What you need to know about buying a house in the Netherlands in 2021

Interested by shopping for a home within the Netherlands? Questioning what the housing costs are doing? And if now could be the proper time to leap into the Dutch housing market and take out a mortgage? Then this replace is for you! 

We determined to sort out among the most requested questions relating to shopping for a home within the Netherlands as a world in 2021. So when you have been pondering of getting off the rental bandwagon and changing into a proud house owner, then learn on.

We’re not the consultants on the Dutch housing market, so we’ve partnered up with Melissa Zahaf and Arjan Hardesmeets at Expat Mortgage Platform to convey you this text. When you’ve got questions concerning the housing market of right now or are merely thinking about shopping for a home within the Netherlands then they’re the individuals to present you a hand!

First issues first, let’s begin with the capital.

Are home costs in Amsterdam dropping or rising?

Whereas the world had been turned the wrong way up by coronavirus, some issues will merely by no means change. Housing costs in Amsterdam are rising as all the time — though, surprisingly, not as a lot as different areas.

This yr noticed housing costs throughout the nation soar like by no means earlier than with the NVM (the Dutch affiliation for brokers) noting the sharpest ever enhance in housing costs since they started recording in 1995. Nevertheless, whereas the nation as a complete skilled a soar in costs, Amsterdam really skilled the bottom enhance of all areas — merely 14% (yup, that’s the LOWEST enhance this yr.)

Photo-of-Amsterdam-canal-houses-2021
Shopping for a home within the Netherlands is has turn out to be much more costly in 2021. Picture: Joel de Vriend/Unsplash .

Why is that this? Extortionate housing costs apart, this can be because of the pandemic. The previous 18 months have consisted largely of lockdowns that compelled us to spend a lot of our time indoors. This isn’t the best state of affairs once you’re dwelling in an house and also you’re anticipated to earn a living from home — as many do in Amsterdam.

READ MORE | How you can get a Dutch mortgage as a Brit, freelancer, and extra

On high of the cramped situations, there’s little enchantment to a populous, shut-down metropolis once you’ve obtained a virus making the rounds. In consequence, many have turned their heads away from the canal homes and in the direction of the extra spacious rural areas as a substitute.

What about housing costs outdoors of the Randstad?

Like we’ve stated above, housing costs are growing probably the most outdoors of Amsterdam, particularly, outdoors the Randstad. Folks wish to get pleasure from a extra spacious and free way of life at house, which means one of the best place to maneuver is outdoors of the Netherlands’ much-beloved ring of cities.

As a substitute, many potential owners are actually trying to the north of the Netherlands for his or her future houses. Areas similar to east Friesland, Overijssel, and Groningen have seen housing costs soar by 30% in 2021!

What are the housing costs in different main cities within the Netherlands?

However now you would possibly ask us: why are you telling us about Amsterdam? We don’t wish to stay within the capital! We’d quite stay elsewhere! Nicely, oftentimes Amsterdam could be seen as a predictive indicator of how the housing market will perform in different main cities within the Netherlands. For instance, the nationwide pattern of rising costs and firms investing in house blocks all broke out of the capital after the disaster. It unfold to the opposite main cities within the Randstad, and ultimately the remainder of the nation.

If we’re to go by this pattern, the outlook for the opposite main Dutch cities is straightforward: housing costs are rising, and they’re going to proceed to take action.

Presently, the most affordable property you should purchase within the Netherlands is an house — and it will price you a median of €344,000. This worth marks a rise of 20% since final yr. Hoping for a indifferent home? Nicely, that can set you again a median of €618,000 in response to the NVM — marking a 23.4% enhance.

buying a house in the Netherlands in 2019
It’s not as dear as New York or Amsterdam (but). However shopping for a home outdoors the Randstad can also be changing into fairly costly. Picture: Abuzer van Leeuwen/Equipped

What does the Dutch housing marketplace for potential patrons appear to be?

