The rates of mortgage loans remain attractive, and the simple fact of collecting monthly rents makes it easy to repay monthly instalments, that is why many people are considering investing in rental property in Luxembourg, which is not the prerogative of very wealthy people. However, even before making the purchase, some questions arise: What type of property should you buy? How to make sure to select an apartment quickly profitable? Here is our advice.
Rental Property Investment in Luxembourg: Take Advice from an Agency
You are not a professional in this sector? You do not know all the ins and outs of such a project? Ask for help for your real estate investment in Luxembourg! By making this wish come true with the help of a specialized agency, you maximize your chances to make a profitable investment and to meet your objectives (securing your money, preparing your retirement or optimizing your taxes).
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Select a Property that Meets Your Objectives
The price of real estate in Luxembourg City will not be the same depending on the age of the building in which or which you are buying:
– VEFA (Sale in Future State of Completion) on plan
– More than 6 years old
– More than 60 years old
For example, you should be aware that the registration fee is reduced for a VEFA, because you only pay the amount related to the land. New properties generally appear to be more attractive to all those who wish to optimise their taxation. But for those who have a high tax bill to reduce, buying a very old property that is more than 60 years old can be interesting. Thereafter, the necessary renovations will have to be carried out, both to enhance the value of the estate and to deduct certain amounts from the tax base.
Choosing Between Furnished or Unfurnished Rental
The price of rental property in Luxembourg City – and everywhere else – is always higher when renting a furnished apartment. Indeed, the tenant only has to bring in his suitcase: no need to buy a bed, storage furniture or even cooking equipment, as everything is at his disposal. This represents a cost for the owner at the beginning, as there are additional purchases to be made, but this expense will be largely offset by the higher rents.
“Furnished accommodation mainly attracts students and transients…”
However, if you don’t want to have to often look for a new tenant, it is better to rent an unfurnished apartment or house. This configuration allows for less rental vacancies than the others. On the other hand, furnished accommodation mainly attracts students and transients… Therefore, they require more management work. If you do not wish to take care of all these formalities, you can also contact a real estate agency in Luxembourg to deal with the rental: it will take care of all the management.