Buying property in Belgium

I’ve been warned that this posting shouldn’t be called “Buying Property in Belgium”, but rather, “Buying property in Brussels”. Apparently the laws are slightly different if you’re outside of the Brussels’ administrative area. So, for those not buying in Brussels, don’t use this is a hard and fast guide. In fact, for those who are buying in Brussels, don’t use it as a hard and fast guide either …

I’ll put the disclaimer here: I might have researched this reasonably thoroughly, but things change and I might still be wrong. So please don’t hold me responsible.

So … Kim Bah Lee’s guide to a Brussels-based Belgian property purchase:

1. Decide you want to buy a house.

Or an apartment. Or a shed. It’s a great time to buy here. Interest rates are still very low. If you’re planning on staying more than two years it’ll work out cheaper than renting. If you sell it again.

2. Budget.

You’ll have an idea from talking to folk about what you can get. You’ll know how much you can afford. Talk to the banks for a breakdown of what they’ll lend you. Figure in your savings. The banks will talk to anybody. Just give them a ring. Sketch in a 30 minute appointment for information purposes. At this point there’s very little point going to see more than one or two banks. You won’t know how much you want to borrow until you’ve found the place you want, but they’ll give you a pointer as to monthly repayments. Bear in mind that if it’s been twelve months since your last consultation, interest rates will already have changed. Also, the interest rates will be lower if you don’t borrow 100%. Belgian banks will lend you up to 125% of the price of the property, depending on your status. The more you borrow, the more it costs.

Taxes - rough guide - allow 13% for a property that’s been lived in before. Otherwise it’s about 22% (with VAT). The notary will tell you exactly how much. But this is a good guideline. Not exact. Not perfect, but a good bet.

3. Find a property.

Look at loads. Identify three or four areas of town you could see yourself living in and tell three or four agents. If you’re good about timing, you should be able to view three to four places in your lunch break alone. Also look at private buys through Immoweb and Vlan. I preferred using agents for the sheer convenience.

4. Once you’ve found somewhere you like …

… make an offer. Negotation is normal, but you’re not in a Turkish carpet-shop. Don’t expect much more than 5-10% off the asking price. Submit your offer in writing. Mention that the offer is valid for “x” days and that if they want to accept the offer they have to do so in writing as well.

5. Congratulations.

Your offer has been accepted. This is a good time to contact the banks and get a notary. Choose a notary on a friend’s recommendation. If you haven’t got friends, or you haven’t got friends who’ve got notaries, use mine. He’s very good.

The banks can be played off each other. Make appointments with four or five, never accept their offer at the first meeting, and show them the offers you’ve had from elsewhere. Figure in the other costs like obligatory insurance. We used a mortgage broker at the penultimate step, who scanned the market for the best offer he could find. We then took this back to the bank we wanted to deal with, and they bettered it by a few percentage points. You don’t need to actually get the mortgage at this point if you have your own money for the deposit. If you don’t have the deposit saved, you need to the mortgage already.

6. First signatures.

Your notary will get in touch with the seller’s notary and draw up the first contract - the compromis de vente.

Get your notary to have a look at it. He doesn’t need to be there when you sign. You’ll have to pay between five and ten percent of the purchase price at this stage. The notary will tell you exactly how much and the bank will give you a cheque for this amount. Don’t lose it. Sign the paperwork and get a receipt for the deposit. You’re now bound to buy. You’ve got a month to find a mortgage provider if you haven’t done already.

7. Paying the rest.

Once you’ve signed the mortgage agreement, you’ve got three months to complete the paperwork for the house. Tell the notary to prepare the acte finale. You will sign it, along with the seller and his legal representative. The bank will either transfer the cash to your notary, or you can carry an even bigger cheque with you. Again, don’t lose it.

7. Get the keys.

8. Move in.

NB - if you’re buying an unfinished construction you might only pay 80% or less of the total price when you sign the acte finale, depending on the stage of completion. The sellers will send you bills for the rest in dribs and drabs. You should organise a réception provisoire before taking possession of any new construction. Take an expert (ask the notary) to have a look at the place before they give you the keys. It’s a safeguard for you and a guarantee of workmanship. You’ve got a year to find fault with the building work …

It’s pretty straightforward. If you’re not sure, just ask the bank. Take each step at a time. Now start saving …