Buying or renting
Buying a house in The Netherlands has a number of benefits. Apart from owning real estate, which may serve as investment, the mortgage interest has its advantages as well – in some forms, it is fully tax-deductible. The same goes for some of the costs that are related to financing the house, such as notary’s fees and closing commission. Nevertheless, the decision to buy a house needs careful consideration. Buying real estate in The Netherlands usually includes one-time buyers’ expenses of approximately 6% of the purchasing price, which consist of several types of commissions and fees. Home owners are also required to add the deemed rental value to their taxable income and, as a result, pay taxes over this value.
Buying can be a wise investment, but it usually does not pay off in the first few years. Renting a house means side-stepping quite a few of the risks involved in buying a house, but it logically means missing out on possible benefits as well. In addition, rent can be high in The Netherlands (although the prices are considered reasonable in comparison with other European countries).
In either case, it can be helpful to compose a checklist to help you figure out where to live and what type of housing is suitable for your situation. Such a list could include, for example, the following items: proximity to work and schools, access to public transportation, location of supermarkets and shopping opportunities, type of neighbourhood, type of house.