House no longer good investment
6 August 2007, BRUSSELS – Up to 20 percent of small owner-landlords in Belgium are considering selling the homes from which they make a living. They feel the government is making things increasingly difficult for them.
6 August 2007
BRUSSELS – Up to 20 percent of small owner-landlords in Belgium are considering selling the homes from which they make a living. They feel the government is making things increasingly difficult for them.
"The energy certificate of EUR 250 which will be required at the sale of a house from next year is just another step towards more regulations," says Katelijne D'hauwers, director of the General Owners Association, which represents about 100,000 owners.
She says the new rental act, which came into effect on 1 January, has been the turning point. The rental security has been decreased from three to two months' rent. Many owners say that amount is insufficient to cover damage that has to be repaired when a tenant moves out.
The owners also see mandatory registration of rental contracts as a step towards taxing rental income. Until now tax has not been calculated on the yields from rentals but rather on the rateable value of the home.
The Confederation of Real Estate Developers says it sees the same trend: for 10 to 20 percent of "small" landlords the administrative regulations have become so demanding and the profit margin so narrow that they are considering selling their properties. As a result the rental market could become dominated by investment companies.
[Copyright Expatica News 2007]
Subject: Belgian news