HOUSES VS. APARTMENTS: WHICH SHOULD I BUY?

Buying an apartment and a house in the Netherlands comes with distinct considerations, particularly for expats. Let’s break down the key differences together:

OWNERSHIP STRUCTURE

House: When buying a traditional house, you own the property top to bottom. You will also usually own the land the property is on.  However, some properties in the Netherlands (and definitely within the Amsterdam city limits) may come with a ground lease (erfpacht), meaning you lease the land from the municipality. Be sure to check if this applies, as it can lead to additional annual costs.

Apartment: Buying an apartment usually means you own a share of the building along with exclusive rights to the individual unit. You will often have a ground lease (erfpacht) for a percentage of the land your building is build on. You’ll also be part of a Vereniging van Eigenaars (VvE), or Homeowners’ Association, which manages the shared areas and building maintenance; this means you will be expected to attend yearly meetings and vote on communal decisions.

COSTS AND FEES

House: Besides the purchase price, you’ll need to budget for ongoing costs such as property taxes, maintenance, and possibly higher utility bills compared to an apartment.

Apartment: There are additional costs associated with apartment ownership, including monthly service charges (VvE contributions) that cover communal maintenance, insurance, and other shared expenses. These fees can vary widely depending on the size and condition of the building.

MAINTENANCE RESPONSIBILITIES

House: You handle all maintenance of the property, including the garden and exterior.

Apartment: Maintenance responsibilities for the exterior and shared areas are managed by the VvE. You are financially responsible for the interior of your unit.

SIZE AND SPACE

House: Offers more space both inside and outside, including a garden or yard. This might be appealing if you have a family or prefer more privacy.

Apartment: Typically smaller and might not include private outdoor space, although some apartments come with balconies or terraces.

REGULATIONS AND RESTRICTIONS

House: Fewer restrictions on alterations and renovations, giving you more freedom to change your property.

Apartment: Renovations are subject to VvE rules, and major changes often require approval from the association. This can sometimes limit the extent of modifications you can make.

MARKET CONSIDERATIONS

House: Houses might be more desirable in suburban areas and for those seeking a quieter environment or more space.

Apartment: Apartments are often in city centers or urban areas, which can be appealing for those who prefer proximity to amenities and public transport.

INVESTMENT POTENTIAL

House: Often viewed as a stable investment, especially if it’s in a desirable location with potential for appreciation in value.

Apartment: Can be an excellent investment, particularly in popular city areas where rental demand is high. However, be mindful of the VvE’s financial health and any upcoming major expenses.

FINANCING AND MORTGAGES

House: Usually straightforward, though some lenders may have specific conditions for different houses. Where applicable, financing decisions will take ground lease (erfpacht) into consideration.

Apartment: Financing might be slightly more complex because of the shared ownership and VvE. Lenders will often look at the financial health of the VvE and any outstanding debts or upcoming major repairs. Financing decisions will take ground lease (erfpacht) into consideration.

LEGAL AND ADMINISTRATIVE ASPECTS

House: You’ll deal primarily with local regulations and property laws.

Apartment: You’ll need to navigate the rules of the VvE, which can include attending meetings and taking part in decision-making processes.

It’s crucial to understand the differences between purchasing a house or an apartment. It’s recommended to seek advice from professionals to ensure that you make an informed decision based on your needs and lifestyle.