For everyone interested in buying property in the Dutch Randstad, it is a well-known phenomenon that the property values are increasing exponentially. Buying a house, therefore, becomes a true challenge, especially in Amsterdam. This, in turn, affects rental prices in the free real estate sector. These prices go up as well. As a result of this continuous upward trend, both companies and private individuals are drawn to real estate investments.
Yet, we would like to point out some issues
Taxation on rent, for one, is a complicated matter. Due to various factors, every situation differs (e.g. room vs. house, own property vs. spec house, separate entrance vs. common areas, short-term vs. long-term leases, holiday rentals (AirBnB) vs. residential rentals… ). Are you entitled to a tax relief on lodging? Do facilities for entrepreneurs apply? Can you benefit from a VAT deduction? Is it possible to collect rent tax-free in box 3? Are you able to deduct the mortgage rate?
For each of these questions, there is a common answer: it depends on your particular situation. This situation can be assessed by DTS’ tax experts, who can also provide you with improvements where appropriate.
Real Estate Agent
In addition, when purchasing real estate in the Amsterdam area, you often encounter practical as well as financial obstacles. Popular apartments, for example, generally exit the market in a matter of days. Hundreds of potential buyers outbid each other in a competition to get their hand on the much-desired property. Hence, the winning bid tends to be a whopping amount, well above asking price.
It is thus key to engage the right people who know which properties will enter the market before they are publicly advertised. Moreover, getting the help of a real estate agent comes with several advantages. An agent, for instance, can visit any real estate of interest when you do not have the time to do it yourself. Furthermore, your agent can provide you with a professional assessment of the current value, a realistic rental value, and a future value. This assessment takes various factors into account, such as leasehold, isolation, the technical status, possibilities for remodeling, or even the foreseeable development of its neighbourhood.
Lastly, time is money, not in the least when it comes to real estate. With every month you wait, property values increase while the amount of square footage you can afford rapidly decreases.
DTS Duijn’s Tax Solutions works with a team of tax advisors, brokers, and real estate agents. You can thus benefit from our commercial ánd fiscal assistance. This enables you to swiftly purchase your dream property at a favourable price. In addition, we can assist you to collect a proper real estate portfolio. Please feel free to contact us for more information.
TagsBox 3, income tax, Real estate
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