How to choose your rental property investment.jpg

Rental property is highly sought after by financiers because of its reputation as a reliable source of income. In addition to the leverage effect of financing, buyers are attracted to the prospect of a capital gain upon resale, which has contributed to a 35-year trend of annual price increases of 5%. Furthermore, the investment is optimized by the monthly rental income. But if you want to maximize your profits from the venture, avoid making poor real estate investments. In order to ensure the success of your project, we recommend taking extra precautions.

## The place

In all likelihood, you plan to apply a portion of each month's rental income toward principal. However, in order to gain access to this cash flow, you need to quickly find tenants, making location selection a crucial decision. Although Luxembourg and Esch-sur-Alzette are the most popular destinations, many smaller cities also offer fantastic opportunities. Communities with easy access to public transportation, proximity to places of employment, and convenient proximity to shopping, dining, and other amenities should be prioritized (stores, services, schools, etc.). Hesperange, Frisange, Leudelange, and Capellen are some of the most visited places in the Grand Duchy.

_“The location should be carefully considered”._

## Rental Property Expenses and Profits

To save for retirement by generating extra income or to make a profit upon resale—these are two distinct but related goals that will influence how you position yourself with respect to a given investment. It all comes down to whether or not you value safety and stability more than profit. Your rental yield will be lower, but your risk will be lower, if you put more of your own money into the deal.

It's important to make sure that your rents will cover almost all of the monthly payments of the loan if you're only contributing 30-50% of the cost price. In this way, the procedure won't have any effect on your ability to make purchases. You'll be better prepared for the drop in income that comes with, say, retiring.

However, if you want to maximize your returns as quickly as possible, you'll take out a larger loan to make more investments.

Never forget the importance of spreading your wealth around by purchasing a variety of properties in various locations.

You need to know how much of your rental income will be taxed in order to calculate your return on investment. In contrast, expenses like interest and property management fees can be deducted from your earnings. In addition, if you buy a brand-new house, you can deduct 6% of the cost of the building itself (but not the land) from your taxable income for the first six years after you move in. This will help you minimize your tax bill in the early years after you buy.

_"Returns on a good investment can range from 6% to 10%, depending on the specifics."_

## Investment in rental property takes the form

When the conditions are right, investing in real estate through a SCI, a non-trading real estate company, can be beneficial. This alternative, for instance, streamlines the process of passing on property (particularly in the presence of several heirs). The SCI's rental income is taxed not to the company, but to its members, who are treated as sole proprietors for tax purposes. Each partner receives a share of the taxable income equal to his or her percentage ownership in the SCI.

The prospective investor must take into account all relevant factors when making a real estate purchase. The project is tailored to meet the goals, allowing investors to earn the expected profit under the best possible tax regulations. Seek the counsel of a reliable real estate agent who can accompany you throughout the investment process to ensure that no mistakes are made.


How to choose your rental property investment ?

3 Things to check before signing your lease.jpg

In many ways, signing a lease or rental agreement is the safer option when compared to purchasing a home. However, there are a few things you should check before beginning such a project to ensure that you are making the best possible choice. You'll be obligated to pay rent as a tenant once you sign a lease, so make sure the space is everything you need and that your interests are adequately protected.

## Take some time to mull it over and do some research

A property rental can be finalized in a matter of hours because of the high level of competition in today's rental market. But before you sign a lease, you should carefully consider the benefits and drawbacks so that you can find a place to live that is suitable for your needs, is located in an area you enjoy, and has a setting that meets your standards. It may take no more than a few hours to talk to a couple of neighbors, do some online research about the area, or give a call to a relative for some sound advice. See if you can bargain for some quiet time to reflect during the visit!

_“It's simple to get good advice by consulting with a few neighbors, doing some online research on the area, and calling a reliable friend or family member”._

## Verify that the home is suitable for habitation

When you first read an ad or visit a property, you might miss some details. If you sign the lease, however, you can't ignore them. The landlord is responsible for ensuring that the property is habitable, safe, and in good condition. Please let us know right away if you have any doubts about whether or not you will be able to make proper use of the provided accommodations and maintain a decent standard of living. Less diligent landlords put off doing what needs to be done, so it's best to stay away from them if you don't want to get into a sticky situation quickly (breakdowns, deterioration of materials, etc.).

