Investing in real estate in Delft
Now is the time to invest in real estate!
Current interest rates for savings accounts have reached such a low level that savings rates are lower than inflation rates. Therefore, if you fall into the category where you are taxed 1.2% of any savings that are kept in the bank, you will lose money.
Some choose to invest their money in stocks and shares, but this does not come without risk and uncertainty. Joining the property market and renting homes to expats is an excellent alternative, which offers limited risk and a steady income.
An investment in real estate, whether it is student housing, expat housing or apartments for the regular rental market, yields a considerably higher return due to rental income and the increase in value of the property. Despite the fall in the value of house prices in recent crisis years, it has become clear that the value of real estate and property portfolios is continuing to increase in the long term.
Great opportunities in Delft, The Hague and Rotterdam regions
Due to the high demand for bought or rented homes increasing in recent years, a high revenue can be expected for the rent return on houses bought in the regions Delft, The Hague and Rotterdam. House prices rise by as much as 10% annually. In Amsterdam, for example, prices have soared to above pre-crisis levels.
The housing market in Delft, The Hague and Rotterdam regions is picking up rapidly. There is high demand for rental properties and considerably long waiting lists for those people who want to rent a property. It is therefore highly unlikely that a real estate investor is at risk of not being able to rent out the property.
This means that it is the perfect time to invest in and rent out properties in the Delft, The Hague or Rotterdam regions. In the category of rental properties costing from €750,- to €1300,- is the demand so high that a home is usually rented out within two weeks. Unrented properties in this category are almost unheard of. Properties that are rented in this price range often have an attractive purchase price, all this ensures a high investment return.
Suppose you buy a home for €200,000,- and you rent it out for €1,100,- per month. Your annual rental income would be €13,200,- per year. The costs for ‘running’ the home amount to approximately 20% of the annual rent (by ‘running costs’ we refer to insurance and maintenance costs) this equates to €2,640,- in operating costs per year. The net rental income for the property is €10,560 per year. In the first year you will receive a tax return of 5.28% on your investment property.