A Guide to Buying Property in Amsterdam, Netherlands

Content

• 5 steps to buying a house in Amsterdam
• Area considerations
• Costs when purchasing a home in Amsterdam
• Costs of owning a residence in Amsterdam
• Common questions

5 Steps to Buying a House in Amsterdam

1. Mortgage Advice

While there are no restrictions on foreign nationals purchasing and owning a house in the Netherlands, you are unlikely to receive a 90% or 100% LTV mortgage on a property if you are not a Dutch national.

However, contacting a Dutch mortgage provider who specializes in mortgages for foreign nationals should be your first point of call.

This will allow you to determine your maximum budget for searching and compiling a list of potential houses you are interested in purchasing.

2. Search

Once you have discussed your options with a mortgage provider, you can then begin your search of property for sale in Amsterdam.

Along with budget restrictions, you should also consider which areas of Amsterdam you would like to live in – If you are unsure about the different areas of Amsterdam, refer to the area considerations section below.

After compiling a list of properties you are interested in, it is highly recommended that you view every single one – you may discover information during a viewing which will sway your decision.

3. Appraisal

When you have whittled down your list and chosen a property which you would like to make an offer on, the next step in the buying process is to obtain an appraisal on the property, which will usually be organised through your chosen mortgage provider.

4. Offers & Negotiations

Once your appraisal has been completed, you are now able to progress with offers and negotiations.

Similar to buying property the USA, buyers in the Netherlands will usually appoint a buyer’s agent. However appointing a buyer’s agent is not a required step if you would prefer to undertake negotiations yourself.

Property in Amsterdam, especially in the city centre, is highly sought after, so you should expect that numerous other parties will also be interested in the residence, and will thus create a bidding war.

For this reason, expect to bid a considerable amount over the asking price if you wish to be the winning bid.

5. Contracts

If you were successful during the offers and negotiations stage, the next step of buying a house in Amsterdam is to sign a pre-sale agreement with the seller of the residence which is then held by a notary, along with a 10% deposit from the buyer.

Once you have secured a mortgage from your chosen lender, you will now be required to sign the completion contract with the seller and the notary will transfer the property to your name with the land registry.

By Dutch law, a notary must be the party who legally transfers ownership of the property.

Area Considerations

Although each area within Amsterdam may seem the same, each has its own unique characteristic, which may come into play when deciding which part of the city you would like to live in.

We’ve highlighted the main characteristic within each main area of the city below:

De Pijp

This is a hip area of Amsterdam, with numerous cafes, restaurants, bars and other unique shops. Within De Pijp, there is also the famous Heineken experience tour and the Sarphatipark, which features English gardens and a small pond.

De Wallen

Located in the city centre, this area showcases a medieval building style with buildings such as Oude Kerk (an old church) along with the iconic narrow canal houses. The Area of De Wallen will be lit up in red neon during dark – it is the famous red light district.

Buiksloterham

Situated on the opposite side of the port to the city centre, Buiksloterham was once an industrial hub. The area now however contains a large number of modern buildings, many of which are constructed in old converted factory buildings. The aim of Amsterdam city officials is to create a circular living development which focuses on bio sustainability.

Westerpark

The neighborhood of Westerpark is located to the North West of the city centre. The area contains a large green park and hosts numerous festivals and markets.

Oud-West

Oud-West is a largely residential area located to the West of the city centre.

Costs When Purchasing a Home in Amsterdam

There are a few important fees which you should factor into your budget when buying a residence in Amsterdam.

These fees include but are not limited to the following:

• Transfer tax – Around 2% of the purchase price
• Legal fees around 1.5% of the purchase price
• Land registry fees 1.5% of the purchase price
• Sellers agent’s fees 1-2%
• Buyers agent fees 1-2%
• Deposit – 10-90% depending on the leverage used in your mortgage
• Mortgage fees – between 800 and 2000 Euros on average
• Bridging loan (If applicable) – Usually 1% of the deposit on the property
• Interpreter – If you are not fluent in Dutch, you must appoint an interpreter for notary and other registration meetings. Fees may cost around 500 Euros.

Costs of Owning a Residence in Amsterdam

The city of Amsterdam is very prosperous compared to other European cities and thus makes living in the city fairly expensive.

Below we’ve highlighted some of the main costs you will occur when owning a property and living in Amsterdam. Numbeo ranks Amsterdam as the 37th most expensive city in the world.

Property Purchase Prices and Average Rent

The average house price in Amsterdam is around 448,000 Euros, while the average monthly rent of a 3 bedroom flat in the city centre can cost between 1200 and 3500+ Euros.

Owners Association (Vereniging van Eigenaren (VvE)) Fees

Many properties for sale in Amsterdam city centre are apartments. If you are purchasing an apartment or flat, you should be aware that many will be managed by an owners association.

If this is the case, the association will be responsible for maintenance, repairs and general upkeep of the building.

As an owner of a unit within the building, you will be obliged to contribute to a share of these costs, and in worst case scenarios, if the association runs into debt, you will also be responsible for a share of the debt.

Property Tax (Onroerendezaakbelasting, OZB)

When owning a property in the city of Amsterdam you will be liable to pay an annual property tax (OZB), which will vary depending on the use of the property and are calculated from the official value of the residence.

Current tax rates as of August 2019 are:

|Property Type|Tax Rate| |--|--| |Residential (Living in the property you own)|0.03789%| |Residential (Letting the property to a tenant)|0.12274%| |Commercial|0.15352%|

For future property tax rate amendments, please check the official tax rate site.

Utilities

Within Amsterdam, the average cost of monthly utilities is between 100 and 250 Euros (Based on a survey of 417 contributors)

Common Questions When Purchasing a Residence in Amsterdam

Can Foreigners Buy a House in Amsterdam?

Yes, foreign nationals are allowed to purchase property in Amsterdam. Although, being a Dutch national has it’s advantages: Non-Dutch residents will not be eligible for 90% or the 100% LTV mortgages on offer.

How Much do Houses in Amsterdam Cost?

House prices in Amsterdam are fairly expensive within “the ring” of Amsterdam (City Centre and neighboring areas). Expect to pay upwards of 300,000 Euros for a residence in Amsterdam.

Should I Buy or Rent a House in Amsterdam?

This question cannot be answered directly without further clarification. However as a general rule of thumb, unless you have plans to move to the city, are only living in the city for a prolonged period of time or are purchasing a property as part of an investment, we would recommend to rent rather than buy.

What is The Current State of The Housing Market in Amsterdam?

Property prices in Amsterdam are rising and are forecast to continue rising. 2018 saw an average price increase of around 8%, to date, 2019 has seen an increase of around 6%. Some are also speculating that Brexit has caused a boom in house sales in Amsterdam.

Should I Buy an Investment Property in Amsterdam?

If you are a first time buyer, we would recommend that you purchase your first investment property close to home, as this will ease and minimize the costs of management. However if you are a confident and experienced investor, investing in Dutch real estate can be a very lucrative strategy – Prices are forecast to continue rising and there is a very high demand for high quality, affordable accommodation in Amsterdam.