🇱🇺 How To Buy An Apartment in Luxembourg – Complete Buyer’s Guide – Prices, Mortgage, Tips

Video Transcript and Key Points

The initial step in purchasing a house involves determining one’s budget, which is crucial for understanding financial capabilities.
Utilizing financial tools can help assess how much one can afford for an apartment or house.
Considerations about the type of property desired, such as an apartment or a house with specific features like a garden, number of bedrooms, and bathrooms, are essential.
It is important to think about practical aspects such as the floor level of the apartment and whether a lift is necessary.
Location preferences need to be evaluated, including the commuting options to work, whether by public transport or car.
Potential buyers should also contemplate living in neighboring countries such as France, Germany, or Belgium versus residing in Luxembourg.
Tools like Google Maps can assist in determining the distance from the workplace to the potential residence, taking into account peak hours and office timings.
Once a desired location is identified, platforms like at home. lu can help shortlist properties for consideration.

Luxembourg is divided into 12 cantons, with Luxembourg City being the capital and one of the main cantons.
Each canton is further subdivided into communes or municipalities, with Luxembourg City being a significant commune within the Luxembourg Canton.
A color-coded map can illustrate the varying property prices across different communes, indicating that red areas are more expensive.
In prime locations such as Luxembourg Ville, Bettembourg, and Strassen, the cost per square meter for apartments can exceed €9,000.
Conversely, properties in less central communes can be significantly cheaper, with the national average price around €7,700 per square meter.
For more detailed price breakdowns by apartment and house types, additional resources are available through linked descriptions.

It is advisable to view at least five to six properties to make an informed decision when purchasing an apartment.
Potential buyers should explore various neighborhoods, starting with areas that are more affordable.
Personal experiences highlight the importance of location; for instance, lengthy commutes can significantly impact daily life.
When engaging with real estate agents, it is crucial to ask numerous questions to clarify any uncertainties.
Inquiring about the energy efficiency of older apartments is important, as it can affect both living costs and mortgage applications.
Energy efficiency is graded from A to I, with A being the most efficient, and applies to the entire building rather than just the individual apartment.
Buyers should be aware of monthly charges for maintenance, heating, and other communal expenses associated with the property.
Understanding the reasons behind a seller’s decision to sell can provide leverage during negotiations.
Practical considerations, such as proximity to supermarkets, schools, and public transport, are essential for daily convenience.
Pet policies in buildings should also be clarified to ensure compatibility with personal lifestyles.

Real estate agents may require buyers to sign documents acknowledging that they have viewed a property, which is not a binding agreement.
It is important to read any documents carefully, especially if they are in a foreign language, and to use translation tools if necessary.
To make a competitive offer, buyers can utilize online estimation tools that provide property value assessments based on specific criteria.
Once a property is chosen, the next step is to sign a ‘compromis,’ which is a binding agreement detailing the sale price and conditions.
Failure to proceed after signing the compromis may incur a penalty, typically around 10% of the sale price.
The time frame to secure mortgage approval is generally six weeks, but extensions can be negotiated based on circumstances.
When applying for a mortgage, various documents will be required, including bank statements and proof of employment.
Using services that apply to multiple banks can streamline the mortgage application process and help secure favorable rates.

There are three primary types of mortgage loans available: fixed-rate, variable-rate, and readjustable-rate loans.
A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing stability in monthly payments.
Variable-rate loans fluctuate based on changes in central bank interest rates, which can create uncertainty in budgeting.
Readjustable-rate loans allow for fixed rates for an initial period, after which the rate can be renegotiated based on market conditions.
Understanding macroeconomic trends can assist in choosing the most suitable mortgage type based on anticipated interest rate movements.
Prepayment penalties may apply to fixed and readjustable loans, while variable loans typically do not impose such fees.
Upon receiving a loan offer, a bank account with the lending institution may need to be opened, and all required documents signed.
The loan offer is generally valid for a limited time, requiring timely action to secure financing.

Before signing the final deed of sale, buyers should ensure all necessary documents are prepared and reviewed.
It is advisable to inspect the property one last time prior to signing the deed to confirm its condition.
Closing costs can significantly add to the total expenses, including notary fees and other processing charges.
In Luxembourg, the seller typically covers the agent’s commission, relieving the buyer of this financial burden.
Registration fees, which can amount to 7% of the property’s value, may be waived for first-time buyers under certain conditions.
It is crucial to arrange for property insurance before finalizing the purchase to protect the investment.
New homeowners will receive annual property tax notifications from their local commune after the purchase is complete.