What you need to know about buying a newly built home in the Netherlands

The government in the Netherlands wants to encourage more construction and aims to have 100.000 new homes completed each year. We're not quite there yet, but the number is growing, so if you're not in a rush to move, it’s worth looking into new builds as a real alternative.

What makes a new build different?

There are a few key differences when buying a new home compared to an existing one. For a start, there are tax advantages. One of the biggest is that you don’t pay the property transfer tax (overdrachtsbelasting), which can be a significant saving.

But don’t assume that if you spot a promising project, you can automatically get the home you want. Sometimes new builds are sold on a first-come, first-served basis, but often there’s a lottery, and in some cases, the developer chooses the buyers. There are no fixed rules for this, but you might be asked to prove you have the finances in place when you register your interest.

That’s why it’s smart to speak to a mortgage advisor early on, so you know what you can borrow and how much you need in savings. With a new build, developers give you two months to get your mortgage sorted out, but they may well want to see proof that you are likely to be able to get one, so you may need to have a “mortgage letter” from your advisor.

Get your home-buying started by contacting FVB de Boer today

Contracts, costs and guarantees

If you're selected for the property, the first step is usually a preliminary contract (the koop-aannemingsovereenkomst), which sets out the agreements between you, the developer and the builder. You’ll have a legal cooling-off period of three days, though many contracts offer a week.

The contract includes important information about the build, such as timelines and guarantees. One thing to check is whether the builder is affiliated with a guarantee scheme like SWK, Woningborg or Bouwgarant. These protect you if the builder goes bankrupt during construction.

You’ll also want to look at the options for meer en minderwerk, which are the extras such as upgraded tiles or a different kitchen layout. These aren’t included in the basic price, so it’s good to know what’s possible and how much it might cost.

Developers may also include clauses allowing them to pass on rising construction costs, so keep an eye on that too.

Paying before you move in

Once the land your home will be built on is officially handed over by the owner to the developer, your mortgage will kick in. The money you’ve paid goes into a special construction account that is used to pay the builder in stages.

You will pay interest on the mortgage, of course, but you’ll also earn interest on the money in that construction account. At first, these tend to cancel each other out, but as the build progresses and the fund is used up, the balance shifts. It can all sound a bit complex, but don’t let that put you off. A mortgage advisor can explain it all to you in more detail.

Energy label A+

If you’ve got time to wait, a new-build home has real advantages. You’ll get an energy-efficient property, usually with at least an A+ label, and you won’t have to worry about major renovations anytime soon. The foundations, which are increasingly a cause for concern in some parts of the country, should also be problem-free, and you won’t have to worry about redoing the bathroom or kitchen to your taste.

The government has earmarked 24 different parts of the country as locations for large new residential development, so no matter where you live and work now, there should be something in the construction pipeline that meets your needs.

You might have to delay your plans to move for a year or two, but a newly-built home can really be worth the wait.