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Buying a house in the Netherlands versus renting

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If you have come to the Netherlands to work you probably start with a house to rent.
When is it wise to take the step to buy ? And is buying better than renting.

In this article we have put the advantages and disadvantages of buying versus renting.
looking to the financial numbers buying gives you huge advantes because of the low rates, see for more information the last part of this article.

What are the advantages and disadvantages of buying and renting? 

Buying a property

Advantage Disadvantage
In the long term it is usually cheaper to buy, because the monthly payments are often considerably lower than rent. Your ae fully responsible for the maintenance of your home.
Through house renovations you can customize the house to your needs. You have a big financial commitment.
You are building an equity. Selling a house normally takes longer than the rent termination.
You can make a profit if houses prices increase. You can make a lost if houses prices decrease.

 

Renting a property

Advantage Disadvantage
Contracts can be ended short, you are flexible. The rent price normally goes up every year.
Repairs and maintenance are for the account of the landlord. You have no influence on the implementation and layout of the house.
Tenants often receive extensive rent protection. You are only paying, you do not build up.

 

How is the situation between renting and buying financially?
For this we have an example of 2 persons that bought an appartment

Buying 75m2 apartment    

Mr. and Mrs. da Silva are living two years in the Netherlands.
At the moment, they rent an apartment for € 1.750, – per month excluding water, gas and electricity. The house is in Amsterdam and 75m2 .
They would like to live in the Netherlands the next 8 years. Therefore, they are started looking to buy a house.

They have seen a apartment house for which the asking price is
€ 350.000, -.  There is also a Company of Owners (VVE) contribution of € 125 per month.

For the purchase of the house, including additional costs, they need an amount of € 365.000,

They are allowed to finance € 353.500 for a mortgage. The interest is 2,0% per year and is fixed for 10 years.
In 30 years the mortgage is fully paid off.

The monthly amount including interest and repayment is € 1.306.
They receive each month € 150 back from the Belastingdienst as reimbursement of the mortgage interest paid.
The family da Silva would like to know if it is financially better for them to buy this house instead of the current rental house.
Both houses are similar looking at m2 and location.

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Expenses owner of a house

 

Mortgage

Interest and repayment mortgage                  € 1.306
Tax refund                                                   –  €   150

Total mortgage expenses                                                                       € 1.156

Additional costs

Water, gas and electricity                              €   150
Municipal charges                                          €    60
House insurance                                           €     20
VVE monthly amount                                     €  125

Total additional costs                                                                             €    355

Total expenses per month                                                                  € 1.511

 

Expenses renting a house

 

Rent

Monthly rent                                                                                             € 1.750

Additional costs

Water, gas and electricity                                                                         €   150

Total expenses per month                                                                    € 1.900

 

The monthly savings are € 389. Over a period of 8 years is this € 37.344.
When the house is sold after 8 years the mortgage is € 278.877.
If the house will be sold for € 350.000 there is € 71.123 extra money coming to your account.
 

Advantage buy instead of renting after 8 years

Monthly saving                   € 37.344
Repayment mortgage        € 71.123-

Total advantage        € 108.467, –

 

Caution!
Only when you are selling the house, you can calculate if you have had an advantage by buying a house.
If the house drops in value for more than 31% then there will be no financial advantage in this situation between rent and sale in 8 years.
Looking at the current house market this is not likely.

In this example it is wise for the family da Silva to buy a house instead of renting.
Given the huge financial advantage that they have in the period of 8 years, they  have done a good investment by buying the house.
By buying the house they also avoid annual rent increases.

Contact

Are you interested to buy a house in the Netherlands?
Please contact us so we can advise you.
We can guide you throughout the process of buying a house and to arrange the mortgage.

Expats Amsterdam
Staten Bolwerk 1
2011 MK RR Haarlem

Expats Amsterdam

Phone:             023-7515767

Email:             info@expatsamsterdam.com

Website:          www.expatsamsterdam.com

House prices 2015

House prices of the year 2015 by Expats Amsterdam.

The year 2015 was a great year for the Dutch housing market.
The numbers of houses sold was more than lost year and also house prices itself have gone up.

