

Rental prices - some property managers may charge a fee for renting the search for new tenants.

Pest Control - protection from pests and termites.

Cleaning - which can create a professional thorough cleanliness in the preparation for new tenants.

Travel costs - incurred during a visit to the property in times show how this potential tenant or collecting rent.

Local Income Tax Act - may be of some local governments for the hiring gains after allowable deductions.

Property tax - an annual tax on the value of the land on which the property is.

Accountants fees - payable for the administration of the legal structures, if a property is owned by foundations or businesses.

Miscellaneous - again, including a "Should some of the above costs will be more than expected.

Once all these costs were included in the calculations can be taken into account to determine whether a property will cash flow is positive or not.

Finally, it is essential that you seek professional legal advice before making an investment decision. This will help to create for your personal situation and the province to invest in.

Happy investing!

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