Webinar: Second home landlord strategies

 

 

Renting out a property has been subject to many changes recently. In the last months many private investors are wondering whether it is still profitable to rent out a property. Mortgage advisor Ilse van Rijn will update you on the important aspects of renting out a property in the Netherlands, in an upcoming webinar.

 

Sign up for the webinar: “Second home landlord strategies” on Wednesday, September 18, 2024 at 6pm (CET)

Keep to let property, or buy to let

Are you considering purchasing a home for rental purposes or perhaps renting out an existing home? If so, there are a number of important rules to consider. Think about the rules of the municipality, but also of the lender. The moment you are going to invest in real estate, the rules of the government will also play an important role in determining the long-term return.

 

Is it profitable to rent out a property?

When determining the return for the property you own for rental purposes, it is important to be aware of the latest developments. Consider the reasonable rent you are allowed to charge for the property based on the point ratio, the terms of the rental agreement, the box 3 wealth tax and the charges for financing the property for the return of investment. This together determines whether it is profitable to rent out a property.

 

Point system

The point system for the property is very important. This determines whether the rent is capped. If the house is in the social sector, the rent in 2024 will be capped at € 879.66 per month based on the maximum points. If the house is currently in the free sector, the rent is not (yet) capped. The number of points depends on the WOZ value, the area, the number of heated rooms and luxury aspects in the house.

 

Capital gains tax

If you rent out a property, the income earned will fall into box 3 according to the tax authorities. This means that you will have to pay tax on the return. In recent years the taxes in box 3 have changed considerably. The tax authority (Belastingdienst) want to start taxing based on the actual return, but is this already certain? Around August the verdict of the high council is expected and we will definitely know how the taxes in box 3 will look like. During the webinar Ilse will inform you about the box 3 taxes based on what we know for now.

 

Financing

When considering buying a new home for rental purposes or renting out the current home, there are a number of important things to consider. Of course the question is what impact this will have on the possibilities of purchasing a new home for your own use. What are the tax consequences and what are the higher monthly costs when you are not investing the selling profit of your previous home?

 

When you buy a property for rental purposes a special type of mortgage is needed. A buy-to-let property is seen by the bank as a greater financial risk. Therefore a bank or lender provides a special rental mortgage with a higher interest rate than a regular mortgage. Renting out a property without a rental mortgage is not allowed.

 

Be well informed!

Register for the webinar and get informed by Ilse van Rijn of A&H Finance. After a short introduction and presentation there will be time to ask questions. Be welcome on September 18th!

 

Webinar: Second home landlord strategies – Register HERE

Date: Wednesday, September 18, 6pm (CET)

 

Published by: A&H Finance