You are young and want to buy a house. A large house is priceless, a small house or apartment doesn’t mean anything to you. What about an investment property? How do you arrange your mortgage loan? How much can you borrow?
What is a return property?
An investment property is a house or apartment that you rent out, which earns you rental income . For example, that can be a multi-storey house, with each floor being a separate apartment. If you buy such a house, you can live in one of the apartments and rent the other. But an investment property can also simply be a house in which you do not live and that you rent out.
Rental income as savings
If your tenants pay correctly, you can put money aside each month and you will get a nice money box after a while. After a few years you have received enough rental income to invest in a new, own house. Or you sell the investment property again, freeing up extra budget and allowing you to buy your dream home .
Benefits of buying an investment property
Investing in real estate gives you on average a higher return than a savings account. Not only very wealthy people can buy an investment property. Maybe you can too. At public sales there are sometimes very nice bargains… Do you have to take out a mortgage loan in order to be able to buy a return property? No problem, your repayments are (partially) reimbursed by the rental income you receive.
Buying property: what should you pay attention to?
Are you considering buying an investment property? Then take the following tips into account:
- Is the property already rented out today? Then be sure to request the existing lease contracts. Are these registered?
- Do the tenants pay correctly? How is the payment done? Are there proofs of that?
- Visit an independent appraiser. He tells you if the asking price is realistic.
- Strict rules apply to urban design and fire safety. Does the building comply with these rules?
Make an appointment with an independent mortgage credit broker. It tells you how much you can borrow, what amount you must repay each month and what return you can expect on your purchase. That way you know immediately whether your potential purchase is realistic.
Make a simulation of your mortgage loan
Before you start buying an investment property, it is best to first make a simulation of your mortgage loan. So you know immediately how much you will have to pay. Afterwards you can make an appointment with a Nick Adams specialist.
Even more tips for young people who want to buy a house
- Buy young and real estate: buy an apartment
- Buy young and real estate: buy a house with works
- What do you need to know about the Flemish housing bonus