It is common to appoint a makelaar to do much of the legwork: tracking down appropriate houses, arranging viewings, suggesting areas where there’s room for negotiation and advising on potential pitfalls. Some properties come with specific regulations; some expats have bought property only to find they don’t have permission (woonvergunning) to live in it. Another benefit might be that a makelaar knows which property will come on the market shortly.

As with renting, find a makelaar who understands your needs and let them get on with it. The agent’s commission will be one or two percent of the purchase price. You can hunt on Funda (www.funda.nl) to get ideas of prices in particular areas or scour the pages of newspaper housing supplements. Proximity to work, schools and amenities all play their part. Be aware of the costs involved in renovating older property to current building standards or the quality required for renting. For leasehold properties, check out the ground rents. Tax is also levied on the deemed rental value (WOZ) set every year.  See www.nvm.nl for useful information in English.

Arranging a mortgage (hypotheek)
There are many different types of mortgage and the tax issues are complex.  The general conditions for a mortgage up to four or five times your salary are:

• You have a permanent residence permit (depending on nationality and employment contract this may not be applicable).
• You are in full-time employment or have a continuation statement from your employer.
• If self-employed or a contractor, you have certified accounts for the last three years and forecasts for the following year.
• Maximum mortgage obtainable is 106 percent of purchase price.

[Read our article giving more information on the tax advantages for expat house buyers.]

Costs

 The buyer generally pays costs (kk - kosten koper) but some costs are tax-deductible. Allow for around six percent on top of the purchase price. Once your offer has been accepted, the property should come off the market. A written agreement is mandatory. Make sure your finances are in place first (i.e. that a mortgage lender will lend you up to X amount). On completion, both parties sign a transfer contract (akte van levering) and the notaris informs the Land Registry (www.kadaster.nl). The whole process can take just two to three months.

Some useful facts

Pre-sale agreement (koopovereenkomst).

Prepared by vendor's agent or lawyer (notaris) with 72-hour cooling off period.

It will include details of when the 10 percent deposit should be paid.

Valuation (taxatierapport). Designed for mortgage purposes; not a survey.

Transfer tax (overdrachtsbelasting). Two percent of the purchase price (reduced from the former six percent by the government for one year, valid until  15 June 2012 to boost housing market. The lower rate may well be continued beyond this date). (Click here for more information on this change.)

Deed of transfer (transportakte).

Mortgage contract (hypotheekakte).

Closing fee for bank (afsluitprovisie).

Agent commission (makelaarscourtage). Generally one to two percent, if applicable.

Updated with the expert advice of  Finsens Planning