Belgian property prices are starting to lose the plot

13 comments

1. What’s wrong with “blatantly targeting” people of Lux?

2. >The property virus is spreading and there seems to be no cure!

   There is but you won’t like it: Higher interest rates. The ECB’s interest rates have been at or below 1% for 13 years (bar one or two exceptional excursion above 1%). Throw in quantitative easing ([https://www.ecb.europa.eu/ecb/educational/explainers/show-me/html/app_infographic.en.html](https://www.ecb.europa.eu/ecb/educational/explainers/show-me/html/app_infographic.en.html)) and you get massively increased asset values.

   If current inflation trends continue, then the ECB might not have a choice and increase their interest rates. Mind you, people will still be priced out of the market: If the prices don’t go down accordingly, then people will struggle to get mortgages (as monthly payments go up). If prices go down accordingly, then we’ll probably looking at a major crash and banks will tighten lending standards (i.e. you have to make more significant down payment and/or have more net income).

3. What’s surprising about this? Prices of houses in Luxembourg almost doubled in the last 10 years. We have a “maison mitoyenne” (so in the middle, English people would call it a “townhouse”. Luxembourgers used to look down on houses like that.). Cost new was about 750k€ (counting including kitchen and painting the rooms). That was in 2012 (03/2013 was when we could move in)
   A new construction, about a kilometer from our house, is a similar construction. Asking price of the middle one was 1.4mio€ (so, sans kitchen and painting). Granted, this one is in a calmer street and probably a class A+++ rating and material costs have exploded. Regardless, it’s the asking price and it was gone very quickly.

   While my better half and me make decent money for Luxembourg, we couldn’t afford a 1.4mio€ home if we wanted to. The 750k€ was already stretching it. This, however, means that ten years ago, people like us would still find a place to raise children in Luxembourg. Now, that is out of the question, and you have to go to .de. .fr and .be… Which increases demand there, and… obviously increases the prices. It’s really that simple.
   I personally do not know where they are going to keep finding people who can pay prices in Luxembourg. I am really curious to see who will end up in that 1.4mio€ house… if I ever meet them.

4. Yeah similar trend in German villages in the middle of nowhere. Apparently it’s pissing off the locals quite a bit as their children now have to move further out as they can’t compete with people having Lux salaries.

5. Attert is probably one of the most expensive commune along the border. Not suprising to see such prize

6. Belgians aren’t smart if they wouldn’t take advantage of this situation. Higher prices brings a sort of balance. As an Italian being born in Luxembourg and forced to move in Belgium to live there because of Luxembourgs Housing prices a few years ago, today it is even worst, i will forever curse Luxembourg until its a rotten place everyone hates. Got the house i could never afford in Luxembourg. Prices will go up anyway if a Luxemburger or Chinese etc moves in Belgium.. has no difference. Money has no race. Belgium is great, an lëtzebuerg ass dat aller lescht.

7. Never seen one of those random usernames fit so well to the topic at hand u/Necessary-Mortgage89 😂

8. The prices in Lux force people to look beyond the border, I guess this is inevitable but Belgian taxes are a different level! My wife and I were looking to buy last year but the increasing insanity of costs and long term debt (mortgaging into my 70s) was too much. I just can’t agree to a 1.5m mortgage on a compromised house that’s worse than the one we rent. We will rent for our time here and buy something in the meantime more enjoyable in mid / south France to rent out as a holiday let and eventually retire to for a fraction of the cost and with far more sunshine. If I’m lucky maybe I can remote work there in future but for now we want our kids to be educated here.

9. I think they’re just catfishing. Attert can be expensive based on what I checked, but in that price range you can find quite nice looking houses with big plots if you have patience. Maybe not that new, but this still looks like a better deal to me:

   [https://www.immoweb.be/en/classified/house/for-sale/attert/6717/9620314?searchId=61f822f692a67](https://www.immoweb.be/en/classified/house/for-sale/attert/6717/9620314?searchId=61f822f692a67)

   Otherwise, I don’t see what I’d pay 590k for that when a similar (surface, garden) can start at 330k, plus some taxes.

   [https://www.immoweb.be/en/classified/house/for-sale/attert/6717/9731268?searchId=61f822f692a67](https://www.immoweb.be/en/classified/house/for-sale/attert/6717/9731268?searchId=61f822f692a67)

   Or maybe it’s something very specific about its location in Attert, I’m just not that familiar with that area.

10. Absolutely..

11. Housing is becoming generally more expensive, literary *everywhere*, not only in Luxembourg!

12. I vomit often when i scroll athome. Will never pass the 75m2 barrier. I must try.

13. Considering the inflation is slowly increasing, there are chances of a rate hike which will make borrowing expensive and there by hopefully reduce the demand and bring down the house prices.
    Well a long chain of events and long time but there seems to be a likelihood of happening…