During the economic crisis earlier this decade, it was difficult to buy a home because mortgage lenders were cautious. Selling a house was definitely a crime, especially if you had bought the house "too expensive" before and it was flooded. A high mortgage for a home that is worth less is one of the causes of that entire economic crisis. That is why things have changed for home buyers. These measures are intended to protect people, but now it means that it is increasingly difficult for many people, especially start-ups, to buy a house. Especially with the current housing market in which prices only seem to be rising. Do you still want to buy a house and are you fed up with fishing? With these tips you might be able to beat the housing market!
What is the situation with the housing market in 2019?
The year 2019 is almost coming to an end when I write this piece. With two months on the clock, the end is in sight and although it has always been said that house prices will stabilize, that is not yet the case. House prices also rose again in the third quarter of 2019, although things are not going as fast as before and there are places where a slight decrease has started. De Nederlandsche Bank recently warned banks to set aside extra money in case a mortgage crisis arises again. Not that we have to worry immediately, nothing indicates that it will change in the very short term, and should it already happen, the impact would be less than just 10 years ago. In other words: we are still in a bubble on the housing market and have to take into account that that bubble will one day be deflated, but it seems that it will not burst immediately. Anyone who has bought a house in recent years has moment in all likelihood of surplus value and a very low interest rate. Those who want to buy a house now also get a low interest rate (nice!) But also have to take into account the fact that they buy the house at a hefty price. And that can sometimes be a price that will fall again later, so that you can easily create equity and that is less positive. Anyway, as long as you continue to live in your house, there is little going on, provided you can pay the monthly charges. A crisis is often accompanied by higher unemployment, so it's a good thing to keep that in mind. Although house prices have fallen slightly in some areas, including Amsterdam and The Hague, house prices have still risen overall. The cities seem to be pretty much at their peak in terms of prices, so that the demand around them rises and therefore the prices there are also higher. The fact that prices in Amsterdam have fallen by a few percent does not mean that it is suddenly affordable to live there! In other words, the cities are still expensive and it is becoming a little more expensive around it.
As a starter on the housing market: success …
The starting home buyer today is having a hard time. It is mostly the young millennials (a millennial was born between 1980 and 2000, although others also use a period from 1985 to 2000) who after the study had difficulty finding a job (because of crisis) and now find themselves in a tight labor market. This creates tension, because this group does not want to miss the boat (and therefore finds it difficult to commit to a company or boss) but also wants its own house. René Froger already sang about it in 1988 but today it is difficult for young people to realize that. Why? Well, first of all because the rules for getting a mortgage have become stricter. You really do not just get 5 or 6 times your annual income as a mortgage. Furthermore, you may no longer co-finance the buyer costs, around 6% of the purchase amount. You will also have to pay for renovations and other things yourself, in other words, there must be a nice money box. A house is never really "finished", you take it as the old resident leaves it behind, and although you sometimes don't have to do much, a coat of paint is often necessary. This might be a few tens, but that is per pot / bucket. Window coverings are also often needed, and there are other things to think of that together cost some money. Current house prices and the scarcity on the housing market are a second cause of the problem. Affordable homes, under 2 tons, are scarce. And what is already there is also partly bought up by investors. Because a low mortgage interest rate also means a low savings interest rate and people with money are therefore looking for opportunities to make money with their assets in a different way. Buying and renting a house, often at extortionate prices, is a good investment. It means that the demand, especially for affordable housing, is high and the supply low. An investor can buy a house without resolutive conditions and that is interesting for a seller. The current housing market simply means that houses are sometimes sold by auction, with prices above the asking price. See how to get involved …
A limited budget, and now?
Not only starters suffer from this, many people who want to buy a house run into the same problem: they fish behind the net. If, for whatever reason, you are unable to count many tons for a house, you fish in a pond that seems to be becoming increasingly empty. Yet there are ways to get an (affordable) home, but you have to put some effort into it. It probably also means that you have to make some compromises. But if you do not want to rent your entire life then you will have to do something.
