Can you switch from box 1 to box 3 if your circumstances change? ( lets say you buy a house to live in and 3 years later you have to leave the country for work purposes). Can you move to BTL? which are the sort of penalties/fees which would be applicable?
I was looking for a channel to learn about real estate, i'm new in this world so this video helps alot. Thank you👍🏽 new subscriber from The Netherlands.
imagine that you live in a rental house... is it possible to buy the 1st house with the 100% morgage, then sell it by yourself and then get a new 100% morgage for a second house? technically you never lived there because you never stoped living in the rental house.
Great video, I think what would also be helpful is to know the overall cost is way higher with Buy-to-Rent mortgages. For example, transfer tax is 8% with Buy-to-Rent properties, and the Dutch government is planning to increase rates to 10.1% so this is only going to make it more difficult to invest in Box 3 option. Even with 80-85% LTV you still need more savings just to cover up for the high transfer tax. Not as easy as we might think after all ;)
What if you plan to buy a second home as your primary residence? And convert the current home you lived in for 7 years into a rental mortgage? I would avoid that 10.1% transfer tax, right?
@@marfru That is true but still there are a lot of additional costs when converting current home to a rental: (1) New application - you need to pay additional costs to the mortgage advisor again, and even the bank might have a fee to convert the existing mortgage into a rental one, and its treated as a new application for them. You enter into a new contract / agreement. (2) Change in Interest rate - if the interest rate has risen during the time of conversion, then you will lose those extra interest expenses. These are of course one-time expenses but definitely something to consider when overall calculating your profitability. I feel in the long-term stock markets overall give a higher return compared to real estate no matter which market you choose. Even if you stick to basics like S&P500 or biggest tech companies and invest a fixed sum amount periodically.
Are the property tax rates still the same for buy-to-rentals vs buy-to-own? That would help somewhat to hedge against the high transfer tax for buy-to-rentals.
After watching this video I have a few questions. 1) In the Netherlands are there any small multiple-unit type properties such where you would live in one part of the property and rent out the other part(s) similar to an American duplex, triplex or quad? 2) If yes, how would such a property be financed (box 1, box 3 or perhaps something else)? I ask since where I live in the United States beginning real estate investors are sometimes advised to buy something like my aforementioned duplex, triplex or quad since they can be financed the same as a single-family home and such loans can be much easier to get (and have more favorable terms) than a rental property mortgage.
You can rent out 1 room taxfree in your own domicile. It falls in box 1, you don't even need to register the income you make from it. Splitting property into multiple independent units is strictly regulated in most municipalities. The paperwork and licenses will probably make it difficult to earn back your investment. Though many such properties exist. It would fall in box 3. Those types of properties typically also come with some long term tenants. They have strong protection under Dutch laws. I'm currently splitting my townhouse into two independent apartments. However, officially I am just renting out a 'room', because there is no way I am able to get a permit to split the property in two. Even just doing the construction work is illegal, as it could be taken as preparation for an illegal split... The fine would be in the tens of thousands...
Hi, Thanks for the video!! I would like to ask you, If the Box 3 mortgage is based on the cashflow of the rental property, then can you get this mortgage if you are a freelancer with less than 3years of track record? Thank you so much again!
Lovely video. I want to buy a house but I am wondering with recession on the cards, real estate prices still very high and interest rates almost at its peak, should i buy a house in early 2023 or should I say wait till the end of year or should just wait a bit longer until recession is off and buy a house somewhere in 2024 or later? Kindly guide!
Hi, I am currently staying in the Netherlands for 2 years, and looking to buy a place. However, I am also not 100% if I would be staying here in the long term, but given the crazy rental price, I am thinking of getting buying a place instead. Is there any recommendation if I should get which mortgage? Or is there a possibility to change a mortgage for an apartment from box 1 to box 3 midway? How long would i need to break even or even make some profit?
