Certified Expat Broker & Buying Agency welcomes you! WEBINAR BUYING A HOUSE IN REGION OF THE HAGUE-DELFT-LEIDEN- WASSENAAR Announcements
• Presenters of today: Nivita Parbhudayal (Nivita Makelaars) and Nathan Themps (ABN AMRO International Clients ‘expert in expats’) • First part is about the local housing market en buying process • Then a short coffee break • Second part is about the mortgage process • Questions can be asked in the public and private chat • After this presentation we will give you access to the slides of this webinar Introduction
Director & Real More then 15 Name: Nivita My family Estate Agent at Years Experience Parbhudayal situation Nivita Makelaars in Real Estate Expat Team of Nivita Makelaars
Nivita Parbhudayal Jeroen Baard (in the chat) Expat Team of Nivita Makelaars
Danish Rahamat (in the chat) Laura van der Loo Housing Market The Hague-Delft-Leiden-Wassenaar
➢ Housing market developments according to the housing market monitor (2020): • Extreme shortage in houses for sale South Holland • Since the corona crisis, elderly people have become cautious about moving • Dutch citizens, expats and investors are still buying houses • Demand in existing homes is expected to increase 2021 Poll
How long are you living the Netherlands? Facts The Hague, Delft, Rijswijk, Nootdorp, Pijnacker, Wassenaar, Westland Q3 (July-Sept) 2020
• Number of homes sold: 2682 homes • Sales development year-on-year: 10 - 15 % • Average sales price: € 349.000 - € 375.000,- • Average price development compared to a year earlier (Q3 2019): 9.4% (Westland) -13.1% ( The Hague) Facts The Hague, Leidschendam, Voorburg, Delft, Rijswijk, Nootdorp, Pijnacker, Wassenaar, Westland Q3 (July-Sept) 2020
• In this tense market there are more buyers and buying agencies making a proposal on the same house • Often there is a deadline for making the final offer • Often we can not negotiate and buy under the asking price (Funda price) • In this region for houses up to € 700,000 there is a lot of competition • In Statenkwartier, Vogelwijk, Benoordenhout, Bezuidenhout, Centre of Delft, Voorburg for houses up to € 1.5 million there is competition Facts Leiden, Bollenstreek, Alphen, Gouda, Zoetermeer Q3 (July-Sept) 2020
• Number of homes sold: 1704 homes • Sales development year-on-year: -10.1 (Alphen) - 13.7% • Average sales price: € 352.000 - € 424.000,- • Average price development compared to a year earlier (Q3 2019): 7.2% (Bollenstreek)- 13.7% (Gouda) Facts Leiden, Bollenstreek, Alphen, Gouda, Zoetermeer Q3 (July-Sept) 2020
• In this tense market there are more buyers and buying agencies making a proposal on the same house • Often there is a deadline for making the final offer • Often we can not negotiate and buy under the asking price (Funda price) • In this region for houses up to € 700,000 there is a lot of competition • In the Centre of Leiden, Voorschoten, Oegstgeest for houses up to € 2,0 million there is competition Poll
In which city / place do you want to live? Housing Market South Holland
• New construction projects are delayed due to Corona • Many Dutch people and expats do not longer want to pay high rents • Highest shortfall in the housing market ever • In Q3 (July-Sept) 2020 most houses of all time have been sold by real estate agents in the region Housing Market Netherlands
• Low mortgage interest compared to 2008 • Now around 2%. In 2008 around 7% • Living preference will change because working at home will become standard • People are more interested in a home with an extra room and more outdoor space Easing of mortgage rules in 2021
• Borrowing conditions become more favorable • NHG cost limit will increase to € 325,000 • Double-earners can borrow more than 2021 • Student debt will be less of an obstacle Changes of property transfer tax for starters 2021
1. Anyone between the ages of 18 and 35 who buys a house for their own use no longer pays transfer tax of 2% 2. Anyone who buys a house for their own use from April 1, 2021 will not pay transfer tax (2%) if the purchase price is less than € 400,000 Changes of property transfer tax for starters 2021
3. This means that between January 1 and April 1, 2021 there is no limit in the purchase amount 4. If you want to buy a house of more than € 400,000 and take advantage of this tax benefit, make sure that the notary transfer takes place before April 1, 2021 Buying Process in The Netherlands
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 Determine House Hunt Making a Signing Start Notary buying proposal purchase Mortgage budget & contract Application housing wishes Step 1: Determine buying budget & housing wishes
• Plan a free telephonic appointment with the mortgage advisor to know about your maximum borrowing capacity • Consider your housing wishes and discuss this with your buying agent • Then determine the price range in which you want to purchase a house Where to find your dream home? Funda.nl Where to find your dream home? Jaap.nl Step 2: House Hunt
• Let the buying agent schedule the first viewing appointment for you • If the house and location feels good & the house meets your requirements let this directly know to the buying agent • The buying agent will directly schedule the 2nd viewing appointment • During the 2nd viewing appointment a visual assessment of the technical condition and finishing touch of the house takes place Step 2: House Hunt
• The buying agent will calculate the value of the house • The buying agent reads all important sales documents such as a list of goods, title deed, leasehold documents, inquiry form completed by the seller and documents of the Home Owner Association (Due Diligence) Step 3: Making a proposal
• To be able to buy your dream home it is important that you are on top of it in the communication with the sellers agent (most important part) • the buying agent informs the selling agent that we will make a good offer. Step 3: Making a proposal
