Real Estate vs Bonds

Rental Property vs Ukrainian Government Bonds (OVDP) Calculator

Calculate true rental Net Yield factoring in vacancy downtime, capex repairs, and taxes vs completely passive tax-exempt government bonds.

  • World Currencies (vs USD)
$60 000
$15 000
$500 / mo
1.0 mo / yr
1.0% / yr
5.0%
+3.0% / yr
4.8% (0% tax)
True Rental Net Yield
5.4%
Total Real Estate ROI (with Capital Growth)
8.4%
Bonds Net Yield (Tax-Free)
4.8%
Annual Net Cash Difference
+$450 / yr
Annual Net Financial Result (Cash Flow & Capital)
Operational Effort Reality Check
Rental Real Estate

Tenant screening, late calls, appliance breakdowns, painting, lease drafting: ~60–100 hours/yr of active landlord headache.

Government Bonds (OVDP)

Bought through a bank or broker app, coupons paid on the issue schedule, no tenants to find and no repairs to handle.

Analytical Guide & Financial Methodology

Expert breakdown of hidden pitfalls, decision math, and actionable rules

The Core Dilemma & Trap

Most investors view rental real estate as the ultimate safe haven by merely comparing gross rent to purchase price (6-8% gross yield). They neglect vacancy months, capital repairs, tenant disputes, taxes, and high ongoing management labor.

Financial Analytics

True Net Operating Income (NOI) after deducting 1-2 vacant months annually, 10-15% maintenance reserves, and taxes rarely tops 4.5-5.5% in hard currency. In contrast, sovereign bonds yield comparable returns with zero maintenance and tax advantages.

NOI Yield = Rentnet Total Investment
Actionable Takeaways

Rental property is a part-time job, not truly passive income. If you value flexibility and freedom, sovereign bonds and diversified ETFs deliver superior liquidity and zero operational headaches for comparable net yields.

Frequently Asked Questions (FAQ)

Yes, the calculator models total ROI (net rental cash flow plus annual capital appreciation). Note, however, that physical buildings suffer physical depreciation and regional market cycles.

Investors frequently underestimate vacancy periods (1-2 months per year), tenant turnover repairs, property taxes, insurance, building maintenance fees, and capital depreciation. These can lower gross rental yield by 2-4%.

Coupons are paid on the issue schedule, with no tenants, repairs or utility bills to manage. Government bonds are state-backed, but that does not mean zero risk. Individuals currently pay no tax on OVDP income in Ukraine; check the current rules before buying.
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