HOUSING

FINDING THE PERFECT HOME IS NOT EASY IN THE DENSELY POPULATED NETHERLANDS. HERE’S HOW IT WORKS.

It’s a sellers’ market now in the Netherlands, and housing is in high demand. Competition for housing in popular areas is fierce, so be ready to act, bid and sign quickly. Expats are advised to buy only if they will be in the Netherlands for three years’ minimum. If you stay in The Netherlands for just a couple of years, renting a property is a better option.

RENT OR BUY?

• If you will live here for more than five years and paying

EUR 2000 exclusive of utilities per month on your lease, you could be better off buying a property in the Netherlands.

• Buyers who want to lease out their property in the future should make sure they are permitted to. Check the terms of your mortgage provider.

• Only interest payments for full-repayment mortgages over 30 years are tax deductible, and the maximum tax rate for deductibility will be reduced by 0.5 percent per annum until 2040.

FINDING A HOME

• Properties to rent (te huur) and to buy (te koop) can be found on online property portals and agency websites such as www.funda.nl and www.pararius.com, www.expatica.com, www.expatrentals.eu. • There are many agencies specialising in serving expats (be wary of those that charge a registration fee), which can steer a path through the local market.

• You can contact an agent to help you out in the home finding process. They will actively search the market to find the property you are looking for. An agent that is working on your behalf will charge an agency fee. The going rate is a 1 month’s rent + 21% V.A.T.

• If you find a rental property listed on any website yourself, then that agent is working on behalf of the owner, and for that, you are free of any agency fees or contract costs. But, it is recommended that you hire an agent yourself who can help you out with the rental contract and other issues.

• Using a reputable agent, or agency, can help you to avoid renting an “illegal” apartment, a scam, a sublease, not getting back your deposit after check out, being bound by an unreasonable contract, or just over paying for a property. You can search all available agents in the market at https://www.mvahousing.nl/ mva-certified-expat-brokers

• Rental properties that have less than EUR 763.47 base rent (in 2022) will fall under social housing restrictions, and most will not qualify for these properties as they either earn too much or have no required link to the area.

RENTING

USING AN AGENT

• A good housing agent should be able to tell you all about the local market, the city, pricing, quality of housing, restrictions that apply to expats, he/she will arrange viewings for you, negotiate with landlords, and provide an English translation of the rental contract.

Helping you to connect with utilities services is not a standard service.

HOUSING SECTORS

1. Social Housing sector: The dominant distribution sector has rent-controlled social housing, and income status plays its part in allocation. Restrictions are applied by the local authority. Rental properties that have less than EUR 763.47 a month base rent (in 2022) will fall under social housing restrictions.

2. Liberalised sector: The government regulates baserents up to EUR 763.47 a month (2022) and anything over this price is in the “liberalised” sector (assuming it has the correct points/price ratio), where rent prices are not restricted. • Social housing is split into two sectors, depending on whether the property is privately owned, or owned by a housing corporation (woning coöperaties).

• Housing corporations: A good value, but with many restrictions regarding who may live in their properties.

Waiting lists of up to 10 years or more are not uncommon. Only those with a total income of less than

EUR 40,024 (2021) and valid residency will be eligible.

• Most expats end up renting accommodation in the

Liberalised sector because there are fewer restrictions and housing is easier to rent.

RULES AND REGULATIONS

• Base rents (kale huur) are controlled by a “system of points”, woningwaarderingsstelsel,

The number of points of the property determines the maximum rental price. Each part of the house receives points. For example: the surface of the dwelling, sanitary, heating system, the (WOZ) value of the property.

• The reality is that there are too few rental properties, which puts upwards pressure on some types of accommodation. Check what your property’s rent should be at www.huurcommissie.nl.

• You’ve signed a rental contract and you pay way too much money? Contact a local huurteam or initiate a review of your lease on www.huurcommissie.nl within six months after signing the lease.

• Generally, income conditions apply for cheaper housing.

• Be cautious of sub-lets. You need to be able to register yourself.

COSTS AND CONTRACTS

Besides general provisions and conditions your rental contract must at least cover:

• Status: is the property furnished, semi-furnished or empty? There may be an inventory and/or photos.

• Duration of lease.

• Notice period and stipulations about how notice should be provided.

• Service charges (check “all-inclusive”. What portion is rent?). • Utilities (apportioned how?). If you agree to a monthly fee, including an advance for utilities, then make sure that utility use is metered for your property. Your landlord should show you an account (eindafrekening) of payments and real costs at least once a year.