• The buying agent calls the sellers agent 10 minutes before the deadline to find out how many proposals have come in, indication of these proposals in price/conditions, how many buying agents have made a proposal. • This information is directly discussed with the buyer • The buying agent advises the buyer on the best strategy and the buyer ultimately decides Step 3: Making a proposal
• The buying agent will make a proposal on behalf of you • The proposal consists of the purchase price and conditions (financial/technical) • If the sellers agent agree with the proposal there is verbal agreement • Schedule an appointment with the mortgage advisor Step 4: Signing the purchase contract
• After verbally agreement the buying agent will directly schedule an appointment with the appraiser (required for the mortgage) • If desired, the buying agent will directly schedule an appointment with a certified inspector for a structural survey in English Step 4: Signing the purchase contract
• The buying agent will discuss the technical survey with you • If applicable, the costs of the hidden defects in the house will be negotiated with sellers agent • The buying agent explains the purchase agreement • After both reports are on the table and all is clear you can sign the purchase agreement with confidence Step 5: Finish Mortgage Application
• After you have signed the purchase agreement and the appraisal report is ready, you can finalize the mortgage • Nathan Themps of ABN AMRO will explain this subject in the second part of this presentation Step 6: Notary
• The buying agent sends all necessary documents to the notary's office and is in contact with them • On the day of passing you, the seller’s agent, the seller and your buying agent will have the Final Inspection at your new home • At the notary office you will sign the notarial documents and receive the keys • Then you are the new Owner of the house Poll Do you want to buy an existing home or a new construction that has yet to be built? Where to find all new constructions? Nieuwbouw-nederland.nl Poll Have you already had a conversation with a bank or mortgage adviser about buying a house in the Netherlands? Poll Have you already viewed houses and perhaps also made an offer? Legal aspects of buying a house
• The purchase is only legally binding after the purchase agreement has been signed by seller and buyer • Legal cooling-off period of existing houses: 3 days after bothparties have signed the purchase agreement • Legal cooling-off period of existing houses: 5 days after both parties have signed the purchase agreement • Date of transfer and notary office is mentioned in the purchase agreement • Resolutive conditions (financing condition) • Security deposit/ bank guarantee ( can be a penalty if buyer cannot buy the house) Legal aspects of buying a house
• Nivita Makelaars schedule a time for transfer at the notary • 1 week before the actual transfer you will receive the deed of delivery, deed of mortgage and invoive of settlement • All deeds are written in the Dutch language • According to Dutch law, it is mandatory that a sworn interpreter is present during the transfer appointment at the notary. The notary ensures that this interpreter is called in. Take into account extra costs of between 300 and 400 euros Legal aspects of buying a house
• If you cannot attend the appointment of the notary, it is possible to issue a power of attorney to the notary or any other person. • Do not forget to bring a valid ID to the notary. This can be a passport, identity card or driving license • 1/1,5 hour before the actual transfer we have the final inspection at your new home with the seller, sellers agent and you Inspection of the dwelling: why this is important?
• The buying agent will review the house, check all appliances, check whether the boiler is functioning, all radiators heat up, flush the toilets properly, floats work properly, are not leaks from taps and whether there are broken windows / frames. • There is nothing we can do about things that were broken before the purchase and of which we were aware. • Items that have broken between purchase and delivery must be repaired by the seller. • It may appear during the final inspection that something is not working and that it is broken. • The buying agent at that moment discuss this defect with the seller and sellers agent, this defect needs to be written on the final inspection form. And also what agreement has come out of the discussion. Benefit of The Right Home Buying Agency
Local market knowledge
Awareness regarding paid purchase prices, housing development
The right contacts with sellers agents, engineers, appraisers, contractors
Knowledge of Dutch laws and regulations • Certified Expat Broker & Home Buying Agency • Knowledge about whole region of Why South Holland • We are on top of the purchase of your choosing for dream home every day Nivita • Personal assistancy & involvement • Accurate valuation of the house (can Makelaars? compare this with the appraised value) • Visual assessment of the structural condition and finishing touchHighly qualified negotiator • Specialized in Home Owner Association (HOA) • Excellent customer ratings Why • 24/7 Reachable by whats app choosing for • Working in a groups app with one other specialized buying agent who Nivita serves as a backup in case of illness • Director and real estate agent Nivita Makelaars? Parbhudayal herself coaches all the agents in the company • Assistancy from first viewing untill key delivery • Our fee structure is composed of a fixed and variable fee depending on the price range and location in which you want to buy. Brokers fee • Fixed rate: starts from 3,250 euros of Nivita including 21% VAT • Variable fee: 10% of the negotiation Makelaars result including 21% VAT • If you have to pay more for a house? In that case there is no negotiating result • THE RIGHT CHOICE FOR YOU! • LET’S DRINK A CUP OF COFFEE OR • PLAN A TELEPHONIC APPOINTMENT WIT ONE OF OUR REAL ESTATE AGENTS Break 5 minutes EXPAT MORTGAGE ADVISOR How to buy a house in the Netherlands
Welcome to ABN AMRO. Expert in expats
