Real estate investments in Belgium have increased considerably, encouraged by interest rates which have never been lower. This sector, which in the 90s constituted less than 50% of citizens' liabilities, has now reached 60%. So real estate is attracting more and more investors, to say the least. The latter see it as an investment where the risks are virtually zero. If you are going to grab your piece of the pie, then here are the alternatives available to you.
Renting an apartment or a house remains the most popular alternative for Belgians. This can be beneficial, especially for second homes. This is the type of situation you may face when you inherit a house or decide to live with your spouse and your old apartment remains empty, for example. In either case, the property that you no longer occupy can become a source of passive income you want to explore. If the above speaks to you, contact the Engel & Völkers agency closest to you. Experts will help you rent your house or apartment at the best price.
Do you have a second home on the coast, in the Ardennes or at any tourist spot in Belgium? More and more owners are placing their property on applications like Airbnb. However, some local rules concerning the rental of second homes must be respected in order to comply with the legislation in force. For example, in the north-west of Belgium, in the city of Ghent, renting the entire property over a long period is prohibited: a rather coherent decision knowing that temporary rental involves more work than long-term rentals.
If you have the budget to do so, investing in a building to serve as student accommodation is a smart move. The approach presents undeniable financial advantages. However, you need to be quite hands-on. You will have to handle leasing agreements, manage minor works and ensure the premises occupied by students are cleaned on a regular basis. This is a full time job that requires considerable time and effort, especially when you have more than one residence to manage.
Alternatively, you could invest in an independent studio. The real estate market today displays very attractive prices for this type of housing: the value of these properties varies between 90,000 and 135,000 euros. In Belgium, many parents buy a studio for their child to avoid paying rent. Once he has completed his degree, the happy owner can, in turn, rent this property to other students and generate a very good income.
The parking space craze is unprecedented: its success resides mainly in the fact that prices are low compared to buying a house or an apartment. If you have 25,000 euros to spare, you can easily find a car park to invest in. Please note that notary fees are not included in this price. Despite everything, this alternative remains very interesting, especially since parking spaces require very little maintenance and entail few administrative procedures. When making your choice, however, you will have to pay particular attention to the geolocation of this property if you want to obtain the best possible return. Here are some options: Antwerp, Ghent, Brussels ...
Next to the purchase of an investment property, you have the real estate fund. Thanks to this indirect investment, you will own shares in different homes and get dividends.
Contact Engel & Völkers if you want to invest in a house, villa, apartment or investment property. Benefit from our advice and assistance at all stages of your real estate project. Find the E&V agency closest to you HERE.