Weak outlook housing market, offers opportunities as well.

On March 2, 2012, In Buying a Property, Selling a property, By admin
The Data and Research Department of the NVM (the leading association of Dutch real estate brokers) recently surveyed its members for their opinion on the current state of the domestic housing market. The survey was carried out in the period 22 December 2011 – 3 January 2012 and there were 734 responses.
Rating
The average rating given by respondents was 4.0 on a ten-point scale. This is slightly higher than the rating from mid-2011. The current economic climate and economic prospects for the coming year dominated the market outlook. The media was regarded as an important factor in creating negative sentiment and depressing the market. Positive aspects and opportunities in the current market received limited coverage. The ongoing discussion regarding the mortgage interest deduction has also inhibited housing sales. While preservation of the deduction is no longer the key to boosting the market, clarity on what will (or could) happen regarding this deduction and when changes could occur is considered critical.

Netherlands Housing Market

Netherlands Housing Market

Opportunities
In the wash of negativity, it is easy to forget that there are a lot of opportunities in the current market for making a good purchase. For instance, the combination of a lower prices, lower interest rates and the changes in rental regulations have made “buying-to-let” a very viable strategy for generating returns from real estate investments.
Another positive aspect is the fact that transfer tax will remain at 2% until 1 July 2012 after which it will revert to 6%. In other words; a house of € 250.000,- is € 10.000,- cheaper!
Current market circumstances have lead to an increase in the quality of properties for sale while prices have dropped. If you are considering buying residential real-estate, keep in mind that, more than ever, value is determined by location and quality and that there are some excellent deals out there.
If you are considering buying in the Netherlands, feel free to contact our real estate specialist Johan Grijzenhout  for any questions; visit his website Perfect RealEstate or call +31 (0)20 524 1140
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You know you’ve been in The Netherlands for too long when…

On July 15, 2011, In Living in The Netherlands, The Netherlands, By admin
1/ You have a bike
2/ You even know how to brake using retropedaling
3/ Walking from your faculty to the cafeteria has become unimaginable. You take your bike, even if it’s for 50meters
4/ Eating 7 slides of bread for lunch doesn’t scare you anymore
5/ By the way, you stopped eating warm lunch. You just eat bread
6/ You know what a kroket is, and you learned to avoid the orange ones
7/ It doesn’t surprise you anymore to eat at 18:30
8/ You drink beer
9/ You got used to trance and electro music
10/ You don’t cheat on the train, because controllers are EVERYWHERE
11/ When the cafeteria is crowed, you line up neately with the others
12/ You used to use cash all the time, but now you have a pin card
13/ You think ducks are cute
14/ As soon as the sun pops out, you make a barbecue, even if it’s 10°C outside
15/ You think 15°C is warm
16/ You know winter stops in May, and not March as everywhere else
17/ You don’t remember what a moutain looks like
18/ You still don’t know how to speak Dutch. But your English has improved
19/ You know what Surinam is. And where it is
20/ You never go out without your bike lights
21/ You think butter in a bottle is normal
22/ You know that all the guys are in Delft. And the girls, everywhere else, especially Leiden
23/ You go to Leiden on Saturday
24/ You’ve been to a flower park, and thought it was cool
25/ You’re ok with having only one flavour of ice cream (the white ones)
26/ You don’t even bother to ask “do you speak English?”, you just speak English right away
27/ When you go to the cinema, you are ok with being told where to sit
28/ And you wouldn’t dare sit anywhere else
29/ You have finally accepted the fact that Gouda is cheese
30/ Paying 6€ for a meal in the cafeteria seems normal
31/ You know how to repair a bike
32/ You eat potatoes at least once a day
33/ You always check the weather before leaving home
34/ You know what it is being late and having to wait for a boat to cross the bridge
35/ You can drink milk at any time of the day
36/ Sometimes, you only drink milk as lunch
37/ You have tried karnemelk at least once
38/ You start liking dropjes
39/ For you something sweet means straubwaffels
40/ Spring means flowers blooming and construction sites opening up all over the place
41/ Being tall gets a new meaning
42/ Blonde is back to being a hair-color, not a concept
43/ You have 4 seasons in one day
44/ You can start a mail to your teacher who happens to be a doctor by “yo, wassup doc” (exaggeration can get the message through)
45/ You think that paying to use the toilets is normal
46/ You know that kapsalon is not a typical turkish dish, but a hairdresser
47/ You start to think that the strange position of the hole in the WC is not that disgusting
48/ You find it easier to find a good joint that a good coffee
49/ You have the AH bonus card
50/ Your windows have no curtains, and you don’t care
51/ If your windows have curtains, you don’t use them, and just don’t care who might be looking at you
52/ For you, light rain is not rain
53/ Professors write a “well done” comment in your assignment and still grade you with a 6
54/ You can drink beer in the cinema (good)
55/ 10°C is warm enough to wear a short or mini skirt
56/ You can ride your bike in the rain, wind and even snow
57/ Guys are very cute
58/ You can ride your bike wearing skirt (if you’re a girl), a suit or even high heels (if you’re a girl)
59/ When you start having strong opinion even if you vaguely know the topic
60/ When you “wash” the dishes with soap without rincing them
61/ “Alstublieft and dank u wel” are the only dutch words you know
62/ You aren’t surprised anymore that the disco closes at 4 (but it still pisses you off)
63/ You learn to bike without using your hands on the handle
64/ You go to the market and you only buy the stuffs that fit in your bike
65/ Riding a bike and driking coffee/smoking/eating lunch at the same time is not a problem any more
66/ You reformulate the saying “if you drink, don’t drive” by “if you drink, don’t ride”
67/ You’ve been asked where the coffeeshop is
68/ You start wearing orange during soccer events, even when you’re not Dutch
69/ You get used not to use napkins when eating. You just eat dirtily.
70/ You know what GVD stands for
71/ You can never predict the weather and can not believe the weather forecast anymore
72/ You wait for the light to go green before crossing the street, even if there is no car
73/ You sometimes eat only with a spoon
74/ You tried fried fish from the caravans at least once
75/ You clap the lecturer (just because he’s been speaking for 2 hours)
76/ You run to Albert Heijn at 21.55 to get some beer for the party that night
77/ Trees planted in straight rows/ aka the forest/ seems normal
78/ You think you understand why they don’t serve coffee at coffeeshops (but you’re not sure yet)
79/ You steal a bike at the station because the night before someone stole yours
80/ You think it is okay to eat multicoloured sprinkels on bread for breakfast
81/ You use 9292ov.nl to go to the supermarket
82/ You know that the wind blows in your face regardless of the direction in which you are biking
83/ You don’t even try to park in an unauthorised area just to ‘pick something up in 5min’, because you know you will get a ticket in 30 seconds
84/ When you move out of your rental apartment, you know you might have to take the floors with you
85/ Stepping in doggiepoo on the sidewalk becomes almost a daily thing
86/ You end up eating super greasy food at 5am at FEBO or ALEV (Delft)
Dutch Junk Food

