House prices plunge 9.6% in June and are back at end-2002 levels
Price index of existing own homes
House prices were down almost 10% in June, compared with June 2012, according to new figures from the national statistics office and land registry. The 9.6% price drop has taken house prices back to their end-2002 level, the CBS says. In May, house prices were down 8.2% on the year. House prices have now fallen by more than one-fifth since August 2008, when they reached a peak. Detached homes were hardest hit in June followed by semi-detached houses. By contrast, apartments and terraced housing fell 7.5% in price.
The CBS figures are slightly more pessimistic than those published by the real estate agents’ association NVM. This is because the CBS records sales at the moment they are confirmed in the land registry documents, which is a couple of months on from signing the sales contract. The land registry office said last week that 7,224 homes had been sold in June, a drop of 55% on the year earlier period. Despite the price drop, the main mortgage lenders said recently there are signs the market may be bottoming out.
Even before the Romans give a good handle: would you buy a healthy housing market, build a lot of good rental housing.
“Si vis pacem, para bellum,” said the ancient Romans: if you want peace, prepare for war. As the Romans knew little else than war, we can translate that wisdom very well: look beyond your nose. For example, in the housing market, because the report of the committee Verhoeven we shoot no nose length: housing prices have exploded – we already knew, everyone counted himself rich – old hat, there was madness credit sought and given – yawn, municipalities and real estate sector played a semi-fraudulent pyramid scheme on any other costs – what else is new? And as icing on the cake: everyone participated and benefited, so everyone has debt.
The latter is not true, now join the millions of tenants who pay for the damage exceeds example, no blame. But a lie is so safe, because if everyone has debt, one is called to account. It is glass and pee: PvdA and VVD already turning their equally worn as irrelevant mantras, while the dogs of the media in a cozy corner along the tear moribund mortgage.
Anyway, in guilt and punishment a man can not live. So let’s have it specifically about how the housing market can come without the risk that the same misery again arises. Feet
Even before the Romans give a good handle: would you buy a healthy housing market, build a lot of good rental housing. This seems paradoxical, but it is not. Neoliberals have had and at one point an iron right: a market can only function in consumer choice. They forget convenience only often that it is essential to that freedom that belongs to the choice of purchase to see off. Not purchase is the safety valve that prevents price bubbles arise.
When something like ordinary bread that works fine. Is one baker too expensive, then we go to another, and they are all too expensive, then we eat a while brioche. Or Dad or nasi if necessary. That will prijsopdrijvers learn! But to live there, you can not even temporarily waive. Well of purchase.
Pressure relief valve
The indispensable stabilizing pressure relief valve of the homes for sale market is a large, high competitive rental market. But there is knowingly not expected willingly or unwillingly, people should buy. That is fifty years old, still fanatically pursued Hague houses jihad that has caused all current misery. But is such a viable rental market? Can you build modern, good affordable rental housing for the middle class in a profitable way? It appears so.
Builders say that they already have put 90 thousand euros. Reasonable house down with modern tools and techniques Let’s not do screwy and there, including some foreground (in an apartment that does little to be) for a nice not too large middle-class example of making 200 thousand euros. That money we fund the same amount for another thirty years. Calculation of the total 15 percent for management and maintenance, and suppose that we want as a landlord exactly like a regular buyer at the end of the ride home free possession.
From that moment, every penny that the house still yields by rental or sale almost pure profit. The situation as we reach the tenant who pays the costs incurred thirty years of acquisition and maintenance, or the difference between the costs incurred and the value of the house. In this case, that a total of 260 thousand euros, say and write representing a rent of 722 euros a month.
It’s not about that for a nice house very affordable 722 euros, but the idea. To the order. I like to let me explain by an expert why the previous reasoning miserably wrong, irresponsible and even dangerous. But until that time seems a good and extremely affordable priced rental market feasible. The only requirements are that good will in politics, not too crazy land speculation by municipalities and a little awareness of their core by the corporations that control the rental market.
Translate from the newspaper Volkskrant
The Netherlands is very densely populated. There are more than 16 million inhabitants and this figure is expected to grow to 17 – 18 million people by 2030. In 2010, there were more than seven million homes in the Netherlands.
Types of housing
- Detached (Vrijstaand)
- Semi-detached (Twee onder een kap)
- Terraced/Town houses (Rijtjeshuis)
The most common type of dwelling is the terraced house. This is a family home, two or three storeys high, with a front and back garden, adjoined by two, three or more identical homes. A standard Dutch house has two rooms in addition to the kitchen, living room, toilet and bathroom.
Most Dutch people live in urban areas, yet the limitation of space is putting pressure on rural areas too. Many city dwellers would love to live amidst the water and the greenery of the countryside. Since space is scarce in the Netherlands, many people live in low- or high-rise flats.
Due to a lack of information on the local property market, regulations, laws and technicalities, it is advisable for newcomers to use the services of an estate agent (makelaar), rather than trying to find a property by themselves. This applies to both renting and buying properties and saves unnecessary costs that might be incurred on top of an agent’s commission.
Cost of housing
The cost of housing depends on the area and the size of the property. Most expats rent properties but some buy their homes. Both options are available depending on your company relocation policy, income and the length of your stay. During the first quarter of 2010 the average house sold in the Netherlands for € 232,000. This is an increase of 0.4% in comparison to the last quarter of 2009. In the “Randstad” area (the area including and in between The Hague, Amsterdam, Utrecht and Rotterdam) housing is most expensive and Amsterdam is considered to be the most expensive city to live in. Due to the constant shortage of new housing, the market remains tight. (**RED: the index of house price since 2010 is decreased with 13,2%)
Rent or buy?
There are several factors to consider when deciding whether to rent or buy a house in the Netherlands. If you plan to stay in the Netherlands for a short period it may be more advisable to rent a property rather than buy one. Here are two important reasons why it is better to rent:
- The costs associated with buying amount to approximately 10% of the purchase price. You will have to make a 10% profit, if you do not want to lose money. Recovering that amount during a few years’ stay in the Netherlands can be difficult
- You have to maintain your premises. Consider the costs incurred during the process of redecorating your new home.
The safest, most efficient way to find a rental property in the private market is to commission a real estate agent (makelaar) with experience in helping expats, to find one for you.