Brick by brick: Why a new-build property could be your perfect Dutch home

If you feel the wind whistle around your windows and wonder if your ageing roof will survive the next heavy rainfall, it might be worth thinking about new-build housing.

The Netherlands plans to build 100.000 houses a year to meet the demands of a growing population and more projects have won planning permission this year. 

Wherever you live, all kinds of modern buildings are rising. In Diemen, you can choose a mixture of apartments and houses in the Park Valley development. You could try island life on Oostenburg in Amsterdam, where an apartment project called The Triplets is taking shape.

Perhaps you’d like to live 15 minutes from the centre of The Hague and Delft – a stone’s throw from the European Patent Office, in the Havenmeester “harbour master” block. Or cycle to the beach and The Hague from the Boomgaerde development.

Patience is key for new builds

While some of these developments are already being completed, there’s just one thing to consider with buying a new build: you will probably need some patience.

A build period can sometimes last anywhere from a year and a half to two years, some even go to two and a half years if you step in at a very early stage. During this waiting period, the mortgage grows to 100% of the costs.

The first thing to consider is financial planning. Depending on the contract you take on, you will first pay for the ground and then in instalments at different stages of building. But because you are not yet in your new house, you will need to be able to finance both your rent and these growing mortgage costs.

While you may need to wait, newly-built properties usually rise in value faster than existing properties because they are so attractive. So they make for quite good investments.

Plan your new-build finance with Expat Mortgages

Finance

Mortgage lenders typically want to work with larger builders who are part of a guarantee fund to cover them and take over construction if one were to get into financial difficulties. And once you do move in, you can expect to have lower costs: there is no transfer tax on new builds and high building standards mean you can expect great insulation, low energy bills and almost no maintenance costs for at least five years. 

If you are living in your own home already, you should be aware that the mortgage interest deduction tax break (hypotheekrenteaftrek) can be used for two properties at the same time for up to two years. Meanwhile, you will qualify for this tax break on your new mortgage if you are currently renting, which will ease your double costs.

Don’t be floored

Another thing to bear in mind is that Dutch property is typically delivered “casco”, which means it’s a bare shell, and you’ll need to install flooring, a kitchen, a bathroom, and, of course, wall coverings.

If you have spare money to put toward the mortgage, it is advised that you also make sure you have extra cash ready for the final stages. You will most likely need to invest quite a bit to make a new-build property habitable, but luckily you can finance these costs in the mortgage too, including floors, wall decoration, the kitchen, and the garden.

Mortgage amount

In the Netherlands, you can finance a mortgage at up to 100% of the valuation (with extra allowances for super energy-efficient buildings) and even if you are planning to put in your own money, it’s worth weighing up whether any savings might work harder in investments or in reducing your mortgage. 

You can always make an extra payment into the mortgage when you have moved in, if you want to lower the mortgage amount. Good advice is not to put all of your money into the purchase, so that you have financial flexibility and peace of mind.

Although you do need to be a patient soul, another advantage of purchasing a new-build home is that, in a competitive housing market, you won’t fall in love with a house and then lose the bid to a higher offer. It’s usually a much more relaxed process than if you buy in the city centre of Amsterdam, for example.