Dutch Junk Food

87/ And after that, you manage to bike home still completely wasted and go to class at 8:45
88/ You need an appointement to talk with your friends. Or your mother
89/ You enjoy making tourists jump off the bike path
90/ You paid more for the lock of your bike than for the bike itself
91/ Real bread? You’ve made your peace with it. It doesn’t exist
92/ You know that the Netherlands doesn’t have a special dish. They just fry everything
93/ You know getting a couch will be difficult because it doesn’t fit through the door. Windows maybe?
94/ You’re ok spending Queen’s Day in the train because people are walking on the rails
95/ Jaap, Joost and Jeroen are the names of most of the Dutch guys you know
96/ When the sun pops up all your Dutch friends are wearing beach flip flops
97/ Dutch people ask you why don’t you speak Dutch?
98/ You still don’t speak Dutch but watch silly Dutch TV shows like Take me out and Single
99/ You have been in a relationship with at least one Dutch person
100/ You are used to people bumping into you abruptly on the street, yet never saying sorry
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Where to live in The Hague

On April 20, 2011, In Living in The Hague, Living in The Netherlands, Rental The Hague, By admin

The Hague offers a diverse set of neighbourhoods for expats relocating to the area to choose from. The city is divided into eight districts, each of which is further partitioned into different neighbourhoods.

In general, the more prosperous neighbourhoods are found in the northwest of the city, while less affluent areas are typically located in the south and east.

The Hague is comprised of eight districts:

The area defined by the Archipel, Statenkwartier and Duinoord neighbourhoods is an extremely desirable and central place to live. Embassies, luxury villas, apartments and mansions are nestled amongst shops, restaurants and cafes, resulting in an exciting urban atmosphere.

  • Archipel: The Archipel neighbourhood in the Centrum district is close to the town centre, museums and parks. The beautifully renovated, old style houses found here are full of character and historic atmosphere. Prices reflect the area’s desirability and limited space makes parking a challenge.
  • Statenkwartier: Located in the city centre, the Statenkwartier neighbourhood in the Scheveningen district is filled with beautiful, spacious homes built in the early 1900s. The area’s plentiful Art Nouveau architecture, specialty shops and cafes make it a popular destination.
  • Duinoord: Homes in the Scheveningen district’s Duinoord neighbourhood are typically smaller than those found in the Statenkwartier, but are charming and full of character. Much of the architecture dates from the late 19th century and today the area is known for its somewhat bohemian atmosphere.

