Renting and buying property
Renting
If you are staying for less than five years you will probably decide to rent and, even if you eventually decide to purchase a property, it is probably best to rent during your initial settling-in period while you get to know Luxembourg a bit better.
Most properties are rented out by estate agents, although there are some weekly magazines and internet sites where people advertise independently and you can also put on an advertisement asking for accommodation. This is probably the most cost-efficient way of renting as you avoid paying the (sometimes) large agent’s fees on top of a probable three months’ deposit. Do also be warned that most estate agents are closed at weekends so house hunting is usually confined to weekdays.
Most properties are rented out unfurnished, possibly (but less usually these days) without any kitchen appliances and quite probably without curtains, carpets etc. If you manage to rent an apartment before the other tenants move, they will normally be happy to sell-on the fixtures and furniture they can’t take with them. If you do find a furnished apartment to rent, please ensure you have a written agreement with the landlord over who is responsible for contents insurance.
Contracts normally run for one or three years and if you move before the end of your contract you may need to pay a penalty, although if the landlord (or you) find another tenant to move in immediately this will normally not happen. It is possible to get a ‘diplomatic clause’ put into the contract, whereby if you have to move aboard (i.e. out of Luxembourg) before the contract expires you will not be liable for a penalty.
At the end of the contract period you are expect to leave everything ‘as you found it’. The apartment will be inspected after you have moved out and if things are not in order the landlord can keep a part/or all of your deposit to pay for cleaning or repairs.
Buying
Most of the Luxembourg banks can help you with a mortgage and there is more competition these days with interesting first-time buyer packages and interest rate deals, therefore it is good to shop around before you settle with one lender. Most banks offer mortgages up to 25 years, although it is possible to get a thirty year mortgage if you qualify. You will normally have to put down quite a hefty deposit, possibly around 20% but again this varies according to your situation.
Most buying is done through an estate agent and it is hard to find property on your own, although bill-boards are starting to gain in popularity. Word-of-mouth is also a good idea, especially within the international community.
In Luxembourg the seller pays the estate agent (normally 3%) but you will have to pay solicitor’s fees (0.7-1%) and property registration (6-10%), with an additional transcript price (around 1%).
Sale agreement is usually drawn up by contract (although verbal agreement can also be binding) which, if you pull out of, can leave you with a large fine. Purchase is done through a notary, who deals with all the legal issues for both you and the seller, and you have to be present for the final declaration and signing.
A municipal charge (0.7-1%) is payable annually for community services.
Websites
www.athome.lu
www.habiter.lu
www.immostar.lu
www.immonews.lu
www.immotop.lu
www.guideimmobilier.lu
www.station.lu (information website for the international community)
www.youthhostels.lu
editusnet.luxweb.com
Newspapers and magazines
352 (weekly news and small ads in English)
www.352.lu
Luxemburger Wort (daily Luxembourg newspaper)
www.wort.lu
Lux-bazar (on Fridays)
www.luxbazar.lu
Furniture rental
Interior Rent Luxembourg
63 rue des Trévires
L-2628 Luxembourg
Tel: +352 498 389
Fax: +352 498 399
Email: info@interiorrent.com
www.interiorrent.com