Buying a house without a mortgage
If there is one purchase for which you absolutely have to borrow money, it is the purchase of your house. At least, we always think so.
Amsterdam the fastest climber
The situation on the housing market in Amsterdam shows that even this holy house is being demolished. While you would expect that every buyer would have maximum cover for the financing risk, this appears not to be the case at all. It has a lot to do with the rising tension in the housing market and the rapidly rising prices. Amsterdam takes the crown. Prices in the luxury home segment rose by an average of 10 percent. This puts Amsterdam in the first place in terms of price increase in Europe. Those who do not say ‘yes’ quickly to an offer of sales, usually immediately miss out.
Lots of own money
Many buyers say ‘yes’ as quickly as possible. A good number of these buyers can do this without risk. They just bring their own money. This can involve a substantial portion of the purchase amount. For example around 50,000 to 70,000 euros for houses above 6 tons. Sometimes the money is saved, but often it is also obtained from donation or inheritance. In the years 2013 and 2014 the donation rules were extra flexible and this has not harmed many potential buyers.
More than double!
Still, watching is blown. Quite a few buyers are tempted by the rush. They conclude a purchase agreement without reservation of financing and also have no security from their bank even within the legal dissolution period of 3 days. If things go wrong with the mortgage loan, they will have to pay a substantial amount to the seller as compensation. Who would have thought that buying without financing reservation only takes place in a small part of the buyers market, will be disappointed. In Amsterdam, no less than 25 percent of owner-occupied homes are being sold without a mortgage. That is more than double in the last 10 years. In the rest of the Netherlands, too, the number of sales without a mortgage doubled. Here the number increased from 8 percent to 16 percent of the number of home purchases.