Case Study · Personal Investment Decision
Rental Property vs Index Funds
A real decision, run through Ascendra: should €180K go into a rental property in Ljubljana, or stay invested in index funds?
This is a real analysis generated by Ascendra, run by Ascendra's own founder as a demonstration of the product on an actual decision — not a paid customer case study. Not financial advice.
The Decision
"I'm considering buying a rental apartment for €180K in Ljubljana, expecting €900/month rent. Renovation costs €15K upfront, and the mortgage rate is 4.2% on an 80% loan. Should I buy this property or keep the €180K invested in index funds?"
Known Facts
Property purchase price: €180K
Expected gross rent: €900/month (€10.8K/year)
Renovation cost: €15K upfront
Mortgage terms: 4.2% rate, 80% LTV (€144K borrowed)
Gross yield: ~6% pre-expenses
Recommendation
Gather More Information
CONFIDENCE — 45%, Medium
Insufficient data on rental market conditions, vacancy rates, tax treatment, maintenance costs, and actual net yield after expenses prevents a reliable comparison to index funds. Current evidence supports neither decision decisively.
Key Risks
Negative cash flow from expenses
Mortgage (~€685/month at 4.2%), maintenance, property tax, insurance, and management fees could exceed €900 rent, creating monthly losses.
Vacancy and tenant risk
Any extended vacancy period directly eliminates rental income while fixed costs continue.
Market-dependent exit liquidity
Real estate illiquidity means capital is locked in for years; a forced sale could occur at unfavorable pricing.
Next Actions
Calculate true net yield: €10.8K rent minus mortgage interest, principal, taxes, insurance, and maintenance (3–5% rule), plus a vacancy buffer.
Research the Ljubljana rental market — vacancy rates, tenant demand, and comparable properties.
Quantify the tax impact — rental income tax, capital gains, and mortgage interest deductibility.