Positive Developments and Considerations for Buying a House in the Netherlands in 2024

In 2024, significant changes in the Dutch housing market present both challenges and opportunities for prospective buyers. Kenneth Leenders from Expat Mortgages sheds light on positive transformations, urging a realistic evaluation of individual circumstances to make informed decisions towards achieving homeownership.

1. Borrowing Capacity Adjustments:

   • While dual-income buyers may experience a 5% reduction in borrowing capacity in 2024, single individuals earning at least €28,000 annually can now borrow an additional €16,000.

   • First-time homebuyers under 35 enjoy exemptions from transfer tax for properties up to €510,000, coupled with a National Mortgage Guarantee increase from €405,000 to €435,000.

2. Energy Efficiency Impact on Borrowing:

   • Energy-efficient homes can influence borrowing positively, allowing up to €50,000 more for well-insulated properties.

   • Mandatory energy labels from A++++ to G contribute to varying borrowing capacities, providing an incentive for energy-conscious property investments.

3. New Build Sector Advantages:

   • A national initiative to construct 900,000 properties by 2030 addresses the housing demand exceeding supply.

   • Despite a previous 6% slump in average property prices in 2023, the new build market offers potential advantages, with decreasing price premiums and signs of increased supply.

4. Climate Risk Considerations:

   • With climate change concerns, evaluating a property's vulnerability is crucial, especially in flood-prone areas.

   • AFM financial authority recommends factoring "climate risk" into property value, emphasizing the necessity of thorough inspections before purchasing.

5. Entrepreneurs and Freelancers:

   • Cautious lending practices towards entrepreneurs and freelancers follow a banking fine, and restrictions on the 30% tax ruling for international talent may impact mortgage accessibility.

   • Recognizing the role of entrepreneurs in driving the Dutch economy, efforts should be made to facilitate their access to mortgages.

6. Stabilizing Housing Prices:

   • Housing prices are anticipated to stabilize in 2024, returning to levels akin to those in 2022, offering a favorable window for potential buyers.

   • Despite previous market turbulence, the current stabilization presents an opportune time for strategic home acquisitions.

In conclusion, while challenges persist, careful consideration of these positive changes, coupled with a strategic understanding of market dynamics, positions prospective buyers to make informed decisions in the evolving landscape of the Dutch housing market in 2024.