Hi, Thanks for this video. I just found this rental mortgage yesterday. But I miss from this video that you didn't talk about the length of mortgage. As I understood it is max 10 years the rental mortgage. Please tell me if I'm wrong.. But in that case we have to pay much more monthly than if we had 20/30 years for that. As I understood if I take 120k then I have to pay back approximately 150k which is 1200/ monthly for 10 years
I know i'm 7 months late with my reaction, but perhaps it's still usefull. Usually when you do real estate investing, you don't pay off your mortgage. So you have an interest only mortgage, to keep your monthly cashflow higher. Then after 10 years when the mortgage ends: - You either sell the property (wich usually has grown in value), pay off the mortgage debt and keep the extra value for yourself. - You refinance. So decide to take a new mortgage and keep renting out the property. In my experience it's uncommon to pay off the mortgage during the 10 years as an investor. By only paying interest troughout the 10 years, your monthly mortgage payments aren't that high. If you would pay interest AND pay off the mortgage, your monthly costs would be higher than the rent and your cashflow would be negative.
Hi, I invest in real state in my country and I’m looking for other investment possibilities. Looking forward to see next video’s. Can you do a video about renting restrictions? I know that not every property can be rented out.
Every property can be rented out in the Netherlands, but you must first check with the local municipality. For example, rules in Rotterdam / Amsterdam might be different from those in a smaller city like Delft.
I'm interested in investing, but I'm not sure where to start. Do you have any advice or contacts who can help me out?
Investing can be complex, so it's smart to get professional guidance when building your financial portfolio.
It's a great idea to have a conversation with financial advisors like Naomi Dean to reshape your portfolio.
I spread out my $25k portfolio across various markets to diversify my investments.
That's awesome! I ended up making a net profit of about $115k by investing in high dividend yield stocks, ETFs, and equity.@@MaAzuibrhmMurtala
That woman is a genius
Can you switch from box 1 to box 3 if your circumstances change? ( lets say you buy a house to live in and 3 years later you have to leave the country for work purposes). Can you move to BTL? which are the sort of penalties/fees which would be applicable?
I was looking for a channel to learn about real estate, i'm new in this world so this video helps alot. Thank you👍🏽 new subscriber from The Netherlands.
Are we allowed to keep our properties in Netherlands if we later decide to leave the country?
Oh wow I wish you had more videos in English. I was thinking of starting a real estate company for a while but don’t know how to start 🤔
imagine that you live in a rental house... is it possible to buy the 1st house with the 100% morgage, then sell it by yourself and then get a new 100% morgage for a second house? technically you never lived there because you never stoped living in the rental house.
Great video, I think what would also be helpful is to know the overall cost is way higher with Buy-to-Rent mortgages. For example, transfer tax is 8% with Buy-to-Rent properties, and the Dutch government is planning to increase rates to 10.1% so this is only going to make it more difficult to invest in Box 3 option. Even with 80-85% LTV you still need more savings just to cover up for the high transfer tax. Not as easy as we might think after all ;)
What if you plan to buy a second home as your primary residence? And convert the current home you lived in for 7 years into a rental mortgage?
I would avoid that 10.1% transfer tax, right?
@@marfru Yes, that is correct
@@marfru That is true but still there are a lot of additional costs when converting current home to a rental:
(1) New application - you need to pay additional costs to the mortgage advisor again, and even the bank might have a fee to convert the existing mortgage into a rental one, and its treated as a new application for them. You enter into a new contract / agreement.
(2) Change in Interest rate - if the interest rate has risen during the time of conversion, then you will lose those extra interest expenses.
These are of course one-time expenses but definitely something to consider when overall calculating your profitability. I feel in the long-term stock markets overall give a higher return compared to real estate no matter which market you choose. Even if you stick to basics like S&P500 or biggest tech companies and invest a fixed sum amount periodically.
Are the property tax rates still the same for buy-to-rentals vs buy-to-own? That would help somewhat to hedge against the high transfer tax for buy-to-rentals.
