In order to protect starters, homes with a property value of up to 512,000 can soon no longer be bought to be rented out. Matthijs Korevaar, Assistant Professor in Finance, Real Estate and Economic History at Erasmus School of Economics, says in an interview with Het Parool that this will give starters an advantage on the home market.
Korevaar did research on the evolution of the housing market. According to him, the new measure could do what the city council had in mind: give house hunters a better chance on the housing market than commercial investors. 'It may be that the price development of homes that fall below the limit will be inhibited,' he says.
'What you will see, however, is that homes with a property value of more than that 512,000 will become even more interesting for investors,' says Korevaar. According to him, investors will now target precisely those homes, which may cause prices to rise further there. ‘If investors have a required gross return of 3.5% per year, for example, properties with a total rental income of more than 1500 euros per month could still be profitable.’
‘If it all goes through, Amsterdam will have to take a good look at the implementation. Won't homes be merged in order to get above 512,000 euros? Won't you end up with little packages of houses? And what you see a lot in Amsterdam: these real investment properties are often sold as a ground floor apartment with two floors above. These are always priced around a million,' says Korevaar in Het Parool.
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The article from Het Parool, 4 November 2021, can be downloaded above (in Dutch).
