“Vyberi.ru”: you can earn more on deposits than on renting housing in Moscow
The net income of the renter of a Moscow apartment corresponds to a rate of 5.3-5.5 percent per annum. How much can you earn from renting out rental housing in the capital and whether it will be profitable, Irina Andrievskaya, director of content and analytics of the financial marketplace “Vyberu.ru”, found out. Her words lead “Russian newspaper”.
The specialist’s calculations were based on a starting capital of 10 million rubles: with this money you can buy a one-room apartment in Moscow. With an average rental rate of a one-room apartment of 56 thousand rubles per year, the owner will earn 672 thousand rubles. This amount is equal to the deposit rate of 6.72 percent per annum. Taking into account taxes – personal income tax or self-employed tax, property tax and utility costs – earnings from rental housing will be significantly lower.
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It is much more profitable, according to the expert, to put money in a bank deposit. If you deposit 10 million rubles at 14.5 percent, you can earn 1.447 million rubles. After deducting the 13% tax, it comes out to 1.280 million. The amount received corresponds to a rate of 12.8 percent per annum. Large numbers of rental income will appear provided that banks lower rates by three times, Andrievskaya suggests. In this case, rates should repeat the historical minimum of 4-4.5 percent per annum, as happened in 2020. The key rate was then reduced to 4.25 percent per annum.
Earlier it was reported that housing rental rates in Russia have gone up. Over the year, prices on average increased from 25 thousand to 29 thousand rubles. Since February, the rate has increased by 3.6 percent.
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