How to have your own house in Belgium and rent it after? start the cash flow
Is it possible within the actual crisis , and the more and more difficult way to obtain the credit ?
A house in Belgium , depending on the zone, is between 320.000 Euro and 420.000. To get this money from the bank, first you need at least 20%. Besides this you need to have the money to register your house on your name. Another 15% (notary taxes and register taxes). There is an advertising on the real estate magazines that you can get a 300.000 euro for 25 years paying only 1232 Euro / month. You can get it for 30 years at a rate of 1110 Euro/month
ok, so let suppose you find a good house that is easy to rent. meaning that you don’t have a gap of more then 2 months between one tenant and another. In order to get this house you need min 64.000 euro to have a down payment at the bank and another 48.000 euro to register it. In total you need to have your own money 112.000 Euro. If you are a hard working person like me, that means you need to work and produce / invoice 224.000 Euro. (because in Belgium you have to pay around 50% taxes. Again Robert had right. Half of your money are for the state. I am in the left down side of the quadrant (freelancer). Ok if you are again, a hard working man, you can invoice around 4500 Euro/ month, that means you need around 50 months of continue work. As freelancer you can hope at 8-9 months of continue work , that means you need 7-8 years to arrive there. I didn’t count that you have to pay the rent , food, etc, all the money that you get after the taxes are dedicated for this. 8 years of working having only one goal in mind: to have your down payment and get your house. IF you are good enough maybe your house will be rented immediately, and your tenant is going to pay you between 1300 and 1500. So probably your dream is true. You have the cash flow…
I am passionate about houses, I dream at houses but i find more and more difficult to realize the dream. Definitely , i need to move to the right part of the quadrant…
What do you think… Please share your ideas ….