A housing market that has been subject to rising prices for years was attractive for many people to enter. But with prices stabilizing and sometimes even dropping slightly, we at Realtor in Amsterdam are getting more and more questions about buying a home. Is buying a house right now
wise? Is renting a home more expensive than buying? What exactly are the advantages of buying a house versus renting? You can read the answers to all these questions in this article. Putting your questions to me as a real estate agent is also possible, of course. I would like to introduce myself to you in the following paragraph.
Realtor in Amsterdam: Micha van den Bergh Pleased to meet you, my name is Micha van den Bergh and I am Realtor in Amsterdam. Before we got into
diving the benefits of buying a house versus renting, I introduce myself. That way you have an idea of my expertise in this area. I help people buy, sell, rent and rent a property in Amsterdam. I made a conscious decision to specialize in location, so I would also recommend that you find a real estate agent for buying or selling that specializes. You can always contact me for general questions, but I focus my work entirely on Amsterdam and the nearby region: Real Estate Agent Amsterdam West, Real Estate Agent Amsterdam Zuid, Real Estate Agent Amsterdam Oost, Real Estate Agent Amsterdam Centrum, Real Estate Agent Amsterdam Noord and Real Estate Agent Amsterdam Zuidoost. On Funda, my customers rate
me with a 9 average: “The real estate agent in Amsterdam with clear agreements and always a fixed price”.
The advantages of buying a home versus renting
You now know who I am and what my specialization is. I am now going to answer the question, What are the advantages of buying a house versus renting? I do this based on a number of scenarios, because the pros and cons depend entirely on your specific situation. It is helpful to know beforehand that buying a house and renting at the same time is possible, provided you live at the same address.
Is it cheaper to rent or buy?
When you want to live somewhere for a short time, renting is always cheaper than buying. After all, when buying a home, there are all kinds of additional costs. As one of the few real estate agents, I use fixed prices, so no non-transparent brokerage percentages or unexpected fees. View current prices for a
sales broker in Amsterdam and the cost of a purchase broker in Amsterdam. In addition to these costs, when you buy a home, you will have to deal with costs for financing, appraisal, notary, transfer tax and more.
Building a piece of wealth through owning your own home only goes up if you own the home for longer or buy in a housing market where prices are rising. In general, renting is cheaper for shorter periods and buying is cheaper when you buy the house for the long term.
What are the advantages of buying a house?
The advantages of buying a house versus renting go up when you are going to live in the home for longer. The additional cost of buying a home quickly sits around 10,000 euros. As a rule, the more expensive the house, the higher these costs will be. When you live in a home for 10 years, these costs are relatively much lower than if you want to move to another home after two years. Additional costs cannot be co-financed with the mortgage, so you need them as savings or additional loans. Which is cheaper to rent or buy? It depends on your situation. Would you like to discuss this topic further? If so, please feel free to contact us by phone.
Financial benefits buying home
Financially, you benefit from buying a house when home values rise. Your house becomes more valuable and you receive this money when you sell it. Conversely, this can be a disadvantage. Because if home prices fall, then your house will be proverbially underwater. Should you sell the home at that time, you will be left with a residual debt. When is a good time to buy a house? Economists are making predictions about what the housing market will do in 2023,2024 and 2025, but what the housing market will do 10 years from now is often a case of looking at the bottom line.
What is the advantage of renting a house over buying?
Financially, you calculate the benefits of buying a home versus renting by calculating the purchase price and a possible increase or decrease in home value. In a positive scenario, you may have built equity with your home that you can cash in at the time of sale. To prepare for a positive or negative scenario, you can do a calculation. Suppose a 400,000 euro house becomes worth 10% more or less, it will either give you 40,000 euros, or cost you this amount. Let’s say that all additional costs of this property purchase amounted to 15,000 euros. You will then have about 25,000 euros profit when you sell or 55,000 loss when the price drops 10%. Of course, the actual calculation is a lot more complex.
The advantages of buying a house versus renting: monthly costs
The benefits of buying a home versus renting go beyond the increase or decrease in selling price. When you rent, it feels like throwing money into a bottomless pit. When you buy, only the interest disappears; the repayment goes into the property. For a good comparison between renting and buying, calculate the price difference between the interest repayment per month and what renting would cost per month. Take into account any mortgage interest deduction from your home. You can further factor this difference in cost into your advantages of buying a house versus renting. Do realize that this is just one example. I like to give honest and transparent advice, so contact me now and get well informed.
Other advantages home buying
Is renting a home more expensive than buying? We hope you now better understand the difference between renting or buying 2022 -2023. However, the advantages of buying are broader, because you can remodel your own home so you can live exactly the way you want. It also allows you to add value, although the added value is often less than the remodeling cost. If you want to live in a home for life, you can enjoy a great financial benefit at the time of selling your home when the house is fully paid off.
So the idea that the benefits of buying always financially outweigh the benefits of renting is not true in all cases. In some cases, renting may be a smarter solution. It is advisable to seek advice from the best rental agent Amsterdam. Especially for buying or renting a home at an older age or when you know you are living somewhere temporarily. Are you now in the market for a home or apartment rental or purchase? Click here and contact me. I am happy to discuss your needs in a personal conversation.