To Rent or to Buy?

On arriving in The Netherlands, most people start off in a rental property. The usual reasons for renting initially are:

• You are not sure how long you will stay.
• You are clueless about where you would want to permanently settle here.
• You do not yet have a permanent employment contract which is very handy for a mortgage.
• You are unaware of the tax breaks on mortgage interest offered in The Netherlands.

Start with rental accommodation

Renting is inevitable unless you buy while still living in your home country after receiving an email overview of properties in your budget. Renting enables you to spend the first 6-12 months figuring out if you like The Netherlands, how to interact with Dutch people and where you might want to live for a longer period.

Orient early

Talk to a mortgage broker early to figure out your lending power and what you need to have in place to secure the chunk of change you may later want to borrow. Banks are less keen on providing a mortgage if you have a temporary employment contract. However, your employer may be willing to sign a statement indicating that they plan to continue your employment beyond your initial temporary contract. Banks like this. Testing the water early means you can set your own expectations better for later. Once your lending power is clear, you can have a more meaningful conversation with broker to establish what is available for the money you have available.