Confronting the Challenges of the Dutch Housing Market

Real estate agent Cherene Kruger shares with ACCESS Magazine what internationals relocating to the Netherlands can expect from the property market.

Q: Based on your experience, what would you say are some of the challenges faced by internationals looking for housing in the Netherlands?

A: The housing shortage is the biggest challenge. There isn’t enough freely available, affordable housing. Secondly, with the changes in rental laws, a lot of landlords ended up selling their rental properties, which has caused even more of a shortage in terms of rentals. Coupled with that, having to look for a home from abroad is tough. It’s difficult to secure a viewing, and even harder to be considered when you’re not in the country.

Q: Prior to relocating, what can an individual do to make their search easier?

A: I think internationals need to research the areas they want to live in, explore properties available in their price range, and be flexible in what they want. Saying you want a six-bedroom freestanding house in the middle of Amsterdam for €1,000 a month is not possible. Expats also have varying expectations. The service you get in the United States, for example, is very different from how makelaars (estate agents) work in the Netherlands. The biggest mistake expats make is comparing where they are coming from to the Dutch housing market because nothing is like the Dutch housing market.

Q: For those who are looking to rent, any key points to keep in mind?

A: I always recommend working with reputable real estate agents. You have to do your homework and check references online. Makelaars can take the stress of the search away from you. They don’t work directly with landlords but with other agents, so the chances of being scammed are much lower. I’ve had so many people come to me after being scammed. If it sounds too good to be true, it probably is.

At the start of a rental contract, you should have one month’s rent plus a two-month security deposit ready, but it depends. If you have pets, they might ask for a larger deposit. There are no fixed rules. Fortunately, overbidding in rental properties has cooled down. At the moment, the rental market is very competitive. You can have one house with 400 people applying for it.

Q: Could you briefly take us through the process of buying a house? What should one take into consideration when selecting a property?

A: Firstly, work with a reputable real estate professional. Then, talk to a mortgage advisor, preferably one who’s worked with expats. The difference between a bank and a mortgage advisor is that a bank can only give you one rate, whereas a mortgage advisor can give you the best interest rate at that moment in the market from 20 different financial institutions. It’s prudent to speak to both. If you’re under 35 years old, it makes sense to buy because you don’t have to pay the 2% transfer tax if it’s your first home.

I always tell my clients that the area is the second most important decision, second only to the decision of buying a home. Walk around the area, speak to people, and find out about schools and any issues in the neighbourhood. Also, if you employ an agent, they know the areas well and can tell you which neighbourhoods are good. If you see big cracks in the house, that could indicate a foundational issue, and that’s where a professional can tell you whether to walk away or if it’s a fixable issue. If somebody tells you that you can’t have a technical inspection, ask them what they’re trying to hide.

Finding a house can take anywhere between a month to a year. It depends on your flexibility, available funds, and whether the home is already empty. Start sooner rather than later. In terms of payment, it’s always advisable to have 4-6% of the purchase price available for costs. Those are not covered by a mortgage. If you’re under 35, it can be 3-4%. Also, have some money saved up for overbidding. It is a reality in the Dutch market, and having no money saved makes it difficult to secure a property. Keep in mind energy ratings. An A- or B-rated house gives you €10,000 more to borrow on a mortgage, while a C or D rating gives you €5,000 more. So, if you want to increase your spending capacity, it’s always good to look at A-D rated properties. In Amsterdam, many properties are deemed monuments and don’t have an energy label. Finally, don’t let selling agents scare you with pressure tactics. If a house is meant to be yours, it will find its way to you.

Cherene Kruger is a makelaar and founder/owner of a real estate company that specialises in helping internationals in Amsterdam, Het Gooi, and the Randstad with renting, buying, and selling homes. With a strong background as a real estate agent and in administration, Cherene relocated from South Africa to the Netherlands 10 years ago with her family and has a deep understanding of the struggles internationals face in finding a home.

As originally published in ACCESS magazine.  

For more information about the Dutch Housing Market click here and here.