Comments on: How can we at least break even? http://www.shortoncashflow.com/how-can-we-at-least-break-even/ Learn from our financial failures Tue, 06 Jul 2010 16:01:20 -0400 http://wordpress.org/?v=2.8 hourly 1 By: Sally http://www.shortoncashflow.com/how-can-we-at-least-break-even/comment-page-1/#comment-2567 Sally Wed, 26 Aug 2009 09:25:51 +0000 http://www.shortoncashflow.com/?p=437#comment-2567 Thank you François for your comment. I didn't take capital amortization into account so I will definitely learn about it and see how it affects those calculations. You know, I'm impressed that you own two flats in Paris. Is it working ok for you? Fred and I used to rent a small flat in Paris and I remember that the landlords were not too happy with their investment, apparently they kept losing money despite the high rent they were charging. Hahahaha!!! I don't know if I'm psychologically ready to buy another flat! But it's great to learn from your experience. As you can see, we are not too successful (yet!) with our real estate investments so it's nice to discuss with other people and get new ideas and tips from them. Keep posting! Thank you François for your comment. I didn’t take capital amortization into account so I will definitely learn about it and see how it affects those calculations.

You know, I’m impressed that you own two flats in Paris. Is it working ok for you? Fred and I used to rent a small flat in Paris and I remember that the landlords were not too happy with their investment, apparently they kept losing money despite the high rent they were charging.

Hahahaha!!! I don’t know if I’m psychologically ready to buy another flat! But it’s great to learn from your experience. As you can see, we are not too successful (yet!) with our real estate investments so it’s nice to discuss with other people and get new ideas and tips from them. Keep posting!

]]> By: François http://www.shortoncashflow.com/how-can-we-at-least-break-even/comment-page-1/#comment-2566 François Wed, 26 Aug 2009 06:59:25 +0000 http://www.shortoncashflow.com/?p=437#comment-2566 Have you taken into account capital amortization ? With furnished rental, you can write off every year some percentage of the property value, including works and furnitures. Since you also have loan interests and insurance, you should be able to cancel your tax. I own two small flats in Paris, and I’ve never paid any taxes because I use this tax option. Of course, after a couple of years (6-7 in my case), you don’t have enough to write off because loan interest is decreasing and furnitures and works have been written off. So, you start to pay tax, but at least you have avoided some taxes. And when you reach this point, you can go to Micro-BIC, or… buy another flat ! Have you taken into account capital amortization ? With furnished rental, you can write off every year some percentage of the property value, including works and furnitures. Since you also have loan interests and insurance, you should be able to cancel your tax. I own two small flats in Paris, and I’ve never paid any taxes because I use this tax option. Of course, after a couple of years (6-7 in my case), you don’t have enough to write off because loan interest is decreasing and furnitures and works have been written off. So, you start to pay tax, but at least you have avoided some taxes. And when you reach this point, you can go to Micro-BIC, or… buy another flat !

]]> By: What rent should we charge to get 1000€ in actual profits before tax?–Short On Cashflow http://www.shortoncashflow.com/how-can-we-at-least-break-even/comment-page-1/#comment-2563 What rent should we charge to get 1000€ in actual profits before tax?–Short On Cashflow Wed, 26 Aug 2009 06:16:15 +0000 http://www.shortoncashflow.com/?p=437#comment-2563 [...] This entry was posted on Wednesday, August 26th, 2009. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. « How can we at least break even? [...] [...] This entry was posted on Wednesday, August 26th, 2009. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. « How can we at least break even? [...]

]]>