Buying a house in the Netherlands

Buying a house: where and how?

Are you considering buying a home in the Netherlands? That’s a great choice, financially speaking, but it requires you to think strategically in the long term. Renting an apartment might make more sense if you’re planning to stay in the country for a short period and want to avoid bureaucratic hassle. But if you still want to go for it, buying a house in the Netherlands is a smart investment:

• Monthly mortgage payments are lower than rent payments in most regions of the country.

This is the case if, for example, you make interestonly payments for up to 30 years. But even actual mortgage payments are often lower than rent prices. • Rents increase every year, sometimes by as much as 10%. By contrast, mortgage payments and interest are usually fixed for a longer period. • Mortgage interest payments and the closing costs of your mortgage are tax deductible. • By paying off your mortgage you build up equity. As the housing market keeps trending upward due to excess demand, especially in and around the cities, you can profit handsomely when you sell again.

Having said that, buying property also entails few obligations, like paying property taxes, council taxes, insurance premiums and maintenance and repair costs. If house prices go down, your property decreases in value and you could make a loss when selling. To learn more about the procedure of purchasing a house, go to page 33.…

Still want to buy? Good! The first move to make is finding yourself a good makelaar (real estate agent). As the housing market is very tight, especially in the Amsterdam, Haarlem, Utrecht, Delft and Leiden areas – but in fact everywhere in the west and middle of the country –, you need all the help you can get. Many people nowadays use an aankoopmakelaar (buying agent) who keeps an eye out for new properties on the market that match your budget. However, you can also start looking for your new house yourself. The main website to find houses for sale is Funda – but remember that many houses never appear here, as they are sold through the agents’ networks. For those who want to buy a house in Amsterdam, bear in mind that the city has for years been among the ten fastest-rising property markets in the world. You need to have a lot of patience waiting for something to open up, be quick to jump on a new opportunity, and have sufficient resources to pay hefty closing costs. Hiring a good real estate agent, who knows the market also outside of the A10 ring road, can make all the difference between paying a fair price instead of top euro. Another thing to consider is that the municipality of Amsterdam retains leasehold (erfpacht) on most of the land, which means you only own the property that is sitting on it and you have to pay the city an annual ground rent, which can be quite high and therefore impact the mortgage you can get for the house itself. Speaking of mortgages, if the 30% rule for expats applies to you, in which case 30% of your income is tax-free, chances are you will be able to borrow more from the bank. With the mortgage calculator tool at Independer or Hypotheker.nl you can calculate the maximum mortgage you can get.

Newly-built communities without a historical center (called vinex neighbourhoods), e.g. Zoetermeer, Almere or Lelystad, used to offer affordable options in the Randstad area, but are getting more expensive by the day. In the rest of the country, there are still good offers to be had in smaller towns and medium-sized cities that are well-connected by rail and highway. Even here, however, house prices are rising fast.