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Run on mortages as buyers beat end-of-year deadline

Wednesday 14 November 2012

Mortgage providers are experiencing an end-of-year rush as house buyers rush to beat changes in the rules, RTL news reports on Wednesday.

The broadcaster says buyers are keen to avoid new rules which restrict mortgage tax relief to annuity, or repayment mortgage, from January 1.

This means from next year new home buyers will not be able to deduct the cost of interest from tax on other sorts of mortgages, such as investment-based products, adding hundreds of euros to their monthly bill.

In order to escape the new rules, home buyers must have signed a provisional purchase contract and have an approved mortgage request from a bank, the broadcaster says.

Bas Millenaar, owner of the Hypotheker mortgage advisory group, says first-time buyers will be hard hit by the new rules. ‘The rules are pressuring people’s willingness to buy,’ he told the broadcaster.

The new government is also planning to reduce the maximum tax discount on mortgages by 0.5% a year from 2014.


Are you planning to beat the deadline? Share your thoughts using the comment box below.

© DutchNews.nl



 

Readers' Comments

yes, sure. investing in real estae is something everyone should do in a rush to beat a deadline.

By dork | 14 November 2012 8:24 AM

Scare tactics and nothing else.

By Dr Ponzi | 14 November 2012 9:46 AM

this may cause housing prices to stablize or even rise slighty temporarily because of some demand but be warned. this is is short lived and temporary. it makes no sense to buy a home here until housing prices stop falling. considering the massive cuts and also the huge inflation of all living expenses that are coming at us now very quickly, I do not think the housing market will really recover here for many many years. I think the market in NL will continue to lose its value after this possible temporary boost.

By Z | 14 November 2012 10:18 AM

Now just watch people how the bubble explodes after new year.

By kar | 14 November 2012 11:19 AM

I know nobody rushing to buy before this deadline (I know my dream home isn't something I'd want to rush). I'm not denying this is happening, but I'd be curious to see figures as to whether these are first-time buyers or additional investment properties for huisjemelkers.

By A McB | 14 November 2012 12:48 PM

.. mortgage providers way of trying to lure in the undecided into making a quick closure at the latter's risk and cost by creating an artificial hype.

By Shri | 14 November 2012 3:49 PM

Lol, a good way to sucker people into a life long debt! I see the same people trying to sell me a better deal (Energy provider) every week: if it's that good an offer, why then do they need to put street salesmen out in the cold?

Very few people make a profit on a property these days. If you break even on the last payment, you're lucky! (Inflation.)

If you have spare cash, invest in a property in a 3rd world country..20 to €30,000 for a 3 bedroom house, gated community, low taxes, + pool! :)

The same people that tell you to buy now can make a turnaround anytime, don't trust the banks or guv!:(

By The visitor | 14 November 2012 5:19 PM

The visitor, I assume you mean a DIFFERENT third world company...

(But all levity aside, I'm curious to know where in the world you can buy a house in a gated community for 30K.)

By Gary | 14 November 2012 8:30 PM

We are seriously considering buying a home and are (or actually were) very close to making a decision. However, these new mortgage rules made us want to wait instead of rush into a purchase that will affect us for a large part of our life. We may be missing fine-print or just plainly didn't see the effects of some of these rules clearly, so rushing makes absolutely NO sense.
I agree with above comments that these are more than likely scare tactics and that most people are extremely careful about investing in real estate right now.

By Dutchy | 14 November 2012 9:00 PM

Here we go again: Dutch governments keep on intervening on the housing market creating one distortion over the other. The odd of interest rate deductability has pushed ill informed people to buy houses at any price and with the max achievable mortgate just to make the best use of the tax relief. The best politics could do is to phase out the tax relief matched by a downward adjustments of tax rates. People would be smart enough to choose what the best is. friom an economist and real estate inv manager.

By Andrea | 15 November 2012 8:20 AM

@Gary: Many developing countries are way behind us regarding property & prices, I managed to acquire a small plot & build a simple house in 2010 in the Philippines. It's just below the summit of a high hill & surrounded by fruit trees & bananas overlooking a small town.
I paid 100php per sq foot, then equivalent of a glass of beer in NL: last year built extension for €800,.(Don't ask about typhoons, termites, earthquakes & mudslides though, it's all part of the deal:P)

By The visitor | 15 November 2012 12:58 PM

 
 
 
 
 
 
 
 
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