Buying real estate with a social commitment: Low rent based on costs, post-assignment & housing authorization certificate explained

Purchase real estate with social commitment – What does social commitment mean? What is the duration of the subsequent commitment? And from when is an investment in such real estate profitable? Whether you are a homeowner or investor, find out here everything you need to know about real estate with social commitment!

Key Facts -

Social link and follow-up link: Definition and explanation

Maximum rent: cost-based rent & rent increase

Summary: What is a social housing link?

Invest in real estate with a social commitment

Buying social real estate for personal use

Real estate with social commitment as an investment

Conclusion: should you buy a property with a social commitment?

First apartment / first house: Learn for free

Social link and follow-up link: Definition and explanation

What is social commitment? A social commitment is a commitment on the price of the real estate. To support citizens with low incomes, the state therefore offers social housing.

Important: to rent here, you need a housing permit.

This situation is favored by public assistance, such as low-interest loans and public subsidies. If you want to buy real estate with a social commitment, you are therefore bound to this property until the loans and public subsidies have been repaid. If everything has been repaid, you still have to wait 10 years before the social commitment officially ends: Post-allocation.

Maximum rent: cost-based rent & rent increase

What rent can you expect as a landlord of a social housing property? In order to ensure affordable housing, only a “cost-based rent” is applied. Only the regular expenses of the property are taken into account, such as financing costs and public construction loans. A rent increase can then only take place every three years. After the end of the subsequent commitment period, you can adjust the rent to current rental prices.

These factors are taken into account in the cost-based rent:

Regular expenses
Financing costs
Public construction loans

Summary: What is a social housing link?

Here is a summary of the most important points:

Funding through public funds
Rented to people with low incomes through a housing authorization certificate
The retention period ends 10 years after the full repayment of public loans.
The maximum rent is limited by the cost-based rent

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Invest in real estate with a social commitment

Now that we have clarified what social real estate is, the natural question that arises is as follows: is it worth investing in such property as a personal user and investor? Let’s examine these two cases more closely:

Buying social real estate for personal use

As we have already mentioned, only people who have a housing permit due to their low income can move into a social housing property. This also applies to personal use. If, as a buyer, you earn only a modest salary, it is entirely possible to purchase a property with a social link for your own use. However, if you earn too much, you must apply for an additional exemption. This can also lead to an increase in additional purchase costs, as you have to pay an incorrect occupancy tax.

The most important thing in summary:

Only for buyers with low income
If salary is too high: exemption application and payment of an incorrect occupancy tax

Real estate with social commitment as an investment

If you invest in social housing as a financial investment, you should always expect insufficient coverage. Social housing properties are therefore only really interesting as a financial investment for investors if the low return translates into a favorable purchase price and if your goal is to achieve a tax-exempt capital gain.

Conclusion: should you buy a property with a social commitment?

As an investor, it is only interesting to invest in a property as social housing if you want to achieve a tax-free capital gain without time constraints. Occupying property owners mainly benefit from this if they themselves own a housing permit.

You will find more advice on social commitment real estate here:

Social housing obligation: Real estate, social housing, obligation, rent control and deadlines (external)

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First apartment / first house: Learn for free

My idea behind this site? The entire buying process, on one page, in detail, with tips and expert advice. Not just a page with typical steps 1, 2, 3.

Learn completely free online, 24/7. With important calculations, of course, but also calculations and formulas, along with their calculation methods, checklists, but also valuable experiences and mistakes.

If you have any other questions, you can always write to me and my team on the website. We will include these additional questions in our Q&A section.

This means that with every question you ask, our platform improves! From preparation to buying a property, through negotiating the purchase price, up to the later rental if you buy the property as an investment.