Property - paying for itself

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Vanessa C.

New Member
I am a newbie property investor, right now I am reading and doing as much
research as possible. We have quite a bit of equity in our property and also
quite abit of slack in our private income. I feel we need to plan for our pensions and since I have no clue about the stock market, property investment seems easier to understand. I have just read the book "Jet-to
let Bible" and have some questions for the forum:

1. Is it possible to buy a property with a 100% mortgage (interest &
repayment) with the rent covering the whole mortgage? Or am I being naive in believing this is possible?
2. If the above is possible - is this more true for holiday let properties
as opposed to long term let properties?
3. From all my research, I feel drawn to German property especially Berlin.
No investments are without risk but my gut instinct tells me Berlin is the right place. So my question here is:
Does Germany have the law that a tenant who
has been living in a property for longer than 3 years has prioritised
purchase of the property at 4/5th of the market selling price, should the
owner wish to sell the property? i.e they get a 20% discount on the market
selling price
(I live in Norway and this is the law here and I know it applies in France

Hope to get some advice.


New Member
hello V,
answers to your questions please.
1) Is not possible. But i dont knowen why you wanten a 100% to speak as you said "We have quite a bit of equity" usually you will geten 60% from bank if you non local buyer (you must to put 40% equity in the deal or so forth)
2) answer to questions 1 answers question 2 if you understanded me:).
3) I dont know this but i will checked my sources and resources.
Lastly, berlin already going up day by day as i am in the business and i am seing the changes , steady by steady which is better than fast risings, if you camen berlin and just see and take it your time you will find the right one investiment for you. Good luck you are looking good in the right direction. we have now buyers from sweden, denmark, uk, ireland, poland, spain, russia and so on and so forth and more is comen.


New Member
Hello Vanessa,
For a property to actually "pay for itself" you will need to find a virtually impossible combination of circumstances which almost never come together:
1. Very low interest rates - this insures that you pay the least possible to the bank in interest for your purchase
2-3. High yield/low purchase price. These two things go together. The yield is the % of the purchase price which is paid to back to you each year by the rental income. A typical yield would be, say, about 4.5%. You would need a high rent and a low purchase price to meet your criteria.

For a property to pay for itself, the interest payments for the loan secured to buy the property would have to be totally covered by the rental income.

First of all you must realize that banks (almost) never lend you 100% of the purchase price.

Theoretically, in order for a property to pay for itself, you would have to secure a loan at a rate exactly equal to the yield rate. For example, you get a loan at 5% and you enjoy a 5% yield on your holdings. In reality even this doesn't actually work because bank loan rates are calculated in a way which is systematically disadvantageous for the mortgage owner. (interest is paid back in abundance first and principal is reimbursed progressively towards the end of the loan period). So in practice, a loan at 5 % could not be paid back with a yield of 5%.
In short, finding such a property is for all practical purposes virtually impossible.

I currently have a property in France whose mortgage is being paid by the rental income. This said, it was bought 12 years ago and, until this year, we lived in the property. The prices in 12 years have nearly tripled, and the mortgage now has only three more years to run...

I hope that this helps.

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New Member
Yes and no. It's possible to find a 100% mortgage property and it's possible to find a property which covers mortgage by renting, but both conditions on the same property is very rare to find. Having said that, Berlin does have an opportunity whereby you can achieve good yields on a rented property, provided you purchase in the right location and use the correct strategy when renting it out. However, in Berlin you won't get higher than a 60% mortgage without going through stringent credit checks and the process takes a long time for 60% so for higher mortgages it will take even longer and be even more thorough.


New Member
Dear Vanessa,

Herewith I would like to introduce our property and mortage service to you.
We're located in Berlin and we're offering:

Best advice, full service, top developments (location, yields up to 5-10 %,
mortgages up to 70%).

For further information don't hesitate to contact.

Kindest Regards

[email protected]
+49 - 171 - 5085186
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