• A diplomatic clause if you have to leave because your employer has relocated you elsewhere. You need to be clear on when and how this clause can be used to allow you to escape your rental obligations.

• Expect to pay one or two months of rent as deposit – one month’s rent in advance to the landlord, and one month’s rent if you use an agent.

TIPS

• Discuss your needs explicitly with your housing agent or relocation advisor.

• Select one, at most two, agencies. Avoid engaging with too many agents for the same objective.

• Arrange viewings three weeks before you need to move in, not earlier.

• Be ready to move quickly.

• If the agent commission seems too much, find property on your own, but be ready to put in lots of legwork.

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• Most of all, you will need luck, and timing is also important. • Post a notice in the housing section of expat forums. • Stay clear of anyone asking for a cash payment or cash commission. • Respond quickly to adverts and take someone along with you when viewing. • Always check that you can register with the BRP. • The standard NVM (Dutch estate agent association) contract has an English version for comparison.

STUDENTS

• Universities try their best to help students with housing but there are serious shortage issues. • There are non-commercial agencies for students, housing corporations and antikraak (anti-squat) agencies that rent out accommodation. • Check the city housing department for more information about low-priced housing. • You can find useful internet sites for renting a room or student accommodation, like www.kamernet.nl and www.studenthotel.nl

SHORT-TERM HOUSING OPTIONS

• Many cities in the Netherlands have aparthotels for corporate clients, which can sometimes be less anonymous and cheaper than hotels. • Websites aimed at tourists – like AirBnB – are great for a private apartment for up to a month. • Short-stay regulations in Amsterdam make it “illegal” to rent the majority of properties for less than six months, but many properties are listed for one to sixmonth stays regardless. • Search for agencies with short term listings.

LIVING ON THE WATER

• Tempted by life on a houseboat or Dutch barge? • The houseboat market is a very close-knit community so personal references will go a long way. • There are many rules and regulations regarding permits and mooring conditions. Track down a specialist agent to steer you through the procedures. • Useful sites include www.waterwonen.nl, www.botentekoop.nl, www.funda.nl (which includes all kinds of boats for sale).

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BUYING

• It is common to appoint a real estate agent, or a makelaar, to do much of the legwork. • You will receive listings by email from the makelaar. He will track down appropriate houses, arranging viewings, suggesting areas where there’s room for negotiation, and advising on potential pitfalls. • A makelaar also knows which property will come on the market shortly. • The agent’s commission will be one up to two percent excl. 21 % V.A.T. of the purchase price. • You can hunt on Funda (www.funda.nl) to get ideas of prices in particular areas. • When buying, proximity to work, schools and amenities all play their part. • Be aware of the costs involved in renovating older property to current building standards or the quality required for renting. • For leasehold properties, check out the ground rents, conditions, type of leasehold, private or Municipality • Tax is also levied on the deemed property value (WOZ), evaluated by the local municipality each year. • See www.nvm.nl for useful information in English.

ARRANGING A MORTGAGE (HYPOTHEEK)

• There are many different types of mortgage and the tax issues are complex. The general conditions for a mortgage up to four or five times your salary are: • You have a permanent residence permit (depending on nationality and employment contract, this may not be applicable). • You have a permanent employment contract or a continuation statement from your employer. • If self-employed or a contractor, you have certified accounts for the last three years and forecasts for the following year. • Maximum mortgage obtainable is 100 percent of the house value.

COSTS

• The buyer generally pays costs (k.k. – kosten koper) but some costs are tax-deductible. • Allow for around 4 to 8 % on top of the purchase price. • Once your offer has been accepted, a written agreement is mandatory, and a 10 percent deposit should be paid. • Make sure your finances are in place first (ie. that a mortgage lender will lend the required amount). • On completion, both parties sign a transfer contract (akte van levering) and a notary must register the property at the Land Registry (www.kadaster.com). • Notary fees can range from EUR 1,500 to EUR 3,000, so it pays off to shop around. • An accredited interpreter must also be hired if one or more of the parties is not a Dutch citizen. • The whole process can take two to three months, this depends on your own input also.

