Investing in real estate, get good advice
From the many consultations we do every year, we can conclude that investing in real estate is really 'hot'. Yearly we welcome over 100 new customers who are interested to invest in real estate for the first time. Now real estate can be a great investment, but not role only on rational considerations when you would like to invest. Many real estate investors invest based on gut feeling, this because investing in 'bricks' brings more money than bank interest. Are you planning to invest in real estate, please keep in mind the following points:
The Amsterdam real estate market shows during the last year that purchasing an attractive investment is almost impossible. This applies both with regard to the housing market and in commercial real estate. Homes are sold at 10% to 20% above the asking price. Maybe better just to not invest in this area. Therefore investors would like to invest in other popular residential areas like Amstelveen, Haarlem, The Hague, Leiden and Utrecht.
These are not only the annual municipal taxes, water charges, insurance, service of an apartment, maintenance CV but also keep in mind of (major) repairs such as a paint job every five or eight years. It is wise to reserve money, so you will not be surprised by a big expense but look before you buy carefully at the condition of the property.
Buy investments in different areas
When you invest in housing, it is wise to spread. Buy different types of houses located over a city to a maximum price of € 300.000,-. Above a purchase price of € 300.000,- the initial yield generally is lower. You invest unilaterally then you run a greater risk of changing market conditions.
Normally property taxed in box 3, namely capital gains tax. If you operate itself with the maintenance of your building(s) and you will search for tenants yourself, you are a business owner and rental income, minus the costs taxed in Box 1 for the tax authorities. For many landlords, the tax rate amounts to 40.4% to 52%. Also, any gain will be on sale by private asset management, may be taxed in box 1 with 40.4% to 52% tax. The gain your box 1 is still taxed. By hiring a professional property manager like Koops Property Management, you let your investments without risk and you remain taxed in box 3 with only capital gains. You have less worry and expense of the operator are an inexpensive risk insurance against taxed in box 3.
Would you like to invest in real estate? We will give you the best advise!
We help you active in your quest and are only satisfied when a minimum net return of 4%. This can go can to 8%. This depends on the purchase price, the annual rent, the fees, maintenance costs and the period when the house is rented.
If you choose for knowledge, you choose for us;
- Market knowledge; We operate more than 10 years as a rental agent and, therefore, possess sufficient knowledge of the market. We rent out over 700 proerties per year and we are informed about the current rental market.
- A good rental price valuation; Before you buy a property we can give a very good indication of the expected rental income from the property.
- We will bring interesting investments; We are able to inform you about interesting investments. We have daily contact with our relationships and fellow brokers. The interesting investments we pick like this.
- A good knowledge of the tenancy law; Koops Property management is a member of the nation wide management association VGA and uses the appropriate leases. We are also aware of latest developments in the field of tenancy law, so we can inform you exactly about the rights and obligations of the tenants.
- Yield calculations; We are able to create a highly reliable yield calculations, realistic rental price valuations and the expected costs.
Interested in an informal conversation? Please contact one of our offices.
Rent out your home? Contact us. Call: +31(0)20-8203676RowanAmstelveen
Rent out your home? Contact us. Call: +31(0)20 820772EdwinAmsterdam
Rent out your home? Contact us. Call: +31 (0)20 8208947OlivierAmsterdam-centrum
Rent out your home? Contact us. Call: +31(0)23-5329817BiancaHaarlem
Rent out your home? Contact us. Call: +31(0)71-2032173RubenLeiden