A good way of investing is to buy real estate for rental purposes. By investing in real estate, it becomes possible to realize passive income by renting out rooms or homes. A rental mortgage makes it possible for a private individual to finance an owner-occupied home and then rent it out to third parties. You can also expand your real estate portfolio with a real estate loan.
Financing real estate
Own money will be needed to finance commercial real estate. With suitable real estate financing (Dutch: vastgoed financiering) will be offered the opportunity to purchase commercial real estate and use it for rental with only a limited own contribution. A high percentage of the market value can be financed in a rented state. You can also choose to have existing real estate refinanced, which may leave you with more favorable interest rates on a new loan. Your real estate portfolio can be further expanded with any surplus value. The amount of the mortgage interest on the property loan is determined on the basis of the ratio between the amount of the loan and the market value in the rented condition, the term of the fixed-interest period and the total amount of the loans required to obtain the loan. rental mortgage.
Get a rental mortgage
If you want to purchase real estate to rent out, it must be included in a rental mortgage. A regular residential mortgage offers no room for the possibility of renting out, since only the owner is allowed to live in the house. A rental mortgage (Dutch: verhuurhypotheek) works exactly the other way around, because it becomes mandatory to rent out the house or rooms in this house. The house may not be taken into use yourself, nor may it be rented out to family. Financing for room rental will be possible if the property in question is located in cities with universities or colleges. With a rental mortgage and suitable real estate financing, suitable target groups can be included in the rental strategy.
Advice on the purchase of real estate
A real estate financing for obtaining a rental mortgage therefore makes it possible to purchase suitable real estate, without requiring a lot of your own money. Commercial real estate can be realized with appropriate financing, as long as the property is used for rental. If you are considering taking out a rental mortgage, inquire about the possibilities with experienced advisers and appraisers, so that suitable real estate financing can be drawn up for investments in commercial real estate. As a real estate investor, discuss the options for financing when purchasing real estate or expanding the real estate portfolio.