Buying vs renting a house?
This question I got various times in the last few months. Is it wise to buy a house in our situation, or is renting a better option for now?
Of course, I can’t foresee the future and every situation is different. However, there are pro’s and con’s. In this blog, you will read more about the advantages of renting or purchasing a house in the Netherlands.
When is renting a house a good option in the Netherlands?
You pay your monthly rent, and in return you can live in a house. After cancelling the contract, you won’t see any of your money back. This is money you could have used for paying off a mortgage.
However, renting is way more flexible, as you can determine your contract and 1-2 months later the contract ends. Pack your stuff and move to another house.
When renting a house, you are protected by law. That means that the owner is not allowed to determine your contract without good reason.
Most owners will ask for a down payment of 2–3 times the rent. This is for the first month of rent, the deposit, and mediation costs.
Service costs
When you rent a house, you may also pay the service costs. That are costs for the main parts of the building. Including for example cleaning the hallway, maintaining the lift etc. If you want to know more, read this blog.
There are several categories in rental homes:
1. Social renting
This one is for people with low income who can’t afford to buy a house in the Netherlands. Large cooperations rent out these houses. You can subscribe at the cooperation, and you will be added to a waiting list. As, there is a shortage for this kind of houses, the waiting list can take many years. The height of the rent is regulated by the government. In 2025, it is a maximum of €900 a month. Also, it is possible to apply for benefits if your income is low.
2. Rental houses in the middle category
These are houses on the market where the rent is between €900 and €1184 a month.
There are rules for how much rent an owner can ask for a rental property. This will depend on size, facilities, and state of the house. On the website of the “Huurcommissie” you can check what the maximum rent should be.
3. Free market
These are the more luxurious houses on the market. And, you pay what the owner asks. Prices start from €1.184 a month.
Renting out a house
If you want to rent out your house, there are a few things you must know:
1. Check your mortgage if it’s allowed to rent out the house.
2. Know what a good rental price is.
3. A good contract is necessary.
Purchasing a house
When you purchase a house, you become an owner. That means you can change or renovate your house without taking a landlord into account. So, adjusting a house to your wishes is easier.
A house is an investment. You don’t know what the housing market will do in 5–10 years. So, it could be that the house will add or lose some value. With paying off your mortgage, the house will become yours after 30 years.
However, you can expect some extra cost above the purchase price of the house.
Transfer tax
Are you above 35? Then you will pay a transfer tax of 2%. Are you in the lucky position of buying a second house? Then the tax is higher.
Mortgage
Mostly, you pay off a house in 30 years. There are several options for mortgages. A mortgage adviser can help you with making the best choices in your situation. The price of an adviser may vary from €3.000 – €5.000.
Notary
The one who is legally in charge of controlling the process of buying a house.
Translator
When your Dutch is not sufficient, you may need a translator to understand all the documents you are signing.
Moving costs
Are you hiring a company to do the move for you? Or, do you want to move the stuff yourself?
Maintenance in the near future
When you are a house owner, you should also think about maintaining your house. This keeps the value of the house up, but also it helps to prevent unnecessary costs in the future.
Are you thinking of buying a house?
A good start is the book “Purchasing and renovating a house in the Netherlands”, written in English, for people like you. With lots of budget examples, checklist and everything you must know. You can purchase it here.
