Real estate investment outside Luxembourg-City
Most investors would love to purchase a property in the capital of this tiny nation, but with prices exceeding the average Investors budget investors are left to look elsewhere. Here are our top areas to buy a rental property.
Residential properties are available all over the country and vary from single bedrooms to single family homes to multiple units under one roof properties. We have another blog and video which goes explains what types of properties are available on the Luxembourgish real estate market, therefore this article handles desirable locations alone.
- Walferdange
Located just a couple minutes North East from Luxembourg City this small municipality offers a short commute by either train, car and bus. Although the main road used to be congested a few years ago, nowadays the new highway connection between the north of Luxembourg and Kirchberg managed to appease the traffic situation considerably. Walferdange has recently seen many new developments pop-up and therefore is the number one investment are with many opportunities for both small and big budget investors.
- Steinfort
This small municipality nested right on the Belgian-Luxenbourgish border has recently been growing faster than expected due to the development of the nearby located Industrial and Activity Park of Grass. Not to mention it’s direct connection to the E25 highway which connects Luxembourg City and Arlon (Belgium). Steinfort used to have a rather rural feel, but with new developments by Giorgetti and Kuhn Construction called the Chamos du Soleil this small town has welcomed 21 Century living with open arms.
- Leudelange
Located on the A4 highway connecting Esch-sur-Alzette in the South with Luxembourg City, this area is incredible well connected to the E25 highway. Luxembourg City is just a stone throw away therefore making it an ideal location for both residential investors and commercial/office developers in the Am Bann industrial are. Its optimal lcation has attracted big Luxembourgish companies like Foyer Insurance, Lalux Insurance, Raiffeisen Bank, Arthur Welter Logistics and many more midsized and smaller companies. This prime location and ever growing industry has lead to a sharp increase in residential property demand and consequently real estate prices have risen in the last years.
- Mersch
This city located between Ettelbruck and Luxembourg City has recently seen a sharp riae in price simply due to a better connection due to the Northern Highway being opened. This city is an up and coming in our opinion which can offer Investors great appreciation rates on their properties. Many properties in this area are seated on large plots of land making them prime opportunities for new development projects.
- Junglinster
Although further away from Luxembourg City and not connected by highway, the country has big plans trying to develop this city by tram. Should this tram line come into existence in the foreseeable future then this area will inevitably become an interesting city for expats, simply due to the International Lycée of Junglinster. Furthermore the industrial zone offers shopping opportunities, which completes the package. Although still not seen as a prime investment area, it’s one to keep an eye on.
Are you looking for an investment? Do you wish to sell directly to an investor and avoid the common sales process? Get in touch with Michel Real Estate for a free consultation.
Many homeowners make the mistake of pricing their homes too high or too low. Surely, everyone wants to get the most out of the market for their property. That’s very understandable, nut using a recent sale as a comparable is the most common mistake we see. The thought pattern is always the same; ‘My neighbor/friend/family member has sold their house for X amount, so I should definitely be able to get X amount for my house.’ Three things to take into consideration. 1. That house is sold and thus no longer on the market. We obviously. This also means that this particular buyer, who has bought your neighbors’/friends’/family members’ home is no longer an active buyer. This buyer will not buy another similar property AGAIN. 2. Homes are not the same. They are similar but never identical. The home that you have been living in for the last 20 years has certain amenities, updates, decoration, technical specifications, garden furniture, and so on. At our agency we have even seen apartments with identical floorplans being sold at different prices simply because the furniture was different and the walls were painted with different colors. 3. You are the worst person to judge your home. Why? Because it’s your way of living, your stamp has been put on the property and what is convenient for you is a deal breaker for a potential buyer. That’s why most homeowners who chose to sell without an agent end up selling their property below market value, simply because they can’t evaluate their property correctly. Get you property estimated by a professional is the solution. Simple as that.
- Style
Your style is what suited you during your ‘stay’ in your home, but style is subjective. In order to circumvent this issue, as agency we ask our clients to update their property to a style which suits most buyers. We are aiming for a ‘vanilla flavor’, because everyone likes vanilla. Not everyone like pistachio or lemon. The goal is to update the property with a contemporary paintjob, uncluttering the rooms and removing personal items. Buyers must be able to imagine themselves living in your home, before ever making an offer.
- Negotiating out of emotion
Once an offer has come in, we often see sellers jump up out of excitement. When the offer comes in too lower than expected their excitement is replace by fury and disappointment. Let’s not forget that buyers are looking for a good deal and that seller want as much money as possible. Where sellers only have to sell and receive the money, buyers need to go through lengthy procedures with loan application, life insurances and pay off their mortgage for the following decades. Especially if these are younger buyers who have never bought or sold before, their emptions can run wild and stress levels are through the roof. Just knowing where both parties are coming from can help you, understand the others position and realize that offers aren’t made to spite or annoy you. Buyers make offers that seem reasonable to them. Take away your emotions at this stage. Difficult we know, but if you remain stoic for just a few days you can get a deal signed. If you don’t you might lose these buyers altogether.
- Time is not on your side
Sellers often underestimate the time it takes for a property to get an offer. Selling a property could take as much as 6 months to a year in a good market. Just because your neighbor sold to the first buyer, doesn’t mean that you will too. (Remember that this buyer is no longer in the market.) In most cases, if the market is stable, the marketing is on point and the price is within market limits, a sale is possible within 3 months. Add to those three months another 2-3 months to move from signed sales agreement to loan approval and finally notarial deed. To make it easier for you, think of the ultimate date that you wish to be in your current home and move in to your next home, count back 6 months from this date and you will have the starting date of your sale.
- There is no ideal buyer
How often have we heard from sellers that the buyers simply need to fall in love with their property. Oftentimes these arguments are translated into higher than average listing prices. In every market there is always one seller who simply thinks that their home is worth so much more than all the other homes out there. Consequently, their home will attract few showings, because it’s eliminated at the very beginning by potential buyers. If that one specific buyer is not on the market at that moment, doesn’t have the budget or has already signed elsewhere, we find ourselves with a proeprty that goes ‘stale’ on the market. No showings, no offers and the proeprty just sits there. Buyers will soon think that something might be wrong with the proeprty or that the sellers are just not realistic. By then the harm has already been done and the sellers can only start competing on price. Lowering their price over and over again until someone comes and brings an offer even below market value. The sellers have to accept or unlist their property to avoid further damage. We have a saying in real estate, that all properties are unique, but none are special and buyers aren’t fools.
We hope you liked this article and maybe you have questions or suggestions to help our blog answer more real estate issues. Please fill out our contact form and we will work our butt of to get that question answered. We’d love to help you grow.
