Real estate popular as private investment
More and more individuals are buying one or more properties for rent. It is seen as an investment that generates income both monthly and in the longer term. In 2015, nearly 4.5% of the housing stock was already owned by private investors. Since then, that has only grown. Despite the higher transfer tax, buying for rent is so popular that some municipalities have now even banned it up to a certain woz value.
Details rental mortgage
- You cannot get a full mortgage for buying a home for rent. Not only will you have to pay the additional financing costs, the maximum loan is usually limited to, say, a maximum of 80% of the market value when renting.
- The market value in rented condition is lower than of the same property without tenants.
- Financing costs, such as transfer tax, are higher than for a regular purchase.
- For the tax authorities, a home you rent out falls into Box 3 (assets), so you cannot deduct the mortgage interest.
- Interest rates are a bit higher, but fortunately there is plenty to choose from.
The advantage in financing is that we can include (part of) your rental income when calculating your financing margin. We can also provide suitable financing for a property that already has a tenant.
