Real estate has always been considered a good investment in Belgium. Between 1980 and 2010, real estate prices increased on average by 10%. This period is commonly referred to as the “Glorious Thirty.” In fact, compared to movable investments, we can confidently say that real estate was a profitable investment for a prudent family man, even though investing in real estate is not always smooth sailing. Consider the issues with unreliable tenants and property aging, not to mention the significant evolution of energy preservation standards. In 2014, is real estate investment still justified? What are the medium and long-term prospects? As the next Batibouw fair approaches, our consultants answer these questions.

The real estate market is undergoing a crisis

Growth in the real estate market still exists, but it is no longer comparable to what we experienced during the “Glorious Thirty.”

Houses

Throughout 2013, the annual price of houses was 233,959 €, an increase of 3.2% compared to 2012. Unsurprisingly, house prices are higher in Brussels (410,194 € on average), followed by Flanders (250,281 €) and Wallonia (176,176 €).

Apartments

In 2013, the average price of apartments in Belgium was 204,181 €, with significant regional differences: 155,610 € in Wallonia (+1.7%), 204,402 € in Flanders (+2.1%), and 228,408 € in Brussels (+4.2%).

Conclusion

Real estate remains a growing market, but this growth is no longer comparable to what we knew in the past. Brussels remains the best place to invest. The quality of the chosen location remains fundamental. Remember, the profitability of a real estate investment depends on several criteria (long-term evolution of the chosen location, quality of materials used, quality of your tenants).

Investing in real estate?

It remains an interesting choice if you combine the long-term capital gain with the rental income. However, be sure to buy a good quality property, compliant with environmental standards, located in a promising area, and ensure the quality of your tenants.

Long-term perspectives

Without being able to predict the future, we can certainly say that the world population will only continue to grow, and space will become scarcer. Urban concentration phenomena, both socially and professionally, will only intensify.

Prices should therefore continue to rise, but not in the same proportions as during the past thirty years. A growth of 2 to 4% per year seems more reasonable.

30 years of presence in the real estate market

Our company has extensive experience in the mortgage loan market. We are at your disposal to provide answers to your questions.

Are you about to apply for a loan? Personal loan, car financing, mortgage loan, consumer credit.

Taking out a loan creates legal obligations for the borrower, the main one being, of course, to repay the loan until its due date. Thus, the borrower must repay a fixed amount each month (their installment) which varies depending on the amount borrowed and the duration of the loan.

You can use our loan simulator to adjust these criteria based on the amount borrowed and the duration of the loan.

If repayments are not made on time, you can be listed with the National Bank of Belgium. Only the homeowner loan can help you get out of this delicate situation.

A few words of explanation

Obligation to repay the monthly installment

Once your loan is obtained, the borrower is obligated to repay a fixed monthly installment. The first repayment must be made no later than one month after the credit contract is signed.

The borrower must then pay their installment every month until the end of the credit contract, that is, until the loan is fully repaid.

It should be noted that a borrower always has the option to make an early repayment at any time during the term of their credit contract.

Default in payment: listing with the National Bank of Belgium

If two monthly payments are missed, the lender, that is, the bank or credit company, is required to report the credit contract and proceed with your listing with the National Bank of Belgium.

The two missed payments do not need to be consecutive. It is sufficient that there are two delayed payments.

Termination of the credit contract

After receiving a formal notice by registered mail that remains unsuccessful, the lender will terminate the credit contract, meaning that your credit contract will end immediately and the borrower will be required to repay the remaining balance of the credit contract along with interest and penalties related to the termination.

Consequences

A person who is listed is obligated to immediately repay their loan. Until they do so, they will remain listed with the National Bank of Belgium.

In this case, they will no longer be able to borrow. Indeed, banks and credit companies are legally required to consult the BNB listing file before granting a credit.

In Belgium, it is prohibited to grant a new credit to a listed person.

To have the listing removed, the borrower must fully repay the borrowed funds along with interest and late penalties.

Once the total amounts are repaid, the law maintains the listing for one year, during which the borrower will still not have access to the credit market.

The only solution: the homeowner loan

How can a listed person repay their loan if they are having payment difficulties?

The only solution to still be able to borrow money when a borrower is listed with the BNB is the homeowner loan.

This is a mortgage loan.

