Renting vs. Buying
what are the benefits of renting vs. buying a house?
Buying a house in the Netherlands:
an overview of the pros and cons
For many expats, renting seems the obvious choice. It may give you a sense of flexibility, but renting is a short-term-solution. In the long run, the pros of buying a house will always outweigh the benefits of renting.
Even though it seems expensive, buying a home can save you a lot of money. It may involve more commitments, but it gives you more opportunities as well. You can really make your house a home with an owner-occupied property. Customizing the whole property while building equity; for many this is a dream come true.
Let’s take a look at the pros and cons of renting vs. buying.
Buying
Pros
- Monthly costs are often less expensive than renting
- Payments build up your own equity in the home
- House prices are currently relatively low
- Mortgage interest is tax deductible
- Buyer's costs are tax deductible
- Monthly mortgage payments don't change yearly like rent
- Having the complete freedom to renovate the home
- Possibility to profit from rising house prices
- More rights and freedom to make changes to the property
- You often get more square footage for the same monthly costs
Cons
- Risk of decreasing value over time (risk of residual debt)
- Stuck to a loan for a long time
- Less flexible, you can’t just up and move
- Responsible for all maintenance and insurance
- Required to pay property tax and other communal taxes
Renting
Pros
- Flexibility to leave
- Less risk
- Not responsible for maintenance and the insurance of the property
Cons
- Expensive
- Waiting lists can be long
- Limited choice
- Rent increases yearly
- No equity build-up
- Improvements to the property are in favor of the owner
- You have to pay a deposit and return the property to its orginal state
- If the landlord decides to sell their property, you could lose your home
our most frequently asked questions
FAQ
Curious to see what amount of mortgage you can get with your current capital? Our mortgage calculator gives you an indication of your maximum mortgage based on your salary. Plan a free consult with one of our advisors to find out what your exact maximum mortgage amount is with the current interest rates.
When buying a home, your monthly costs will consist of:
- mortgage payments
- insurance policy
- energy costs
- water costs
Note: If you buy an apartment, costs for the association of owners (‘Vereniging van Eigenaren’ or ‘VVE’ in Dutch) may apply as well. They arrange the maintenance for the building that your apartment is situated in.
First things first, you’ll need to estimate a budget to start your search for a dream home. Our advisors can assist you with taking inventory of your capital. How much savings do you have? What’s your maximum mortgage amount? What additional costs can you expect?
During the first free consult, our advisors will thoroughly review your situation. Based on this consult, they will present you with all your possibilities and they’ll give you an expert recommendation.
Looking for a mortgage advisor that specializes in expat mortgages?
Our advisors are happy to help. Schedule your first appointment without any obligation to discuss your situation!
