€100,000 in 2–3 Small Apartments or €100,000 in a Bank Deposit?

Scenario A: €100,000 in a Bank Deposit

Let’s start with the “safe” option.

• Capital: €100,000

• Average term-deposit rate (2025–2026): ~1.5%

• Gross annual interest: €1,500

• Withholding tax on interest (15%): –€225

Net annual result:

➡️ €1,275 per year

With:

• no inflation protection

• no upside

• no control over performance

As analyzed in “Why Real Estate Still Outperforms Bank Deposits — Even Today”, deposits preserve capital in the short term, but do not grow it in real terms.

Scenario B: €100,000 in Small Apartments (Conservative)

Core strategy

• 2 or 3 small units (30–45 sqm)

• Older properties in areas with steady rental demand

• Light renovation only (functional, not premium)

• Long-term rentals

Small units are chosen because they rent more easily and carry lower vacancy risk — exactly why, as explained in “Why Simple Properties Are Often the Most Profitable”, they tend to outperform on a risk-adjusted basis.

Capital Allocation (€100,000)

CategoryAmount (€)

Purchase of 2–3 apartments 80,000

Light renovation 15,000

Transfer & legal costs 5,000

TOTAL 100,000

Rental Income (Strictly Conservative)

Scenario 1: 2 apartments

• Rent per unit: €350 / month

• Monthly total: €700

• Gross annual income: €8,400

Scenario 2: 3 apartments

• Rent per unit: €270 / month

• Monthly total: €810

• Gross annual income: €9,720

➡️ No rent increases assumed.

Vacancy & Costs (Intentionally Strict)

• Vacancy: 1 month per year

• Annual maintenance: €1,000 (fixed)

Annual expenses (both scenarios):

ExpenseAmount (€)

Rental income tax 1,800

Property tax (ENFIA)300

Maintenance 1,000

Total expenses 3,100

Net Annual Result

🔹 Scenario 1: 2 apartments

• Effective income (after vacancy): €7,700

• Expenses: €3,100

➡️ Net income: €4,600 per year
➡️ Net yield: 4.6%

🔹 Scenario 2: 3 apartments

• Effective income (after vacancy): €8,910

• Expenses: €3,100

➡️ Net income: €5,810 per year
➡️ Net yield: 5.8%

This confirms what we analyzed in “Why Net Yield Is the Only Number That Really Matters”: headline rents mean nothing if costs are ignored.

Direct Comparison with a Bank Deposit

OptionNet Annual Result for €100,000 in a bank deposit is €1,275 at 2 small apartment s is €4,600 and if 3 small apartments then is €5,810

➡️ 3.6× to 4.5× higher net annual income,
using conservative assumptions and without counting any capital appreciation.

Why 2–3 Units Are Safer Than One

• Vacancy in one unit does not stop income entirely

• You can sell one unit if liquidity is needed

• Risk is spread across multiple tenants

This is exactly the logic described in “How to Build a Real Estate Portfolio (and Why One Property Is Not a Portfolio)”.

The Role of Poli Real Estate

At Poli Real Estate, this strategy is executed with two practical filters:

1. Correct property selection
   Not simply “cheap” units, but properties that:

   • rent consistently

   • have a clear tenant profile

   • remain functional without constant intervention

2. Controlled light renovation
   Through vetted contractors who know where not to overspend, ensuring:

   • returns are protected

   • margins are not diluted

The goal is not to create “beautiful” apartments.
It is to create reliable income assets.

Conclusion

With €100,000:

• a bank deposit offers peace of mind

• 2–3 carefully selected small apartments offer real income

And when assumptions are conservative and costs fully accounted for,
the advantage of real estate remains structural, not theoretical.

Not because it is fashionable —
but because the numbers continue to work.

If you are evaluating where your capital works hardest, share your investment brief at the contact button that follows.