Those looking for a less urban environment can find larger living spaces and more ‘green’ within the Haagse Hout district. This area is typically popular amongst families with children, as it provides easy access to downtown amenities while offering a quieter, more natural setting.

  • Benoordenhout: The Benoordenhout neighbourhood in the Haagse Hout district is a quiet mixture between urbanity and nature. It’s woodland setting on the north and east sides belies its close proximity to the city centre and easy access to the motorways. Parking is plentiful.
  • Mariahoeve: The Mariahoeve neighbourhood is also located in the Haagse Hout district and offers a similar set of 1930s architecture, green surroundings and easy parking. The British Junior School is located here.

Other neighbourhoods popular with expats include Bezuidenhout (Haagse Hout), Marlot (Haagse Hout), Vogelwijk (Segbroek), the beach resort areas of Kijkduin and Scheveningen, Van Stolkpark (Scheveningen), Westbroekpark/Duttendel (Scheveningen), Belgisch Park (Scheveningen) and Zeeheldenkwartier (Centrum). For housing, search through these available rental apartments in your preferred neighbourhood.

Several of the neighbourhoods where many expats are located have English-language websites. These include:

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Amsterdam Shopping Markets

On April 8, 2011, In Living in Amsterdam, Living in The Netherlands, The Netherlands, By admin

Amsterdam has some worth-visiting markets which can be a nice alternative for the standard shopping rituals. These atmospheric markets offer the best way to pick up some bargains for you or your friends. They offer a taste in the local life and give visitors a other view of Amsterdam. Some of these markets open daily, others open on certain days. Here’s an overview of some of the best markets:

Bloemen market – Famous flower market

This is Amsterdam’s famous floating flower market, the only one of its kind in the world. The stalls are indeed “floating” on houseboats, but they are semi-permanent fixtures now. It caters to tourists, who flock to see thousands of blooms of every color and buy Dutch bulbs to take home. Location: Singel, between Koningsplein and Muntplein. Open: Year-round, Monday – Saturday 9 a.m. – 5:30 p.m., Sundays 11 a.m. – 5:30 p.m.

Waterlooplein Flea Market – Amsterdam’s best Flea and Antiques market

Amsterdam’s largest flea market is like 200 garage sales going on at once and the “neighborhood” is home to the posh and the tacky. It’s easy to browse for hours in the maze of second-hand clothes, African drums, tie-dye shirts, antique rugs and furniture and bric-a-brac of all kinds. Unlike most markets in Amsterdam, bargaining isn’t necessarily frowned upon here. Location: Waterlooplein. Open: Year-round, Monday – Saturday 9 a.m. – 6 p.m.

Albert Cuyp market – Amsterdam’s famous market in the Pijp

This experience is a must for Amsterdam visitors who love bustling markets. The 100-year-old, open-air street market (the city’s largest) features nearly 300 vendors selling everything from fruits, vegetables, fish, meats, spices, chocolate, cheese, flowers and plants to clothes, jewelry, shoes, bike accessories, bedding, fabrics and cosmetics – basically everything. Prices are dirt-cheap, but product quality often reflects this, so beware. Flowers are less expensive here than at the famous Bloemenmarkt. Location: Albert Cuypstraat. Open: Year-round, Monday – Saturday 9 a.m. – 5 p.m.

Spui Book Market

Bibliophiles will marvel at the endless tables and tents of this used and antique book market. Dealer collections run the gamut from biography, literature, poetry and fantasy-fiction to art, history, psychology and geography. While most books are from the Netherlands, some English and international titles are for sale, as well as antique maps, prints and records. Location: Spui. Open: Year-round, Fridays 10 a.m. – 6 p.m.

Spui Art Market

Also known as “Art Plein Spui,” this favorite Amsterdam market in the heart of the city showcases the work of up to 25 professional artists from a rotating group of 60, whose media include everything from oil, acrylic, watercolor and etching to photography, sculpture, ceramics and jewelry. Location: Spui. Open: March – December, Sundays 10 a.m. – 6 p.m.

Thorbeckeplein Modern Art Market

Paintings are the features of this Eastern Canal Belt market, which caters to those who prefer an abstract or modern look. Location: Thorbeckeplein. Open: Mid-March – October, Sundays 10:30 a.m. – 6 p.m.

Noordermarkt Flea Market

Wares at this popular market range from tote bags made from old World War II army gear to fine Asian antiques. Die-hard flea-market shoppers get here quite early, especially on Mondays. Location: Noordermarkt, Jordaan. Open: Year-round, Mondays 9 a.m. – 1 p.m., Saturdays 9 a.m. – 5 p.m.

