Are you looking for a Real Estate Agent in Rotterdam. HousingRotterdam can help you either buy or rent real estate depending on your needs.
Buying or Renting?
The decision if you should either buy or rent property depends obviously on what you budget is and what your horizon is. Next to that the house-prices, interest rates and rental rates are of course important. We can’t make this decision for you but we can help you explaining how the Dutch Real Estate market works.
Renting Real Estate
Renting real estate is probably the safest option when you are not sure how long you will be staying in Rotterdam (or where ever). The normal minimum period for renting a property is 1 year. It is possible to rent for a shorter period for anything between 1 month and 1 year, then consider a short stay of course at a higher rate.
Renting – the process
When renting an apartment you basically search on the internet and contact the real estate agent for a viewing. You view the apartment and if you like it and the landlord likes you can you rent the apartment. So do I need a real estate agent? No, you don’t. However, having a real estate agent can help you ‘getting’ the apartment. The landlord would consider you more sincere and you have better changes at getting it. Also you get help from the real estate agent who can help you reading and signing the contract, so you won’t get any nasty surprises. Furthermore when you are new to a city, where should you rent? What are the nice areas to go to and maybe more important where not to go to?
Renting – the costs
When renting something you have to consider the following costs:
- Rental price – monthly, price depending on the type and size of the apartment.
- Service costs – monthly, price depending on services you get
- Deposit – 1x or 2x the rental price (to be refunded after leaving the place as it was)
- Taxes – yearly, around € 300,-
- Real Estate agent – 1x rental price (excl. 21% VAT)
Buying Real Estate
Buying real estate can be a good option if you are sure that you will stay in Rotterdam for at least 2 years. The main reason for buying property is saving on your monthly payments. Considering the current low interest rates (Oct, 2016) ranging from 1% – 2,5% this could be a very interesting option.
Example buying real estate
Let’s say you will buy an apartment for around € 150.000,- in Rotterdam. You will then have to consider, taxes, administration fees and broker fees.
Buying price – € 150.000
Tax (2% of € 150.000) – € 3.000
Administration fees – € 3.000
Real Estate Agent -€ 2.000
Total Costs € 158.000
At an interest rate of 2% you will pay 2% of € 158.000 = € 3.160 on interest yearly (€ 263,33 / month)
Let’s say you stay for 2 years and the price of the property remains the same to get the right comparison you have to add the costs of buying the property (tax, admin., agent – see above) and spread them over 24 months. Also you need to sell the property again which would costs you an additional € 2.000 again and this must be spread as well. Total monthly costs will them be around € 680 / month. Please note that interest payments in the Netherlands are tax deductible so the actual interest costs will be lower so you will end up with a monthly costs of around € 500 / month. A comparable property to rent is around € 1000 / month so you can save here. But please consider the fact that you are less flexible and have risk of the volatility of the real estate market.
Buying Real Estate – Real Estate agent
You don’t need a real estate agent when buying a property. However it maybe a smart option if you want to have a bigger chance of getting yourself into the real estate market. A real estate agent knows the market and can help you with negotiating, reading all the property information, signing and reading the contracts and make sure you are protected for buying risks. Considering the fact that a real estate agent is usually around 1,5% of the buying price this might be a very wise decision!
Contact us if you want us to be your Real Estate Agent Rotterdam!