BUY TO LET MORTGAGE
Expats can get a mortgage for their own residence in the Netherlands. Many expats also see good opportunities for investing in the Dutch housing market, but the options for financing this were limited. Fortunately, more and more parties are offering the possibility of providing a buy to let mortgage for expats.
REQUIREMENTS BUY TO LET MORTGAGE
The requirements of a buy to let mortgage depend on each lender. The following conditions apply for expats:
1. NON-TEMPORARY STAY
Expats are required to be in the Netherlands on a non-temporary basis. When you have the European nationality you are eligible. Also, if you are a knowledge migrant or if you have a residence permit for an indefinite period you are eligible.
2. SUITABLE INCOME
Per provider there is a requirement in terms of your income. With investment banks, less emphasis is placed on your income but more on the collateral to be purchased and your assets. At the other banks, more emphasis is placed on your income.
3. RIGHT MARKET VALUE
The parties provide between 70% to 80% of the market value in the rented state. Assuming that the value in the rented state is approximately 90% of the market value, this means that you can finance a maximum of 63% to 72% of the property value.
MORTGAGE TYPES and taxes
For a buy to let mortgage you have several mortgages to choose from. A popular mortgage among investors is the interest only mortgage. You can get a mortgage with only interest for 50%-60% of the rental value in the rented state. With some providers this can even be as much as 60%. The advantage of the interest-only mortgage is that it reduces your monthly costs, so you are better able to bear the costs of the mortgage with the rental income.
Rental properties are considered to be your capital. The rents of your rented property are not taxed. You will be taxed on the value of your collateral in box 3, taking into account the amount of the mortgage you have taken out. The value of your rental property is calculated on the basis of the WOZ value which is often considerably lower than the actual value of the property.
HOW WE CAN HELP
If you are prepared to invest for the long term, a buy to let apartment can often turn out to be quite a profitable venture. We are specialized in the Dutch housing market and the buy to let mortgages, so if you are interested in investing in a property – we can help with:
Leading you through the entire mortgage process
Helping you with the purchase and the best interest rates
Making sure that the property will be rented out to reliable tenant
Taking care of administration work and maintenance of your property
Are you ready for your future in the Netherlands? Let us know how we can help.