Now that you are thinking of buying a property in The Netherlands, you have to decide whether or not buying is a actually a good idea. We will explain to you when it making such a purchase is a good idea and solid investment as an expat.
In many cases, the amount of money a tenant spends on rent can be roughly the same amount a homeowner spends on his mortgage. With the added tax benefit for homeowners, the savings can be significant. Still you have to ask yourself: does it make sense for ME to buy in The Netherlands? We will explain to you when it DOES make sense to buy a home as an expat.
How long are you planning to stay in The Netherlands? If you planning to stay for at least 4-5 years, you will break even with your investment as a homeowner. Let us explain why this time span is important. On top of the purchase price, there are several other expenses involved in buying a home. The buyer has to pay 2% stamp duty, pay the fees at the notary, financing fees, valuation fees, and estate agents fee. These are important additional the buyer has to keep in mind. All together these additional fees add 6% on top of the purchase price. That means that if you want to sell your property, you would like to recover these expenses in the sale. With current market conditions as they are, the value of your home is likely to increase over time, which means you may even sell it for a profit.
The main plus point for buying versus renting a home are:
1. It is yours; you can decorate it any way you see fit
2. Tax deductions; interest payments on mortgages are tax deductible as are all expenses related to the closure of the mortgage
3. Investment; possibility to build up assets