Boerenmarkt on Noordermarkt – Amsterdam’s organic market

Alongside the popular flea market on Noordermarkt is one of Amsterdam’s biggest organic farmers’ markets. Local and regional growers sell fresh, seasonal fruits and vegetables, meats and cheeses, while organic bakers offer all-natural breads, cookies and pastries. There are even stalls dedicated to organic olive oils, whole grains and various spice pestos. All these ingredients make for a beautiful, bustling display of color and smells. It’s a must if you’re in the Jordaan on a Saturday. Location: Noordermarkt, Jordaan. Open: Year-round, Saturdays 9 a.m. – 5 p.m.

While you visit these markets, of course keep an eye on your personal belongings. Markets tend to attract pickpockets, and Amsterdam is no exception. Be warned! If you’re planning a visit to Amsterdam, check these short-stay apartments. For longer stays, look into these long-stay apartments in Amsterdam.

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Where to Live: Neighbourhoods in Amsterdam

On July 15, 2010, In Living in Amsterdam, Living in The Netherlands, The Netherlands, By admin

Amsterdam is undoubtedly an exciting city to live in.

Amsterdam map

This small, atmospheric city has plenty to offer everyone: culture, museums, great food, nightlife, parks and family activities. Amsterdam is officially divided into 15 districts, which are each further subdivided into neighbourhoods.

The city’s history, tolerance and social housing policies have helped to ensure diversity throughout the city. The majority of expats looking for a ‘typically Dutch’ urban environment tend to end up in the canal rings encircling the old city centre, the Jordaan, the Old South or the Pijp.

  • City Centre Canals: The old city centre is surrounded by four U-shaped canals: the Singel, Herengracht, Keizersgracht and Prinsengracht. The canal houses lining these canals have retained much of their old-style grandeur and provide the perfect location to enjoy Amsterdam’s extraordinary city life. The canals here are packed with cafes, restaurants, tiny boutiques and shops of every kind. The Nine Streets in particular offer ample opportunity for exploring.Apartment prices in this part of the city centre reflect the neighbourhood�s desirability, and on-street parking is limited and expensive. Residents can expect to wait years before being granted a parking permit. Parking garages offer nearby alternatives, but expect high prices and a short walk or bike ride to reach them.
    Houseboats also line the sides of these canals and living in one can offer a slightly cheaper alternative for finding accommodation in this part of town.
     
  • Jordaan: The charming Jordaan is located just outside the main canal rings in the city centre and is made up of a number of smaller canals and streets that run perpendicular to the Prinsengracht. This area was originally an old working class neighbourhood and today is an extremely sought after place to live. The Jordaan is known for its myriad of small restaurants and cafes, and is home to several well-known markets on Saturday and Monday. As with the city centre, parking in this area is limited and expensive.
     
  • Old South: The Old South is one of the most popular expat neighbourhoods, as it is close to the city centre yet offers larger living spaces and more green, thanks to its close proximity to the Vondel Park. While living in the Old South is quieter than in the City Centre and Jordaan, the area still offers a number of (upmarket) shops, restaurants and cafes. This is an expensive part of town to live in, although parking is easier and parking permit waiting lists are somewhat shorter.
     
  • The Pijp: The Pijp is one of the up-and-coming areas of Amsterdam, having benefited from recent city regeneration efforts. The area is ethnically diverse and filled with interesting shops, restaurants and one of the city’s largest open-air markets (the Albert Cuyp market). In recent years, the Pijp has become a highly sought after neighbourhood to live in and rising prices reflect this.

The Westerpark is another neighbourhood that has benefited from regeneration in recent years. The enormous Westerpark park, with its trendy cafes, old industry buildings, rolling fields, wading pool and constantly rotating event schedule has done a lot for the area. Westerpark borders the Jordaan and provides easy access to the Amsterdam ring road and highways.

For a less urban environment, many expats also relocate to Amstelveen, a suburb of Amsterdam directly to the south. The area is green, has a neighbourhood feel and is close to the city’s largest park (the Amsterdam Woods (Amsterdamse Bos)) and Shiphol airport. Many international companies are located in Amstelveen, and the International School of Amsterdam is also found here.

If you have plans to move to Amsterdam and you do want to find an Amsterdam apartment in a  great location, make sure you do get the right info!

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Why rent to expats?

On May 10, 2010, In Property rental, Rental Amsterdam, Rental Rotterdam, Rental The Hague, Rental agency, By admin

The expat and your rental property

Before debating the “why” question, it’s probably wise to define what an “expat” is.

