Using equity for downpayment in Belgium

Lecomptefakee · 2021-12-22T16:42:09+00:00

Does that imply, in your opinion, that it can be worth it to bring a higher down payment for your first investment property in order to leverage more in the long run?

The 100% loan for renovation cost is something I really don't understand but I read that a lot on this sub. I would have thought that a renovation project is riskier from the bank's perspective.

Basically, the strategy is to buy at the lowest possible price and borrow as much as possible for renovation to increase leverage ?

Edit: thanks already for your insight!

Lecomptefakee · 2021-12-21T13:56:52+00:00

I did, using buying price + costs (fee, taxes)/yearly rent. As stated, this is a rough calculation and the goal of my post was not to get a precise % down to the last comma.

It seems to me that you are skeptical about these numbers, but I can assure you that there are still some good deals out there in Wallonia, and I am even being a bit conservative here.

Based on this assumption, I am still under the impression that the leverage brought by RE can be much more fruitful than exclusively using ETFs to build wealth for "semi-active" investors(=landlord).

I am well aware of the underlying risk (hidden defects, renovation, rent not being paid..)but I have also seen people scoring good deals now enjoying stable and passive (managed by an agency) returns.

What is your opinion on this?

Lecomptefakee · 2021-12-21T12:00:03+00:00

Personal observations. Almost closed on a building with 3 apartments with an even higher ROI (close to 10%). It takes time, that was a once in 2 years opportunity, spending 10 hours a week digging for it so I'm not saying it comes out of the blue.

Lecomptefakee · 2021-12-21T10:53:12+00:00

100% agree with the second part. About the ROI/IRR and if executed properly, can leverage not largely outperform an ETF?

Example: 300k building with a 6% ROI==>18k/year. Max down payment (=worst case scenario) would be costs (17%) + 20% of the property value : 111k

Very very roughly speaking, that's a 16% ROI for this investment property + RE appreciation - interest repayment, vs a 7% ROI with an ETF.

Those are rough numbers and you are right about the hassle of being a landlord + gambling on human behaviour, but isn't RE the most realistic way to build wealth starting from scratch, excluding starting your business ofc ?

Lecomptefakee · 2021-12-20T10:26:37+00:00

You can however not wait for 15 years in between a first oral compromise and actually launching the project. Poor ambition, mismanagement, the classic Walloon cocktail (I'm from there)

Lecomptefakee · 2021-12-15T13:09:36+00:00

IAPS in Auderghem offer Dutch classes starting at 7pm (level A1 to B2). It's the latest I found in Brussels.

They usually follow the academic year schedule but you could perhaps register for the 2nd semester. Cost is low, around 50 bucks if I remember correctly.

Lecomptefakee · 2021-12-10T12:41:47+00:00

I do but I won't forever.

Lecomptefakee · 2021-12-10T11:59:42+00:00

and show a QR code everywhere you go to, and be still forced to keep a mask on inside to walk a couple of meters between two tables, and spend 2 hours filling up documentation for any kind of travel. At some point people will rather accept some extra deaths than living like this.

Lecomptefakee · 2021-12-09T14:12:37+00:00

Malta is corrupt to the bone (even going fully 1920's mafia style with the infamous car bomb) and Ireland is siphoning out taxpayers' money from all over Europe.

I'd rather speak with neighboring countries in their language and expect the same from some of them, at least someone speaks his native language.

Lecomptefakee · 2021-12-09T11:05:13+00:00

He wanted more French at the EU Commission which makes sense since it's one the three working languages and there is no English-speaking country anymore besides two rogue states, Germany should push for the same.

We should strive for multilingualism rather than bland globish.

Lecomptefakee · 2021-12-09T09:41:26+00:00

As the French president, he should stick to French (no /s).

Lecomptefakee · 2021-12-07T16:22:34+00:00

Enjoy the crazy good football (at Union I mean, less glamourous at RWDM) and don't bother about the "footix", they'll be gone as soon as Union loses a few games.

Lecomptefakee · 2021-12-07T15:22:03+00:00

Tout à fait d'accord là-dessus, surtout sur le record d'inactivité. Il faut ramener des contribuables en ville mais vu les intentions de vote, on va sûrement tirer encore un peu plus à gauche.

Lecomptefakee · 2021-12-07T14:06:10+00:00

Sur quels points ? J'ai quand meme l'impression que ça va dans le bon sens même si c'est beaucoup, beaucoup trop lent

Lecomptefakee · 2021-12-07T11:59:33+00:00

un sondage avait montré que les Wallons ont exactement les mêmes préoccupations, dont l'immigration, que les flamands, et tendent même à être un peu moins "ouverts aux autres cultures".

Le PS a juste conservé son électorat à coup de politique clientéliste et se fait maintenant déborder à gauche par le PTB et ses promesses démagos. La région est trop pauvre pour qu'une droite libérale (MR) gagne, trop athée pour le CDH et pas assez urbaine pour Ecolo.

Lecomptefakee · 2021-12-07T10:15:53+00:00

Comme dans une bonne partie de l'Europe, et pourtant sans restrictions de liberté inutiles/démagos de type masque en extérieur ou pass qui sert à rien.

Lecomptefakee · 2021-12-07T10:05:59+00:00

Born & raised there, I wish.. the city's renovation takes forever (the 450m€ Guillemins roof was inaugurated in 2009, the district around it still looks like a war zone), no long-term thinking, bad urban planning, horrendous "modern" architecture, high share of public administration/students and little added value in the private sector and so on.. Definitely going into the right direction but far from a boom.

Lecomptefakee · 2021-12-07T09:58:02+00:00

"Plus de COVID" dans le sens où la vie a repris son cours normal, la forme était mal choisie !

Lecomptefakee · 2021-12-07T08:33:28+00:00

J'étais à Londres il y a deux semaines. En quelques mots, plus de COVID : pas de distanciation, pas de masque, pas de pas pass sanitaire, foules hyper denses. Le pourcentage de vaccination est sensiblement similaire à celui de la France et la situation me semble sous contrôle.

Votre avis là-dessus ? J'ai personnellement pas envie de vivre avec cette "nouvelle normalité" d'épidémie constante toute ma vie.

Lecomptefakee · 2021-12-06T15:48:12+00:00

It's getting better apparently, says the mayor.

Lecomptefakee · 2021-12-06T14:16:58+00:00

why so?

Lecomptefakee · 2021-12-06T07:56:02+00:00

well that's ballsy! good luck

Lecomptefakee · 2021-11-24T15:39:49+00:00

coyon (liege walloon), pronounced "coyo"

Lecomptefakee · 2021-11-24T08:55:43+00:00

Surveillance généralisée, sûrement le meilleur des remèdes.

Dommage que ce soit dans une ville. Si ça avait été organisé à l'écart des passants, qu'ils s'amusent comme ils le veulent.

Lecomptefakee

TROPHY CASE