Probably not the first country that springs to mind for investment property or even a holiday or second Home, however that said, many property experts believe that Luxembourg offers great opportunities for property investment growth. The Grand Duchy of Luxembourg is a relatively small landlocked country situated in Western Europe, it shares borders with Belgium & France & Germany. With a population of around five hundred thousand, the country has a highly developed economy, it has the worlds highest Gross Domestic Product per capita. Research has suggested that the countries which see the greatest property price growth are those with a good percentage rate GDP growth, as well as a population growth, Luxembourg certainly ticks all the right boxes on these counts. Despite it’s relatively small size and the fact that Luxembourg is a country that literally developed around it’s capital city of the same name it is divided in to twelve areas or cantons; Capellen, Clervaux, Diekirch, Esch, Echternach, Grevenmacher, Luxembourg, Mersch, Redange, Remich, Vianden and Wiltz.
The north of Luxembourg forms part of the Ardennes whilst the south is mainly rolling farmland. The Moselle valley with it’s well known vineyards is to the east and most of the industrial output comes from the South, this includes iron and coal mining. The climate of the country can best be described as temperate, winters are mild and summers are cool. The landscape is fairly mountainous and this is reflected in it’s interesting and varied architecture. You will find plenty of castles, park homes and plenty of timber chalets as well.
Holiday Home Insurance for Property in Luxembourg – If you are interested in buying property in Luxembourg, you will now be able to obtain insurance from the United Kingdom in respect of holiday homes and second homes. The type of cover available will vary from policy to policy but you should be able to obtain a broad range of perils which will include liability insurance cover. As well as your standard dwelling house made of bricks or stone, insurance for log cabins or timber chalets is also available for property in this country. Because of the healthy rental markets, you may consider acquiring a property as a buy to let. This type of long term rental may be subject to various rules and regulations as with holiday lets, before allowing tenants to occupy your property, you should speak to your solicitor who can alert you to any legal requirements.
Buying a Holiday Home Insurance in Luxembourg – Although not seem as one of the European property hot spots, many people believe that this is a good country to be buying property in and certainly it is a very safe place to do so. Despite it’s small size and current population, it has become an important international financial centre and acts as the capital for European monetary policy with overseas residents representing over 30% of the population. There is thus a healthy buy to let market especially in the capital Luxembourg city. Although the surrounding countryside is easy to reach many purchasers of holiday or second homes prefer to live in the capital city with it’s various attractions. The city boasts a large array of historical and cultural sights and there are plenty of good quality shops and restaurants. This is actually one European country where the population is increasing and it is anticipated that as the EEC expands so will Luxembourg’s importance and it’s population as more and more people move to the country to work it it’s service related economy
There are no restrictions on foreign residents owning Luxembourg property and obtaining property is fairly straight forward and the sales process is typical. The main problem may actually be in being able to locate a property that is available to purchase. Home ownership is high in this country and there is a shortage of both land and properties to buy. Obtaining good quality legal advise is important and in this country it is easy to obtain the services of a solicitor that will be able to speak to you in your own language. Almost all sales are conducted through Estate Agents and once a price has been agreed, you will enter in to a written contract with both parties having to sign the document in front of a notary. It should be noted that oral contracts are also legally binding in Luxembourg. The sales document will be noted in the notaries deed who will present the new property deeds for recording in this register. The costs associated with property purchase can be quite high and it is a good idea to obtain full details of these before you commit to the purchase.
