Is it better to Buy or Rent a property in the Netherlands?
There are benefits to both.
- Renting offers more flexibility and lower initial and maintenance costs. Low-income renters may also qualify for a “huurtoeslag”.
- Buying is generally considered more beneficial in the long term once you are ready to settle down in one place and have sufficient income to secure a mortgage.
But how do these options compare financially? Let’s explore a real-world example.
A Tale of Two Twins: Buying vs. Renting
Jan and Peter, identical twins with similar incomes, must decide whether to buy or rent a 3-bedroom apartment in Utrecht. To compare costs, we determined average costs for actual listings on Funda.nl.
Initial Monthly Costs
- Jan (Renter): Finds a 3-bedroom apartment for €2 270 per month.
- Peter (Buyer): Buys the identical apartment next door. His mortgage costs €2 200 per month after tax deductions, but with additional homeowner expenses, he pays around €2 800 monthly.
At first, Jan pays about €530 less per month than Peter, so renting might seem like the better option.
15 Years Later: The Long-Term Financial Impact
Jan (Still Renting):
- His rent increased yearly by around 4%.
- He has paid over €500 000 in rent with nothing to show for it.
Peter (Still Owning):
- His monthly mortgage remains roughly the same.
- He has paid approximately the same amount as Jan, but has much more to show for it.
- He has built home equity—owning around 36% of his apartment.
- His apartment is likely worth much more than 15 years ago, increasing his net worth. In the last 10 years, house prices more than doubled in the Netherlands!
Do you want to find out more about our sources or analyses?
The Takeaway: Buying Wins in the Long Run
While renting provides flexibility, buying is a smarter financial move over time. Property values in the Netherlands tend to rise, mortgage rates can be fixed, and tax benefits add up.
Of course, personal circumstances matter. To find the best option for you, consulting a qualified financial or mortgage adviser (hypotheekadviseur) is highly recommended.
Looking for expert mortgage advice? We’ve identified the 10 Best-Rated and Most Affordable Mortgage Advisors (hypotheekadviseurs) in the Netherlands—find the right one for you today!
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