To be eligible for the homeowner loan, the borrower must own a house free of charges.

Given the costs associated with registering a conventional mortgage, no homeowner loan is granted for less than €25,000.

Our brokers are at your full disposal to provide more details on the consequences of listing and on the homeowner loan: call us at 065/84.02.03 (Mons region). Check our other numbers on our website.

The world of credit and banking can sometimes seem opaque and complex. You intend to take out a loan or credit and you have many questions about credit.

In the field of credit, as elsewhere, it is not always easy to find the available and competent person who provides correct and clear answers.

At Crédit Populaire Européen, a specialized lawyer has designed a particularly complete, detailed, and updated daily website where you can find all the answers to the most frequently asked questions you may have about credit.

Here is a quick overview…

Our FAQ section (Frequently Asked Questions) is divided into two sections: questions related to mortgage credit and those related to consumer credit (personal loan, installment loan).

Your questions about mortgage credit

Here are some examples of topics for which you will find detailed answers:

• What are the costs associated with mortgage credit?
• What is a suspensive condition?
• What is the amount I can borrow for a mortgage credit?
• What is the most interesting interest rate for me?
• Can a current mortgage credit be refinanced to benefit from a better rate?

You will find answers to many other specific questions about mortgage credit.

Your questions about consumer credit

Here are some pertinent questions you might have:

• How long does it take for the borrowed funds to be deposited into my bank account?
• I am unemployed, can I borrow?
• I am a foreign national, can I take out a loan in Belgium?
• My loan application was refused. How long do I have to wait to reapply?
• Am I required to take out death insurance?

And many more for which our team strives to provide satisfactory answers.

At Crédit Populaire Européen, we do not follow a mercantile logic and our team is at your disposal to answer all your questions whether you are our client or not, whether you are inclined to take out a loan or not.

Our passion is our profession. Our ethics are first and foremost to inform you completely and correctly…Call us and you will see…

Are you considering making a purchase that exceeds your monthly financial means and savings? One thing is clear: you will turn to the credit market.

Will you go to a traditional bank or a specialized credit broker?

Two solutions offering different services.

At first glance, nothing too difficult

Except that since 2012, the economic situation is different. The financial crisis linked to the public deficit of European countries has left its mark and austerity policies implemented by governments have an undeniable impact on the credit market. Indeed, banking activity is now under scrutiny and in this area, one word reigns supreme: caution.

The figures speak for themselves: the number of mortgage loans contracted in Belgium decreased by 23% in March, compared to March 2011. In France, over the same period, the drop is staggering: -47%. The number of credit applications in Belgium fell by 20%. The amount of loans granted also recorded a smaller decrease of 9%. The amount for credit applications contracted by 5% (Le Soir Online, “Decrease in mortgage loans in March”, Thursday, April 12, 2012).

Consequence?

New customers of Crédit Populaire Européen have already noticed. It is becoming very complicated to obtain credit from your usual banker. Banks are becoming increasingly demanding. With this worrying consequence, the number of bankruptcies in Belgium increased by 26% in the first quarter of 2012.

It would therefore not be surprising for consumers who are used to dealing with their usual banker to turn to independent credit brokers to check the conditions of access to credit and the financial terms offered to them.

Independent credit brokers are, unlike banks, credit specialists. Their professional activity is almost exclusively based on granting credit. This is not the case for a bank, which largely depends on investments made with their clients’ savings. In other words, access to credit is therefore much easier with an independent broker.

Traditional bankers are an essential link in economic policy, and today more than ever, they are key players. They are monitored by the Banking and Finance Commission, the National Bank of Belgium, and the government, which legitimately wishes to avoid fiascos like the near-bankruptcies of Fortis and Dexia banks. Consequence? The measures taken by banks are sometimes more “media-driven” than economic. An independent broker enjoys greater flexibility. They accept or reject your file based on objective financial elements rather than a general policy that no longer makes distinctions.

Finally, and it is obvious, your usual banker can only offer you “in-house” products and cannot benefit from the enormous diversity of other products available on the market. An independent broker works with many different financial partners.

At Crédit Populaire Européen, we have over 20 financial partners who will have a different perspective on your application. An independent broker is therefore much more able to take advantage of the competition among financial partners.

