Your case · retired, with a flat to rent

Retired with a flat to rent? A steady income, without tenants.

Tenants, repairs, the building’s bills, months with no rent. If what you want is extra money every month next to your pension, and your money there when you need it, here’s the other way: sell, and put it into a calm mix of ETFs.

Sound familiar?

The tenant stops paying. Getting them out can take many months, sometimes more than a year, with lawyers and courts. Meanwhile, you pay the bills.
They leave out of the blue, and the flat sits empty for months. Property tax, building costs and bills keep coming.
Life changes: a couple splits up, one leaves and the other can’t pay any more. Kids arrive, and asking a family to leave gets even harder.
Something always breaks: the boiler, the roof, a leak, an appliance. And they call you.
The building: extra charges, meetings, works decided by others that you pay for too.
Taxes: tax on the rent, property tax, and the tax return every year.
You need money, but you can’t sell: with a tenant inside and a long contract, you either sell for less or wait years.
The rules are on the tenant’s side: you have few tools and long waits.

In the end you’re a bit of a hostage in your own flat. It doesn’t have to be that way: below you can see the other way, with your numbers.

Your flat

What the flat is worth today€200,000

Rent you get now€700

Per month, before taxes.

See how it looks in10 years

Sale, costs and assumptions (tap to change)

How much in shares (we suggest 40%)40%

40% shares and 60% bonds. Expected return about 4.9% a year on average, not guaranteed. More shares earn more but swing more.

What you paid for it€100,000

Tax on the gain when you sell20%

Depends on your country and how long you’ve owned it.

Selling costs4%

Owner costs per year1%

Maintenance, insurance, property tax, building costs, as % of the value.

Tax on the rent20%

Depends on the country and the contract.

Months with no rent per year0.5

House value growth per year2%

We tell you how much you can take out. We use a calm mix: 40% shares and 60% bonds, which on average returns about 4.9% a year. Take away rising prices and there’s about 2.9% a year left: that’s what you can take without eating into your capital. On your €173,600 that’s about €420 a month before tax, going up every year with prices.

If you want, pick how much to take:

After tax, in today’s money, average of the first 10 years.

Money in your pocket each month (after taxes and costs)

€370a month if you keep renting: the rent, minus tax, house costs and empty months

€401a month if you sell and invest in ETFs, after tax on the gains

Average of the first 10 years, in today’s money.

Why is the rent only €370 net? Here’s the math, per month:

Rent you get€700

Empty months (half a month a year on average)−€29

Tax on the rent (20%)−€134

House costs: property tax, building fees, repairs (1% of the value a year)−€167

What’s left€370

Most people only count rent minus tax. But empty months and costs do come, just not every month: a tenant who leaves, a boiler to replace. If your numbers are different, change them in the details above.

Money you can use when you want

€0with the flat: to get money out you have to sell it, and that takes months

€173,600with ETFs: you can sell a piece any day the market is open

In 10 years, what’s left, in today’s money:

Keep renting the flat’s value (not sold)€200,000

Sell and invest in ETFs the capital left, after taking money out every month€173,600

Your capital stays whole: after 10 years you still have about €173,600 in ETFs, in today’s money, and meanwhile you took your income every month. On average: in bad years it drops, then comes back.

Honestly: in a bad year like 2022, mixed shares-and-bonds portfolios lost around 13–16%. On your money that means seeing about €26,040 less for a while. Keep 1–2 years of withdrawals in a deposit and you never have to sell in a bad year.

Shares 7% and bonds 3.5% a year on average, prices +2% a year. Rent grows with prices. Estimates to help you understand, not a promise.

Why not everything in shares

When you’re retired, you’re taking money out. If markets fall just as you start, you sell low and the money lasts less.
Bonds are the brakes: loans to governments that pay interest. They move less, so in a bad year you can live on them while shares recover.
Fewer swings, less stress: a calmer mix earns less, but it lets you sleep. At 70 that counts more than one extra percent.

How it works in practice

Sell the flat. If there’s a tenant with a contract, you either sell with the tenant in (for less) or wait until the contract ends.
Keep 1–2 years of withdrawals in a savings deposit.
Put the rest into a mixed ETF (for example 40% shares and 60% bonds, it rebalances by itself), or into two ETFs: one world shares, one euro government bonds.
Once or twice a year, sell a piece of the ETF and top up the deposit. Every month, move your “second pension” to your current account.

It’s not only about money

No more tenants: no calls about the boiler, no chasing late rent, no building meetings.
Your money, when you want it: for health, to help your children, for a trip.
Easier for heirs: ETFs split in a minute; a flat often means arguments.
But: if that flat means a lot to you, that’s a fair reason to keep it.

Taxes to check in your country

Selling the flat may be taxed on the gain; what you take out of ETFs is usually taxed only on the gain part. Rules depend on your country, and sometimes there are breaks for retirees. Ask an accountant before selling.

Taxes change, and they depend on where you live. Here you get today’s rules, checked in November 2026. Before any big move, ask an accountant: it costs less than a mistake.

Questions

What are bonds, in plain words?

Loans to governments or companies that pay you interest. In a normal year they move little, and they soften the falls of shares. But they’re not zero risk: in 2022 they fell too.

What if the money runs out before I do?

The calculator above tells you how long it lasts with your numbers. Studies of the past say that taking 3–4% a year from a mixed portfolio lasted 25–30 years in most cases. It’s not a guarantee: if you want to be calmer, take out a bit less.

One ETF or two?

One “all-in-one” mixed ETF (for example 40% shares and 60% bonds) does everything by itself, including keeping the mix. Two ETFs, one shares and one bonds, cost a little less but you rebalance yourself. For most people one is simpler.

Isn’t a house safer?

A house doesn’t show a price every day, so it feels calmer. But it can lose value too, it can stay empty, and you can’t sell a piece of it when you need money. With ETFs you see every swing, but your money is spread over thousands of companies and bonds, and it’s there when you need it.

And when I’m gone? What happens to the ETFs?

They go to your heirs, like the flat. The bank freezes the account until your heirs bring the inheritance papers. Then the ETFs move to their account, or they sell them.

Compared to a flat there are two upsides. They split to the cent: no brothers and sisters who have to agree on selling or renting. And there’s usually less paperwork and fewer costs than passing on a property.

Inheritance tax depends on your country. In many countries the gain made up to that day isn’t taxed, and your heirs start from the value on the day they inherit. Check the rules where you live.

One practical tip: write down which bank or broker you use and where the papers are. With a foreign broker there can be more paperwork.

Next: how to buy your first ETF

Step by step: choose a broker, open the account, find the ETF.

Read the guide

Not financial advice. These are estimates to help you understand, with average returns. Investing in ETFs means you can lose money too, and house prices and rents can fall as well. Before selling a house, talk to a lawyer or an accountant.