All Forum Posts by: Ivor Grisel

@Johan Rienstra

Hey Johan,

I haven't been in the game long, but I haven't seen any possibility for this yet. I found an article that describes the possibilities, but no real 1031 exchange though (https://ntrs.nl/2019/02/15/doorverkoop-binnen-6-maanden-en-de-overdrachtsbelasting/).

Maybe it's just because I haven't ran into it, and maybe there a possibilities when buying as a BV, but maybe somebody with more experience with Dutch taxes knows the answer...

Be aware that the down payment is more like 40% in the second case. Take Ruud's example. It's 67/162*100. The 30% is about rented state, which is lower than the actual cost of the house (in most cases - unless you can buy far below market value). 

Investment Info:

Appartement, rented out to 4 students. Located in Arnhem, Netherlands.

Purchase price: €171.000

Cash invested: €0 on appartement itself, about €5000 in closing costs

What made you interested in investing in this type of deal?

Students are a steady source as tenants go. There are always more students than rooms, especially for the low rents.

The appartment itself is nicely located (next to a park) and has two floors. Exit strategy is to improve the state and sell it to a couple (or rent it out if enough cash flow).

How did you find this deal and how did you negotiate it?

Real estate agent that only does rented out properties. Negotiation was just making an offer.

How did you finance this deal?

Second mortgage on our house, interest only for 10 years. Planning on paying that one down with the cashflow, buy we wanted some flexibility with cashflow. For a next step, we would get a mortgage on the appartment and get either a cheaper property or leverage it and get a bigger one.

How did you add value to the deal?

As there are tenants already, none yet. But as soon as one moves out, fresh paint. And on the long run, maybe remove carpet and put pvc flooring in.

What was the outcome?

Nice cashflow, but mostly doing first steps.

Lessons learned? Challenges?

First deal, so learned everything. Financing, rules and regulations, calculating deals, etc. Biggest lesson was that you need to find good partners. The real estate agent turned out to mostly just have deals, but was a mess in regards to providing documents and handling the deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

For people in the Netherlands, Arnhem en Nijmegen area: vastgoed beheer Gelderland. Great communication, good pricing, just a tremendous help and boost in motivation.

@Tamar Oranje

Just bought my first (will do a post on that). I have cashflow of around 400. So a little meat on the bone.

That being said, it will most likely be around a €1000 per year. So it isn't too much. With rent increases, you will eventually get above it. And if you really can't handle it, you can always sell it again. Just run your numbers on the new situation and look at possibilities.

@Johan Rienstra @Scott Mac

Be aware that most often it is more like 30% down payment, and that is of the value of the property in rented state. That value is most often lower than market value.

@Johan Rienstra

Hey Johan, welcome to the forums!

Indeed, the Netherlands doesn't really have duplexes/triplexes. The closest you would get is either a "rijtjeshuis" or a "twee onder één kap". But all of those are sold separately, because they are separate houses. I also tried to find some, but no luck yet... if I come across any, I'll be sure to let you know.

@Tamar Oranje

Check https://www.finner.nl/sparen/het-effect-van-de-veranderende-vermogensbelasting for example. They have a nice description.

@Tamar Oranje

Sorry to hear that about your family. Hopefully you figured things out with them!

But be aware: if it's a rental, when doing your taxes, the property falls within Box 3 and not Box 1. Just be sure to keep an eye out for that, as changes are expected to happen in 2021/2022, where your rent increase might not be enough. Maybe do some calculations on berekenhet. They have the newest rules and calculations lined up.

Good luck with your first rental!

@Richeline Lowe

Hey Richeline! Can't believe I didn't see your post earlier, sorry for that. Welcome to the forums! I don't know about the WhatsApp group, but I know there are two meetups in the Netherlands. Check Meetup.com for real estate in the Netherlands. You should be able to find them easily.

Good luck on your journey. If you need help, give me a shout (even though I'm starting out myself 😁).

@Tamar Oranje

Congrats on your first deal! Curious about two things:

- Aren't you worried that €100 isn't go to result in negative cashflow once the new "vermogensbelasting" (= equity tax?) is going to go into effect?

- Only share if you want, but why not buy from family? Too much emotion involved?