BNP Paribas Fortis, the Belgian market leader in residential loans, last year saw the number of loan applications by people over 55 with more than a quarter increase. Besides renovation cases was mainly the purchase of a second home strongly on the rise. The number of loans for second homes went even by 30 percent. The interest of the baby boom generation for the purchase of a second home is not entirely new. In 2015 this type of loan applications were already 20 percent. That trend has continued even stronger in 2016.
According Greet Van Criekingen, credit manager at BNP Paribas Fortis profit-55s of the lowcost - the fixed 10-year rate is now 2.46 percent - to invest in real estate. In addition, the purchase of a second home is considered alternative and better investment than the return-free savings account.
Spokeswoman Hilde Junius expressly states that it is just over half of all second homes for the acquisition of an investment property. The are no houses or apartments for personal use, such as a holiday, but to rent.
That finding is consistent with findings from the research department of the Flemish government. Which recently announced that it stays recover little new second (holiday) on the coast, but on the contrary, a drastic increase of second homes in the inner cities. For example, the city of Antwerp saw the number of second stay in its territory, rising from 12,500 in 2014 to 18,000 in 2016.
The Centre for Housing has identified this trend. A recent study on the private rental market in Flanders shows that 43 percent of owners of rental housing between 45 and 65 years old. Another indication that the Flemish baby boomers are very active in the property market: BNP Paribas Fortis is 9 percent of all mortgages granted to people over 55. Two years ago, the share of people over 55 in the total loan portfolio only 7 percent.
Typical for this age group is that they barely 57 percent of the value of the property must borrow from the bank. For the rest of them can fall back the purchase or renovation costs on through the years accumulated equity.
The over-55s herein differ fundamentally from the younger generations. In the twenties there is not much talk of capital. They have to borrow an average of 86 percent of the property value at the bank. That is above the 80 percent mark that is used by most banks.
An interest upsurge candidate builders need not fear immediately. Looketh Greet Van Criekingen BNP Paribas Fortis gradually rise towards 3 percent fixed rate for ten years.