Buy to let: a rental property with a mortgage
See how much cash you need, what the payment will be, and what the property returns after tax and costs.
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What is buy to let
- You buy a property to rent it out, with a mortgage for an investment property. The rent covers part or all of the instalment, the loan is paid down, and the property stays yours.
- For an investment property banks usually finance up to 80% of the value, so you need at least a 20% down payment, plus the purchase costs and the loan costs.
- A property's return is judged over time: besides the rent, every instalment pays down the loan and the property's value moves. That is why the calculation shows a 10-year picture.
- Rental income is taxed progressively in Greece: 15% up to €12,000, 25% up to €24,000, 35% up to €35,000 and 45% above that.
Your details
Down payment
€30,000 down payment · €120,000 loan · At least 20% for an investment property.
Assumptions: purchase, loan and running costs, and growth
We've put in typical figures. Change them if you know your own.
After 10 years, the property could earn you about
€84,276
Cash flow + loan paid down + appreciation − purchase and loan costs
- Cash you need
- €45,963
- Return on cash over 10 years
- 183%
- Average yearly return on cash
- 11.0%
- Monthly payment
- €583/month
- Payment covered by rent
- 142%
- Gross rental yield
- 7.20%
- Net yield (year 1)
- 4.55%
- The gain turns positive from
- year 2
Your net gain over time
Over 10 years
What you pay at purchase
The loan
Year by year
| Year | Rent | Cash flow | Loan balance | Property value | Net worth |
|---|---|---|---|---|---|
| 1 | €9,900 | €425 | €116,823 | €154,500 | €37,677 |
| 2 | €10,098 | €584 | €113,542 | €159,135 | €45,593 |
| 3 | €10,300 | €745 | €110,154 | €163,909 | €53,755 |
| 4 | €10,506 | €910 | €106,655 | €168,826 | €62,172 |
| 5 | €10,716 | €1,078 | €103,041 | €173,891 | €70,850 |
| 6 | €10,930 | €1,250 | €99,310 | €179,108 | €79,798 |
| 7 | €11,149 | €1,425 | €95,457 | €184,481 | €89,024 |
| 8 | €11,372 | €1,603 | €91,477 | €190,016 | €98,538 |
| 9 | €11,599 | €1,785 | €87,368 | €195,716 | €108,348 |
| 10 | €11,831 | €1,971 | €83,125 | €201,587 | €118,463 |
Other calculators
This calculation is indicative. The rate is the lowest published offer of the partner banks for an investment property and is applied for the whole term; the change in value and rent are assumptions you can change. Cost percentages are typical market figures; the prenotation cost is an estimate. Tax is computed on this property's rent only. The final rate and terms are set by the bank.
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