Explore the possibilities of buying a house in the Netherlands, a venture open to all, including expats and foreign visitors. While there are no strict restrictions, understanding the unique elements of the Dutch property market is crucial. This includes weighing the decision to buy against renting, considering the financial implications and potential costs.
Decide between buying a house or apartment, or opting to rent.
In a housing market affected by past economic shifts, rental prices have surged, potentially making mortgage payments a financially sound option in certain cases. However, upfront costs associated with property acquisition, amounting to up to 6 percent of the purchase price, may influence the decision, particularly if considering a term of less than three years.
Finding a property in de housing market
Navigating the housing market involves diligent searching, whether through online portals or local publications, as desirable properties move swiftly. Given the current scarcity of houses for sale, especially in high-demand areas like Amsterdam, enlisting the assistance of a real estate agent can be advantageous.
Interacting with real estate agents, known as “Makelaars” in Dutch.
In the Dutch real estate landscape, “makelaars” or estate agents play a central role. Both buyers and sellers typically engage their own agents to negotiate on their behalf. Care should be taken when signing contracts to avoid unexpected fees, as it is customary for both parties to have their representation throughout the process.
Getting a mortgage as an expat
Securing a mortgage as an expat is a straightforward process, with no explicit restrictions. Dutch mortgages cover up to 100% of the property value, but additional costs of 5–6% should be factored in. Couples can enhance their purchasing power, with both partners’ incomes considered in mortgage assessments.
The last step when you buy something
The actual purchase process involves a series of formal steps, including signing a pre-sale agreement, choosing a notary to oversee the transaction, and completing necessary documentation. The buyer is responsible for most fees, encompassing transfer tax, legal fees, registration fees, and estate agent’s fees. Optional measures, such as the National Mortgage Guarantee, offer added protection.
Costs and fees
An often overlooked benefit for homeowners in the Netherlands is the ability to claim a tax refund on mortgage interest payments, even for expats. This applies to capital repayment mortgages used for primary residences, with additional fees like valuation and notary fees also potentially eligible for deduction.
Remember to request a refund on your taxes!
For comprehensive guidance on buying a home in the Netherlands, securing a mortgage as an expat, and maximizing potential tax refunds, FVB De Boer specializes in assisting expats with various financial matters. Instead of navigating the process in a foreign language, consider reaching out for expert advice and support.