10 mistakes to avoid when buying your first property in Luxembourg

Buying your first home is an exciting but complex step—especially in a real estate market as tight and expensive as Luxembourg’s. A lack of preparation or a poor decision can be costly. Here are the 10 most common mistakes to avoid making your first purchase a lasting success.

1. Not knowing your borrowing capacity

Before even beginning your search, it’s essential to consult with your bank or a mortgage broker to evaluate your real budget. Many first-time buyers overestimate what they can afford or forget to include additional costs (notary fees, application fees, guarantees).

2. Forgetting hidden costs

Notary fees (around 7%), agency fees, taxes, co-ownership charges, and possible renovations can add up to several thousand euros. Always plan a safety margin in your budget.

3. Buying on a whim

A property crush is nice—but it shouldn’t drive your decision alone. Objectively assess the property, its location, the price, resale potential, and compare it to other opportunities.

4. Not thinking long-term

What works for you today may no longer suit you in five years. An extra bedroom, better location, or a home office space could become essential.

5. Underestimating the importance of location

A good neighbourhood ensures better quality of life—and a better resale value. Prioritize access to public transport and amenities, and avoid poorly connected areas, even if the price seems attractive.

6. Overlooking the property’s technical condition

Cracks, humidity issues, outdated electrical systems… These flaws can be costly. Don’t hesitate to consult a building expert or architect for a thorough inspection.

7. Misreading legal documents

Title deeds, co-ownership rules, diagnostics: never sign anything without reading all documents carefully. When in doubt, consult a notary or a trusted professional.

8. Ignoring potential financial aid

Tax credits, first-time buyer schemes, and local grants: Luxembourg offers several options to reduce the cost of your purchase. Do your research.

9. Trying to manage everything alone

Real estate is a profession. Surround yourself with a good agent, a responsive notary, and ideally a broker to help you get the best financing terms. Their expertise can save you from major mistakes.

10. Believing buying is always better than renting

Depending on your situation, mid-term plans, or the current market, renting may actually be the smarter choice. A property purchase should be a well-planned response to a real need.

In Conclusion

Buying your first property in Luxembourg is a serious project. Good preparation, professional advice, and a long-term vision are your best allies for success.

Do you have a project in mind? Contact the Nextimmo.lu team for personalized and stress-free guidance.