IMPORTANT TERMS

• Pre-sale agreement (koopovereenkomst): prepared by vendor’s agent or lawyer (notaris) with a 72-hour

“cooling off” period. It will include details of when the 10 percent deposit should be paid, or when the bank guarantee has to be arranged. • Valuation (taxatierapport): designed for mortgage purposes; not a survey. • Transfer or conveyancing tax (overdrachtsbelasting): 2 percent of the purchase price. • Deed of transfer: transportakte. • Mortgage deed: hypotheekakte. • Agent commission: (makelaarscourtage): generally 1–2 percent, if applicable. A full structural survey is sensible; possibly fees for translation, plus 21% V.A.T. on the total. • Parental gift tax: In 2022 homebuyers can still receive up to roughly EUR 106.671 euros as a tax free gift to buy a property.

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ACCOMODATION AGENCIES / REAL ESTATE SERVICES 27 House Real Estate: Nieuwe Leliestraat 27 HS, 1015 SJ Amsterdam +31(0)20 428 0721 | info@27huis.nl | www.27huis.nl | facebook-f @27house De Raad Makelaars: Sandtlaan 38, 2223 GG Katwijk aan Zee +31(0)71 405 1500 | welkom@deraadmakelaars.nl | www.deraadmakelaars.nl Dutch Real Estate Company: Maasstraat 188, 1079 BL Amsterdam +31(0)20 772 3460 | info@dutchrealestatecompany.com | www.dutchrealestatecompany.com Eefje Voogd Makelaardij: Parnassusweg 201, 1077 DG Amsterdam +31(0)20 305 0560 | info@eefjevoogd.nl | www.eefjevoogd.nl Hello Housing BV: Carolina van Nassaustraat 165, 2595 SX The Hague +31(0)88 432 4070 | info@hellohousing.nl | www.hellohousing.nl | Instagram @Hellohousing | Linkedin-in @hello-housing-bv MVA Certified Expat Broker: Frans van Mierisstraat 59,1071 RL Amsterdam +31(0)20 673 3322 | info@mva.nl | www.mvahousing.nl | facebook-f @MVACertifiedExpatBroker | Instagram @mvacertifiedexpatbrokers Peter Bruin Makelaardij o/g B.V.: Valeriusplein 22, 1075 BH Amsterdam +31(0)20 676 8022 | info@peterbruin.nl | www.peterbruin.nl | facebook-f @peter-bruin-makelaardij-og-bv MORTGAGE CONSULTANTS A&H Finance: Muiderstraatweg 15B, 1111 PS Diemen | +31(0)20 465 1951 | info@ahfinance.nl | www.ahfinance.amsterdam | facebook-f @AHFinanceAmsterdam | Linkedin-in @a&h-finance Freek Hypotheek Eindhoven: Aalsterweg 179, 5644 RA Eindhoven +31(0)40 292 2222 | eindhoven@freekhypotheek.nl | www.freekhypotheek.nl/ eindhoven | facebook-f @freekhypotheekeindhoven Freek Hypotheek Amsterdam: Bijlmerdreef 554-A, 1102 AC Amsterdam Zuidoost | +31(0)20 495 0550 | amsterdam@freekhypotheek.nl | www.freekhypotheek.nl/amsterdam | facebook-f @freekhypotheekamsterdam Freek Hypotheek Utrecht: Middenburcht 136, 3452 MT Utrecht +31(0)30 677 10 90 | utrecht@freekhypotheek.nl | www.freekhypotheek.nl/ utrecht | facebook-f @FreekHypotheekUtrecht RENTING Element by Westin hotel Amsterdam: A.J. Ernststraat 577, 1082 LD Amsterdam | +31(0)20 517 5300 | reservations@elementamsterdamhotel.nl | www.marriott.com/en-us/hotels/amsel-element-amsterdam | Instagram @elementamsterdam Pararius: Blaak 555 (22th floor), 3011 GB Rotterdam | +31(0)20 471 2111 | huren@pararius.nl | www.pararius.com | facebook-f @Pararius SERVICED HOUSING ServicedApartments.nl: Gustav Mahlerlaan 50b, 1082 MC Amsterdam +31(0)20 723 3490 | info@servicedapartments.nl | www.servicedapartments.nl | facebook-f @servicedapartmentsinthenetherlands | Instagram @servicedapartments.nl | Linkedin-in @servicedapartments.nl StayCove: Cove Centrum | Passage | The Hague | Grote Marktstraat 46, 2511 BJ Den Haag Wittenberg by Cove: Plantage | Amterdam | Nieuwe Kerkstraat 157, 1018 VL Amsterdam | www.staycove.com | facebook-f @staycove