## Read the lease thoroughly before signing anything

Your lease may be null and void if it lacks certain statutory provisions. Be on the lookout for the lessor's contact details (name and address), which must be listed. You should also be able to locate the monthly rent and the terms of the annual revision, in addition to a detailed description of the accommodation (type of accommodation, number of rooms). The lease should also specify the deposit amount and the property's intended use (main residence, professional or mixed use, etc.). Naturally, your landlord will specify the lease's end date and how to get out of the agreement (notice period).

However, provisions that are widely regarded as abusive require special consideration. It's against the law to disclose any information about your political or religious affiliation. There is no law that says your landlord has to take rent out of your paycheck. And lastly, the landlord might not insist that you sign any rental agreements for the machines.

_It is forbidden to discuss matters of faith or politics._

If you have any concerns about the person you're considering renting from, it's best to get their input from a real estate professional before signing a lease with them. Even if you're renting through an agency, it's still important to read the fine print to make sure there aren't any unpleasant surprises in store for you in the near or medium future.


3 Things to check before signing your lease

How to prepare for your move.jpg

Finding the perfect rental and finishing up the necessary paperwork to move in (insurance, inventory of fixtures, signing the lease, etc.) means you're ready to settle in. Naturally, it merits extensive preparation, to ensure a problem-free transition into your new life. What should I do to get ready for moving day? Is there a plan in place for handling crises if they arise? If you're moving, should you go it alone or hire movers? Tips.

## Take care of unexpected issues before starting to plan the relocation

Moving can cause disruptions in your life, such as having to enroll your children in a new school, giving your current landlord notice of your impending departure via registered letter, informing your employer, and notifying any and all administrative services.

You'll be too busy soaking in the boxes to worry about all that other stuff. That's why it's crucial that you solve these problems in advance of your relocation.

## Do as much housecleaning as you can

Simplify your relocation by beginning with a well-thought-out packing plan for each room. Don't just start throwing things into boxes without first sorting through them; instead, make a plan for a systematic approach that will help you identify exactly what you're bringing with you. Donate clothes that are too big or too small to charity or sell them on Craigslist.

Next, sort your furniture into those pieces you want to keep and those that won't fit in your new place. Prepare for the potential acquisition of new machinery by getting rid of the old stuff you won't use.

_“Determine which pieces of furniture you wish to bring with you and which will not work in your new space”._

Moving day preparations can be simplified if you only keep the items that came with your new home.

## Figure out if you need a professional mover or if friends can help

It will be more or less risky to move without the assistance of professionals depending on the quantity of items to be moved, the distance to be covered, the size of your furniture, and the accessibility of the two homes. Get in touch with your friends early and give them the date if you think you'll need their help with the project. If not, hire professional movers.

This need not cost a fortune, as movers typically provide several different packages, one of which is simply hiring them to move heavy and/or bulky items. This will help you save money on your move, but it will be very labor intensive to move all of the boxes from one location to another. You get to choose whether you put more value on getting the full service or saving money.

## For those who are moving, the big day must be planned in advance

Make sure your move goes off without a hitch by hiring a babysitter to keep an eye on the kids while you pack and load the truck. Inquire with the local authorities about setting aside a parking spot for the truck carrying the furniture.

Think about the actual moving process as you pack, and organize your belongings accordingly. If you want to save time unpacking, divide the load among several boxes, wrap fragile items individually, and label each box with the destination room.

_“Packing should not be rushed; instead, everything should be packed in a way that facilitates movement”._

Most importantly, make sure to switch your Internet provider to your new address and activate your water, electricity, and gas contracts (if applicable) so that you can start using them as soon as possible.