After watching this video I have a few questions.
1) In the Netherlands are there any small multiple-unit type properties such where you would live in one part of the property and rent out the other part(s) similar to an American duplex, triplex or quad?
2) If yes, how would such a property be financed (box 1, box 3 or perhaps something else)?
I ask since where I live in the United States beginning real estate investors are sometimes advised to buy something like my aforementioned duplex, triplex or quad since they can be financed the same as a single-family home and such loans can be much easier to get (and have more favorable terms) than a rental property mortgage.
You can rent out 1 room taxfree in your own domicile. It falls in box 1, you don't even need to register the income you make from it. Splitting property into multiple independent units is strictly regulated in most municipalities. The paperwork and licenses will probably make it difficult to earn back your investment. Though many such properties exist. It would fall in box 3. Those types of properties typically also come with some long term tenants. They have strong protection under Dutch laws. I'm currently splitting my townhouse into two independent apartments. However, officially I am just renting out a 'room', because there is no way I am able to get a permit to split the property in two. Even just doing the construction work is illegal, as it could be taken as preparation for an illegal split... The fine would be in the tens of thousands...
Do you provide any service regarding this topic, such as real estate investments?
You can find our services on our website
realestatemasterclass.nl/en/
@Real Estate Masterclass thank you, Sir
Where could I find more videos in English?
am i allow to buy industrial property for start business in Netherland with Australian citizenship?
Hi,
Thanks for the video!!
I would like to ask you,
If the Box 3 mortgage is based on the cashflow of the rental property, then can you get this mortgage if you are a freelancer with less than 3years of track record?
Thank you so much again!
Yes, it's definitely possible!
Lovely video. I want to buy a house but I am wondering with recession on the cards, real estate prices still very high and interest rates almost at its peak, should i buy a house in early 2023 or should I say wait till the end of year or should just wait a bit longer until recession is off and buy a house somewhere in 2024 or later? Kindly guide!
Hi, I am currently staying in the Netherlands for 2 years, and looking to buy a place. However, I am also not 100% if I would be staying here in the long term, but given the crazy rental price, I am thinking of getting buying a place instead. Is there any recommendation if I should get which mortgage? Or is there a possibility to change a mortgage for an apartment from box 1 to box 3 midway? How long would i need to break even or even make some profit?
Hi,
Thanks for this video.
I just found this rental mortgage yesterday. But I miss from this video that you didn't talk about the length of mortgage. As I understood it is max 10 years the rental mortgage. Please tell me if I'm wrong..
But in that case we have to pay much more monthly than if we had 20/30 years for that. As I understood if I take 120k then I have to pay back approximately 150k which is 1200/ monthly for 10 years
I know i'm 7 months late with my reaction, but perhaps it's still usefull.
Usually when you do real estate investing, you don't pay off your mortgage.
So you have an interest only mortgage, to keep your monthly cashflow higher.
Then after 10 years when the mortgage ends:
- You either sell the property (wich usually has grown in value), pay off the mortgage debt and keep the extra value for yourself.
- You refinance. So decide to take a new mortgage and keep renting out the property.
In my experience it's uncommon to pay off the mortgage during the 10 years as an investor.
By only paying interest troughout the 10 years, your monthly mortgage payments aren't that high.
If you would pay interest AND pay off the mortgage, your monthly costs would be higher than the rent and your cashflow would be negative.
Hi, I invest in real state in my country and I’m looking for other investment possibilities. Looking forward to see next video’s.
Can you do a video about renting restrictions? I know that not every property can be rented out.
Every property can be rented out in the Netherlands, but you must first check with the local municipality. For example, rules in Rotterdam / Amsterdam might be different from those in a smaller city like Delft.
You can invest in REITs
I want to invest in realty
What if someone has no income in the Netherlands but he/she has the capital to invest without a mortgage?. What is the tax then?
All changed in the Netherlands since last government!!