It was all so simple then

An old roommate is in town and over dinner when we discussed the househunt, she reminded me of our apartment hunt during grad school.  I had totally forgotten about my first experience looking for a place on my own.  We looked at about five apartments together, max, over a period of two weeks, and in making our decision we only considered two factors: location and rent.  We didn’t care about having an elevator, a view, what the building looked like, or any of the other things I now look for and ask about.  We picked the place that was close to campus for a reasonable price and that was that.  The extras like a nice porch with view were just that – extras – and did not enter into our decision at all.

This is relevant to the current search when asking about the valeur locative of an apartment: location trumps almost everything else.  In our budget we can buy an apartment that will rent out from 800 EUR to almost 2k EUR a month, all depending on the location.  The type of building and whether there is a cave or concierge have little to no impact on the rental value of the apartment.  View and elevator matter for seasonal rentals but not for corporate or longer term rentals.

Just more factors to take into account when visiting and evaluating an apartment – oh to go back to the easy days of grad student apartment hunting, ignorant and mad young!

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2 Responses to “It was all so simple then”

  1. MaryPius Says:

    I guess those extras are so important because you are not just an investor, you are going to live and make a home in your apartment, and it is one of the biggest purchases in life!
    But from the purely investment side, an apartment that would make 2k a month in rent would give a really really nice yield, even if you spent up to 500k on the apart you would still be able to make 5% (not taking into account charges, taxes etc) which sounds like a good rate in these days of low interest rates on savings!

  2. Struggler Says:

    Great point – the game changes a little when you start to think about an apartment as a rental rather than a home…

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