Country Guide: The Netherlands
Why buy property in the Netherlands?
A member of the European Union, located in the west of the continent and sharing borders with Belgium and Germany, the Netherlands is one of the most environmentally-friendly countries in Europe. This makes it particularly attractive to eco-conscious investors seeking energy-efficient properties.
There are no real restrictions facing foreign buyers, though the Netherlands' real estate markets have remained somewhat flat over recent years, with annual growth sticking around the 1-2 per cent mark. However, the country has managed to avoid the declines seen in other parts of Europe.
Standards of living in the Netherlands are recognised as being high, as noted by the Human Development Index (HDI), which places the country just outside of the global top ten.
What's the Netherlands' property market like?
Overseas buyers face very few restrictions when purchasing property in the Netherlands and demand for housing typically outstrips supply, which should help owners protect their investment. However, the market is not the most dynamic and house prices have remained largely static over the past five years or so.
The lack of evidence for any major earning potential has seen relatively few British property investors targeting the Netherlands. Instead, most buyers have focused on old favourites, like France, Spain and Italy. Small apartments are available from around €65,000 (£54,000), while the typical townhouse sells in excess of €170,000.
Popular areas in the Netherlands in which to invest
Amsterdam is known across the globe for its unique, cosmopolitan lifestyle, fascinating history and stunning architecture. As a result, property in the Netherlands' capital is always in high demand.
Another reason why Amsterdam might make an attractive investment opportunity is its immense student population. Along with the cities of Groningen, Utrecht, Leiden and Delft, the Dutch capital suffers from a major lack of large-scale student accommodation.
In terms of rental potential, buyers not tempted by the student market may wish to consider the Amstelveen region, to the south of Amsterdam. With close links to Schipol airport and the capital's bustling centre, there are plenty of excellent investment properties to be found.
The property-buying process in the Netherlands
Once property has been found in the Netherlands and the buyer's offer accepted by the seller, both parties automatically enter a legally binding agreement. The only potential get-out clause exists where the purchaser can prove they could not possibly raise the required funds within ten days. Cautious buyers could stipulate in advance that their offer is subject to a review of available finances, to take place within a ten-day period.
The main additional expenses those buying property in the Netherlands will encounter are transfer tax, charged at six per cent of the home's selling price, and estate agents' fees, which should usually be around the two per cent mark. However, investors looking to resell their property within six months are eligible to claim back their transfer tax, which will then be paid by the next owner.
