Recovering housing market
Every day we read the headlines about how the housing market is recovering well, prices are on the rise, and record numbers of homes are being sold. You hear the same wherever you go. Particularly over the last year many records were broken. With 200,000 homes currently still needing to be built, the housing construction market has a ways to go yet. That would even be an understatement. According to Statistics Netherlands, the population of the Netherlands will grow by one million until 2040, while the number of people per household will decrease. That means many more homes are needed. The number of households will continue to grow practically everywhere.
80.000 homes
In order to be able to meet this significant demand, at least 80,000 homes will need to be added annually. Municipal governments are at their wits’ end and checking everywhere for areas where housing can be built. It is logical to expect that a lot of areas in the Netherlands will be rezoned from agricultural use in the near future in order to make development possible.
In part due to that, the Dutch House of Representatives approved the Omgevingswet (Environment and Planning Act) with a large majority on 1 July 2015. The government hopes to use this law to simplify and consolidate the rules for spatial planning. That could make it possible to start building projects in the future, for example. The Crisis- en Herstelwet (CHW – Crisis and Recovery Act) has already made this possible. For instance by modifying existing regulations. It is expected that the Environment and Planning Act will go into effect in 2018.
Anticipate
By anticipating now and taking positions at strategic locations in areas where a lot of building is necessary in the coming years, you can protect your wealth and benefit from an interesting return on investment.
TK Vastgoed offers affordable plots of agricultural land which have been carefully selected by experts. Because of their strategic location (infrastructure, history, housing demand, etc.), they could be eligible for development in the future. The selected areas of land will be turned into smaller plots (starting at 250m²) and sold to private and professional investors.
The advantages of investing in plots of land:
- The supply of land is limited, the demand will continue to grow.
- Land is still affordable for the moment, starting at a few euros per m².
- Land is taxed at 1.2% of the average value per year.
- No profit tax.
- Land is tangible.
- Land can be freely traded.
- Land prices are barely affected by the economic cycle.
You can decide the size of your investment. For instance, you could choose to buy a small plot in multiple projects. That way, you can spread out your chances at concrete developments. Your plot of land will be safely registered in your name per notarial deed. This puts investing in land within everyone’s reach and very interesting for both small and large investors.