Financing a Rental Investment, How to Convince Belgian Banks?
Rental investments are the best real estate investments available on the market. Not only do they open the doors to tax breaks, but you could also reap the benefits of your investment quickly. Apartments, houses, luxury residences, or even commercial premises: you are spoiled for choice for different budgets. It remains to convince the banks to grant you the financing.
A loan simulation to start
To reassure the banks, and increase your chances of obtaining a loan, you will first have to go through a simulation. In particular, this will allow you to know the ideal borrowing conditions and the capital you can have with the bank.
The choice of capital to borrow is essential. This can have an impact on the cost of credit, but also on the acceptance of your request or not. Certainly, as part of a consumer loan, you may be entitled to 75,000 euros. But you must base your decision on your repayment capacity when choosing your loan. This will tend to reassure the bank.
Simulation is now a free and easy process. Some dedicated platforms can assist you in this regard and you can offer an objective result in a few minutes. The process is non-binding and can be done at any time.
Choosing bank insurance: a good idea
Despite the latest changes in borrower insurance, the accounting agencies in Saint-Gilles and Forest in Belgium advise you to opt for the offers given by the banks. For a few years, in fact, the borrower has been able to choose cover outside of the banking services. The objective of this new standard is to encourage competition in the market and thus allow borrowers to reduce the cost of their credit.
On the other hand, the banks are hardly reassured by the quality of the insurance offered by other companies. This can affect whether or not you get your loan. Indeed, the quality of care can be different.
In addition, opting for borrower insurance from banks can have additional benefits. In particular, you avoid a double process for the conclusion of the loan. You will only have to provide one document and supporting documents. What also accelerate credit applications.
Choosing the right investment to reassure banks
According to the accounting agencies in Forest or in Uccle, choosing the right subject for your financing can also have an impact on the success or not of your loan request. Indeed, if it presents the least risk of rental deficiency and the value of the property is insured, borrowing establishments will find it easier to grant you a loan.
To choose the best investment, the support of a real estate broker may be essential. All the characteristics of the property can indeed impact on its rental potential and therefore on its return in the long term. Examples include the location, area, environment of the property, etc. In particular, you must take into account your target audience and the type of tenant you intend to attract to be sure that you make the right choice.