Most credit institutions offering an online credit application form provide their clients with two options.

The first is a short version where only essential information is collected. The second is a longer version where all information that could be used to strengthen the client’s file is collected. Why has CPE opted for a more comprehensive version of its questionnaire?

Features of our online credit application

It should be noted beforehand that submitting a credit application to CPE does not imply any commitment on your part. Only your signature on your credit contract can be interpreted as such.

We have chosen an intermediate configuration for our online credit form to save you time while maintaining the tool’s effectiveness.

It consists of five pages, but some can be skipped. This way, you save time and can send us your application in a few minutes for review and processing.

If needed, we will contact you to request additional information to refine your file and make it as complete as possible. This step allows us to better defend your file with our partners and thus offer you the privilege of benefiting from more favorable conditions. If you have taken the time to carefully fill out all the fields in our form, we will have all the useful information to find the best credit offers for you. Additionally, we can directly focus on studying your file, which facilitates negotiation with our partner banks.

With this information, our brokers can also quickly check if you meet our credit granting conditions.

How to fill out the online credit application form?

Filling out our online credit form is done in several steps. Each time, only fields marked with an asterisk are mandatory.

Phase 1 involves briefly defining your project, its purpose, its cost, and the intended repayment terms.

Phase 2 collects personal information about you and your spouse if you are married.

You then move on to phase 3, where you are asked to provide your contact information.

Step 4 collects information about your professional situation.

Finally, the last step focuses on your income and financial data.

Once all these fields are completed, you click on “Send,” and we begin processing your file.

Do not hesitate to contact us if you encounter difficulties filling out or sending the online credit application form.

For a change, today we will discuss the security aspect of banking operations on our blog. Currently, most financial transactions take place online. Indeed, you check your accounts online, print your bank statements via your connection to your bank’s website, make transfers directly via your computer, etc. It is no wonder that crime has evolved and turned to computer fraud. However, do not panic; with a little common sense and vigilance, you should be able to thwart any attempted scam.

Using your PC banking

When your credit contract is signed, the borrowed funds are transferred to your current account within 48 hours of signing. Your first monthly payment must be repaid within a month of signing the credit contract and so on, month by month, until the end of your credit contract.

What is phishing?

Phishing means “fishing” in English. It is a criminal maneuver whereby a cybercriminal tries to extract the codes you use with your security module (calculator) to make online payments. We invite you to watch this explanatory video.

In general, cybercriminals try to get you to disclose your electronic signatures either by phone or by email. They invoke various reasons: bank security verification, etc. A simple rule: never disclose your M1 or M2 codes as well as your four-digit debit or credit card code for any reason. If in doubt, end the conversation and call your bank branch yourself to verify. Always go to your bank branch in person to carry out this type of operation.

It is not uncommon for fraudsters to duplicate a website to make you believe that you are on your bank’s correct website. Therefore, do not rely on appearances. If in doubt, double-click on the small padlock at the top right of the page before the URL to check that it is indeed your bank’s URL. In any case, even via your bank’s website, no one can ask you for your electronic signature. If a suspicious screen appears, end your connection and notify your bank to check what it is about.

Some common-sense advice…

• Always use the latest operating system and perform updates recommended by your system;
• Ensure that your operating system is well protected by antivirus software. Also, do not forget to perform updates…
• Beware of free download sites: they are an ideal entry point for viruses;
• Periodically perform a full scan of your computer;
• Read your bank’s IT security rules on its website;
• Never give an electronic signature with your security module by phone or email;
• After all, do not keep large amounts in your current or savings account: the interest rates are so low that they earn less than inflation. Prefer term accounts that will earn you more and have less easy access;
• Remember to log out after using your Home Bank or PC Banking;
• Be very cautious when using internet cafes. Invest in a small tablet if you need to travel and need to connect to your accounts regularly. You can now find Wi-Fi networks almost everywhere;
• Be vigilant if an unexpected screen appears while using your PC Banking or Home Bank. Log out and check if the phenomenon occurs again. If so, notify your bank for verification.
• Banks never ask for confidential information by email or phone. Be wary if you receive such a request. Log out and call your bank.
• Spelling errors or convoluted grammatical constructions should also alert you.
• One last thing, be careful with the information you share on social networks: your life will be of interest mainly to cybercriminals.