House Hunting in Luxembourg

A critical part of any successful expatriate experience, particularly if you are the "trailing spouse", is finding the right house. The following excerpt  is from the American Women's Club of Luxembourg publication: Living in Luxembourg – 15^th Edition.

Housing and real estate

Even with a generous budget, locating a suitable house or apartment to rent in Luxembourg City is difficult. Generally, the further away from the center the better the prices. There are villages within an easy commute of the city where you may avoid parking hassles and other issues inherent with living in town.

If you rent an apartment, charges for stairwell lighting and cleaning, garbage collection, water, elevator, etc., are normally included in the rent. Heating, electricity and gas are not included. Clarify these details with the landlord. If the building does not have a custodian (concierge), you may be responsible for cleaning stairs and halls.

Unfurnished vs. furnished housing

Unfurnished accommodations sometimes come stripped of everything except the kitchen sink. Do not be surprised when you tour a house and find no light fixtures, appliances, carpets, curtain rods, or closets. Often, the tenant must supply these; however you may be able to purchase the existing cupboards, rugs, lights, drapes, etc., from the present tenant.

Furnished housing (meublé, mobliert) usually includes kitchen appliances, utensils and linens. When renting furnished housing, insist on a complete inventory signed by the landlord. If the landlord plans to leave anything in your unfurnished house, such as, furniture in the attic, drapes, kitchen cupboards, appliances, make certain you know who is responsible for them. If the landlord is not covering them on his or her insurance policy, talk to your agent about including them in your household policy.

Real estate (property) agents

There is a list of real estate agencies in the P&T Yellow Pages under immobilier-achat, location, vente. Keep in mind that most agencies close for lunch and are not open on weekends. The normal fee charged by real estate agents for arranging rental accommodations is one month's rent plus fifteen percent tax, payable by the tenant.

Before making appointments to tour available houses, real estate agents will give you an address so that you can drive past the property to see its outward appearance and location. Some agents will ask you to sign a paper stating the house address. Keep track of the houses you have been shown by an agency, because other agencies might want to show you the same house. Once you have signed the paper, you are not supposed to visit the same house with a different agency or rent privately from the owner.

Tips on finding a property

House hunting can be very time consuming due to limited availability and inconvenient procedures. Here are some tips.

• Whether you are buying or renting, pick up a copy of the Immo-News or Immo-Star magazines published every two weeks. The property listing usually includes photos and the name of the city or village. For detailed addresses, call the realtor or agency listed. Generally, they will give you the specific property address without making you go to their office first. The Lux Bazar, the Luxemburger Wort, and the Luxembourg News also have listing. Or, us the following Web sites:
  Immo-News                                                   Immo-Star
  www.immonews.com                                      www.star.lu
  
  Luxembourger Wort                                        At Home
  www.wort.lu                                                    www.athome.lu
• Many houses are found through "word of mouth." Use all your contacts and resources.

Tips on buying a house

Interest rate packages vary considerably from bank to bank, so it is a good idea to comparison shop. You may qualify for a reduction in your mortgage interest rate if you have dependent children, although restrictions apply.

The Luxembourg government can take up to eight percent of the purchase price of a house in sales tax; however, if you are eligible for the Act de Bonne Marché (a government exemption for first-time home buyers) you will not have to pay sales tax. To qualify, all of the following conditions must be met.

• This is the first home you are buying in Luxembourg.
• Your income, averaged over the last three years, does not exceed the level specified under the program.
• The property itself qualifies with a classifying number (classe cadastral) within a certain range. Each property in Luxembourg is rated based on overall value, size, construction, etc. To determine the classe cadastral of a property, contact:

          Administration du Cadastre et Topographie
          54, av. Gaston Diderich
          L-1420 Luxembourg
          Tel: 44 90 11

Most property contracts are prepared by a lawyer (notaire), who can also advise you about other government exemptions. For example, if the property is at least twenty years old, you may qualify for a reimbursement of the T.V.A. (value added tax, V.A.T) for renovation work completed within the first three years after purchase. Contact your embassy for a list of English-speaking notaires.

For more complete information and tips on leases and insurance, as well as other valuable information about making your move, pick up a copy of Living In Luxembourg – 15^th Edition. Living in Luxembourg a publication of the American Women's Club of Luxembourg.