To Rent or to Buy? (That is the Question)

As an international residing in the Netherlands, you will have different considerations about renting or buying a home than a Dutch family would.

Normally, renting offers flexibility, less financial risk from market fluctuations, and freedom from maintenance responsibilities, making it a convenient short-term option for internationals. On the other hand, buying a property can be more economical in the long run due to lower monthly costs, tax benefits, and the potential for building equity. We interviewed two internationals who have lived in Amsterdam for over five years—one is a long-term renter and the other is a homeowner. Here is what they have to say about renting vs buying:

Home Renter

Angie + husband + 2 children + 2 cats
Row house in Amsterdam Oost

What is the main reason for you to rent long-term?

Renting is better for me because it allows us to live in a high-end neighbourhood with great neighbours. The kids have amazing friendships with the neighbours’ children, and the kids who go to the neighbourhood schools are also nice.

How long have you lived in this home? And in the Netherlands? What is your anticipated stay?

We moved to the Netherlands in June 2018. I rented this house before we moved from the United States in April 2018. We are not thinking about leaving the Netherlands. We love the freedom this country gives to our kids. They can play outside; they go to school by themselves!

Do you love it?

We love it. Our neighbourhood is close to the centre and all the attractions but also has a quiet suburban feeling. When summer comes, our home and the whole neighbourhood turn into a summer haven. I really enjoy the city vibes. I like my easy commute back home from concerts and festivals. We are not a suburban kind of family. If we liked that, we would definitely buy a house where we can afford it easily. When you are half an hour away, the houses and the gardens are huge, and prices are lower, but we prefer the tight space and being in the city.

Have you considered buying?

We did consider buying, but our neighbourhood was beyond our budget, and the towns/neighbourhoods we could afford were not suitable for our lifestyle.

I assume all repairs are taken care of by the owners?

Yes. That’s what I love about it. I just email the management company, and everything is handled by them. You could say I don’t lift a finger except to type the email.

What is the main reason you rent, given the low mortgage rates, etc.?

If I had a mortgage on this house, my monthly mortgage payment would be €4,000! Now, I’m paying half that amount. Some people think rent money goes to waste, and yes, they are right because if I bought this house, it would be a huge investment. However, my monthly expenses would be too high to afford—it would mean a major lifestyle change for us.

What do you recommend to internationals?

I recommend that young couples who’ve just moved here live in the city. Yes, towns like Zaandam, Almere, and Hilversum are further away and more affordable, but when it comes to social life, they won’t go out as much as they’d want to. The commute is not easy with public transportation, especially after hours, and it’s not that cheap either.

Home Owner

Esther + 2 teenagers + dog
Apartment in Amsterdam Westerpark

When did you arrive in the Netherlands, and when did you buy a home?

I bought it in 2017, and we had arrived a year before that.

Which country did you move from, and did you have an idea of how long you would stay?

I moved here from Australia as a single parent. I was clear that the children would stay for the duration of secondary school, so the plan was always to be here for a minimum of five years…it was going to be long term.

Were you renting before you bought a home?

Yes, when we first moved here, we rented for a year. It was very complicated; we had several sublets and had to move often. Also, rents were very high. Moving frequently was tough, especially with a pet.

What compelled you to buy a home?

I was clear I wanted to be in Amsterdam. However, renting in the city was so expensive. One way to rent was through social housing, but I would need to be on a waiting list for ten years to be eligible. The other option was the free market, but that was too expensive. When I rented for a year, I used up all my savings. So, I had to get out of that situation. I had a decent sum of money to invest upfront, and mortgage rates were very low—so buying was a great option for me.

How about your monthly expenditures?

My mortgage is very low because I had a good amount of money to put down when I bought the home. It was also a great way for me to invest and get amazing value over the years. In terms of other expenditures, it’s the usual—gas, water, etc., plus the VVE (Homeowners Association) cost, which varies.

With renting, the landlord takes care of repairs, but with ownership, it is something you have to handle, right?

This is a homeowners association (VVE), and they handle a lot of things. I had a leak in the floor, and the contract clearly stated that this was the VVE’s responsibility, and they took care of it.

What do you suggest to newer internationals when considering renting or buying?

It depends on many variables—like budgets, the estimated duration of stay, etc. For me, it was an investment, and I couldn’t afford a mid-section rental in the city. So, I would say to newer internationals—if you have the money, then rent, especially if you’re not staying long-term. 

As originally published in ACCESS magazine.  

For more information about Buying a House in the Netherlands click here.