Best European country for real estate investment?

[bandanna]

@Radko sorry to hear about the okupas situation, that is Spain. Left the country for: 1) okupas and 2) hacienda

Spain wants us to go there short-term, enjoy summer in a cheap tourist apartment by the beach, stay less than 183 days, have good time, not to pay taxes, not to own anything (sounds like WEF out of nowhere lol) - let’s give them that.

They spent 2-3 years trying to come up with good visa/taxation plan then they brought the “startup ley” mierda that works only for employees. They don’t want wealth coming and prefer a bunch of illegals yelling “cerveza, agua, beer” in Barcelona beaches - let’s give them that!

 

[JimBeam]

Spain is risky because of the squatters.
I just read on Twitter the other day that a guy can't get them evicted after 2 years and has to pay their utility bills.
He has the insurance against (???) it but it only covers the legal bills (attorneys as court takes couple of years) but not the other costs.

In Europe you have countries with good legal systems, high taxes and low ROI and other countries with bad legal systems, moderate taxes and medium to high ROI.
So it's a pretty tough choice. But, properties are like dividend paying stocks: you have them with low dividend income but with some growth (like $AAPL or $SBUX) and then you have stocks with high dividend payouts but little or no growth ($MO) so it depends what are you looking for. Just try not to get into yield traps!

Also, I would wait with buying a property for couple more months as prices may decline more as the capital becomes more expensive so you might have better deals available.

 

[Dreamy]

Spain is risky because of the squatters.
I just read on Twitter the other day that a guy can't get them evicted after 2 years and has to pay their utility bills.
He has the insurance against (???) it but it only covers the legal bills (attorneys as court takes couple of years) but not the other costs.

In Europe you have countries with good legal systems, high taxes and low ROI and other countries with bad legal systems, moderate taxes and medium to high ROI.
So it's a pretty tough choice. But, properties are like dividend paying stocks: you have them with low dividend income but with some growth (like $AAPL or $SBUX) and then you have stocks with high dividend payouts but little or no growth ($MO) so it depends what are you looking for. Just try not to get into yield traps!

Also, I would wait with buying a property for couple more months as prices may decline more as the capital becomes more expensive so you might have better deals available.

What do you mean about "Just try not to get into yield traps!"?

 

[jafo]

yield traps

Yield traps are stocks with an appealing dividend yield primarily due to a declining share price, but underlying business fundamentals are weak, that is, at risk of earnings downgrades. For example (a silly one I might add), if the company makes $10 million in profit this year, and pays out $2,000,000 in dividends, the payout ratio is 20%. If the company makes the same amount but is paying out $20 million in dividends, the payout ratio is 200%, and the company is going into debt just to pay shareholders.

This article explains it better than I ever could: How to Spot a Dividend Yield Trap