Tue, 29 May 2012
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Here is a brief introduction to our Buying property section for the Netherlands.Should I rent or buy a home? ' is one of the most common question expats ask upon arriving in the Netherlands. The answer depends on several factors, including how long you plan to stay in your new country of residence, the current property market and the cost of an expat mortgage.
Mortgages in the Netherlands
As one financial expert neatly puts it, “property is just an asset class like any other investment, and over time we will see cycles of high growth and times of declining prices.”
But don't let that put you off. There are several tax advantages for expats buying a home in the Netherlands. However, before making any major decisions about buying a home in the Netherlands, be sure to research the property market and local interest rates for Dutch mortgages.
Especially if you don’t speak Dutch, it is worth seeking professional advice on your expat mortgage details and building permits.
In the following video, an advisor at ABN AMRO guides you through the necessary steps to arrange a mortgage in the Netherlands.
You can search for English-speaking mortgage advisors and estate agents in Expatica’s A-Z listings under the Financial & Banking and Housing categories. You can also ask for advice from one of our housing experts (under 'Buying a house' or 'Mortgage') in our Ask the expert section (under 'Buying a house' or 'Mortgage'.)
Buying a house
Once you have made your decision, you will need to find a suitable house or apartment. Identifying a trustworthy and experienced local estate agent early in the process is advisable. 
Advantages and disadvantages of buying a home
An Expatica housing survey shows that expats across Europe believe the advantages of home ownership include long-term investment, building up capital and the freedom to renovate one's home.
The survey also showed that expats, when taking out mortgages and buying homes, experienced problems such as complicated administrative procedures, high taxes and legal fees, incompetent real estate agents, high prices and a lack of public records for house-price comparison.
A more recent poll of Expatica readers reveals that only about 30 percent of respondents live in housing similar to what they left behind in their home countries. Plus, the majority (60 percent) have chosen to rent in their host countries, with a not-too-shabby minority (40 percent) choosing to take the plunge and invest in buying a house instead.
Selling your house
Last, if you are selling and moving on, articles such as ‘How to prepare your house for sale’ can prove invaluable.
Expatica Housing Search
Use Expatica's Housing Search tool to help you find a place to buy or rent at the right price in the right location.
Having investigated buying a house in NL I can add the following points:
The NHG (National Hypotheek Guarantee) is a scheme intended to encourage home ownership where the government will guarantee mortgages on properties up to a certain amount, for a one-off fee which can be included in the mortgage. At the moment it covers purchases (or renovation) of properties up to about 350k euros including purchase and mortgage costs. You can borrow about 110% of the purchase cost, and because the mortgage is guaranteed, you get a lower rate from the bank.
An issue for expats is whether you can rent the property if you leave NL. In some cases the bank will allow you to rent it out for a period of 3 years if you are transferred o/s by your employer, but that is the only situation where they will allow it.
Another issue is the so-called 'free rental market'. The 'huurcommissie' can asses your rental and assign it a number of points. A high number of points means you can rent it to anyone at any price, a medium number of points means you can rent it to who you like but for a maximum (read low!) rental value, a low number of points means that the gemeente can tell you who to rent it to and for how much! A general rule of thumb in a big city (over 100,000 people) is the rental needs to be bigger than about 85sqm to get into the free market.
A point in favour of buying a property is that the interest and purchase and mortgage costs are tax deductible.
Having investigated buying a house in NL I can add the following points:
The NHG (National Hypotheek Guarantee) is a scheme intended to encourage home ownership where the government will guarantee mortgages on properties up to a certain amount, for a one-off fee which can be included in the mortgage. At the moment it covers purchases (or renovation) of properties up to about 350k euros including purchase and mortgage costs. You can borrow about 110% of the purchase cost, and because the mortgage is guaranteed, you get a lower rate from the bank.
An issue for expats is whether you can rent the property if you leave NL. In some cases the bank will allow you to rent it out for a period of 3 years if you are transferred o/s by your employer, but that is the only situation where they will allow it.
Another issue is the so-called 'free rental market'. The 'huurcommissie' can asses your rental and assign it a number of points. A high number of points means you can rent it to anyone at any price, a medium number of points means you can rent it to who you like but for a maximum (read low!) rental value, a low number of points means that the gemeente can tell you who to rent it to and for how much! A general rule of thumb in a big city (over 100,000 people) is the rental needs to be bigger than about 85sqm to get into the free market.
A point in favour of buying a property is that the interest and purchase and mortgage costs are tax deductible.
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