Next to all the paperwork, finding a place to call home in the Netherlands – either to rent or buy – is one of the greatest challenges you’ll face. Connie Moser takes a look at 'Housing in Holland' an essential read to help you on your way.

Understanding the Dutch property market will help you put things in perspective, both historically and in the current market, although such knowledge won’t necessarily make your house-hunting any less frustrating.

Slow-moving market

Those with subsidised housing tend not to move onwards, and demand far outweighs supply. Students are pushed to rent rooms slightly larger than a shoebox for ridiculous fees, the younger generation of workers find it nearly impossible to secure reasonably priced accommodation and starters looking to purchase their first home are often forced to compete in a lottery draw to even be allowed to buy. Particularly in the larger cities, this translates into higher prices across the board. Add to that the non-delivery of adequate new homes on schedule coupled with continued lack of space and you start to understand how tight the market is.

Housing in Holland was written to help guide the English-speaking foreigner through the process of renting or purchasing a house or apartment. The well-researched references combined with clear, informative text and photographs makes Housing in Holland 2.0 an invaluable guide for the home-hunter. Ample options are presented and the issues people face when buying or renting properties are described and simplified.

Housing agencies

Expatriates can always rely on the services of housing agencies to assist them in finding a rented accommodation, however a two-month deposit plus a finders-fee of one month’s rental plus 19 percent BTW for the estate agent makes even getting started an investment. The book also warns of things like illegal sub-letting, scams, temporary contracts, unreasonable demands, your rights as a renter and what to do if you face problems with untrustworthy landlords. The many Dutch abbreviations used in newspaper advertisements to save space as well as common house-hunting vocabulary are given along with a generous list of reputable letting agents and website portals for real estate. Even room rentals and houseboats are included.

Rent or buy?

Expatriates often wonder if they should purchase or rent. In light of the hard-to-predict Dutch housing market, it’s not an easy choice. Renters can minimise their risks: the monthly rent is fixed and with a diplomatic clause included in the rental contract, occupancy can be terminated within two months. There’s also no worry about maintenance costs or insuring the property. Purchasing a house however, can be tax beneficial. Even though some 10 percent above the purchase price will go for deed transference; notary and estate agent fees there are certain costs which can be deducted – such as mortgage interest.

Furthermore, as a house-owner you generally benefit from an increase in the value of your property, especially in areas of high-demand. If you plan to live here for two to five years, it’s worth looking into, also from the point of building up equity.

Chapter six covers the things you will need to be aware of before purchasing, from securing legitimate assistance to the various constraints of purchasing older homes and monuments, or in hiring architects and building contractors for new construction. Local property taxes and the valuation of property are also clearly explained.

Chapter seven explains financing options, from finding the money to explaining 11 different types of mortgages, in various traditional and new forms such as an environmentally friendly ‘green’ mortgage or a complex ‘hybrid’ mortgage. Types of interest and rates are presented, including project interest for new housing construction and subsequent building and deposit interest, as well as second mortgages and the funding of renovations.

National Mortgage Guarantee

The government supports an important incentive, the NHG National Mortgage Guarantee, aimed at encouraging home ownership and improving the quality of housing in the country. Benefits include a lower rate of interest, the possibility for full 100 percent financing, plus, if you are unable to meet your financial obligation the NHG takes on all the risk and guarantees the loan will be repaid.

30 percent ruling

For foreign expat residents, the 30 percent ruling allows their employer to label 30 percent of the employees’ total remuneration as a tax-free allowance for so-called extraterritorial expenses for a period of up to ten years. Expats who apply for and obtain partial non-resident tax status benefit from a reduced applicable tax rate resulting in a higher net salary. This is worth looking into, as it directly impacts your disposable income.

Insurance

No home or life would be complete without the necessary insurances, from homeowners to household effects, glass, liability, legal aid and even a death-risk tied to your mortgage, should you leave the planet before paying off your loan. A comprehensive list of financial institutions, mortgage advisors, taxes, credit, and insurance companies are all listed.

Even pests such as mice, cockroaches (neighbours excluded!) and other problems (fungus, mould, wood rot) are covered as well as what to look for during a house inspection and what to do if you do discover hidden defects post-purchase. A handy checklist for inspection is provided in chapter nine.

Do-it-yourself

Practicalities such as managing do-it-yourself projects are covered and addresses are provided for auctions, antiques, art and decorating, furniture. One chapter covers the garden; landscaping the garden, roof-top terraces, garden centres and fairs. Moreover, for the cost and environment conscious, utilities, recycling, and energy savings along with several helpful checklists and tips are given. For those who would rather hire a professional, chapter ten helps point the way to finding and contracting specialists for home repairs or remodelling.

Safety

Chapter 14 covers safety and the protection of property and goods, from strong locks and smoke alarms and fire protection to the use of security companies. A number of helpful suggestions are provided along with a review of all essential documents of which copies should be made and kept in a safe place in case of emergency.

No matter where or how you may choose to live in the Netherlands, Housing in Holland 2.0 demystifies the terminology, rules, and expectations as well as the rights and obligations of all parties. Numerous addresses, phone numbers and websites of the relevant organisations and authorities help the reader through the process of finding, and securing a home and provide valuable references.

Housing in Holland 2.0 – A guide to making a new home in the Netherlands
XPat Media, 2007
ISBN 978 90 5594 5160
www.housinginholland.nl
www.hollandbooks.nl
26 February 2008

Connie Moser writes books, articles and reviews on lifestyle, travel, culture, living and working in the Netherlands for a number of international and expatriate publications and websites based on experience gained from her 25 years of residency.  www.u-and-i-know.com

[Copyright Expatica 2008]