The Dutch housing market continues to dominate the front pages, but it does now seem as if house price rises really are slowing. Make sure you stay one step ahead of the competition by catching up with the latest quarterly round-up of housing news.
Market movements and interest rates
Latest reports from the national statistics agency CBS and the NVM real estate agent’s association both suggest prices are stabilising month on month although there are wide regional differences. More houses have also come on the market, as landlords continue to sell off their smaller properties because of rent caps and higher taxes.
Interest rates have also been moving a little in recent weeks – not surprising with all the turmoil in the financial markets – but they are still relatively low when looked at over the past 30 years. In addition, says Richardo Cruz Fortes from Expat Mortgages, you need to compare Dutch rates with what they are in your country of origin.
“Dutch mortgage rates are still considered very attractive and stable by many international buyers when you look at what is available elsewhere. That perspective is important.”
Should you buy if you are currently renting?
If you are currently a tenant and unsure whether to stay in rental property or take the plunge and buy, Expat Mortgages has a clever new tool to help you assess what your rent could buy you instead.
Foundations and finance
Another housing-related issue which is big news at the moment centres on a property’s foundations. Since April 1, each property taxation report – drawn up by independent taxation specialists and paid for by buyers – must include an assessment of the state of the property’s foundations, on a scale of A to E.
Taxation reports are needed for a mortgage and a score of D or E means further research will need to be done before it can be completed. The report is only drawn up once a deal to buy a property has been agreed – and that means buyers don’t know about potential problems which could affect the price and how much they can borrow.
“This might sound worrying but in reality it is mainly about transparency,” says Richardo. “Buyers, valuation agents and banks simply want better insight into the long-term condition of buildings and potential future maintenance risks.” He suggests making sure your estate agent asks detailed questions about the mortgages during the viewing – it is an offence for agents not to tell the truth about them when asked.
Valuations and pre-approved mortgages
Another trend that is slowly building momentum in the Dutch housing market is getting your mortgage pre-approved. While there is no formal pre-approval process for a mortgage in the Netherlands, Expat Mortgages goes through a thorough process to know exactly what your loan capacity will be, which means that the final loan can be arranged in as little as two to four weeks.
“The strongest buyers in today’s market are not always the buyers offering the highest amount, but the buyers who fully understand their financial position before making decisions,” says Richardo. “That is why pre-approvals and proper financial guidance are becoming increasingly important.”
With a pre-approval, you can enter the bidding process more confident about what you can borrow, which will stop you overbidding and finding yourself left with a gap in your mortgage plans. One of the biggest surprises a buyer can face is when the valuation of the property comes in below the agreed purchase price, leaving the hopeful new owner trying to come up with extra cash or facing a financial penalty on top of losing the home.
Buying a home, says Richardo, is no longer only about speed. “It is about strategy, preparation and making sustainable decisions that still feel right years from now.”
Buying a newly built home
Buying a new home means you can avoid many of the concerns that come with older buildings. They are unlikely to have foundation problems, maintenance costs will be lower and homes will be built to modern energy efficiency standards.
“This can make new build very attractive to expat buyers,” says Richardo. “They are not buying a property for today, but are looking at future family plans, stability, energy costs and the overall quality of living.”
One new property which is generating interest among international workers is The Triplets project in the Oostenburg area of Amsterdam. The apartments range from 147 square metres with a big roof terrace to smaller flats suitable for a couple or a single person.
If you’ve never thought about new-build, you can take a sneak preview during Saturday’s open days from 10am to 1pm.
Talk to the experts
If you’ve got questions about the mortgage market and would like to talk to someone in person, Expat Mortgages hosts regular webinars and events, both in person, and online where you can discuss your situation with the experts. The next is on June 30. You can also always check out the FAQs on the Expat Mortgages website and make an appointment to talk directly to an adviser.
