The advantages of investing in Dutch real estate (2024)

If you take a long hard look at real estate in Germany you will see a few major disadvantages when considering investing in a property. The German market has been stable for decades and compared with other European neighbours, its growth rates have been very moderate indeed. Perhaps one of the most noticeable cons, especially for newbies in this particular investment field, is the fact that professional German developers are rather picky when it comes to picking their clients. Not what you want to get faced with when you are looking to secure your first investment property. For these reasons and many others, it is safe to say that the German real estate market has not reached its potential yet. But what about real estate investment Netherlands? Buying a property in the Netherlands is not too much hassle, and for first time buyers or potential landlords this is music to the ears. Here are some reasons to invest in the Netherlands.

With low property tax and National Mortgage Guarantee, buying real estate in Holland is a sensible investment.[1] The country has a very advanced infrastructure, and an economy that is rapidly growing and the good news for real estate is it can only thrive in this kind of environment. Owning a property is very typical in the Netherlands, and because lots of people want to buy a house, new buyers are frequently entering the market. Mortgage interest rates are low and rental prices are subsequently high. There has never been a better time to invest in a property. Experts predict that the highest price increases in the Dutch housing market have happened, and things can only get better from now on, although an increase of 15% is still to be expected in 2022. What does all of this mean? In a nutshell, if you want a property and you can afford it, you should go for it. Due to current predictions the value of your property will probably increase in the near future, thus you can sell your property for more money than you bought it for, and much more importantly, buying a property is much cheaper than renting long-term. So now you have your property, what should you do with it?

In the Netherlands, the travel and tourism sector has become increasingly important to the Dutch economy.[2] Even in the middle of a difficult pandemic, both international and domestic travellers showed a strong preference for the Netherland´s capital, Amsterdam. Amsterdam is one of Europe´s most charming cities and still continues to welcome tourists post-pandemic and being an English speaking real estate investor can only be to your advantage as English proficiency levels are one of the highest in Europe, attracting not only the typical native English speakers, but also those whose second language is English.

Hosting your home with Airbnb is one of two options available to you, as well as the more traditional, renting your property out to long-term tenants. Airbnb has experienced a massive 153% global compound growth since 2009. In San Francisco, the average guest spends 5.5 days and spends up to $1,045.[3] Hosting your home with Airbnb has many advantages and is no hassle to set up. Simply host your property on Airbnb by setting up your own account, and after filling out the basics, such as, the type of property you have, the maximum number of guests you can host, you will be asked to add some photos, a description and an attractive title that will attract visitors. Unlike renting, Airbnbs are traditionally used on a very short-term rental, thus reducing the risks of you finding some awkward guests, infact, airhostacademy claims that 99% of guests obey the rules and do not create any problems for property owners. There is also Airbnb’s HostDamageProtection program which does provide hosts with some assurance. However, if you are unlucky and come across some awkward guests there are easy ways of dealing with it, much less hassle than if you were renting your property out to long-term tenants. You can turn the “instant book” feature off and then subsequently perform some background checks on any potential guests you are unsure about. Or you could simply offer some solutions, things that will keep your guest happy that may even convince them to return in the future. As is the way in the world, some people just like to complain or are simply negative and some are just simply trying it on, seeing if they can get something for free. If nothing works, you could offer to cancel the reservation as a last resort. One of the biggest advantages to hosting your property with Airbnb has to be the fact that the property owner can set their own price, and it is worth bearing in mind that guests will pay a high price for a property in a prime location, especially if they want to experience the holiday of a lifetime. Comparing this type of holiday home with a top hotel is a no-brainer, and most guests love the idea that they get all the comfort and friendliness of a B&B, with all the luxury of a 4 or 5* hotel, especially if they do their research correctly.

There are at least two points to bear in mind when considering Dutch real estate. House prices are high, and although predictions show they have reached their all time high, long-term forecasts show they prices will continue to grow steadily, and property tax is low and there is a National Mortgage Guarantee. All of these points put together suggest that investing in property in the Netherlands is a sensible investment if you can afford it. Whether you go down the Airbnb route or the more traditional one of becoming a landlord and renting to tenants, you can earn a nice, steady monthly income, while you wait for your property to increase in value and given the long-term house prices in the Netherlands, this is a likely conclusion.

[1] Buying a house, apartment, studio in Netherlands: prices, description. Residential properties Catalogue (realting.com)

[2] Travel and tourism in the Netherlands - statistics and facts | Statista

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