Rental Property in Luxembourg: The Reasons to Invest in a New Programme

Immobilier locatif au Luxembourg

In order to increase your chance of finding a tenant, benefiting from tax incentives or simply increasing the value of your assets, you have every interest to invest in Luxembourg in a new programme. These are generally very attractive, both for the comfort they provide and for the services they offer to people living there. But to make sure you make the right decisions, you need to ask the developer a few questions before concluding the transaction.

Choosing the Right Developer

When investing in real estate in Luxembourg, if you are particularly interested in properties sold on plan, you will see that many developers are fiercely competing on the market. How to identify the most scrupulous ones?

To help you in your decision-making, do not hesitate to ask around you, to question the persons you know who have already invested: the opinion of relatives and friends can help you to get the most professional contacts and to keep you away from the less focussed. Think also about consulting the website of the Chambre Immobilière, whose members work according to a strict code of ethics. 

“Not all developers have the same requirements – and the result can be very different from one program to another.”

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Once you think you have found the right developer, take the initiative to ask him to visit properties that have already been completed, in order to see the quality of the services provided. Indeed, not all developers have the same requirements – and the result can be very different from one program to another.

Choosing a Bank to Finance Your Purchase

A purchase in new real estate in Luxembourg implies a very particular financial management, since it is generally necessary to consider payment by instalments. From this perspective, it is in your best interest to carefully interview the banks from which you are requesting a mortgage simulation.

In practice, some people agree to repay the principal and interest only after the property has been delivered, once they can start receiving the rents that finance part of the monthly payments. Do not hesitate to resort to these contacts who will save you heavy expenses during the construction period.

“Some agree to repay the principal and interest only after the property has been delivered.”

How to Value and Modify Your Property

Even if you are making a rental property investment in Luxembourg and do not intend to live in the property for the time being, nothing prevents you from customising it to make it more attractive… Or to project yourself into it within 10 or 15 years, when you will have finished repaying it, for example.

Again, the options are not always the same from one developer and program to another. Some will let you chose the covering for each room, offer you different design options in the kitchen and allow you to configure the home according to your ideas. Others, on the other hand, build “standard” properties in which very few modifications are possible. It is more economical, but it leaves less room for originality… It is up to you to choose according to the objectives of your purchase!

Take the time to read guides on buying real estate in Luxembourg, to talk to professionals and to take relevant advice from the relevant persons before investing. This way, you give yourself every chance to never regret your decision.

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