in the future. The landlord’s annual return on investment may eventually be enhanced by a long-term capital gain on the value of the apartment. Smaller apartments yield a similar or perhaps slightly higher return. An apartment valued at 100,000 euros may yield 400 euros a month in rent, or nearly 5,000 per year (5 percent). A person who owns such an apartment and chooses to live in it can save the rental equivalent and devote that money to other uses, which yields a similar return on investment.