In last quarter of 2015 house prices have increased with 1,8% in comparison with quarter 3 of 2015.
Average prices over the full year have increase with 5%.
Best region was Amsterdam with an increase of 17,3%.
Apartments where the type of houses that where sold the most in 2015.

The average housing prices are still 10% lower than before the crisis started.
In Amsterdam the house prices are already higher than before the crisis.

Our expectations for 2016 are that the house prices will continue increase.
Because the mortgage rates are on a low point it is still very attractive to buy instead of renting.
We expect that the area of Amsterdam will be the region that will increase the most of any other area
in the Netherlands.

We have the full report, made by the NVM, of the municipalities in Amsterdam area for you available.
Numbers housing market Amsterdam
Numbers housing market Amstelveen
Numbers housing market Haarlem
Numbers housing market Haarlemmermeer
Numbers housing market Zaanstad

Experience Golf in Amsterdam

golf

Whether you’re new to the Netherlands or have been living here for quite some time, we believe you still might have
a lot to discover in this beautiful country.
Only the Amsterdam area is packed with history, art, UNESCO heritage, entertainment and, of course, bikes.
But did you know that there are more than 20 golf courses within half an hour of Amsterdam city centre?
With some golf courses even being mentioned in the top-100 golf courses of continental Europe, Netherlands appeals to both recreational as well as professional players, offering not only quality infrastructure, but also beautiful settings.

Dutch golfplayer Joost Luiten

Whether you are a golf enthusiast or just curious, we’re happy to inform you, that we are collaborating with Golf In Amsterdam, to co-organize a cycle of golf tournaments over the period of September/ October, starting Sept 5th 2015.

Our golfers we offer a monthly 18-hole competition. The cost is € 129,00 per person per competition, including welcome drink, snacks, competition and prizes. There is a € 10,00 discount if you bring your own golfbag.
During each professional tournament, the golfers’ families and friends are welcome to participate in group golf lesson and/ or simulator tournaments. We are offering a one-hour group lesson (10 persons per pro) and putting competition for just € 50,00 per person.
Our aim is to provide an opportunity for expats and their friends/colleagues to discover this amazing sport, play in a relaxed atmosphere with possibility for networking. Rental golf clubs are available at an additional, yet discounted charge on each golf course.

If you’re interested in participating or have any questions, please contact us:

Natalia Ney
Expats Amsterdam
communicate@expatsamsterdam.com

Laura Cohen
Golf in Amsterdam
laura@golfinamsterdam.com

We hope you’re as excited us we are, so please pass on the word about this new opportunity to your friends and colleagues.

Regards,

Expats Amsterdam

 

 

Maximum mortgage loan drops in 2015

Next year the amount of the maximum mortgage will drop.
This also was the case in 2014.
In the calculation will be looked at the purchasing power of different income groups.
After calculating this,  the amount a household can spend at a mortgage will decline.

What you can do ?

If you are busy with the buy of a house and you need a mortgage soon, apply this year for a mortgage offer.
If you get an offer in 2014 you can still loan under the conditions of 2014 instead of 2015.
Because more people will do this, banks already gave up date’s when you have to applied for your mortgage to get it under the conditions of 2014.

How big are the differences ?

It depends of your income, if you have more people in your household that have an income and the mortgage rates.

Example 1
There is one income of € 55.000 gross and the mortgage interest rate is 3%.

2014 € 314.275 maximum
2015 € 296.485 maximum

Example 2
There is one income of € 55.000 gross and one of € 25.000, mortgage interest rate is 3%.

2014 € 478.825 maximum
2015 € 444.225 maximum
You can see that there are big differences depending of your situation. If you need the conditions of 2014 be quick
because you will have around 2 weeks to apply for a mortgage.

If you want to calculate what you can loan in 2014 go to the mortgage calculators.
If you need advice or if you looking for a company that can apply for your mortgage feel free to contact Expats Amsterdam.

 

 

New website Expats Amsterdam

Today we proudly present the new website of Expats Amsterdam.
On the website we have a lot of  handy information for expats who are living and working in the Netherlands.

We also developed mortage calculators in English,  because a lot of expats let us know that this would be very helpful to them.

We will also put all the important news on the website section Expat News.
If you have any ideas or preferences about expat subjects you can always contact us so we can make an article about it in the Expat News section.

We hope that the website will be very usefull for you.
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