Read here what this can mean for you as an investor.
(source: AEDES)
Aedes, the national association of housing corporations in the Netherlands, warns of an “impending infarction” in public housing. This is due to a combination of factors, including the increasing demand for affordable housing, rising construction costs, and a shortage of skilled workers.
These factors are creating a shortage of affordable housing. This shortage is negatively impacting people looking for a home. They have to wait longer for a home and pay more.
For real estate investors, the consequences of this housing crisis are not negative.
Positive consequences include:
Rising property prices due to overwhelming demand.
A housing crisis will eventually lead to a rise in property prices. This is because demand for housing exceeds supply. When few homes are available, people are willing to pay more for a home. This can be a positive development for real estate investors, as homes increase in value, creating equity that can be used for property expansion.
Reduced vacancy rates due to limited housing availability.
A housing crisis leads to reduced vacancy rates. This is because fewer people are able to buy a home. When fewer homes are available, there is also a lower chance of vacancy. This is simply a positive development for real estate investors, as they can rent out their properties for higher rents within the new private sector.
Higher rental income from willing tenants.
Finally, a housing crisis can lead to higher rental income for real estate investors. This is because tenants are willing to pay more for a home. When few homes are available, tenants are willing to pay more to find one. This is a positive development for real estate investors, as they can earn more money from their properties, according to Aedus.
Naturally, there are a few caveats to what Aedus offers. Firstly, you must invest in homes correctly. This means paying close attention to the point system, otherwise, maximum rent amounts apply. Combined with high interest rates, this isn’t necessarily beneficial. The goal, therefore, is always to enter the new private sector. So how do you achieve that?
In fact, the only thing we can recommend is to be very smart about sustainability improvements. This allows you to award so many extra points to a property that you end up in the new private sector.
Naturally, as an office, we have selected several specialized parties who can help you with this and can even provide you with a report outlining the “spikes,” which are the points that can be gleaned with minor adjustments.
It’s certainly wise to have your portfolio reviewed by a specialist in this area. Are you ready for the new regulations? Regular banks won’t be particularly pleased with a rent reduction, especially because they believe it will decrease the value of the collateral. If the value of a property decreases, regular banks will always find a way, along with an army of lawyers, to make things as difficult as possible for you.
If you have several rental properties and aren’t familiar with the regulations or specific points, our advice is to have this checked out as soon as possible. It’s inexpensive and can save you a lot of trouble.
Secondly, the increase in housing prices is, of course, linked to affordability. The increase will be fixed, but it will be long-term. If you want to achieve a rapid increase in value, it’s wiser to buy, renovate, and sell properties. Our office has many clients who are currently focusing on this, with great success.
Thirdly, there is a certain maximum rent, especially when purchasing with financing. Investment properties are always appraised, and not all banks calculate the actual rent. This can sometimes jeopardize financing, so we advise you to pay close attention to this.
All in all, it turns out that investing in real estate can be very profitable, especially in the long term. However, be sure to keep an eye on new regulations and keep up with the times by making your investments more sustainable. This will often result in a more sustainable portfolio.
Want to take advantage of these benefits? Feel free to contact us at 033 200 3030 or visit beleggingspanden-financiering.nl/contact
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