Federal Coalition Agreement: How It Affects Your Real Estate Plans

It’s official! After nearly eight months of negotiations, the Arizona coalition is now a reality. The N-VA, CD&V, Vooruit, MR, and Les Engagés have finalized their agreement, and that means one thing: major changes are on the horizon for the real estate market. Of course, it remains to be seen exactly how this will play out in practice. 

Are you looking for your dream home? Are you thinking about renting or putting a property up for rent? Are you about to sell a property, or do you see real estate as a smart investment? Either way, this coalition agreement affects you. What are the main points? What will stay the same, and what do you need to keep in mind? Let’s break it down! 

For buyers: Is buying a home getting easier or more expensive?

Do you dream of buying a home? If so, there are a few things you should know.

✅ VAT reduction remains in effect for demolition and reconstruction
Good news: anyone purchasing a renovation project can still benefit from a reduced VAT rate of 6%. This can result in significant savings, especially if you’re looking for an energy-efficient home. Please note: social criteria, such as the requirement that this be your only home, still apply. Want to know more? Be sure to read this blog. 

⚠️ Mandatory condition precedent for your loan
From now on, every sales agreement must include a condition precedent regarding the approval of your mortgage loan. This means that, as a buyer, you are better protected if your loan is not approved. But be aware: this may affect the speed of real estate transactions.

💰 Affordable loans for energy-efficient homes
The government wants to make it more attractive to buy an energy-efficient home. In consultation with the National Bank, they are exploring how to offer mortgage loans with better terms for homes with a favorable EPC rating.

For tenants: What does this mean for your housing costs?

Are you renting a home? If so, you may have heard that there were calls to impose higher taxes on rental income. Good news: that didn’t happen .

🚀 No additional tax on rental properties
There will be no tax on actual rental income, which means that rental prices won’t face additional pressure—a smart move, given the already tight private rental market. 

🔥 Gas or oilheating? It’s getting more expensive
As a tenant, you may notice that your energy costs are rising. The VAT on oil and gas boilers is increasing from 6% to 21%, which means landlords are likely to switch to heat pumps or other sustainable solutions sooner. This could affect your energy bill.

For sellers: What changes if you want to sell your home?

Are you thinking about selling your home? The government is implementing a number of measures that could affect your sales strategy.

📄 New rules for sealed-bid auctions
Are you planning to sell your home through a sealed-bid auction? If so, stricter rules are being introduced to increase transparency. This means buyers will be better protected and there will be less chance of misunderstandings regarding the sale price.

🏡 Energy efficiency is more important than ever
The trend is clear: energy-efficient homes will have more advantages. So if you’re thinking about selling, investing in insulation or solar panels can make your home more attractive to buyers.

For landlords: impact on your return

Are you a landlord? If so, there are a few important changes you need to be aware of.

📉 No additional tax on rental income
Your rental income will continue to be taxed based on the assessed value, just as before, rather than on the actual rent. That’s good news, because it means your return on investment won’t be affected.

💡 Energy-efficient investments are becoming easier
Starting now, homeowners’ associations (HOAs) can make decisions about solar panels and charging stations more quickly and easily . This makes it more appealing to make your rental property more sustainable and potentially increase its value.

⚖️ Stronger consumer protection for lease agreements
The government is considering new rules to eliminate unfair lease clauses. This could affect how you draft your lease agreement, so it’s important to stay informed about these changes. To ensure that you always have a legally sound document, it’s recommended that you work with a professional.

For investors: Real estate remains an attractive option, but be aware of these changes

Are you a real estate investor, or are you considering purchasing a property to rent out? This coalition agreement includes several measures that could affect your strategy.

⚠️ Interest deduction for non-owner-occupied properties to be eliminated
Buying real estate as an investment is becoming slightly less attractive, as the federal interest deduction for non-owner-occupied properties is being eliminated. This means you’ll receive fewer tax benefits from a loan for a rental property.

📈 Heating with gas or heating oilis getting more expensive
As an investor, you should consider sustainable heating options. The VAT on heating oil and gas boilers is rising from 6% to 21%, while the VAT on heat pumps is dropping to 6% for the next 5 years. This could affect the costs of future renovations.

🏗️ Greater security for shell constructionand renovation projects
A legal protection scheme is being introduced for consumers who wish to renovate or purchase a shell property. This will ensure that investors and developers face less risk when developing new projects.

What’s your next move? Will you adapt to these changes proactively, or will you wait and see? Either way, real estate remains an exciting market! Have doubts, questions, or just want to bounce some ideas off someone? We’re here to answer all your real estate questions.