Which house investments are good ones? I speak to many internationals living in the Netherlands and heard this question many times. Of course, this depends on your house, your family and your financial situation. In this blog, you find some ideas to invest your money well.
An investment is not all about money. But you can also invest in living space, comfort and sustainable living.
1. Buying a house as an investment
When is buying a house an investment? Mostly, when you are planning to live in that house for more than 5 years. The risk of selling your house with loss is limited. However, in the past, there were times that this was the case.
When you buy a house, you will need a mortgage. And, with a mortgage, you will pay off some of your debts monthly. When selling the house, this means you have a piggy bank. Or, you have money to invest in a new house.
Buying a second home as an investment
The Dutch government decided that investors should pay more tax on their belongings. In 2024 the expectation is that buying a house to rent it out on the market, is not worth the investment. The house prices are still high, and also the rent is limited by law.
My suggestion is: to do your research well before buying a second house.
2. Extension
An extension can add value to your house. You can check what a square meter of the house is. Go to funda.nl and check what the price per m2 is of a comparable house in your neighbourhood.
For example: you want to build a 20m2 extension, so your living room will be larger. The house price is €4.000 a m2 in your neighbourhood. The extension will cost you €70.000. So, you added approximately €10.000 of value to your house.
The opposite can be true, too. So, do your calculations. Some find it still worth the investment, as it can offer more living space and moving house is more expensive.
Your situation is specific. So, time to talk to a professional. Book here an online meeting for free, by clicking this link.
3. Dormer
A dormer will add extra living space to your attic or first floor. The advantage of a dormer is that it doesn’t require weeks of work. Some are placed within one day and finished off in one week. Another advantage: is the extra daylight coming into your space.
When a house for sale is measured, only the square meters above 1,5 height counts. Take advantage of this knowledge.
4. Turning a garage into a living space
Another no-brainer is turning your garage into a living space, if you are lucky to have one. Most garages in the Netherlands are attached to the house. For making it a living space, it will require some insulation and electrical work to be done. But the structure is already there. That helps to limit the costs.
5. Insulation
Insulating your house is one of the best house investments you can take. Not only to make your house more sustainable, but also to upgrade your energy label. You start immediately by saving energy costs and in the end, your house will be worth more. A house with an upgrade from G-label (hardly insulated) to a C-label increases on average 8.3% in value*.
Want to have more in-depth information? Check out the blog on insulating your house in 6 steps.
6. Sustainable heating
Most houses are heated by a hot water boiler, which works on gas. After 15 years, a boiler needs replacement. That is a good moment to start looking for possibilities to heat your house in another way.
The most chosen option is heating by a hybrid heat pump. With this system, you still need a hot water boiler as a backup. However, there is a second system working on electricity which is way more efficient.
Do you want to learn more about this subject: check out this blog.
7. Maintenance
“Maintenance does cost only money, and you will not get anything in return. So, why would you maintain your house?” E* stated.
You may guess it already, but this is not true. A well-maintained house will keep its value, and sell more easily. Also, with maintenance, you can save a lot of costs in the future. It prevents rotten window frames and other costly repairs.
8. Solar panels
Last week, I got the question: are solar panels still a good investment?
The answer is yes. The return on investment is approximately 6 years in 2024. The prices of solar panels dropped last year.
There is a regulation says that when you generate more energy than you use at the moment, you can deliver that back to the power grid. This energy you can use in a later stage, with no financial implications. After 2025 this will be phased out until 2031. If you deliver more to the power grid than you use, keep in mind that you may have to pay for it.
9. Other small house investments that will pay out
Some ideas:
Applying radiator foil
Exchanging old rubbers with new ones around window and door frames.
Using of timers in your house. For example, on your router.
Water saving shower head.
Summary
There are a lot of ways to add value to your house. Insulation, extending, a dormer, creating a living space in your garage. You name it, and it’s possible. However, not every house and situation is the same.
Are you thinking: I am ready to invest in my house, but don’t know where to start? Just plan an introductory meeting for free, by clicking this link. And, we look into some of the possibilities together.
