Private investors are active in the Rotterdam neighborhoods of Charlois, Delfshaven and Feijenoord may have several reasons.
Here are some possible explanations:
1. Price level:
These neighborhoods may have properties that are more affordable compared to other parts of the city. This can attract investors looking for value-for-money opportunities.
2. Potential for value appreciation:
Investors are often interested in areas with potential for value appreciation. If there are plans for urban development, infrastructure improvements or other positive changes, this can contribute to the attractiveness of the property.
3. Rental market:
Demand for rental properties in these neighborhoods can be high, so investors may be interested in purchasing properties for rental purposes. An active rental market can provide a stable income stream.
Investing in different neighborhoods can contribute to the diversification of investors’ real estate portfolio. This allows them to spread risks and reduce exposure to one specific market.
5. Rising Popularity:
If these neighborhoods attract attention for their unique features, culture, or other positive aspects, investors can anticipate growing demand for real estate in these areas.
It is important for investors to conduct a thorough market analysis and consider local trends, regulations and potential risks before deciding to invest. Collaboration with local real estate experts can also be valuable in understanding the specifics of each neighborhood.
Investors avoid 8% transfer tax
Room Rotterdam Real Estate, as a purchasing agent, assists private investors in purchasing homes for rental purposes. Many investors reportedly anticipated the increase in transfer tax as of January 1, 2021 in 2020 by purchasing homes and taking advantage of the lower rate. This has led to an increase in the number of homes purchased by private investors throughout the Netherlands.
The share of private investors in the housing market is substantial, with approximately 679,015 homes in the Netherlands owned by private investors. In cities such as Rotterdam, Amsterdam, The Hague and Utrecht, this share is reportedly even higher.
The information indicates that investors were more active in purchasing homes compared to first-time buyers, possibly due to the tax changes. According to the text, first-time buyers under the age of 34 would have waited until after January 1, 2021 to benefit from the transfer tax exemption when purchasing their first home.
If you have specific questions or would like additional information about the real estate market in Rotterdam, you can contact Room Rotterdam Real Estate or other local real estate experts.
The adjusted policy on transfer tax, designed to give regular home buyers a better chance compared to investors, has meant that private investors are sometimes forced to bid higher due to the current market conditions. An investor in The Hague indicates that they calculate in advance what the return will be and only offer high if it is still profitable.
Research by the Land Registry shows that private investors and first-time buyers do not necessarily stand in each other’s way. They often focus on different housing segments, especially in student cities such as Rotterdam. Private investors in these cities tend to buy small apartments, which is a growing trend. The number of private transactions and their share in total housing transactions have increased.
The phenomenon leads to a higher average house price in certain neighborhoods, especially because private investors are more likely to purchase homes from owner-occupiers. Market forces and the growing popularity of investments by private indviduals in student cities play a role in this.
Private investors are often more active in specific neighborhoods, and in Rotterdam the focus is on neighborhoods such as Charlois, Delfshaven, Feijenoord, Kralingen-Crooswijk and Noord. The share of private investors in these Rotterdam neighborhoods varies between more than 30% and almost 50%. Room Rotterdam Real Estate’s advice to mainly purchase in the South and around Delfshaven seems to be inspired by the potential in these areas.
Current housing crisis
Here are some common elements that can contribute to what people consider a housing crisis:
1. Housing shortage:
There is a shortage of affordable housing in many regions worldwide. This shortage could lead to rising house prices and make it difficult for people to find suitable housing.
2. Price increases:
Strong price increases on the housing market can make it difficult for many people, especially first-time buyers, to buy a home. This can hinder access to the housing market.
3. High rental prices:
In some areas, rents have risen sharply, making it difficult for renters to find affordable housing.
4. Rising mortgage rates:
If interest rates on mortgages rise, it could increase the cost of borrowing and affect housing affordability.
5. Economic uncertainty:
Economic factors, such as recessions or uncertainty in the labor market, can affect the real estate market and make it difficult for people to purchase homes.
6. Pandemic Effects:
The COVID-19 pandemic has impacted the real estate market worldwide, with changing housing preferences, disruptions in the construction industry and economic uncertainty.
7. Investor influence:
In some markets, private investors can play a big role, making it harder for regular homebuyers to compete.
The specific nature and severity of the housing crisis varies widely by region and depends on various local and national factors. Governments and policymakers often take measures to address these challenges and promote a healthy and accessible housing market.
Please feel free to contact us if you are interested in purchasing homes as an investment. We are a purchasing agent, rental agent, manager, investment specialist and appraiser. We strive for maximum returns for our customers.