Rent or buy a house in the Netherlands

The benefits

• Tenants’ rights are well-protected in the Netherlands; your landlord can’t evict you without good reason.
• You may be entitled to housing benefit.
• The landlord is responsible for your home’s maintenance.
• It’s not easy to make changes to your home, as you need the landlord’s permission.

Things to bear in mind

• You are not building up any capital in your home.
• Your rent will usually increase every year.
• If you’ve done any work to your home, you will often not recover the investment.
• There is limited supply of rental housing in popular cities/areas, so you will likely face a long wait.

The benefits

• You know where you stand with your living expenses if you have a fixed interest rate.
• You can deduct the interest from your taxable income, provided you meet certain conditions.
• Repaying your mortgage means that you build up capital.
• If house prices go up, the value of your home probably will too.

Things to bear in mind

• You are responsible for your home’s maintenance.
• Higher fixed monthly costs, due to additional insurance, property tax and council tax.
• Your living expenses could change if the mortgage interest rate changes.
• Your home’s value may drop, leaving you to sell it at a loss.