How to prepare for your move?

the different rental methods .jpg

You're on the lookout for a rental property, but you're not sure which option to choose. You can find ads for both unfurnished and fully furnished apartments, as well as roommates and student rentals, among other options. Learn the primary benefits and drawbacks of each option... Knowing that you must base your choice on what is best for you.

## Placement in a student's life can be cheap, but it's not always convenient

If you are a full-time student at the University of Luxembourg, you are eligible to apply for a student housing permit from the University's Student Housing Services Office. In exchange for monthly rents ranging from €350 to €590, residents receive a fully furnished and equipped apartment that has been designed around their specific requirements. In addition, the housing is conveniently located close to the university's main campus.

As a result of their popularity, these complexes have waiting lists that stretch for miles: vacancies are still extremely scarce, so prospective tenants will need to be patient and cross their fingers if they want to move into one of these units.

## The cost of furnished rentals tends to be higher, but they are perfect for a long stay

If two apartments are of similar size and have similar features, the furnished one will rent for more. But if you're a student, you probably don't have the money to buy furniture and the time to look for an apartment, so you'll want to get set up as soon as possible so you can start the year off right. When time is of the essence and a short- or medium-term move is necessary, a furnished apartment may seem like the best option because all you need to do is unpack.

_“An apartment with furniture will rent for more than an empty one of the same size and quality”._

However, if you choose this way of life, you won't have much leeway to make your belongings truly your own because they will already be furnished. It's important to learn how to make do with what you have and not feel bad about making do with furniture that isn't yours.

## The "empty" location requires some planning, but proves to be reachable

Apartments that have been completely stripped of all furnishings are widely available on the local real estate market. They are more common than fully furnished accommodations and typically cost less. Once the bail is signed, you have complete leeway in matters of design, including color schemes and furniture purchases.

Your installation time may increase if you have to move into a place without furniture, so keep that in mind if you need a temporary residence quickly. In fact, you'll be forced to pay for your own tools and machinery in addition to the moving costs (brokerage fees, security deposits, etc.). The "null" location is ideal for long-term projects but is of little interest to students and temporary workers who may relocate at any time.

_“Having to wait to get settled in because of a lack of furnishings is not an option when you need temporary housing quickly”._

## Colocation is a cost-saving option with some drawbacks

Colocation may be the best option for you if you're looking for a move-in ready home at an affordable monthly rent. There is a lot more organization required when living with multiple people, but many people thrive in this environment.

Our advice is to carefully investigate the type of bail that has been signed and the consequences of doing so before entering into a colocation. Single-tenant leases that include a solidarity clause require all tenants to pay the full rent at once (if one tenant accumulates unpaid amounts, the remaining tenants must pay more to pay the full amount to the landlord). On the other hand, you are only responsible for your share of the rent under an independent contract.

Each rental option comes with its own set of pros and cons; weigh your options and make your decision based on the specifics of your project (and don't be afraid to ask for help from the rental agency if you need it).

Housing: an overview of the different rental methods 

Tips for location specialists on how to put together a convincing case file.jpg

Because there are more potential renters in Luxembourg looking for the perfect cocoon than there are actual homes for rent, the supply cannot meet the demand. In order to settle in Luxembourg without a hitch despite the challenging international environment, it is essential to demonstrate strong organizational skills. Learn the crucial steps to creating a winning application that will set you apart from the competition and reassure the bankers.

## It would help his or her chances of getting a rental by a lot if they brought a complete file to the first viewing

When there is a high demand for a property, multiple potential tenants may apply to rent it, leaving the landlord with too many good options. And naturally, he favors those who earn his trust by providing solid assurances. And who are able to present any and all necessary supporting documentation without delay.

That's why we recommend printing multiple copies of your file to bring with you on visits and presenting it whenever it's convenient for you. All candidates who haven't submitted any required administrative paperwork or whose applications are incomplete will be eliminated from consideration immediately.

