Many potential homebuyers wonder whether to buy a home now or wait. This question is often discussed in online communities, blogs, and articles internationally and within the Netherlands. To help you navigate this important decision, we provide:

A comprehensive overview of the current housing market.
Insights into future trends.
Strategies for making a successful home purchase.

Housing market then and now

Deciding whether to buy a home now or wait is a common dilemma for potential homeowners, recurring every decade as people weigh their options. If we look at the historical data, the tendency is clear - housing prices slowly increase every decade.

1995: average selling price: €93,750. 1995: interest rate: 7.75%
2005: average selling price: €222,706. 2005 interest rate: 4.25%
2010: average selling price: €239,530. 2010: interest rate: 4.10%
2015: average selling price: €230,194. 2015 interest rate: 2.50%
2020: average selling price: €334,488. 2020: interest rate: 2.10%.
2024: average selling price: €461,931. 2024: interest rate: 4.15 %.

The data below highlights a significant decline in interest rates, particularly between 2015 and 2020. During this period, average selling prices increased as lower interest rates improved affordability and drove a higher demand in the housing market.

Looking back, homeowners who purchased their apartments 10 or 20 years ago have seen substantial gains in equity, with many even doubling their investment in the current market.

What are your housing needs?

Both new renters and prospective buyers have noticed significant shifts in the housing market over the past year. Despite these changes, some prefer renting over buying, as it better aligns with their financial and personal circumstances. For others, purchasing a home is more appealing, often seen as a sound investment compared to the perceived drawbacks of renting.

However, the choice between buying and renting is not solely determined by these preferences; it also depends on factors such as interest rates, mortgage eligibility, lifestyle, age, employment situation, desired location, and readiness to settle down.

By reflecting on key questions, you can gain greater clarity for yourself:

Does the current housing market meet my needs?
Am I flexible with my preferred location?
What are my long-term plans, and how might buying now versus later align with them?
Does my current financial situation support buying a home, or should I save more first?
Should I consider a newly built property in or outside my desired location?

What are the reasons to buy now?

In today's housing market, deciding when to buy a home is important. We explain why now might be the right time to move.

Pros of buying now:

Potential lower costs: if interest rates drop, your mortgage could become more affordable.
Building equity: owning a home allows you to build wealth over time.
Housing shortage: homes are becoming harder to find, so buying now might help you secure a property before it's even tougher.

Cons of buying now:

Increased competition: lower interest rates lead to more buyers, which can increase home prices.
Unpredictable market: changes in housing prices and interest rates are difficult to predict, making it challenging to time your purchase perfectly.

When buying a home, it makes sense:

It makes sense to buy now if you can afford mortgage and mortgage payments.
Suppose you plan to stay in the Netherlands for an extended period. Buying a home will maintain your savings account.

When waiting makes sense:

If you need more time to save for closing costs, renovations, or other expenses.
If you prefer the flexibility that comes with not owning a home at this time.

Unique tax benefits in the Netherlands

The Dutch system offers a unique advantage where interest rates on residential mortgages are tax-deductible. This deduction can be applied monthly or yearly, providing significant financial benefits.

How do you win in the competitive market?

In a competitive housing market, using effective strategies can help you succeed. Here are some tips:

Work with a real estate agent

Hire a real estate agent to help you identify suitable properties and place a competitive bid. Their expertise and network can provide a significant advantage. Additionally, some sellers prefer working only with buyers who have an agent, which can lead to a smoother transaction process.
Get mortgage pre-approval

Securing mortgage pre-approval is critical. Knowing how much you can afford strengthens your offer and shows sellers you are a serious buyer with your finances in order. This assurance can be a significant selling point in a competitive environment.
Explore other financial options

Consider alternative financing options such as family contributions or family mortgages. These can enhance your purchasing power and make your bid more attractive.
Be open to different property types and location

Expand your search to include emerging neighbourhoods or new developments. Looking beyond your initial preferences can uncover better deals and opportunities, increasing your chances of finding the right property.