What are rental countries? And what factors make the Netherlands and Germany very suitable countries for your foreign property investment? You can read about it in this article.

A brick in the stomach

It is a well-known fact; Belgians are born with a brick in their stomach. Something that seems like a matter of course for us Belgians - owning our own home - is not so in many other European countries. Belgians buy property for two reasons:

  • On the one hand, for Belgians, real estate is a way to create returns on assets. That consists of the realisation of a capital gain and possibly rental returns.
  • On the other hand, Belgians like to occupy their own homes.
  • This way of investing pays off, as Belgians are among the wealthiest citizens in Europe. Yet we are increasingly finding that investors in Belgium are running up against the limits and restrictions of the Belgian real estate market in their search for return on capital. Due to rising property prices and the challenge of creating favourable rental yields, Belgian real estate is increasingly falling out of reach for property investors as an investment.

    Renting versus buying countries

    In Belgium, the property market is a buyer's market. Combine that with rental legislation that is pro-tenant oriented and rents that rise slower than property prices and achieving a healthy rental yield becomes a difficult business. That is not the case in a tenant market as we know it in the Netherlands and Germany. Both countries are true renting countries. In Germany, about 70% of the population rents! The rental legislation there is pro-landlord oriented and you enjoy the service of experienced local property managers. In other words, rental countries are ideally suited to realise an excellent return on assets by purchasing real estate. The Netherlands and Germany are growth poles, with strong economies and tenants that fit the profile of the ideal tenant. In addition, you will enjoy:

  • A lower purchase price than what you would pay for comparable Belgian property
  • Lower VAT rates
  • Lower registration fees
  • Higher value-added potential
  • By investing in foreign properties located in strong tenant markets, you maximise the return on your investment from day one. The Netherlands and Germany are a good choice because of their economic strength, their 'ideal tenant profile', and their proximity.

    Would you like more information? MOMO estates has the necessary expertise in foreign investments and would be happy to inform you about a suitable investment for your investment portfolio.

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