Here is my very best attempt at a definition: An expat (expartiate) is typically a non-native (i.e. not Dutch in this case) business professional working in The Netherlands on temporary assignment. An expat often has specialist professional skills (e.g in finance, IT, advertisng, marketing) that may not be available in the local labour market. They are typically well educated and have a higher than average disposable income.

If you are a property owner, there are a number of reasons to consider focusing on renting to an expat tenant in The Netherlands.  There are rental brokers that focus exclusively on serving the expat rental client and engaging such a broker can help in finding a tenant with a suitable profile.

Here are a couple of reasons to consider an expat rental tenant:

  1. They usually have a higher rental budget than a Dutch tenant. Often this budget is paid for, or at least subsidized by, their employer and therefore an expat may be willing to pay a little more for a good quality property matching her profile.
  2. If, as owner, you are looking to rent your property for a year while on walk-about in Australia then you want certainty regarding being able to return to your property a year later. Expats come and go. In some cases, you are offered more certainty with an expat renting for a year before moving on to another assignment in Paris than a Dutch client who may seek to claim their considerable rights under Dutch rental law.
  3. Expat tenants typically like to have a diplomatic clause in their contracts allowing them to terminate the rental agreement (with notice) if their employer posts them to, say, Lisbon. This clause – almost never used – also offers the landlord a safety valve as the clause usually works both ways. Should you, as landlord, return early from your assignment in London, then you would be able to reclaim your property earlier providing sufficient notice is provided.

Perfect Housing can assist with screening and securing you an expat tenant on temporary assignment here in The Netherlands. Advice is offered pricing your property, the (local) government rules regarding renting, and on how to prepare your property for rent.

Rent via Perfect Housing

Rent via Perfect Housing

Via partners, Perfect Housing offers full property management services involving collecting rent, chasing late payments, and conducting routine repairs and maintenance.

If you have a property for rent in The Netherlands (from studio to luxary villa), for periods of 6 -36 months – please make contact for an orientation discussion.

 
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Queen’s Day – scam alert

On May 3, 2010, In Corporate apartment, Events, Rental Amsterdam, Serviced Apartments, By admin

Queens Day in AmsterdamIt’s strangely quiet in the office this morning as survivors of Queen’s Day struggle in after a three-day party weekend. For the uninitiated, 30 April or on 29 April if the 30th is a Sunday is Queen’s Day which celebrates the birthday of the Queen of the Netherlands and is supposed to be a day of national unity and “togetherness”.

Well, that sounds nice. But it’s also a weekend of opportunity – for the scammers, that is. More on the scam in a moment.

Back to Queen’s Day. Here’s some more stuff paraphrased from Wikipedia: a tradition started on 31 August 1885, on the birthday of Princess Wilhelmina, later Queen Wilhelmina. Queen’s Day is known for its “freemarket” (Dutch: vrijmarkt) all over the country, where everybody is allowed to sell things in the streets. Other activities during Queen’s Day are children’s games, individual musical performances, and music concerts.

Yet another activity is the scam. This is what we experienced in our serviced apartments business in Amsterdam. It worked like this:

  • A scamming site was set up: http://www.thepalacereservation.com
  • Several of our serviced apartments were illegally listed for insanely low prices +/- Euro 40 per night instead of Euro 160 per night
  • Incredibly – during the busiest weekend of the year – there was not only availability but for give-away prices
  • No, no, no – no phone contact possible. Just transfer your money to a Western Union account number

It’s harsh to claim that those following this instruction got what they deserved but it once again emphasises online caution. On the big day itself , we received three parties – two Spanish and one German group – looking to check-in to apartments booked by others month’s ago. All we could do was point out several budget hotels outside the A10 (the highway circling Amsterdam).

On checking this morning, it appears that http://www.thepalacereservation.com is still up and running despite us informing relevant ISPs and the local police. Although, there is an entirely new look and feel – someone has been busy over the weekend.

 
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Q&A – Give me back my deposit!

On April 23, 2010, In Getting your deposit back, Living in Rotterdam, Rental Rotterdam, Security Deposits, By admin

Question:

I rented an apartment in Rotterdam for 3 months through Rots Vast. I extended the contract 4 more months through the landlord and she told me tell her one month in advance. I told her again on April 12th, that I would be leaving and she says she’s keeping half my deposit because I didn’t give advance notice (although I told her in January I was leaving in April). She is also now saying that fixing the toilet is my expense. No inspection check at beginning and none planned for end (29th Apr). Advice?

