Investing in an apartment to rent out: how to do the math
An apartment can work for you. The key is calculating the real return and choosing a layout that’s in demand.
Gross and net yield
The gross yield is simple: what you collect in rent in a year, divided by what you paid for the apartment. The net yield is what matters: from the annual rent you subtract vacant months, property tax, maintenance and taxes on the rent.
Illustrative example, with round numbers:
- Apartment price: USD 50,000
- Rent: USD 350 per month, 11 months a year (one month vacant): USD 3,850
- Annual costs borne by the owner: USD 450
- Net yield: (3,850 − 450) ÷ 50,000 = 6.8 % per year
Run this calculation with your real numbers before deciding, and compare it with other investment options.
Who rents
In the well-connected areas of Asunción and its metropolitan area, rental demand comes from students (Paraguayan and foreign), people living alone and small families. That’s why studios and one-bedroom apartments near universities, workplaces and main avenues usually rent quickly.
Buying off-plan to rent out
Buying off-plan lets you get in at a lower price and pay in installments during construction. When the building is delivered, the apartment can start generating income. Choose the location and layout carefully: they weigh most on rental demand.
What adds value
- Amenities tenants value: laundry, coworking, pool, parking.
- A well-managed building with low fees.
- A clear written lease (we explain how in this article).
The example is illustrative and is not a promise of return. Rents and prices vary by area and over time.
Sources (in Spanish)
Would you like advice?
Write to us and we’ll tell you which project fits what you are looking for.
Chat on WhatsApp
