Buying a coastal apartment: in which coastal resorts is it cheaper? How do you finance such a purchase? | MyGuide

Are you thinking of buying an apartment on the coast? Then it is better to provide a solid amount. The average price in 2021 (= latest figures from the coastal barometer) was €302,225. That was 7.5 percent more than the previous year. It got the cheapest prices in Westende, with an average price of €182,247. The most expensive was the Knokke with 589,022 euros.

Do you want your own cottage on the dam? You currently have to count on an average of €365,956. Although that ranges from €229,857 at De Panne to just over €1m at Knokke.

But not only the location plays a major role in the price, as well as the number of rooms. A one-bedroom dam apartment will cost an average of €215,809 in 2021. For a two-bedroom apartment, you have already paid an average of €358,021.

Myth or reality: Renting a house instead of buying it is wasted money?

If you are well enough, you can pay for the purchase out of your own pocket. If you are not or if you want to keep your money for other things, you will have to borrow a portion.

Borrowing for a second home is done in the same way as for your primary residence. This means that the bank will assess whether you have enough income to repay the loan. And it is likely that she will take a mortgage as collateral. This gives her the right to sell the property and use the proceeds to pay off the balance owed, if she doesn’t make your payments correctly. Given that you have several properties, you can also choose to file the mortgage on your main home.

Please note: Banks are not allowed to commit to a second residence as much as they are to commit to a primary residence. The National Bank required them to lend a maximum of 80 percent of the value of the property for this purpose. 10 percent of borrowers may go as high as 90 percent, but not higher than that. This is possible to get a loan for a family home.

advice: Here you will find an overview of the credit proposals that have recently been made to consumers.

A stroke of luck is that you also receive a tax relief for a second home loan. The first capital payment of €2,350 provides a 30 percent tax cut – that’s €705 for the full tranche – if you meet a number of conditions. And you can reduce your taxable real estate income with the interest paid.

Alert: These are the last months in which you can enjoy the tax savings for paying down principal. This will be canceled for loans taken from 2024 onwards. This also applies to the tax advantage of insurance premiums on the outstanding balance associated with this loan.

advice: Here you can request a number of quotes for outstanding balance insurance – without any obligation.

On the other hand, there are also some disadvantages associated with a second residency. First, you will be taxed more on your personal income tax return. The cadastral income you must declare is automatically increased by 40 percent. In addition, many cities and municipalities charge a tax on second residency.

Read more at Spaargids.be:

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