Rent out a house

You might consider renting out your current house, or perhaps you have seen a beautiful property that you would like to buy for rental purposes. Having an investment property could be very lucrative. You generate a monthly recurring income and extra return if the value of the property increases. We are happy to help you and identify your rental possibilities.

Welcome to A&H Finance
Next house

Rent out your current house

When you are looking for your next house, and you don’t need the equity of this house to buy the new one. You might consider keeping your current one to rent out. A way to gain return of your capital.

First house

Buy a house for rental

Do you have a considerable amount of equity in your current house? Or would you like to yield savings? The purchase of investment property could be an solution. We are happy to assist you with a rental mortgage or second mortgage.

Personal guidance

When buying or keeping a house for rental, there are more factors you need to keep into account than you originally might have thought of. There will be fiscal aspects that should be considered, but also multiple options when choosing the correct mortgage provider.

The financial advisors of A&H Finance will personally guide you, in order to make sure you can enjoy your investment in the long run.

The best mortgage for your situation

Frequently asked questions rental mortgage

Ownership of a second home is considered as an asset. A notional yield is calculated on the asset value of the property (based on the so-called 'leegwaarderatio', or 'vacancy rate', which is 6.17% in 2023). Tax is then levied on this notional yield (at a rate of 32% in 2023).

To calculate the tax payable, you can follow these steps:

Step 1
Find the WOZ (real estate valuation) value on the notice issued by the municipality. The WOZ value can usually also be found online via the WOZ valuation portal.

Step 2
Calculate the annual rental value by multiplying the monthly rental value at the beginning of the calendar year by 12.
For example, if the monthly rental value at the beginning of the year is €600, then the annual rental value is (12 x €600) = €7,200.

Step 3
Calculate the percentage that reflects the ratio of the annual rental value to the WOZ value by dividing the annual rental value by the WOZ value and then multiplying by 100.
For example, if the WOZ value is €250,000 and the annual rental value is €7,200, then the percentage is (€7,200 / €250,000) x 100 = 2.88%.

Step 4
Find the result from step 3 in the table for the relevant year.
For example, if the percentage falls between 2% and 3%, the vacancy rate is 84% (in 2023).

Step 5
Calculate the value of the rented property by multiplying the WOZ value by the vacancy rate.
For example, if the vacancy rate is 84% and the WOZ value is €250,000, then the value of the rented property is €210,000.

Step 6
A notional yield is then calculated on the value of the rented property (6.17% in 2023). Tax is then levied on this notional yield (at a rate of 32% in 2023).
For a property with a WOZ value of €250,000 and annual rental income of €7,200, the asset value for tax purposes is determined by the Tax Authority to be €210,000. The notional yield is €12,957 (€210,000 x 6.17%). The tax payable is €4,146 (€12,957 x 32%). The rental income received is not subject to tax.

No, the rental incomes you receive are not taxed. However, owning a second home is seen as wealth. You pay taxes on this in box 3. See also: "How much tax do I pay for my rental property".

It may seem attractive to buy a second home for rental as an alternative to the limited returns that banks currently offer on savings. However, it is important to emphasize that buying a second home depends on your personal situation and that it is always wise to seek professional advice from our advisors.

In addition, it is essential to remember that having a second home means that your money is tied up in bricks and is only available through sale or mortgage increase. It is therefore crucial to always maintain a financial buffer for unforeseen expenses. Also, consider the possible fluctuations in market prices as this can affect the value of your investment. Again, depending on your personal situation, professional advice is always necessary.