_"We strongly suggest that you print multiple copies of the file and bring it with you on each visit."_

## Everything You Need to Rent an Apartment

Your bailiff will require some form of identification, such as a driver's license or passport, in order to draw up a rental agreement. Furthermore, he will require proof of income. Consider making copies of your most recent three pay stubs to show that you have a stable income and can afford the rent. Last but not least, you'll have to figure out the security deposit, which shouldn't be more than three times the monthly rent.

_“To demonstrate that you have consistent funds, please bring a photocopy of your most recent three pay stubs”._

A multi-peril home insurance policy contract must be presented at the time the bail is signed. While you're still looking, you shouldn't take this approach. However, don't forget to contact your company as soon as you've decided on an apartment so that you can be covered beginning on day one of your rental.

## You need these supplementary materials to strengthen your application

If the setting turns out to be particularly hostile, providing the bailor with the necessary paperwork will give you a significant advantage over other candidates. However, you can add additional credentials that will attest to your seriousness, increasing the likelihood that you will be granted housing for which you feel an authentic emotional connection.

For instance, if you receive a rental assistance program, be sure to let your landlord know about it. This person will feel more at ease knowing that some of your rent is being paid for by a government program to which you are entitled.

At the same time, make sure to include information about whether or not you are eligible for state rental assistance in your application. In fact, the state can set the entire amount the landlord is asking for based on income levels, with the understanding that the tenant will pay back the money over the course of several months.

Keep in mind that you will be living in the home of a person who is very protective of his or her property and peace of mind. All evidence of your punctuality with payments will help ease his concerns. And don't be shy about letting her know that you're the type of person who takes care of her belongings, values cleanliness, and would never leave a messy apartment in her wake. This will earn you major brownie points.


3 Tips for location specialists on how to put together a convincing case file

What are the benefits and drawbacks of purchasing as a couple.jpg

This benefit may not seem immediately obvious, but it is very helpful to you nonetheless. A psychological study found that buying with a companion reduced anxiety compared to shopping alone. You can discuss and debate your thoughts and feelings after each visit. In addition, you have the benefit of mutual support even in the most challenging times, such as when applying for a loan, having legal documents notarized, or planning a move. This, of course, does not preclude your seeking additional assistance and giving priority to purchases through a real estate agency in order to guarantee compliance with all applicable regulations.

_Shopping with a companion reduces anxiety by half compared to going it alone, according to psychologists._

## The option to customize repayment amounts to suit individual means

You and your partner probably don't make the same amount of money (e). If both borrowers are to make payments toward the loan's principal, they can agree to different monthly payments that still adhere to the terms of the credit agreement while giving each borrower some spending money. It works the same way with the contribution; everyone can pitch in whatever amount they've saved up, regardless of how much that may be. The number of shares allocated to you will then be based on your level of participation, allowing you to anticipate to whom the proceeds of the sale will be returned (depending on the marriage contract).

_For example, "You can outline unequal month-to-month bills with a view to let you meet the necessities of the credit score agreement at the same time as nevertheless permitting every of you to keep a minimal stage of buying power."_

## Marriage structure, taste differences, and inheritance are all important considerations

Similarly, not everything is rosy in a joint purchase; some concerns need to be raised because they must be anticipated before any money is put up. To begin, if you are married under the regime of the community of goods, whoever pays for the house does not gain sole ownership; rather, it belongs to both of you equally. But this is not the case with a contract based on "separation of goods," in which each party's assets are treated separately. Finally, if you have two separate estates and a joint one, the results will be different depending on the inheritance structure you've chosen. These concerns may seem minor during the buying process, but they will be crucial during the selling process. Even if things are amicable between a couple, a separation can be made more difficult by financial disagreements over how to split the proceeds of a sale.

When making a joint purchase, it may be necessary to compromise emotionally. In fact, even if you make the most of the opportunity to discuss the properties you've seen, share your thoughts, and highlight the "plus" and "minus" features of each rental, you may still find yourself at odds over some minor details. It's important to go above and beyond in order to find a solution that works for both parties.

What are the benefits and drawbacks of purchasing as a couple?

