What to concern when Investing in a buy-to-let property?

Whether in the Netherlands or in China, real estate investment has become the first choice for many people. However, before making any investment decision, you may need to have a better understanding of your investment objectives. 

 

In order to help the investors to quickly understand the buy-to-let property purchasing process and renovation tips, Connect Now organized an on-site workshop with our partner from EMW in the location of an investment apartment.

Mao Chen

Partner and Registered Architect, Studio EMW

What is the purpose of buying an investment property?

Of course, it is:

Making money!

Well, the difference between commercial and self- living housing is clear,

ROI!

How to calculate the ROI? A widely used formula for your reference:

How to raise the rent? How to reduce the "total expenditure"  what are the criteria to measure the good and bad properties to invests.

The following elements will impact the renting income:

- The average renting income in the same city +++

- The average renting income in the same districts

- Apartment type, number of rooms +++

- with basic furniture ++

- tenants who have stable company budgets.

Please do some studies, to find out what are the potential districts. Accessing to allecijfers.nl might be helpful.

How to reduce Total Expenditure?

Many friends are only concerned about the cost of buying a house, however, we must consider the cost of renovation, house with poor foundation seems the cost is much lower, but the high cost of renovation will follow.

The overall cost shall be considered

- Overall renting rate in that area

- VVE  fee

- The foundation of ventilation, moisture, heating, kitchen, and bath decoration, etc

 

Connect now speaker suggests that the inspection is needed to avoid the hidden dangers.

Few tips on the interior design to increase the rental income from 50-100 euros/month without cost fortune.

- Clean and tidy, do not use exaggerated colors

- Furniture selection must be cheap or durable, IKEA is good!

- Floor carpet, floor pad or composite floor

- Careful wall painting: it is recommended to use wallpaper or spray

- Basic white goods: refrigerators, washing machines, etc.

- Do not use embedded furniture

Through the detailed explanation of the speaker, we use the theoretical knowledge to conduct a 360-degree tour of the apartment. No dead angle inspection, the geographical location, traffic area, room layout, decoration, heating and ventilation and so on.

Study hard

Thanks to all the guests for their participation. Wish you all success and happiness in your investment journey!