Buy or rent a house

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Buy or rent a house in the Netherlands is a common dilemma expats face when they arrive in their new location.
In order to make a good decision whether to buy or rent a house you need to take many factors into consideration.

Buy or rent a house?

The most important factors are how long you are planing to live in the Netherlands and how high your current rent is.
If you paying a significant rent, +/- € 1.000 a month,  the general advice is, that if you are planning to stay here more than three to five years,
you are better off buying a house in the Netherlands.
If you are only here for a couple of years, renting is most likely your best option.
In case of renting, contract costs are fixed, repairs and maintenance are on the part of the landlord and the contract can be ended if
you need to return home.

An important role, in the choice of whether to buy or rent a house, is that the mortgage interest payments are tax deductible
if the house is your main residence. Your monthly expences will be lower because of this tax refund.
Both buying and renting have got their advantages and disadvantages.
Much will depend on the financial situation, your personal needs and the expected length of your stay in the Netherlands.
Below we briefly discuss the advantages and disadvantages of buying and renting a house in the Netherlands.

Buying a house

Advantages Disadvantages
In the long term (3 – 5 years) it
is cheaper to buy, because the
monthly payments are often considerably lower than rent.
Your are fully responsible for the maintenance of your own house.
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 house

Advantages Disadvantages
Contracts can be ended, they offer you a certain flexibility The rent price normally increases every   year
Repairs and maintenance are on the part 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 capital

Expats Amsterdam helps expats with the decision whether to buy or to rent a house in the Netherlands.
If you have made your decision already, Expats Amsterdam can guide you through the process of buying or renting a house.
Feel free to contact us.