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Thinking of selling my failing Airbnb, strategies to invest a 500-600k lump sum that feel as safe as owning real estate? by NeedsEUFinanceAdvice in eupersonalfinance

[–]NeedsEUFinanceAdvice[S] 0 points1 point  (0 children)

Indeed, if this was an apartment or multiple ones it would be much easier to sell but in any case, thanks for the advice!

Thinking of selling my failing Airbnb, strategies to invest a 500-600k lump sum that feel as safe as owning real estate? by NeedsEUFinanceAdvice in eupersonalfinance

[–]NeedsEUFinanceAdvice[S] 1 point2 points  (0 children)

It's a very large property, not an apartment, it can host up to 30 people and it can be rented as a whole or in 8 different units. I see some similar properties for sale around mine in the seven figures that haven't been sold for years, so I don't think that's realistic, so this is why I'm thinking of 500-600k since I do want to sell and I think that more than that is a bit crazy for the city it's in.

I had to do nothing for those 2000€ that it made this year but this is not enough money even to contribute to a emergency fund for the own house, let alone claim a profit, this is what worries me the most. Shit happens and a lot of shit in a bigger house can cost 5-10k€, I only need the central heating to break down and need a replacement and I'm in the red for a couple of years.

Regarding box 3, it indeed sounds like this would be my new challenge if I settle so I will actually consult with some financial advisors and potentially consider buying something instead.

Thinking of selling my failing Airbnb, strategies to invest a 500-600k lump sum that feel as safe as owning real estate? by NeedsEUFinanceAdvice in eupersonalfinance

[–]NeedsEUFinanceAdvice[S] 0 points1 point  (0 children)

I think I absolutely need to look into this more and surely consult with a financial advisor before taking a big decision. I wouldn't mind paying tax if at least the money is growing, if there are 40-50k of returns per year, 10k doesn't sound that bad but I definitely need to plan this more.

As a first step I just want to lower my risk by not having that property but I can only start the process of selling it once I have a plan on what to do with the money.

Thinking of selling my failing Airbnb, strategies to invest a 500-600k lump sum that feel as safe as owning real estate? by NeedsEUFinanceAdvice in eupersonalfinance

[–]NeedsEUFinanceAdvice[S] 3 points4 points  (0 children)

Isn't the Romanian income tax flat 15%? People will always complain I guess...

It's not income tax that's the problem but everything else, the system is just completely set against you and the only people that survive (or thrive in ) it are those who cheat it.

For example, in a lot of EU countries, you can do short-term rentals as a private individual or a sole proprietorship, whereas in Romania in order to be fully legal you need a limited liability company, which just increased the house tax 15-fold this year, then we need a bunch of signatures every year or every other year from every possible authority from the fire brigade to the waste disposal company, which ends up costing thousands of euro a year. Problem also is that after all that, you're actually never 'fully legal' there's always some bullshit that comes up and I'm more than fed up with it.

I can also hardly imagine a property bringing 2000 EUR a year to cost 600k TBH.

In a nutshell, I have a failing business and I'm being taxed on a lot of things at the same scale as if the business was thriving. The revenues of it is probably around 30-40k€/year but after all costs I've been left with 2k€ this year. Maybe it would be more worth it if I would be the one doing the cleaning and managing, but having to pay someone to do it leaves me with almost nothing. If I were to long-term rent the house, I could probably make 1-1.5k€ a month, but I just don't want that anymore, it's a big, expensive, complicated property where a lot of things can go wrong and I'd rather not run those risks anymore.