Expat's Guide to Navigating the Dutch Housing Market: Buying or Selling First?

Navigating the Housing Market as an Expat: Pros and Cons of Buying a House

For both options, there are arguments to be made, especially for expats looking to navigate the housing market and buying a house. Buying a house is somewhat easier in the current housing market than it was two years ago when the market was overheated. There are more houses for sale, and the house prices have slightly decreased. Are you an expat and unsure whether you should first sell your old house before buying something new in your host country? Both options have advantages and disadvantages for expats in particular.

Expats in the Housing Market: Is Buying or Selling First the Right Choice?

At the beginning of 2021, about half of the people, including expats, who wanted to move preferred to buy a new home before selling their old one (source: funda Index 2021). This contributed to a gridlock in the market. However, currently, only one in four people, including expats, who want to move are looking to buy first (source: funda Index June 2023).

The Current Housing Market for Expats: Easier Buying and Shifting Trends

For expat sellers, the market is still relatively favorable, despite the decreased house prices, although this may depend on the price category within which they are selling. The most recent funda Index figures show an increasing demand for houses in the price range of 300,000 to 400,000 euros, while houses in the middle and higher segments are now less desirable, possibly because they are no longer affordable for many people, including expats.

Expat Homeowners: Considerations for First Buying, Then Selling

Are you an expat who is unsure whether you should buy or sell first? There are valid points for both methods, and this applies to expats in the host country as well. Let's summarize the options with their pros and cons, considering the unique circumstances that expats face in the housing market.

The Impact of Market Trends on Expats' Housing Decisions

Option 1: Buy first, then sell If you are an expat and have found your dream home on funda in your host country, and you don't want to miss out on it, you can choose to buy it first.

Financial Strategies for Expats in the Housing Market

With the keys to your new house in hand, you, as an expat, know that you won't need to look for a temporary rental home. This means you'll only have to move once, saving you, as an expat, a lot of time and money, think about verhuiskosten (moving costs), huurwoning (rental home), and eventuele opslag van je inboedel (storage of your belongings). If significant renovations are needed in your new house, you'll have all the time to do them if you decide to sell later or arrange the key handover with the buyers of your old house at a favorable moment for you.

Expats Buying a New Home: Balancing Risk and Opportunity

Risk: Double monthly costs There are also risks for expats in buying first. Your current house may take longer to sell than expected, for example, due to achterstallig onderhoud (deferred maintenance) or because there are better huizen (houses) for sale in your wijk (neighborhood) in the host country. In that case, you, as an expat, will have to bear the double maandlasten (monthly costs) for a longer period. Make sure to gather information in advance. Your makelaar (real estate agent) can give you a good estimate of how quickly your house is likely to sell, and your hypotheekadviseur (mortgage advisor) can help you understand how long you can sustain the double monthly costs as an expat.

Double Maandlasten and Overwaarde: An Expat's Guide to Managing Housing Costs

Impact on your mortgage As an expat, if you want to use the overwaarde (equity) from your old house to finance your new one in the host country, you'll need a overbruggingshypotheek (bridging loan) as long as your old house hasn't been sold yet. This way, you can still buy your dream home even if you, as an expat, don't have enough spaargeld (savings) or don't want to use them for the overbrugging (bridging). Keep in mind that this type of loan often comes with a higher rente (interest rate), which may lead to higher monthly costs for this portion. Seek advice from a hypotheekadviseur (mortgage advisor) experienced in assisting expats to weigh the voor- en nadelen (pros and cons) carefully.

Renting Out Your Old House as an Expat: Pros and Cons

Double mortgage interest deduction For expat homeowners with double woonlasten (housing costs), the Belastingdienst (Tax Authority) in the host country allows mortgage interest deduction on both mortgages. This applies from the year you leave your old woning (house) until a maximum of three years after that.

Limiting risk with a condition in the koopakte (purchase agreement)

As an expat, you can include a ontbindende voorwaarde (condition) in the koopakte of your new house, stating that the purchase won't proceed if you haven't been able to sell your current house by a certain datum (date). This way, you build in some certainty as an expat. Consult with your makelaar (real estate agent) about what would be wise in your situation, as it can affect your positie (position) during the onderhandelingen (negotiations) compared to kopers (buyers) who don't set such a condition.