You as a real estate investor have a day’s work to oversee and apply all rules surrounding the home valuation system. Now the WOZ-CAP is coming, what does it mean.

WOZ-CAP

The government opinion is that the WOZ value has become imbalanced as a result of higher sales prices. This led them to decide that the share of rental points obtained from the WOZ value may not exceed 33% of the total number of points obtained. This change in the home valuation system is called the WOZ cap. Homes that do not fall under this scheme are small homes realized under the COROP scheme and homes that do not fall under the free sector boundary without a WOZ cap.

The consequence is that many rental properties in the middle segment fall back into the regulated segment. The number of rental homes with a rent above €1.000 is also only 1% of the total Dutch housing market. The problem is not there. 

The Effect

The effect of the WOZ cap will be particularly noticeable in areas where the WOZ value per m2 of usable area is relatively high. Due to the limitation of the number of WOZ points, homes that now fall in the free rental segment can be relegated to the regulated rental segment. As a result, tenants can challenge the rent and  rent increases. This is logically not desirable, because it affects the return on your property.