Why do Belgians buy a house in a Dutch border area?

Belgians living on the border with the Netherlands are sometimes tempted to buy a house from our northern neighbors. It is cheaper to buy property there.

In the news: In an article by L the morning We read that more and more Belgians are settling in Potte, a divided municipality on the Belgian-Dutch border.

• The number of citizens moving to Butte is remarkably large. About five hundred of them have attempted to cross in the past five years. Therefore, they represent a third of the population of the northern part of the village, which numbers about 4,000 people.
• They don't do it because it's more fun in Holland. No, many citizens do this for financial reasons. For example, with our northern neighbors, you only have to finance 5 percent of a home purchase yourself. According to the National Bank of Belgium (NBB) guidelines, in most cases, lenders may only grant a loan if the share (the ratio between the loan amount and the current value of the house) is a maximum of 80 to 90 percent. .
• “With less than 5,000 euros on hand, to cover notary and bank costs, you can already make that big step here,” points out real estate agent Jan Kees Vedder in an interview with HLN.be.
• Furthermore, the interest paid is tax deductible in the Netherlands.
  • There is no longer a tax advantage in Flanders. The Flemish housing bonus was abolished in 2020. The registration fee was then reduced to 6 percent for those who buy their own and only home. This was followed by a new tax cut a few years later. Anyone who buys their own home today pays a 3 percent registration fee. The rate has risen from 10 to 12 percent for those purchasing a second home.
  • The father adds that anyone under the age of 35 does not have to pay a transfer tax – similar to the registration fee in our country – up to a purchase amount of up to 510,000 euros.

Flanders wants to help young people buy a home (in their area).

I noticed: Housing affordability in Flanders, and Belgium in general, has been a topic of debate for some time. While real estate prices are falling in many other countries due to high interest rates, they continue to rise in our country. This means that young people in particular find it difficult to buy a home.

• To help young people with this, the Flemish government recently proposed a Flemish housing guarantee. If the share is higher than 90 percent, the government will guarantee the percentage exceeding the 90 percent threshold. The deposit amounts to 90 percent of this surplus. This scheme normally comes into force on 1 January 2025. This guarantee is supposed to encourage banks to give a mortgage loan to people who are buying a first home.
• the details: Not everyone is eligible for the Flemish housing guarantee.
  • Initially, this scheme is only available to those who have never bought a home before.
  • Additionally, this only applies to new loans, not existing loans.
  • The purchase value of the house is limited to 434,830 euros.
  • In addition, the warranty period is limited to the first five years.
  • The Flemish government estimates that approximately 5,000 loans qualify for the guarantee.

Do you want to stay up to date with everything happening in the financial world? Niels Silence, a journalist with a passion for finance, follows everything closely. during this link You can subscribe to his daily newsletter.