Answer:

There are several questions in your mail. Most rental contracts are explicit about when notice can be given and how that notice must be communicated. A typical clause might state something like ‘you may terminate the rental agreement after an initial period of so many months (often 6) with a notice period of one calendar month. Furthermore, there is often the requirement to communicate that notice by registered letter to the owner and/or their agent. Of course, this is the formal side and a not every owner sticks to the letter of the contact accepting, instead, notice by email, phone or post-it. Fixing the toilet at your expense sounds unreasonable but the owner may cite cause. If, for example, you washing machine breaks because your have stuffed 20KG in instead of the 5KG limit, then you should pay. It a washing machine breaks because it’s a classic 1972 model and its best days are long-gone, then this would typically be an expense for the owner. I have answered several other questions in Expatica’s Ask-the-Expert section on reclaiming deposits and providing notice. Please search further in this blog for additional tactics on handling deposit recovery.

 
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Q&A – Passive Smoker

On April 15, 2010, In Property rental, Rental Rotterdam, By admin

Question:

I’ve read some of your articles, I’m living in Rotterdam can I find an office like wswonen here in rotterdam. I rent a room and share WC bathroom and kitchen with another student. My landladies brother has just moved in to stay, a strong smoker and 50 years old. No sign of this in my rental contract. Where can I get valuable advice? thanks in advance, Veronica.

Answer:

Tricky one and we’re not lawyers. You could try the following in the following order:

  1. Try enquiring at someone like Access as they may at least be able to tell you your legal position without charging you a fee (they are a voluntary organisation)
  2. Explain to your landlady your aversion to passive smoking and request that smoking occur only outside
  3. If you have a strong legal position, then you could follow up with the threat of legal action (bit extreme but it is an option)
  4. If  you have a weak legal position, then you can either accept it or you’ll have to consider moving.

Good luck finding your way through the smoke.

 
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Q&A – Deposit Return

On April 14, 2010, In Getting your deposit back, Paying a security deposit, Property rental, Security Deposits, By admin

Question:

We were renting a furnished apartment in Delft for a year. At the end an agent checked the apartment twice. It was perfect. Two weeks later the landlord found a stain in the mattress. He suggested to buy a new one (the prize for the new mattress is 1875 euro). Our suggestion was to chemically clean the inner part of the mattress and drape it with a new cover. The apartment was not new at the beginning. Is our obligation to buy a new one? Two months after they still keep 3000 eur of our deposit. Thanks in advance, Ivona

Answer:

We receive a lot of questions on deposits. It’s always tricky to discuss a specific situation but here are some thoughts. At the final inspection, there is typically a sign-off. Any items that are broken, in need of repair, scratched, dirty…etc. are documented. It appears that this did not happen in your case. The most discussion is always generated by cleanliness. The classic scenario is that the apartment (or item in question) was not clean at the start of the tenancy and therefore there is no obligation to return is clean(er) at the end. Although possibly too late now – a good check-out starts with a good check-in. There are various suggestions to questions on returning deposits in responses to other questions in this blog (search on ‘deposit’ and in the Expatica – Ask the Expert (Housing section). Good luck in resolving this.

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The ‘Other’ Costs of Renting an Apartment

On April 12, 2010, In Property rental, Rental Amsterdam, By admin

Not really hidden, but not always obvious

When you rent an apartment, you typically focus on the main cost: the rent. Although this is THE main cost, there are other taxes and charges that either fall on your shoulders of that of the property owner.

If you are unaware of these, you can have a bit of a surprise sometime during the year. So, with the goal of removing surprises, here is a quick overview of how this looks in Amsterdam (other cities in the Netherlands will have their own version).

  • Verontreinigingsheffing: This is a pollution levy for direct drainage of effluent into surface water of an independent residence not connected to sewer system. For single occupancy, this is Euro 53 per year and if there is more than one occupant, Euro 159 per year (the OCCUPANT pays this to WATERNET).
  • Watersysteemheffing ingezetenen: This is a levy for use of public water system of independent residence. A mere Euro 81 per year (the OCCUPANT pays this to WATERNET).
  • Afvalstoffenheffng: A levy for refuse collection. Different rates apply for different parts of the city. Amsterdam Centrum charges Euro 221 per year for single occupancy and Euro 295 per year for more than one occupant (the OCCUPANT pays this to GEMEENTE AMSTERDAM).
  • Rioolheffng: A levy for connection to sewer system. A fixed charge of EUro 145.46 per year (the OCCUPANT pays this to GEMEENTE AMSTERDAM).
  • Watersysteemheffing gebouwd: A levy for use of public water system of independent residence. This is charged at 0.012778% of the WOZ-value (the OCCUPANT pays this to WATERNET).
  • Onroerende-zaakbelasting: Property tax charged at 0.05287% of assessed property value per year (the OCCUPANT pays this to GEMEENTE AMSTERDAM).
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Decision time – sell or rent?

