[Netherlands]: How to get a loan for a property where I will live and use for a business

[eric4god]

I currently own a property in the Netherlands where I live but I also use for a Bed & Breakfast (B&B). Meaning, I share my property with my guests. I have solid figures for the last 14-16 months which shows a steady income. For last year tax declaration I have filled the income as "Other income" but for this year I have registered a company.

I am now looking for a new property mainly because:

• My current one generates a nice income while living there, but there is not much privacy and its quiet small.
• I would like to expand to offer 2 rooms for B&B instead of 1.

I have so far been looking at properties in the ~€900k price range. To finance this I would get a "normal mortgage", use my overvalue from my current property when selling and also savings. However, I am still short €250k.

I have tried discussing this with my current bank but they gave me a cold response, as they are oppose to any kind of room-rental. What other options do I have to raise €250k? Ideally with an interest rate of 8% or lower.

 

[tabernacle67]

@eric4god Just to confirm: you are currently renting out one room. You plan to double to a second room. Your invest is 900 K for that? That can’t be right.
But if these are the facts - I seriously doubt that it’s possible to reason this loan with revenue from a one-room rental

 

[eric4god]

@tabernacle67 No, that is far from correct. I want to buy a new property and sell my current one. The whole investment is €900k is for the whole property (130-150m2)

 

[vitaris]

@eric4god 130M2 for 900k seems extremely expensive. Unless its a large house I would say look at other options. You can get very good houses for 750k that would make a fine B&B.

 

[eric4god]

@vitaris Dont know what you mean by "extremely expensive", these are the current market prices.

 

[vitaris]

@eric4god I have seen houses for 550k with 150m2.

 

[eric4god]

@vitaris When I go on funda.nl I see 188 houses that are 250m2+ and for €500k or less. I am going to live in the houses while doing B&B, out of these houeses none suits my requirements.

Lets keep this thread about my original question and not about house prices.

 

[epistletimothy]

@vitaris Location location location

 

[emm3635]

@eric4god I guess you'll have to start looking at a business loan instead of a loan for a private mortgage. You could perhaps try the Rabobank and talk to their small-businesses people (MKB).