Investment Property in Groningen

Invest in Real Estate in Groningen

Investment Property in Groningen
Investment Property in Groningen

Groningen property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Groningen .

Search Map of Groningen Investment Real Estate

Groningen (Dutch: [ˈɣroːnɪŋə(n)] (listen); Gronings: Grunn or Grunnen) is the capital city and main municipality of Groningen province in the Netherlands. The capital of the north, Groningen is the largest place as well as the economic and cultural centre of the northern part of the country; as of December 2021, it had 235,287 inhabitants, making it the sixth largest city/municipality of the Netherlands and the second largest outside the Randstad.

Groningen was established more than 950 years ago and gained city rights in 1245. Due to its relatively isolated location from the then successive Dutch centres of power (Utrecht, The Hague, Brussels), Groningen was historically reliant on itself and nearby regions. As a Hanseatic city, it was part of the North German trade network, but later it mainly became a regional market centre. At the height of its power in the 15th century, Groningen could be considered an independent city-state and it remained autonomous until the French era.

Today Groningen is a university city, home to some of the country’s leading higher education institutes; University of Groningen (Rijksuniversiteit Groningen), which is the Netherlands’s second oldest university, and Hanze University of Applied Sciences (Hanzehogeschool Groningen). Students comprise an estimated 25% of its total population and makes it the country’s demographically youngest city.

The financial stability of Groningen has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Groningen

 

Renting out your Groningen buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Groningen are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Groningen and be prepared to change your initial outlook.
  • Thoroughly research the Groningen location with a special emphasis on fringe areas outside the main Groningen metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Groningen.
  • Ensure that your target investment property in Groningen appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Groningen provides the secure knowledge that your money is working harder than it would in a local Groningen bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Groningen, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Groningen property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Groningen

Flipping property in Groningen

 

Flipping property is when we advise clients to buy a Groningen property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Groningen market has a time to react to the renovation.

 

The Flipping Strategy in Groningen

 

Investment property flipping in Groningen is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Groningen real estate investments are sometimes referred to by professionals as ‘distressed’ Groningen real estate.

 

What is distressed Groningen property:

 

  • Groningen property in need of renovation
  • Groningen real estate with a change of purpose and use
  • Oversold Groningen property
  • Bank repossessions in Groningen

Put simply, long term investors in Groningen purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Groningen investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Groningen property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Groningen use a minimum profit value of 22% when looking at potential Groningen projects.

 

The reason for this is because there are lots that can go wrong in Groningen property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Groningen

 

Property Secured Investments is a Private Equity fund that invests in Groningen and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Groningen

For luxury property investors hoping to add a superb property in Groningen to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Groningen, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Groningen should be entrusted to only the highest-quality agency.

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