On April 9, 2010, In Selling a property, By admin

Should I sell or should I rent now? (I really want to know now)

That’s the dilemma. If you are an owner looking to sell you probably have a reason… moving elsewhere within The Netherlands, your job is moving to Brazil. Should you sell therefore sooner rather than later and be done with your real estate foray into the Dutch market? On the other hand there are tentative signs of recovery in the housing market – depending on which soothsayer you believe – which makes you wonder if hanging on for a while will get you a better sale price. Of course, this states the situation too simply and other obvious and clandestine forces are also working their effect.

Here are a couple of aspects to keep in mind:

  • Sun: Spring has sprung. It’s sunnier. OK, it’s sunnier slightly more often meaning your property – for sale or rent – is going to look it’s best. We are experiencing a significant upswing in the number of listings for sale. This reinforces that feeling of increased confidence.
  • Buyers: Of course, if you are selling you need a buyer and a buyer usually needs a mortgage. Banks will still lend but not to everybody, under tighter conditions, and there’s always the question of interest rates which are anticipated to increase mid-year.
  • The ol’ financial crisis: Governments all over the planet are looking at ways to reduce their deficits. Brainy people regularly meet to see where savings can be made or taxes sneaked in. In the Netherlands, one of the proposals on the table is to phase out the mortgage interest relief. This is making prosective buyers anxious. The VVD (one of the major Dutch political parties) proposes, for example, phasing down the interest relief to 30% starting in 2014 and spreading this over 30 years. However, it is not set in stone and so potential buyers are nervous that a house they can afford now may become unaffordable later. In other words, they delay their purchase decision and await clarity.
  • Rules: If you have a property in Amsterdam and are considering renting it, you need to understand what you can legally charge a tenant taking into account the points system and the local rules. In many cases, owners find that following the rules will mean they cannot legally rent out their property for an amount that even covers their costs. Understanding these rules is also critical if you are considering buying a property that you may later rent out. Making incorrect assupmtions can be expensive.

Having both a rental operation and a property broker within Perfect Group led us to create Perfect Base. This is a product that allows an owner to rent out a property via Perfect Housing while still offering it for sale via Perfect Real Estate. The trick is to offer a short, fixed term rental contract for reasonable rent while making the tenant aware that they must cooperate with viewings related to sale (i.e. keep the place tidy, venitlated, clean and generally representative). Perfect Base has proved very effective and has lead to a significant increase in sale listings for owners needing a rental income while their property is offered for sale. Furthermore, because their is a rental income, an owner has a little more time to wait for fair offer rather than panicking and accepting the first offer.

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Expat Q&A – Buying property in The Netherlands

On April 5, 2010, In Buying a Property, Property buying costs, By admin

Buying property in The Netherlands – typical questions

houseWe get a lot of questions from expats (you know, non-Dutch nationals who have found themselves in The Netherlands) regarding buying a home. Answers to some of the most common concerns are provided below but… make sure you consult a financial advisor before making commitments (especially if you are required to sign anything!).

OK – caveats in place. Here come the Q&A.

As an expat, am I allowed to deduct my mortgage interest payment?

TaxEveryone who pays income tax in the Netherlands has the right to fully deduct the interest paid over the mortgage on their primary residence. The amount that is returned from the tax authorities is based on the income tax that you pay. If you pay, for example, 52% income tax, you will receive 52% of the interest back that you paid. If you pay 42% income tax, you will receive 42% of the interest back. Because expats with the 30% ruling may pay a lower tax rate, they may also be eligible for less deduction.

While property owners in The Netherlands love the mortgage interest deduction, politicians have been discussing phasing this out. The recent financial crisis has given the phase-out lobby more momentum as governments try to figure out how they can sting us for more. So, for now, we’re all fine. Keep in mind though that this deduction may be gradually phased out over a number of years.

What happens when I sell my house?

When you sell a house in the Netherlands, you must repay the mortgage (over which there will be no penalty). If you are selling a home that is your primary residence, you do not have to pay tax over any profit you make on the sale. However, if you buy a new home, you are expected to invest the profits from the sale of your original home in the purchase or renovation of the new property. If you choose not to, the interest you pay over the ‘additional’ part of your mortgage (the part that is not offset by the profits from the sale of your original home) is not tax deductible.

If you are selling a commercial property or a property that is not your primary residence, any profit from the sale will be taxed at 1,2%. This is the same rate that the property value, minus any loans, is taxed at on a yearly basis while still in the owner’s possession. However, bear in mind that the first EUR 20.000 of an individual’s capital assets is tax free in the Netherlands.

