And renting a house is throwing money away, you can buy much better. That’s the dominant belief in the Netherlands. But is this true? There are many reasons to not buy a home yet.
These are our top three reasons.
Although you can build a fortune by owning a house, it is not true that buying a house will always be financially more beneficial. It is better to rent than buy in these cases.
Funda houses are already in high demand. The house prices continue rising, and you hear of people overbidding for 100k. This means that sellers have the majority of the power in the housing market. This situation could only get worse over the next years, making it tempting for people to spend more than they actually need out of fear. Is this really the smartest decision?
You might have enough money to give 50,000 euros but not enough money to pay the rest. You really want to get a house. What happens if you and your partner divorce just as the housing market crashes?
Dirk Brounen, professor in real estate economics says that “many young couples who are now purchasing a house are splitting up. That’s just an statistic.” the FD. “You can’t make a mistake.” The Netherlands Authority for the Financial Markets (AFM) already ringed the bell that first-time buyers pull out all the stops to acquire a home.
You may be wondering what the alternatives are. Renting is also expensive. You can pay twice as much for a small apartment than you would for a mortgage on a single-family house.
People often forget that owning your house comes with additional costs beyond the mortgage. There are also the initial costs associated with buying a house. After that, you must be able to pay for the maintenance of your house. If you rent a house, your landlord can call you. This should be included in your calculation. Only then can you determine if you have the financial means to purchase a home.
A home purchase is a long-term investment. It is not the best time to buy a house if you don’t know what the next few decades will bring.
Business Insider is advised by Jeff McDermott, a financial advisor. You have to consider the costs of buying, furnishing, selling and maintaining a house. These costs will become apparent in five years.
Still unsure? Here you will find all advantages and disadvantages renting or buying a house. Speaking of buying a home, this week we saw how fast the cost of own-occupied houses has risen in the last year.