Do you have plans of moving to Luxembourg? Then finding accommodation that matches your preference should be your main agenda. You must start by finding a place that is comfortable and suits your needs. Renting or purchasing a house in Luxembourg? The decision is up to you and it also depends on the costs involved.
What you will love about Luxembourg is its robust economy as well as outstanding living standards. Located at the heart of Western Europe, Luxembourg takes the lead in the real estate market which is thriving. That means if you move to this country you will have many options to choose from in matters of housing and renting.
Surprisingly a big portion of Luxembourg’s population is composed of foreign workers. Many of them choose shared accommodation while others prefer living alone. This is why rental apartments are quite popular in Luxembourg over family houses.
Renting in Luxembourg
As a foreigner moving to Luxembourg, the best choice would be to opt for rental accommodation. The best part is apartments are more common in Luxembourg. For those looking for short-term stay accommodation, hotels will come in handy.
When renting in Luxembourg City, it is best to work with estate agents. This is because almost every homeowner rents their property through estate agents. You can also look for available houses for rent in local newspapers or on agency websites. Basically, the real estate agents will make your work easier.
It is important to be aware that accommodation in Luxembourg does not come furnished. However, in instances where you find furnished accommodation, the landlord should provide an inventory report. Besides that, get to know about electricity and heating in Luxembourg especially if it’s the tenant to bear the utility costs or it’s the landlord.
Understanding the process of renting in Luxembourg
Finding the right accommodation in a foreign country is not an easy task. Therefore, you may consider liaising with a relocation agency to make the process much easier. The moment you find the right accommodation, you will be at peace.
When you find the house you want to rent, you will have to pay a security deposit. This is done upfront and is normally approximately two months’ rent. This deposit is sent into an escrow account and is not to be touched. It remains in the account till the time you and the landlord agree in one accord to withdraw it. Therefore, when moving to a new apartment or house, ensure that you have 3 months rent.
Furthermore, the landlord should provide you with a lease agreement that you are to sign. After that, you move in and then together with the landlord ascertain the condition of the property. Be keen to point out any damages or repairs. This will go a long way to ensure you don’t incur charges for any damages when the time comes for you to leave.
Owning a home in Luxembourg
If you are the kind of person that believes in owning a home rather than renting, you are in the right place. Luxembourg offers all kinds of housing that you can choose from. It is important to note that house prices in Luxembourg are high meaning they may go beyond your budget.
If you are looking for pocket-friendly housing, go to the northern part of Luxembourg. The prices are not as you will find in the Canton of Luxembourg. You can also take advantage of the government’s numerous assistance schemes that come in handy when purchasing a home.
Once you identify the house that matches your taste, you have to sign a property purchase agreement. This agreement is between the tenant and the homeowner in Luxembourg. Both parties sign to show that the contract legally binds them.
Home purchasing charges
Purchasing a home in Luxembourg will prompt you to spend more than you had anticipated. Let us go over some of the charges you may incur when purchasing a home.
Estate agent fees
Estate agents are business people which is why they obtain a permit to operate in Luxembourg. Because they are in business, you have to pay for their services. Before engaging with an estate agent, understand their fees to ensure you don’t end up overspending.
When buying a home in Luxembourg you will need to pay registration fees. These are the highest in the whole process. Normally, the calculation of the fees is on the general value of the whole transaction.
If you are purchasing a house via mortgage in Luxembourg, you will pay mortgage fees. Generally, the composition application fees, advance fees as well as account handling charges. Most of the time, the bank will include the fees in the rate of interest you will eventually pay on the mortgage.
You cannot buy a house in Luxembourg without having a notary (solicitor). The purpose of the notary is to oversee every little detail of the legal aspects of the purchase process. That is where notary fees come in. The fee is normally about 1.5% of the property’s price.
Once you buy a house with a mortgage, you will need to take out payment insurance as the lender instructs. This is part of your contract and you should handle it before you move into the house. therefore, when purchasing a house in Luxembourg, you need to remember this. Also, do not accept offers from your mortgage lender before you shop around first.