Am I allowed to rent out my home?

For rentIf you decide to rent out your home, you must first receive written permission from your mortgage provider. This is (nearly always) written into the boiler-plate of your mortgage agreement. In general, most banks are reluctant to give permission. If your bank does decide to allow you to rent your property, be aware that interest repayments on your mortgage are no longer deductible, but any rental income you receive is tax-free. As with other assets, the value of the house minus the mortgage amount will be taxed at the standard wealth tax rate of 1,2% (30% over 4% of the value), with the first EUR 20.000 of your total assets being tax-free.

In practice, there is a gray area around getting permission from your bank to rent out a property on which there is a mortgage. Knowing that a bank is unlikely to say ‘yes’ to your request to rent out, many owners simply do not ask. Instead, they just do it. Providing the mortgage commitments  are met each month, owners figure that the bank may not even know.

However, if you rely on the rental payments to pay your mortgage and are unable to meet your obligations because you have insufficient rental income, they you are in BIG TROUBLE in all events and even BIGGER TROUBLE if you did not ask for permission in the first case.

Although no one working for a bank would ever admit this, there is also a feeling that banks would be disadvantaged by a formal request to rent out a property on which a mortgage rests. In other words, they ‘know’ but prefer not to ‘know’ formally. In many cases, the person seeking permission may be looking to buy a second property somewhere else and hang on the first one as an investment. If the bank denies permission to rent out the first property, then the owner may be forced to sell and the bank would loose the opportunity to broker a another product. Yes – this all sounds a bit odd.

You can find more information about the tax implications of purchasing a home here. For more information on the buying process, feel free to contact Johan Grijzenhout of Perfect Real Esate.

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Apartment prices in Rotterdam

On April 2, 2010, In Living in Rotterdam, Rental Rotterdam, By admin

The cost of living in Rotterdam

There a lot to be said for and about Rotterdam – one of the most dynamic and buzzing cities in The Netherlands. But what does it cost to live there? The overview below gives indicative prices and some examples of great apartments that are fairly priced.

Apartments below Euro 1200 per month

  • West Kruiskade: In the middle of the China town part of Rotterdam. Very close to the centre, central station and other facilities. Good public transport connections.
  • Goudsesingel: Good area with good connection to the centre (tram and metro close-by). Easy access by public transport to the Erasmus University. The highway A16 is close by.
  • Nieuwe Binnenweg: This apartment is in the multi culture part of Rotterdam. The Nieuwe Binnenweg is a street that has a lot of international shops. Again the city centre is close by and easy to access by tram. This apartment is close by to the Erasmus Medical Centre (Erasmus MC).

Apartments between Euro 1200 and – Euro 1600

  • Kapelstraat: This propery is located in the most dynamic part of Rotterdam -The Lloydkwartier. An area close to the center and harbor of Rotterdam, but with a unique character.
  • Everaartstraat: Prins Alexander is an area on the outskirts of Rotterdam. It is newly developed and modern. It offers excellent public transport facilities such as metro, bus and train. The Alexander polder (reclaimed lowlands) offers a number of large shopping malls.
  • Graaf Florisstraat: Nice apartment in a cozy area. The centre is for about 5 minutes away. Close by the bus and trams which go to the central station and city centre.

Apartments above € 1600

  • Jufferstraat (various apartments available): One of the skycrapers of the centre in Rotterdam. The building, called Scheepmakerstoren, contains 26 storeys. The Jufferstraat in the wijnhaven area is, ofcourse, in the centre of Rotterdam. Close to the beautifull ‘Maasboulevard’ and the ‘Erasmusbrug’. We have a different and good, luxurious apartments in the Scheepmakerstoren.
  • Gordonstraat: This property is located in (the) Schiedam. Schiedam is a city and municipality in the province of South Holland in the Netherlands and is part of the Rotterdam metropolitan area. It is known for jenever (gin), its historical center with its canals, and the tallest old windmills in the world.
  • Landverhuizersplein: In the new built well known ‘Monte Video’ tower. One of the highest skycrapers in the city. Located on the ‘Kop van Zuid’, close to the famous ‘Erasmusbrug’ and ‘Hotel New York’.
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Resources Rotterdam

On March 30, 2010, In Living in Rotterdam, Rental Rotterdam, By admin

Finding your way in Rotterdam

If you are considering moving to Rotterdam, or are already a resident, the following resources will hopefully help you find your way in one of the most dynamic, fast-moving cities in the Netherlands. There is a growing expat population and – usually anyway – a refreshing abscence of tourists. Most of the city was flattened during WWII leading to a radical, dynamic modern architecture with many landmark buildings and bridges.

Good luck finding your way around.

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