All Forum Posts by: Tamar Oranje

@Ivor Grisel thank you for your reply! Thanks for explaining the abc deal. I will look further into this.

I have started to shift my mind toward keeping the deal.

The deal is good in my opinion, but its difficult to get comps. Since it is located in Middelburg, Zeeland. I didn’t find any recent sales in the area for these kind of properties. So i compared with deals on belegginspanden.nl. All current listings use ratio’s higher then 13.

The purchase-price: 850.000 and the net income of the property is 5900 a month.

The ratio : 12.

In 2014 there was a sale of a 8 unit student house in middelburg with a ratio of 12.1. The cash flow like this would be around 1000eu a month. I didnt take taxes into account but calculated for a property management company . I think that should save me from box 1, right?

I have some worries about the property since it has a relatively high m2 price, so if it would loose the license to function as a “kamerverhuurpand”, it would loose value. Not sure if the government can pull the license though.

Ivor, I remember you did a deal with kamerverhuur before. Did you ever think about this before? How would you deal with that?

Any other things i need to keep in mind if i continue with this deal?

Dear all,

I am a dutch engineer living in Taiwan. Started from last year september i started to focus on investing in realestate. I have been reading lots of books and keep listening to the podcast. After a few months of reading I decided the most important thing is to take action. Because i lived on the other side of the world, it was difficult to do walkthroughs and put out offers. Since then i have done 15 -20 walkthroughs and have put out 10-15 offers. Non of them were taken. But hey its a numbers game right, so i keep on going.

After a while the market got so hot that it is difficult to find deals on the market. So i switched to deals that are of the market. Thats when i found a great deal.

It is a legal rent by the room house(kamerverhuur pand). It has 14 rooms and a good cash flow. I think it would be an amazing deal to wholesale. Since i am at not in the Netherlands to deal with all the tenants moving in and out, the deal is not that interesting for me.

I was trying to google (in dutch) about wholesaling but couldn’t find any i formation. Is it legal to wholesale houses in the Netherlands?

Anyone has any experiences wholesaling in Netherlands?

Thanks everyone for your time!

Hi Johan, 

In my area there are some streets that have been build duplex style. So that means the whole street has upper/lower style duplexes with two front doors, some are being sold as condo's and some are being sold as duplex. 

You can check out Vlissingen badhuisstraat. 

Regards, 

Tamar

Hey Michael, 

I am sorry to hear about the bad experience with the realtor! It seems like you still made the deal work, so good job!

How did you find out the occupancy report was not cleared? is there anyway to check this before you sign? 

Regards,

Tamar

Thank you for sharing your knowledge with me!

I did some calculations, now with the correct calculator and found that when my mortgage crosses the WOZ value i will need to pay 578,- a year in tax. By then i should have a yearly cash flow of: 1851,- That is one third of my cashflow gone, but will still keep my head above water. 

Next to that i have a second plan which is renting out the summerhouse in the garden. I first need to buy a garage to be able to apply for the short-term rental permit, since i need to be able to provide parking space for the guests. This would increase the cashflow with 3113,- a year, unleveraged investment of 29.000,- But yeah i then of course also need to calculate for the garage as a box3 investment which will cost me an additional 334,- in taxes... 

To be honest i don't understand why they want to implement this new rule in Holland. It seems they want to discourage people to invest, and encourage them to keep their money on the bank. Which I think is bad for the economy. What is your opinion about this?

Ivor, 

Nice to read your experience! 

Congratulations on this deal!

@Ivor Grisel

Wow... thank you for this information!

Yes this makes me scared haha.

Do you have any investments at the moment? If so how are you going to deal with it?

Regards,

Tamar

@Ivor Grisel

Thank you for the information!

I did a calculation on the website, everything seems fine. I have a hard time finding the information about the changes coming up. Could you maybe give me a link to a website, or a short explanation what the new rules are going to be?

Regards,

Tamar

@Ivor Grisel

Hey Ivor,

I am not afraid of the tax since the house has a low WOZ ( tax value = 111.000,-). At the time i reach the limit that i need to pay tax, my yearly rent increases have set my cashflow higher.

Yes renting out the house has created bad feelings in the family.

After i rented out the house i was asked to sell it back to the previous owner.

I suggest people to be very careful to do business with family.

Regards,

Tamar

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $158,000
Cash invested: $15,000

My first investment property is located in The Netherlands it cash flows just above 100€ a month

What made you interested in investing in this type of deal?

Accidental, was intended as main residence but I ended up moving to Taiwan

How did you find this deal and how did you negotiate it?

Bought from family

How did you finance this deal?

Bank finance

How did you add value to the deal?

Clean it up and make it rent ready.

What was the outcome?

Cash flowing

Lessons learned? Challenges?

Never buy propert from family

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No agents used