Dutch profit from mortgage crisis

21st November 2007, Comments 0 comments

21 November 2007, RIJSWIJK – The Dutch are profiting from the mortgage crisis in the US. Florida-based real estate agent Peter Groenendijk says a growing number of Dutch are buying a second home in the US, most of them in the state of Florida.

21 November 2007

RIJSWIJK – The Dutch are profiting from the mortgage crisis in the US. Florida-based real estate agent Peter Groenendijk says a growing number of Dutch are buying a second home in the US, most of them in the state of Florida.

"In comparison to the first half of this year, the number has doubled," says Groenendijk, originally Dutch. He has worked as a real estate agent in Florida since 1992. He is leading the market is selling homes in Florida to Dutch nationals. The agent is currently in the Netherlands for the holiday home fair Immo International in the Amsterdam RAI from 23 to 25 November. 

"Buyers of holiday homes have always had a healthy interest in Florida because property tax there is lower than anywhere in Europe. A house you could buy in the Netherlands for EUR 500,000 costs only 300,000 in Florida," Groenendijk says. He says that two circumstances there have coincided to make it appealing to take the plunge: the mortgage crisis and the low dollar exchange rate.

"Many Americans can no longer pay their mortgages. As a result a great many houses are on the market at a good price. The price was already low for Dutch people, but now it is even lower. It is really what you call a buyers' market. And the low dollar exchange rate makes the situation even better."

The people who buy a home in Florida are usually between the ages of 50 and 60. "They spend several weeks or months in Florida each winter."

Groenendijk is in the Netherlands four times a year to show his portfolio at fairs like the Immo International. At the start of this year there was substantially less interest in homes in America than at the moment.

"I notice that from the visitors to my stand. They are not only private individuals, but also professional investors who want to buy a whole street or people who want to help project developers out by investing money," Groenendijk says.

The real estate agent expects the crisis in the US will be temporary and that an investment in property in the US is a wise one. "It will take about 18 months for this situation to pass. Then normal market prices will be paid again. So it's a good time to take advantage of the low house prices now."

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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