Obtaining an energy passport is mandatory prior to closing on a property.jpg

Sellers in Europe have been required by law to conduct an assessment of a home's energy efficiency since 2010. Therefore, an energy passport is needed in Luxembourg before a home or apartment can be put up for sale. Where can I get my hands on this paper? Would there be no cost involved? If a diagnosis is made, what does that mean for the deal?

## What is EPC?

When it comes to a building's energy use, the EPC (Energy Performance Certificate) or "energy passport" compiles all relevant information. Designed to aid homeowners in spotting insulation issues so they can address them during renovations, this tool also serves to educate potential buyers. The document was written so that anyone could read it and understand how the different properties in the market measure up in terms of their performance.

_“This report was written so that anyone could use it to evaluate the relative merits of the various real estate options on the market”._

The EPC is a required document when a property's ownership or tenancy is being transferred.

## At what point in time must one create the energy performance certificate?

When a property is put up for sale or rent, an energy passport must be created in accordance with local law. This means that the passport must already be in existence when the ads are released to the media. Indeed, fines can be imposed for commercials that fail to mention the energy passport.

## How to Get an Energy Passport?

The Grand Ducal regulation regarding the energy performance of buildings was updated on November 30, 2017, and this regulation governs the EPC in Luxembourg. Experts such as architects and consulting engineers can issue it, but the full roster of experts recognized by the Ministry of Economy is available on the Grand Duchy's official website.

A professional can issue an energy performance certificate as part of their service. Therefore, the applicant will be responsible for the varying establishment fees depending on the nature of the interlocutor chosen.

## What does the EPC consist of?

The energy performance certificate rates the property from A (the best possible) to  (the worst possible). It states three separate facts:

- The requirement for primary energy;
- A high demand for heating;
- the release of carbon dioxide.

To quantify these three factors, many criteria are considered. For instance, the thermal isolation of the building is carefully examined, with special attention paid to wall thickness, roof insulation, and the presence or absence of thermal bridges. The effectiveness of heating and hot water provisioning systems, as well as the ventilation quality, are also taken into account.

You can legally sell today even if you are issued a poor-grade energy passport. Nothing in this document should be construed as obligating anyone to undertake any sort of renovation work. Nonetheless, prospective buyers might be deterred by this criterion, especially now that consumers are becoming more conscientious about their energy bills.

## Do you think the energy efficiency rating will help you sell the house?

The value of a home that requires a lot of energy to maintain will naturally be lower than that of a similarly constructed but well-insulated "low consumption" home (for the same surface area and characteristics). Since this data is required to be included in all real estate ads, it is frequently used by potential buyers when debating whether or not to schedule showings. Simply put, if the diagnosis isn't good, you'll need to lower the asking price or make repairs before you can expect to sell.



Obtaining an energy passport is mandatory prior to closing on a property

taking the stress out of the move.jpg

You've probably been under constant pressure ever since you started working on your financing package, signed the sales agreement, and applied for your loan until you finally closed on your home. The move is quickly approaching, and just when you think you're making progress through all the tedious administrative procedures, it's almost time to pack. Again, we recommend planning ahead as much as possible to avoid any hiccups.

## Get all of the major projects done before moving in

Do you want to replace the carpeting, paint the walls, or add more insulation to some of the rooms? Make sure you finish all of the remodeling you want to your new home before you move in.
Working in an empty house reduces the amount of time and effort required, saving you both time and money (since you pay for fewer labor hours).

_“A spokesman for the company said, "It is much easier to intervene in an empty dwelling: it represents a saving of time for the craftsmen, and thus an additional savings for you."_

In addition, the homeowners' routines are disrupted when work is done in their presence. Living in a home that is currently undergoing renovation is not a relaxing experience, as you may experience equipment downtime, having to vacate your home to allow professionals to complete their work, and water and/or power outages. That's why, before packing up to move, make sure everything of significance is done.

## Setting a moving date that works best for you

Know that the rates charged by movers change from time to time according to their own schedule if you're looking to book their services. They charge more during the peak season when demand is the highest, even though off-season quotes are more competitive overall. As such, if you need to relocate for work, try not to do so between May and September. Pick weekdays rather than weekends.

