For entrepreneurs, specific matters apply when buying an owner-occupied home. An overview of the key steps and points of attention.
As an entrepreneur you have the option to buy an owner-occupied home. This process has much in common with that for people in salaried employment, but there are a few specific matters you need to take into account. In this article we provide an overview of the key steps and points of attention when buying a house as an entrepreneur in the Netherlands.
Preparation and orientation
It all begins with good preparation. Consider what kind of home you are looking for and what your budget is. That consists of your own funds and what you can borrow from a lender. As an entrepreneur you often have to provide more documentation than someone in salaried employment. Think of your annual accounts, tax returns for the past three years and an overview of your assets and debts. At deondernemershypotheek.nl we are able to draw up your income statement, unlike many other mortgage advisers. To do so, we always look beyond your payslip, and there may be more possible than you initially thought.
Mortgage application and documentation
Applying for a mortgage as an entrepreneur often requires extra documentation. This is because you cannot provide an employer's statement. Instead, the bank looks at your net profit over the past three years, using the average as your qualifying income. It is important to demonstrate a clear and consistent stream of income. Do you need help applying for a mortgage? Our experts are ready to help you.
As a starting entrepreneur it can be a little more complicated, because three years of financial data are not yet available. In this case the bank may ask for additional security or apply a stricter assessment policy. Are you a starting entrepreneur and do you have questions about the mortgage application? Contact us for a no-obligation conversation.
Special points of attention for entrepreneurs
If you buy a home with business premises, you need to pay close attention to how the property is divided. The tax and financing implications can differ. If the property can be structurally split, the residential and business parts can be financed and taxed separately. This can offer benefits, such as a tax deduction for the business part. Do you have questions about buying a home with business premises? Our advisers can help you with this.
Tax benefits and obligations
When buying an owner-occupied home you will encounter various tax aspects. Think of the notional rental value (eigenwoningforfait), which is added to your income, and the option to deduct mortgage interest. In addition, there are deductions such as the self-employed deduction and the option to deduct premiums for disability insurance (AOV). These can make a big difference in your tax return. Want to know more about the tax advantages of buying an owner-occupied home? Our mortgage advisers will point you in the right direction.
Costs and extras
In addition to the purchase price of the home, there are other costs to take into account, such as notary fees, valuation costs and any costs for a structural survey. Make sure you include these costs in your budget planning.
Conclusion
Buying an owner-occupied home as an entrepreneur offers the same opportunities as for someone in salaried employment, but it requires good preparation and insight into your financial situation. By providing the right documents and having a good understanding of the tax implications, you can successfully buy a home as an entrepreneur. It is advisable to consult a mortgage adviser who has experience with entrepreneurs to guide you through the process. Are you ready to take the next step and buy an owner-occupied home?
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