Yearly return, unsold, after income tax & social — T3 in Melun — réel foncier · ID 05Réel foncierMoney-weighted return (MWRR) on what the property is worth to you after the yearly tax

Year 20: 4.18% a year on your cash, without selling.

Where each number comes from

Each link opens the page that calculates that figure.

What the property is worth to you Equity + value increase + rental account, before and after tax
1. Loan paid off (equity built) Equity from Loan
2. Property value increase Appreciation
3. Your rental account Opening + interest after the flat tax + cash flow after tax (+ payment after the purchase)
  1. Income tax, social contributions and cash flow after tax Taxable income × (your bracket + 17.2%), tax saved on other income, CSG tax back the next year
    1. Deductible charges and taxable income Réel foncier: gross rent − interest − other deductible charges − past deficits
      1. Rent collected the rent of the cash-flow page (charges included)
      2. Deficits carried forward Used against later rental profit, oldest first; lost after 10 years
        Déficit foncier Interest part / other part, up to €10,700 against your other income at your bracket, take-back if sold within 3 years
    2. Déficit foncier Interest part / other part, up to €10,700 against your other income at your bracket, take-back if sold within 3 years
      1. Deductible charges and taxable income Réel foncier: gross rent − interest − other deductible charges − past deficits
    3. Cash flow before tax (rent − costs − loan payments) Cash Flow

Year:

Part 1. Cash at purchase and payments after the purchase

€33,400 at the start (year 0), then €57,918 of payments after the purchase, each in its own year.

Part 2. The final amount, year 20

Equity you own (day-1 equity + loan paid off)€121,513
+Value increase€36,331
+Your rental account, after tax€0
=What the property is worth to you after income tax & social€157,844

\text{What the property is worth to you after income tax \& social} = \text{Equity you own (day-1 equity + loan paid off)} + \text{Value increase} + \text{Your rental account, after tax}

= \text{\text{€}121{,}513} + \text{\text{€}36{,}331} + \text{\text{€}0}

= \text{\text{€}157{,}844}

Part 3. The formula

R = 4.18369405%: Σ Inj_t × (1 + R)^(20 − t) = €157,844.50; minus the final amount €157,844.50 = €0.00 — R is the rate that makes this €0. Each amount is put in at the end of its year t and grows from the next year on, for N − t years (the cash at purchase, year 0, for all N).

Part 4. The result

Total cash put in€91,318

Final amount€157,844

Multiple1.73

Yearly return4.18%

Part 5. Every year

Year	Final amount	Yearly return¹
1	€11,714	-64.93%
2	€16,782	-31.90%
3	€22,914	-16.11%
4	€29,215	-7.78%
5	€35,690	-3.01%
6	€42,344	-0.43%
7	€49,182	0.99%
8	€56,211	1.96%
9	€63,436	2.63%
10	€70,865	3.11%
11	€78,502	3.44%
12	€86,356	3.68%
13	€94,433	3.86%
14	€102,740	3.98%
15	€111,284	4.06%
16	€120,074	4.12%
17	€129,116	4.16%
18	€138,420	4.18%
19	€147,993	4.19%
20	€157,844	4.18%
21	€167,983	4.18%
22	€178,418	4.16%
23	€189,160	4.14%
24	€200,217	4.12%
25	€211,601	4.10%