The rationale for the hovering enhance in housing costs comes down (at the least partially) to a easy downside: there aren’t sufficient homes for hopeful owners within the Netherlands. This yr, the NVM recorded the bottom ever variety of properties that had been listed on the market — simply 15,500. If that quantity doesn’t concern you then it’s good to know that by this time in 2020, twice this quantity of homes had already bought.

READ MORE | Hire or purchase a home within the Netherlands? What it’s good to know in 2021

This isn’t simply the case for previous property but in addition for brand spanking new buildings. The variety of newly constructed homes on the Dutch housing market has dropped by a 3rd thus far this yr.

With all of those costs rising, is it an excellent time to promote?

In line with the NVM’s findings, 2021 can go down within the books as an excellent time to promote. With housing costs at present growing at a record-breaking fee, it’s clear that now could be prime time to place your own home in the marketplace. And it’ll actually be well-received seeing because the Dutch housing market is at present ravenous for brand spanking new property.

In truth, all the strategy of promoting must be over comparatively rapidly. You gained’t have to fret a few lengthy wait earlier than the property is snapped up as at present, the common home takes simply 24 days to be bought. Not solely will it’s taken off your arms rapidly, however you’ll additionally possible obtain quite a bit for it. The present competitors often drives hopeful patrons to bid far above the asking worth.

Are Dutch mortgage rates of interest rising or falling in 2021?

With all of this discuss concerning the rise and fall of the housing costs, let’s not neglect concerning the mortgage charges. What we all know for sure is that mortgage rates of interest are falling. In truth, they’ve reached a file low this yr.

Photo-of-Zaanse-Schans-Dutch-houses-2021
Before you purchase a home within the Netherlands, it’s good to know that mortgage rates of interest have reached an all-time low in 2021. Picture: MountainSeal/Depositphotos

As of January 1, 2021, the Nationwide Mortgage Assure (NMG) supplied new owners mortgages with an rate of interest of simply 1.23%. Nevertheless, future patrons want to grasp that this isn’t essentially an excellent factor.

READ MORE | 7 questions answered about getting a Dutch mortgage in 2021

General, what this implies is that owners profit probably the most. For individuals who have already got a home with a mortgage, you’ll be able to doubtlessly profit from the low mortgage rate of interest. On high of this, as a result of home costs have risen so quickly, a danger premium on the mortgage is now not essential.

Starters might profit from a low rate of interest, however a decrease rate of interest additionally means the next demand, which can, in flip, drive housing costs up additional — so don’t go celebrating but.

TIP: For those who’re curious to see what your mortgage mortgage within the Netherlands would appear to be, take a look at the mortgage calculator over at Expat Mortgage Platform. You need to be capable to get a ballpark determine so you understand what you’ll be able to anticipate to pay in 2021.

Can you purchase a home within the Netherlands if you’re a world?

Lengthy story quick, sure, you’ll be able to apply for a mortgage if you’re not a Dutch nationwide. All banks will likely be open to assembly with you to debate your choices, however your probabilities can differ. The rules and obstacles will rely in your nationality (EU nationwide vs. non-EU nationwide) and which financial institution you strategy.

Nevertheless, usually talking, some banks would possibly need you to be working and dwelling within the Netherlands for a time. The longer you’ve been dwelling and dealing within the Netherlands, the better it will likely be to get a mortgage.

All the strategy of getting a mortgage as a world within the Netherlands warrants an article in itself (or maybe a e book can be higher.) For that reason, many individuals go for the assistance of a mortgage advisor when going by this course of.

For those who’re a world and also you’re not sure of the place to start within the course of of shopping for a house. You possibly can contact the consultants at Expat Mortgage Platform. Not solely do they provide free consultations, they’re additionally specifically educated in serving to worldwide shoppers discover their future houses within the Netherlands.

How have you ever skilled the housing market within the Netherlands? Interested by shopping for a home within the Netherlands in 2021? Inform us your ideas within the feedback beneath!

Characteristic Picture: djedj/Pixabay

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