A 10-step guide to buying a house
If you are planning a long-term stay in the Netherlands, buying a house could be a more financially sensible decision than renting. Check out our 10-point guide to buying a house in the Netherlands.
1. Are you able to buy a house in the Netherlands?
Foreign nationals face no restrictions when it comes to buying property in the Netherlands, and given the high cost of renting, it is usually financially worth it if you are planning to stay at least three years.
The owner-occupier sector accounts for almost 60% of Dutch housing stock, with most of the rest in the hands of housing associations, so supply is fairly limited.
2. Choose your location
When looking to buy a house in the Netherlands, take some time to determine your priorities. Would you like to live in the city centre, the suburbs or in the country? Research the transport options and associated costs and, if you have children or are planning a family, look into the availability of schools.
3. Start the mortgage process
If you plan to take out a mortgage, seek financial advice to determine your borrowing capacity. Mortgages in the Netherlands can span up to 30 years and cover up to 100% of the property’s market value. At FVB de Boer Financial Consultants, we can help you work out how much you can borrow with our personalised mortgage calculator.
We will hold an initial meeting with you to understand your needs, situation, and future plans. We will explain the process, costs, and our services. After completing a client profile, we will recommend suitable products and assist you with the necessary paperwork.
4. Research what you can buy for your money
Check out housing websites such as Funda.nl to get a feeling of how much you can get for your money in the neighbourhood you would like to live in. If it looks impossible, rethink your preferences.
5. Find a real estate agent
Once you are ready to get down to serious looking, we really do recommend you employ an estate agent. A buying agent will look after your interests to make sure you get the best deal you can, negotiate on your behalf and make sure all the relevant checks are carried out.
Once the sale price has been agreed upon, the next step is the property transfer process. This process starts with both the buyer and seller signing a purchase agreement, which includes several significant dates. These dates may include the transfer of ownership date, the deadline
for making a deposit of 10% or obtaining a letter of guarantee from your bank, and the mortgage deadline date.
6. Get a mortgage
Once you have found a property and signed the provisional sale contract, the next step is arranging your mortgage.
FVB de Boer will handle communication with the bank, property appraisal, and insurance requirements. We will carefully review all documents and provide the necessary information and advice.
7. Find a notary
All the legal paperwork related to your sale, is carried out by a notary, an impartial lawyer, who specialises in real estate transactions. We can help you find one. If you don’t speak Dutch, you will also need a translator to act on your behalf.
8. Allow for extra costs
When considering buying a house in the Netherlands, you have to factor in various fees that come along with the process. These fees include:
- Property transfer fee: This fee is equivalent to 2% of the purchase price for an existing property but does not apply for new homes. If you are under 35 and your new home costs less than €400,000, you will not have to pay property transfer tax.
- If you are buying a home covered by the National Mortgage Guarantee scheme, you will have to pay a fee of 0.6% of the mortgage amount.
- Valuation costs: These costs typically range between €750 and €850. This fee is tax-deductible.
- Technical survey: The cost of a technical survey ranges from €400 and €600 but will be higher if you have the foundations checked.
- Mortgage advice: You can expect to pay between €2,750 and €4,500 for mortgage advice. This fee is tax-deductible.
- Legal advice: You can expect to pay between €1,750 and €2,250 in notary fees. The fee for the mortgage is tax deductible.
Fees associated with buying a house in the Netherlands can total up to 6% of the purchase price.
9. Arrange insurance
Homeowners are required to have insurance coverage for their property to protect against unforeseen risks such as fire, theft, severe weather, and flooding. This type of insurance is known as “opstalverzekering” in Dutch.
If you are buying an apartment, joint policies are often arranged through the owners’ association.
To protect the contents of your home, you will need to obtain a separate insurance policy (known as “inboedelverzekering” in Dutch). At FVB de Boer Financial Consultants, we can help you arrange the necessary insurance.
10. Sort out taxes
If you are a Dutch taxpayer, you may be eligible for tax deductions on your mortgage fees and part of your interest payments. At FVB De Boer Financial Consultants, we can help you work out your tax obligations and potential deductions.
As a property owner, you will also be required to pay annual property taxes to your local council to cover services such as waste collection. These are based on the official value of your property.
Buying a house in the Netherlands with FVB de Boer
Purchasing a property is a big decision and can be even more challenging when buying a home abroad. FVB de Boer is here to assist you. As an impartial mortgage advisor, we analyse all mortgage providers to ensure you receive the best deal to fit your needs.
If you would like more information on any aspects of buying your own property in the Netherlands, feel free to call us on +31 70 5118788 or get in touch via the contact form.
How can we help you?
José de Boer
There can be a lot of reasons why you would like to buy a house in Holland, below we have listed a few of them:
- Buying a house can be a lot more advantageous than renting
- In the Netherlands you often get financial incentives / tax benefits
- Buying a house can be a very good investment, for quite some time now, owning your own house has proven to be a good investment
- Control over the property (decoration changes, pets, noisy activities etc.)
- You might want to buy the house to let
- Owning a house brings pride of ownership; and offers a sense of stability and security
We are here to help you set financial goals and priorities, and then recommend specific steps to meet them. This means we may give advice on how you should allocate your investments, what kind of insurance you really need and explain how certain moves may affect your taxes or estate.
It’s then up to you to decide if you want to follow that advice. Since we aren’t necessarily a specialist on all aspects we might also recommend others, when you need more specialized help, say, working with a trusts and estates attorney who can help protect assets in a family businesses.
Also buying a house in a foreign country can be quite a challenging process.
De Boer Financial Consultants are financial advisors with a deep understanding of the hurdles that Expats encounter when buying a property in The Netherlands. We are specialized in expat mortgages, insurances & wealth management.