House vs. Apartment – Which one should you buy?

When considering purchasing a property in the Netherlands, one of the primary decisions is whether to invest in a house or an apartment. This choice significantly impacts your finances, lifestyle, and future plans. Below is a comprehensive comparison to assist you in making an informed decision.

1. Financial Considerations

• Purchase Price: Generally, houses are more expensive than apartments. As of recent years, the average price for a pre-existing home is higher compared to apartments, which tend to be more affordable, especially in urban areas.
  
  
• Maintenance Costs: Owning a house means you're solely responsible for all maintenance expenses, from minor repairs to major renovations. In contrast, apartment owners share maintenance costs through the Vereniging van Eigenaars (VvE), the co-owner's association responsible for building upkeep.
  
  TIP: An active and well-managed homeowners' association (Vereniging van Eigenaren – VvE) is a crucial factor when buying an apartment, especially in the Netherlands. Here are some key aspects to check:
•  Financial health of the VvE – Make sure the association has sufficient reserves for future maintenance and repairs.
• Maintenance plan (MJOP) – A well-managed VvE should have a long-term maintenance plan for the building.
• Monthly contributions – If the fees are too low, there may not be enough funds for necessary repairs; if they are too high, it could indicate poor management.
• Meeting minutes – Review the latest meeting minutes to understand the key issues and check for any ongoing disputes.
• Building insurance – Ensure that the VvE has proper insurance coverage and verify what it includes.

Additional Considerations

• In some older VvE associations, certain costs, such as water and heating, are included in the VvE fees because they still operate with a central heating system.
  
• It is advisable to review the VvE regulations, as they may include restrictions or requirements such as limitations on renting out the apartment, owning pets, running a business from the property, or even specific flooring types (e.g., a ban on parquet flooring).
  
• Important! Due to legal changes implemented in July 2024, many previously rented apartments are now being sold. In such cases, the VvE may have just been established, meaning it is inactive and lacks financial reserves. This could pose challenges when applying for a mortgage and may also create difficulties for new owners due to potential renovation costs in the near future.

• Additional Costs: Apartment owners may incur monthly VvE fees for communal services and maintenance. House owners, while avoiding VvE fees, must budget for potential large expenses like roof repairs or exterior painting.
  
  
• Erfpacht (Leasehold Land): A crucial factor in the Dutch property market is erfpacht, or leasehold land. Some properties, especially in cities like Amsterdam, are built on leasehold land, meaning you do not own the land but lease it from the municipality or a private entity. This can result in additional costs, either in the form of an annual lease fee (canon) or a lump-sum buyout. When comparing houses and apartments, it's essential to check whether the property is freehold or leasehold, as leasehold conditions can significantly impact affordability in the long run.

2. Foundation and Structural Stability

• