A third of landlords in Brussels are considering selling up in the next three years, citing mounting costs and legal obligations.
The findings come from a survey of 1,250 Belgians by KBC bank and market research company Ipsos. Overall, 16% of Belgians surveyed own a second home or investment property.
The survey found that 30% of second-home owners in Belgium want to sell their property within three years, while 23% of landlords feel the same.
For landlords in Brussels, the share of property owners who want to sell up rises to 32%. They cite reasons such as mounting legal obligations, renovation costs and annual charges.
The Confederation of Real Estate Professions (CIB) has previously warned that the number of properties available for rent in Brussels is in decline. They point to the winter moratorium, the preferential right and the changes to housing rental laws as factors that are "driving investors away".
Policies like the winter moratorium on evictions last year aim to protect tenants in the capital. More than 60% of Brussels residents are renters.
The cost of asset management
66% of landlords in Belgium own one property which they let out, while 22% own two investment properties. The remaining 12% own at least three rental properties. One in three have owned their property for more than 10 years.
As much as possible, landlords also try to manage their assets themselves: 59% arrange both the letting and management. Almost one in four use an agency for letting but manage the property by themselves while one in five landlords outsource both the letting and management of their properties.
Holiday homes abroad or on Belgian coast
Among second homeowners, properties abroad are more popular among Wallonia and Brussels residents, with Spain, France and Italy making up the top three destinations. Holiday homes abroad are less popular among property owners from Flanders, who particularly favour the Belgian coast when purchasing a second home.
Less than half (44%) of survey respondents say they rent their holiday homes with most lettings (46%) arranged using a commercial website like Airbnb or Booking.com.
Finding the money
When buying a second home or investment property, a quarter of Belgians took out a home loan for the full purchase amount; one in three did not take out a home loan at all when buying their property.
People who did not take out a home loan or who financed only part of the purchase price of their second home generally invested their own funds, while inheritances or gifts follow at some distance as the second source of finance.
According to KBC figures, the average total investment in a second property is €340,000. The average loan to finance a second property is €200,000.