Take a buying broker
Yes, this costs you extra money. It is not for nothing that a purchase broker gets to work for you. But he or she is usually worth that cost. Because this broker is on your side when it comes to buying a house. He or she can negotiate on your behalf and, if all goes well, will also tell you if a house is too expensive for what you get in return. But not only that, a real estate agent often knows more about the houses in the region the sale. If a house is placed on Funda, it is often for sale for a short time (active or not). Sometimes there are only a few days in between, sometimes even a little longer. But in this housing market a day can be enough to fish behind the net. A real estate agent who knows the housing market and is in contact with other real estate agents, can therefore ensure that you have a head start on all Funda seekers.A buying agent costs money, but he or she can help you unwise. With insight and knowledge of the housing market, but also with advice
Savings & debts
We mentioned it above: you must have enough savings to be able to buy a house at all. Suppose you can pay a house of € 200,000, then the costs for the buyer alone come to around € 12,000. Plus any additional costs for, for example, the purchase broker. Then you want to make your new home a bit more familiar, maybe you should also buy furniture in addition to some paint. And let's not forget that you should also keep a buffer for unexpected things. € 20,000 is actually the minimum that you should have saved, but you may even need more. It makes little sense to look at houses if you do not have this amount (largely) together. You can only be disappointed if you do find that affordable dream house and you simply cannot afford it because you have not saved enough. Of course you can also ask your parents for help, thanks to certain rules they can give you a substantial amount tax-free if this is for the purchase of a home. But, then your parents must have and be able to miss this money. It is good to discuss this before you enter the housing market as a seeker. It is important that you do not take out a loan with your parents (or someone else). You must also specify this as such and that means that the mortgage amount to be borrowed will go down. Every obligation, especially a debt, influences how much the mortgage lender thinks you can pay in the month in mortgage payments. So your study debt also counts, although it counts less heavily than other debts. A loan within the family or with friends also counts, just like your mobile phone that you purchase on installment. All things to keep in mind when searching on the housing market.
When renting an (expensive) house or apartment it is increasingly common that you rent this together with a friend, or even with a stranger. Roommates ensure that the costs of your home can be shared, and you can therefore also apply this principle to an owner-occupied home. But where a lease is usually signed for a year, and after that you can basically say goodbye to each other and the home, buying a house is a bit more complicated. If you have a permanent partner, then you assume that you will grow old together. Of course you keep in mind that not every relationship persists, but the intention is normally that you do not separate. So if you buy a house together, something has to happen if you want to sell it. But if you buy a house with a friend, or perhaps with a brother, sister, cousin or niece, it is different. Precisely because you do not have a love affair, it may be that you get tired of each other soon or that you become quite annoyed by other people's behavior. And what do you do if one of them gets into a serious relationship. Buying a house with a partner other than a loved one can be fine, but you must record what you are doing in the event that one of them wants to leave. The advantage of buying a house together is that both incomes count. and so you can buy a more expensive house. Be well-informed about what happens if one of them is left without work, and therefore with less or even without income. Especially if you are not each other's love partners, it will not last long if one person has to pay everything for the other. After all, you don't have that band, if all goes well. So make sure that your first steps on the housing market do not turn into a battlefield!Buy a house together? Record agreements well, for example about what happens if one ends up with less or even no income
Especially if you are single, we can imagine that you want to live where all the magic happens. Near the center of a city, so you can always have a drink somewhere, for example. But do you realize that a square meter in the heart of Amsterdam, The Hague, Rotterdam, Utrecht but also in Eindhoven, Breda, Den Bosch and actually all cities, is more expensive than in the neighborhoods around it or even in a smaller place. If the current housing market finds an apartment that is affordable and located in the city center, let's face it, a house is simply not affordable there, then this will probably be quite small. And maybe quite outdated. While for the same money outside the center you can buy a more spacious apartment or in a village even a complete house for that amount. And then we are still talking about homes under € 200,000. At the end of October 2019 there was € 200,000 for sale: In Roosendaal is a single-family home with 113m² of living space, 4 bedrooms and a spacious backyard. Something has to be done about it, at least, the kitchen and the bathroom are now about 15 years old, but if that doesn't bother you, you can also do it a good few years ahead. you lose the same. Here the kitchen and bathroom are newer and there is also a back garden, but you have a lot less space. Also in Weert, Stevensweert, Ede, Enschede and Doetinchem for example, you buy a single family home with garden and more than 100m² of living space for this money In Eindhoven , Leiden, Hilversum, Amersfoort, The Hague and Rotterdam you get no further than an apartment, not even located in the center and considerably smaller than 100m². Also in the capital Amsterdam you buy a (small) apartment for this amount and certainly not even in the near the center And then you have to bear in mind that € 200,000 for a single earner is actually not even a real amount …
Do you beat the housing market?
We cannot promise that with these tips you will suddenly find a home within a few days. It mainly shows that you will actually have to make concessions if you are looking for a home on your own. Whether it is by searching for a roommate to be able to buy a house at your dream location, or by moving to cheaper areas to find a nice home on your own, you will probably not be able to tick off all your wishes. Finally, it is important that you have a good overview of your financial options. If you do not have a euro in your savings account, then it will probably also be a difficult story. If you have a private lease car, an expensive telephone on payment and a study debt, it will also not be easy to get a mortgage. But, you have it all under control and you know your budget (alone or with a roommate) then engaging a buying broker is the best thing you can do. He knows the (local) housing market as the best and because you pay him / her, it always acts in your interest. And it's always nice to have someone in your corner, right?