Housing

Why buy a house?

Reasons to buy a property


Expatriates in the Netherlands often ask the question: “Should I buy or rent a property in the Netherlands during my stay?”. This can be a difficult decision, for instance in view of the hard-to-predict Dutch housing market.


By renting a house, you can minimize your risks: the monthly rent to be paid is fixed and the rental contract can in most cases be terminated within two months. As such, renting a house gives certainty and flexibility. However, one cannot benefit from a possible increase of the value of the house and the rent paid is not a tax-deductible item for Dutch income tax purposes.


Buying a house on the other hand can be very tax beneficial. There are certain costs which can be deducted like the interest of the mortgage.

 

Further, as a house-owner you can benefit from a possible increase of the value of the property. This value increase is tax free in case of a house which qualifies as your main residence. Currently, the Dutch house market is difficult to predict. In previous years, property prices have increased enormously (depending on the area and the type of property an average 40% up to 70% or even more than 100%). At the moment prices are stabilizing or decreasing, but in the long term prices should go up. This is however uncertain. Keep this in mind when negotiating about buying a property.

 

And last but not least, owning a property gives you more rights to change it to your personal needs and wishes. You don't have a landlord who is forbidding you to make changes. Still there are certain requirements which have to be met when you would like to enlarge your property but the conditions have been reduced quite much in the past.

 

Because of the costs involved when buying a property you should at least live in it for several years.

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