_It's best to delay a professional relocation until after the busiest summer months (May through September)._

When moving with loved ones, on the other hand, it's important to get in touch with everyone who can lend a hand and make a note of their availability. Seeing as how you'll need to be surrounded by people in order to move in without incident, don't be shy about recruiting as many of your friends and family members as possible, and try to schedule the big day on a weekend this time around.

## Whether you live in a house or an apartment building, you should alert your neighbors

If you're moving into a new home or apartment complex, it's polite to leave an apology note in each of the neighbors' mailboxes. For those who live in a residential area, the presence of a truck on the road may be a nuisance to those who are driving or walking, so any kind of warning is appreciated.
Take extra precautions in the building, as some tenants have put up covers to protect the elevators from vandalism. Do your research on the local moving regulations ahead of time to avoid any hassle and make sure you are in compliance.

You've just purchased a new house, so naturally you're thinking ahead to the future there. It's counterproductive to start off on the wrong foot with the people in your immediate vicinity, so making initial contact is a great way to meet new people in the area and lay the groundwork for fruitful relationships.

The real estate agency continues to be a dependable resource even during the moving process. They will be able to help you with the nuts and bolts, the paperwork, and the procedures.

Last but not least, it's important to know that in Luxembourg, it is standard practice to collect various types of trash (such as regular trash, cardboard, paper, glass, etc.) separately. Find out what the rules are by talking to your fellow residents.


Moving: taking the stress out of the move 

How to organize your showings to get your house sold quicker.jpg

The first visit is the most important of the many steps involved in selling a home. Everything the buyers experience will not only shape their opinion, but also have consequences for any potential negotiations that may follow. If you want to increase the likelihood that this meeting will result in a love affair within the first few minutes, careful planning and careful property arrangement are essential. Listed below are all of our suggestions for how you can better organize your visits and convince the most number of potential customers to make a purchase.

## It's important to get the house ready for guests

Your home or apartment shouldn't make guests feel cramped, dirty, or unkempt. Get there at least an hour before your appointment time. This will give you time to let the rooms air out, clean up the clutter (if the furniture is still present), and get them ready to show. If you're having a hard time increasing the property's value in time for showings, researching home-staging techniques may help you a great deal.

_Please arrive at the property one hour prior to the scheduled appointment time._

## Select a convenient time for a meeting

Based on the orientation of your living spaces, you probably have a good idea of when the sunlight is at its brightest. Guests should be greeted at these times, when the light is most pleasant. But don't let this helpful hint hamper your ability to adapt. Respect the buyer's authority, but be flexible if they're unable to be reached by phone during normal business hours.
Address the most frequently asked questions.

Your guests will inevitably have housing-related questions; this is not the time to feel vulnerable or anxious. They won't be able to put their faith in you unless you exude assurance. Create succinct explanations for the most frequently asked questions, such as how much it costs to heat, how big the lot is, when it was built, which way the rooms face, etc. If you notice that fresh queries are being posed, come up with a brand-new response to use in future instances. As you continue to interact with potential buyers, you'll develop a more targeted strategy and be better able to assuage their concerns.
 
_If you don't project an air of self-assurance, your connections won't feel comfortable entrusting you with anything._

## Welcome guests with open arms and let them stay as long as they like

Don't squeeze a viewing in between other commitments; if your prospective buyers are truly smitten, they may want to spend a lot of time there. You should give them as much time as they need to look over the property, ask questions, and revisit any areas they'd like. Take your time and don't give off any negative vibes that would make people think you just want to get this over with.

You will have realized that the viewing of a property is a pivotal stage that, if poorly orchestrated, can have a negative impact on both the seller and the prospective buyer. We suggest you hire a real estate agency to help you sell the house so that you can maximize the number of potential buyers who view it. They'll schedule the meetings for you and, as part of their duties, will make every effort to charm the prospective customers.


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