Why buying a house in the Netherlands isn't the right choice for every expat

So, you've made it. You’ve embraced bitterballen, endured endless bike traffic, and even figured out the difference between zorgtoeslag and huurtoeslag (barely). Now you're ready to buy your first Dutch home.

But hold your stroopwafels! Here's why doing that in 2025 might be the real expat trap no one warned you about.

Mortgage rates are still spicy - and not in a good way

Remember the good old days (2021) when mortgage rates were floating around 1,5%? Those are gone, vriend. As of mid-2025, average Dutch mortgage rates are still hovering around 3,5–4,5% depending on the fixed term.

According to De Nederlandsche Bank (DNB), interest rates more than doubled between 2022 and 2024. A €400.000 mortgage now costs you hundreds more per month than it did two years ago, and that’s before service costs or VvE fees.

House prices may still be correcting

Dutch home prices hit peak insanity in 2022, then plateaued and started to dip, especially in the Randstad. CBS (Statistics Netherlands) reported a 3,7% drop in home prices from early 2023 to late 2024.

In other words, buying now might mean buying high and watching your property value drop it like it’s hot (in a bad way).

Your visa isn't forever, but your mortgage is

Let’s say your company doesn’t renew your contract next year. Congrats! You're now an unemployed expat with a 30-year mortgage and a €10.000 boiler repair due in November.

If you’re on a temporary residence permit, buying adds major long-term risk, especially if you’re unsure you’ll stay beyond a few years.

The buying costs are a wallet punch

Buying a home in the Netherlands comes with closing costs of about 5–6% of the purchase price. That includes:

• 2% transfer tax
• €2–3.000 in notary, valuation, and advice fees
• And don’t forget NHG premiums, if applicable

On a €450.000 home, that’s easily €25.000 you’ll never see again unless you stay long-term, and that’s a big if.

Your money gets stuck; no pancakes for you

Down payments, taxes, and renovations mean tying up a massive chunk of your savings. And no, you can’t just sell your Dutch house overnight if you need to move to Spain, Canada or back to your parents' place in Haarlem (not that Haarlem). Liquidity matters, especially in volatile times.

Tax benefits ain't what they used to be

The mortgage interest tax deduction - once the holy grail of Dutch homeownership - is getting trimmed faster than a brie sandwich at a borrel.

As of 2025, the maximum deductible rate is 36,97%, down from 49% a few years ago. And if you're a 30% ruling expat? Your benefit might be minimal.

Flexibility > fixing boilers

Renting means freedom. Buying means your Saturdays are now dedicated to replacing roof tiles, decoding VvE documents, or negotiating with that one passive-aggressive neighbour who "just wants to make sure the balcony is structurally sound."

You're still competing in the Dutch housing Hunger Games

While the heat has cooled slightly, Funda is still a battlefield. The average home gets dozens of viewings, and many still go above asking price in cities like Utrecht, Leiden, and Amsterdam (source: NVM, 2025 Q1 report). Enjoy the chaos!

Dutch housing is 100 years old and emotionally unavailable

Most houses in Dutch cities were built between 1900–1975. That means you might be dealing with:

• Sagging floors
• Single-pane windows
• That special "damp canal basement" smell

It’s charming… until it’s €15.000 in repairs.

You might just be too early

Property markets are cyclical. Experts from Rabobank and ING forecast modest price declines or stagnation through late 2025 as wages catch up and the ECB holds rates. Waiting 6–12 months could mean better value, more certainty and less risk.

Consider your options and don't enter panic mode

Unless you’re settled long-term, have strong financial reserves, and really love shopping at Praxis, buying a house in the Netherlands right now may not be the smartest move. 

Rent a nice place, build your savings and keep watching the market, because in this tiny, tilting country of bricks and bicycles, timing is everything.