Expat in holland

16/01/2023

The National Mortgage Guarantee (nationale hypotheek garantie) is a government-supported mortgage guarantee program in the Netherlands that aims to provide more affordable and accessible housing options for Dutch citizens. The program works by providing a guarantee to lenders for a portion of the mortgage loan in the event of default by the borrower. This reduces the risk for lenders and allows them to offer lower interest rates and more flexible terms to borrowers, especially those who may not meet traditional lending criteria due to factors such as low income or lack of a down payment. The National Mortgage Guarantee is available to Dutch residents who meet certain eligibility requirements and is administered by the Dutch Ministry of the Interior and Kingdom Relations.

29/09/2021

Shortage in the housing market

Overbidding is a consequence of the shortage in the housing market. There is little supply and lots of demand. If you find a nice house, you often have a lot of competition. In most cases, you have to outbid them. Low-interest rates mean you can borrow more than ever. This does not mean that there are no considerable risks associated with overbidding on a property.

The level of overbidding continues to rise, bidding 10 percent above the asking price is certainly not exceptional.

Selling above the asking price

On average in the Netherlands, 3.5 percent is paid above the asking price. In Eindhoven, this is a whopping 7 to 10 percent. On a 400.000 euros house, this already amounts to more than 28.000 euros. You cannot finance this amount because you cannot borrow more than 100 percent of the home value.

The value of the house is determined by an appraiser, which is then also the maximum amount you can get as a mortgage for your home. If you make an offer above the appraisal value, you have to pay the difference yourself.

Bidding without a financing condition

Bidding without a financing condition gives the seller assurance and speed. The seller will not have to wait for weeks until the financing is arranged. If you know the risks and you understand your financial options, then you can decide to buy without a financing condition. This increases the probability that you will be awarded the house.

Keep in mind that you have to pay 10 percent of the purchase price if the sale is unexpectedly cancelled.

tips
1: Make sure you know how much you can borrow and how much you can contribute from your own resources. Then you will know whether you can bid above the asking price and by how much.

2: It is important to know what a house is worth before you bid on it. The asking price is sometimes not the actual value.

3: Decide in advance what your final offer will be. Once you walk into the home, you are emotionally involved and may get carried away.
4: Hire a purchasing agent. This will increase your chances of success and help you find your ideal house, view it and make the right offer.

If you want to know more, you can always reach out to me.

van de Laar

29/09/2021

NHG in 2022

More and more people are buying a home without the NHG safety net, because fewer and fewer homes are for sale below the cost limit. In 2022, the NHG cost limit will increase from €325,000 to €355,000.🏠

Lower NHG Commission
In 2021, home buyers will pay 0.7% on the amount of their mortgage for taking out NHG. As of January 1, 2022, the NHG fee will decrease to 0.6%.📉

In January 2022, the average house price is expected to be around €400,000.📈

08/10/2020

Despite a historic decline in the economy due to the corona crisis, the first economists no longer expect a decrease in house prices. The expectancy for next year is generally flat prices.
Mainly due to the shortage and ask and demand of houses

01/10/2020

Changes in 2021!

You probably noticed that prices of properties in the Netherlands have increased in the last few years. To help first-time homebuyers, the Dutch government plans to change the regulation that people aged 18 to 35 who buy their first property in the Netherlands will not pay the transfer tax of 2% when purchasing a home.

What does it mean if you’re a first-time buyer?
It means that you will need fewer savings to close your mortgage, and you can keep more of your savings in your pocket. Currently, the transfer tax (overdrachtsbelasting) is 2% of the purchase price. So, if you buy a residential property in the Netherlands, you must pay 2 percent of the property price. For example, if your house is worth € 350.000, the transfer tax will be € 7,000. When the government passes the new bill, the buyer will save € 7,000.

When you buy a home in the Netherlands, you must pay closing fees, including the transfer tax of 2%, the cost for a bank guarantee, real estate agent, notary, translator, valuation report, bank guarantee, and mortgage advice.

Mortgage closing fees are tax-deductible in the Netherlands. You can receive a tax return on the valuation report, mortgage brokerage, and advisory and mortgage-related fees at the notary (deed of mortgage and public land records).

Feel free to reach out if you have any questions.

01/04/2020

The housing market in Eindhoven did not change much during the corona crisis. This is said by Pieter van Santvoort, who keeps track of the quarterly regional figures for the Dutch Association of Real Estate Agents.

“There is a large group of people who still want to buy a house, corona crisis or not. They are able to buy and banks continue to finance the houses. That hasn’t changed so far. The houses are still being sold well, the prices have not dropped”, Van Santvoort explains. What he does notice is that there are less viewers. “Now about 25 instead of 50 viewers come to see a house but the market remains the same. After all, demand is many times greater than supply. So the buyers have a higher chance to succeed now”.

This is the image Van Santvoort has over the past few weeks, although there are no underlying figures. His explanation of the continued interest in the housing market: “Many people see this as a temporary crisis. Of course, certain sectors are being hit hard, such as the hotel and catering industry and retail sector, but this doesn’t immediately apply to the housing market. The demand remains for the time being, because there are too few owner-occupied houses in Eindhoven. Things may change if the crisis continues for a long time”.

11/12/2019

All I want for Christmas is (hot) chocolate! 🎄

05/12/2019

14/10/2019

Changes in the housing market in 2020
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There will be several changes for the housing market.

ExpatinHolland lists the most important changes for 2020 for you.

Reduction in notional rental value
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To accommodate homeowners, the government has decided to adjust the percentages for the notional rental value downwards. The notional rental value is a percentage of the WOZ value of your home. The percentage depends on the value of your home. These percentages will be lower in 2020.

Two-income households receive a higher mortgage

Do you and your partner both work? Then you can get a higher mortgage in 2020 based on your joint income. This year the lowest income is still counted for 70%, but next year it will be 80%. Also in 2020, the amount of the mortgage will remain a maximum of 100% of the value of the home, unless you take energy-saving measures. In that case you can borrow a maximum of 106%.

Starters receive help from the cabinet
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For starters, it is currently very difficult to find an affordable home. That is why the government is allocating two billion euros to help them and middle incomes. More affordable homes are being built with this money.

Reduction mortgage interest deduction

From 2020, the mortgage interest deduction will be phased out. The rate at which the mortgage interest can be deducted is now still 49%, next year this will fall to 46%. In 2021 it will fall further to 43%, in 2022 to 40% and in 2023 to 37.05%. This reduces the tax benefit for you as a homeowner and increases your housing costs.

Reduction in Hillen deduction
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If you have no or a small mortgage debt (read: if your notional rental value is higher than the deductible costs of your home), you are entitled to an additional deduction. This is regulated in the Hillen Act. From this year, the deduction will be completely phased out in 30 years. Every year this percentage drops by 3 1/3% per year; in 2020 the percentage will go down to 93 1/3

11/10/2019

We are hosting our next housing & financial planning seminar in Januari '20
Check our page regularly for an update!

23/09/2019

BUYING A HOUSE
Although it is probably better to rent for a while before buying a house, the difference in monthly payments can make purchasing an attractive option for those staying longer. The difference comes largely from the fact that (for the time being at least) the Dutch government repays some of the mortgage interest as tax relief.

After a while most expatriates realise that it is more attractive to buy a property (real estate) in the Netherlands instead of staying in a rented house or apartment.

You probably heard this from someone or read it somewhere.

Want to know more about your benefits and options?
Contact us and get informed!

With kind regards
Tom
Expatinholland

21/08/2019

Interested in your mortgage possibilities?
Walk in hours.
New date! 12-09-2019
to attend: http://eepurl.com/gt_Dkr