Did you move to the Netherlands, and haven’t you found the housing you want? That’s because we are experiencing a housing crisis. In a lot of countries there is a surplus of people who want housing and limited supply of housing. This crisis is caused by multiple reasons and is a multifaceted problem. In this article we aren’t going to fix this crisis. However, this article is going to help you navigate through this distortional market.
In the Netherlands housing on both sides is under pressure, a long time there was this urge out of society that landlords were abusing the system. The government responded by setting up a points system, where points determined the maximum rent price. Which caused a decrease in the supply of rentals, as a result the rent prices increased due to market forces.
The government is advocating on house ownership. They are stimulating this by using our tax system. In the Netherlands the interest you pay is partly deducted from your taxable income, in practice this means that the government gives you a fiscal benefit for getting a loan. This helps the stability of banks and the housing market. On the other hand, this artificially stimulates housing prices. Due to the government supporting you with the mortgage, the banks can give you a higher mortgage. This results in a higher bid on the house which leads to an increase in housing prices.
The Netherlands is expat friendly, after all who doesn’t want smart, academic and knowledge migrants contributing to society. It is beneficial to the companies and therefor society. If you decide (or have decided) to move, there are some good things to know before you settle.
The moment you come across your dream house, connect the broker. He will show you around the house and act on behalf of the seller. At the same time, you could go to a mortgage broker like us. We can help you get the mortgage that you want and fits your situation. Because of these tax subsidies it is important to effectively use them.. In my experience my clients do not just secure a mortgage, they secure a long-term, sustainable financial foundation.
I look further than the financial product, I draw out the whole financial spectrum to give you advice that fits you. Questions like: How long are you planning to stay? How flexible do you want to be? Are examples of the most important aspects of deciding which mortgage fits with your wishes.
After you are convinced of the residence, and have a sight on the financial side, it’s important to have some savings left. Cause the housing market is overheating, and to slow this down there are safety measures to ensure that the loans don’t exceed the market price. But this doesn’t ensure that the houses aren’t being bought at a higher price. So, the most important thing is timing, financial security and savings to place a higher bid than the other buyers.
All this can feel extremely overwhelming, and most people don’t succeed the first time. That’s why it’s important to have a good adviser, who leads you and gives you tips on how to succeed. Most people come to me after they already saw their dream home and missed it. Don’t let this happen to you and let me help you in this journey.
The Netherlands is an amazing place to settle. With a lot of flexibility on mortgage versions, some are more tax efficient than others. But most important is that the given advice fits your plans. The houses are expensive, but this also a result of a strong economy, which translates in stability. Still a bit overwhelmed or do you want to better your odds, reach out to me or one of my fellow financial advisers.
