amsterdam housing market 2018
Amsterdam Property Price predictions - 2018
January 14th, 2018 By: James Evans
We’ve entered 2018 and we are not only looking back at 2017 but also forward in the coming 12 months. The housing market has kept us busy and the prevailing trend in the Dutch housing market in 2017 was definitely up.
Prices rose everywhere, especially in cities like Rotterdam, Utrecht, Haarlem, The Hague and most of all, Amsterdam. Prices have now returned to or surpassed their 2008 level, before the economic crisis hit. The market is so hot in some areas that overbidding the asking price is becoming the norm. And with few houses for sale, buyers are now looking at alternative areas like Purmerend, Almere, Amstelveen, Diemen and Haarlem.
Interest rates are still very low (they have been for almost two years now) and most economists expect an increase in the near future.
What else is set to change?
Mortgage interest related to your primary residence will still be tax deductible in 2018 but the new government has announced a few changes. Next year, the tax deduction for people in the highest tax bracket will come down slightly to 49.5% (2017 50%) but will be cut more sharply in the following years.
The maximum LTV (loan to value) will decrease to 100% in 2018 (101% in 2017). This means you can only borrow 100% of the value of the property and hence will need to bring in more cash to cover costs related to purchasing and financing your property.
The LTI ratios (loan to income) for the two income households will increase again as of January 1 2018 and go down for single income households. This means working couples can borrow a little more than they could this year while single income households will have a little less to spend.
In addition, the maximum purchase price for National Mortgage Guarantee scheme ( NHG) will go up to €265.000.
All in all, a lot has been happening and we would recommend you get in touch with Expat Mortgages for a new ‘maximum mortgage calculation’ in January 2018, so you know what the impact of all the changes will be on your personal situation.
If you require more information then feel free to contact us.
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