Buying property in Amsterdam
If you’re planning on staying in Amsterdam for three years or more, then one option may be to buy a property. In this economic climate, you’ll find there’s less competition as well as significant tax incentives and long-term benefits of owning your own home. Here’s our guide to cracking the market and how to take out a mortgage.
Where to start house-hunting
If you’re considering buying a house, it is advised to first meet with a mortgage advisor at your bank or an agency. This will give you a realistic picture of what you can afford.
The choice of property is either freehold (vrij leen) or leasehold (erfpacht). You will not need a housing permit for an existing property but you will need one for a new build if the purchase price threshold is €163,625 (correct from 1 January 2009; indexed annually). See Dienstwonen for more information on new builds.
There are many ways to go about house hunting:
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Estate agents (makelaars) - They will keep you informed of suitable properties for sale, arrange viewings and offer practical advice. Commission is usually 1 or 2% of the eventual purchase price, plus VAT (BTW). Recommendations are always a good start. Addresses can be found in the Gouden Gids (Yellow Pages).
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Adverts - Local papers usually carry a housing (woon) supplement on Wednesdays or Thursdays. Also try special property papers.
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Online – Estate agents regularly publish their stock on the major property sites: Funda and MVA-Makelaars (both in Dutch). If you’ve already working with a mortgage advisor, ask if they can notify you of new properties (some get houses before they even go on Funda).
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New builds – If you’re interested in a new build or want to look at projects under construction, visit nieuwbouw (in Dutch only).
If you find something you like, watch out for:
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Costs – For properties advertised as kosten te koper (KK), you will be obliged to pay expenses for things like the services of an estate agent, transfer costs etc. If a house is advertised as vrij op naam, all costs are included in the price.
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Negotiation – If you are in negotiations with a buyer, the seller’s estate agent is still allowed to show the house to other parties. He is usually working on the side of the buyer, so try and protect your interests using your own agent or a friend who knows the system.
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Asking price - Base your price on the market value of the property, not the asking price. Make sure your offer is made with the proviso “subject to raising finance”. The written agreement is known as Presale Agreement/Contract of Sale and must be drawn up by a lawyer and signed by buyer and vendor. You’re allowed a 3-day cooling-off period for withdrawal. Beyond that, you may risk a penalty of 10% of the asking price if you pull out for lack of funds.
Arranging a mortgage
Generally the cost of buying a home is around 8% of the purchase price. Banks may lend up to five times your salary if you meet the following conditions:
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You have a valid residence permit.
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You have lived in the Netherlands for five years.
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If self-employed, you can produce statements for the last three years and show future potential earnings.
You’ll find a wide variety of mortgages (hypotheek) on offer but as an expat, it’s advisable to do your homework and ask friends or family for recommendations to get the best deal.
When it comes to the actual purchase, you will have to provide a property valuation report (taxatierapport), which is usually arranged by a valuer (taxateur) for a fee. Note: the report is not a survey.
To conclude the sale, both parties must sign a transfer contract (akte van levering). Typically this will take place in Dutch, therefore it is advised to ask for an interpreter in advance if you feel you need one. Upon completion, the lawyer will inform the Land Registry (Kadaster) and you should get your keys within two to three months.
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