Whether you have just arrived in Luxembourg or have been living here for some time, buying property is probably on your mind this time of the year. With the Home and Living exhibition and the National Housing Week going on at Luxexpo The Box, it is difficult to think of anything else. Here are a few things to bear in mind when looking to buy property in Luxembourg:
Invest sooner rather than later
According to an ING survey in Luxembourg, 73% of expats would advise newcomers to purchase a house within five years of arriving in Luxembourg. Only 1 out of 10 recommend waiting for more than ten years. This is probably linked to the fact that according to another survey, 90% of Luxembourg residents expect housing prices to continue rising in the next twelve months – this figure has been consistent for some years.
It takes time to find the right property
Have you already started looking for your dream home? A couple of years ago, we asked Luxembourg residents how long they needed to find the property they bought: there were slight differences depending on where they were looking (centre, north, west, south, east) but on average at least one-third of respondents stated they had to look for more than one year before finding the property they bought. On the other hand, more than two-thirds made an offer within the week in order to secure their purchase!
Buying is a sound investment
An increasing percentage of Luxembourg residents declare that the country is not on a helpful trend when it comes to housing. This percentage has increased for the third year running from 49% in 2017 to 65% in 2019. The most commonly highlighted reason for this pessimistic view on the market is that residents believe that buying housing in Luxembourg is not affordable for most people today. Whereas for the people believing that housing is on the right path in Luxembourg, 69% believe that housing is a good investment. On top of that, the 2019 survey demonstrates that home ownership remains an important financial and personal goal: 8 in 10 Luxembourg residents agree that it is better to own than to rent, at least financially.
Don’t be afraid to ask
The same 2019 study showed that 90% of Luxembourg residents feel discouraged from buying because of high property prices. 75% said they fear taking on a lot of debt and 51% are afraid of interest rates changing while they have a loan. These are all very valid reasons to delay buying property in Luxembourg but there are ways to address these fears! One would be visiting the National Housing Week to learn about mortgage solutions and conditions to finance your future home!
Knowing that it will take time to find the perfect home for you and that you will have to decide fast when the time comes, why not get advice now on how much you can afford and what all the “other” costs involved in buying property are? We look forward to welcoming you at our stand!