No rights may be derived from this presentation. Aan deze presentatie kunnen geen rechten worden ontleend. Buying a house in the Netherlands
Announcements
All microphones are automatically muted
After this presentation we will send a follow-up email with more information
Questions can be asked in the Q&A section
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands
Program for today
ABN AMRO International Clients How much can I borrow? The process of buying a house Costs involved Mortgage options How to proceed Questions
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands How much can I borrow? Loan to income Contract type – Indefinite: after probation period – Temporary: 6 months + continuation agreement – Flexible: 90% of average income in last 3 years (if the last year is lower than the average, this will be the benchmark) – Additional requirements: Covid-19 Pandemic survey
Salary – Basic gross annual salary – Additional fixed salary components: (holiday allowance, 13th month, bonus, post adjustments)
Loans and other debts Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands How much can I borrow? Loan to value
Market value of property – Maximum 100% of market value (≠ purchase price)
Passport / Residence permit (RP) – EU or Switzerland → 100% LTV – Non EU / Indef. RP / > 6 months working in NL → 100% – Non EU / Temp. RP / working for an international organisation / Knowledge Migrant → 100% LTV – Non EU/ Temp. RP/ < 6 months working in NL → 85% Market value Determined by an independent valuator, provided in a valuation report
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands Process of buying a house The Dutch way Make an offer Arrange mortgage – 4 - 6 week application process Documentation Tailored advice Binding mortgage offer Bank guarantee (free service) Go to notary – Sign the mortgage and deed for the house – Get the keys
Aftercare and support Tailored advice – Insurances Discuss risk of death, disability, pension and unemployment Offer insurance (e.g. life insurance & home insurance)
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands Process of buying a house With or without advice With tailored advice: – Advice fee (€ 950) & handling fee (€ 700) – Mortgage advisor as personal point of contact – Advice on the scenarios: death, disability, pension and unemployment
Without advice: – Handling fee (€ 700) – Pass mortgage exam – No mortgage advisor – No advice provided on the scenarios – Lender must decide on the mortgage structure
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands Costs involved Purchase & Finance costs
Purchase costs – Purchase price – Estate agent fee (if applicable) – Transfer/house deed (notary) – 2% Transfer tax
Finance costs (tax deductible) – Mortgage deed (notary) – Mortgage advice and/or handling fee – Valuation report – NHG fee 0.7% (if applicable)
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands Costs involved Sample calculation * All costs in this example are indicative
Purchase costs Purchase price € 400,000 Transfer tax € 8,000 Transfer deed (notary) € 600 Real estate agent fee € xx
Finance costs Mortgage deed (notary) € 800 Mortgage advice & handling fee € 1,650 Valuation report € 500
Total costs € 411,550 Down payment € 11,550 Example Mortgage amount € 400,000 Purchase price € 400.000 Market value € 400.000 Mortgage (100%) € 400.000
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands Mortgage repayment options
Annuity Linear
Interest Gross Gross Monthly Interest Monthly instalment instalment
Capital repayment Capital repayment
Duration of fixed Duration of fixed interest period interest period Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands
Mortgage structure
Budget mortgage Home mortgage Signing the mortgage deed at the Signing the mortgage deed at the notary notary office within 90 days office within 6 to 9 months
0.10% discount on our (regular) interest rates 0.10% higher interest rate
If the market interest rate is lower on the date of transfer, you will be granted the lower rate.
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands Mortgage options Conditions
Possibility of renting under strict conditions Additional mortgage repayments without costs – 10% of original mortgage amount annually – 100% after fixed interest period – 100% when selling (no penalty) Renovations – 100% of market value after renovations – 106% when investing in energy-saving renovations
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands
MortgageBuying a house in the Netherlands options SustainabilityBuying a house in the Netherlands
106% Loan to value based on circumstances – Additional 6% (or less) for the amount invested in energy-saving measures (solar panels, insulation, insulated glazing) – The extra 6% is subject to specific conditions
0.15% Sustainability discount – New-build house or a definite energy label A – Not in combination with 0.10% company discount
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands How to proceed:
Mortgage calculation online ➢ The calculation will be saved in your secure personal mortgage portal ➢ Upload the documents (save €200)
Video Conference ➢ Anytime, anywhere
To schedule an appointment, contact: ➢ [email protected]
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. Buying a house in the Netherlands We thank you for your attendance
Webinar presented by Milad Talebi Pour and Nathan Themps ABN AMRO International Clients. Experts in expats.
Aan deze presentatie kunnen geen rechten worden ontleend. No rights may be derived from this presentation. What is next?
• We highly appreciate your presence • We will be in the chat for another 15 minutes to answer the questions • After a couple of minutes, I will close this webinar Recommend this Webinar
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If the person you recommend attend one of our upcoming webinars Nivita Makelaars will donate €2 to the COVID-19 research department of the Erasmus Medical Centre Foundation in Rotterdam Keep calm and house hunt!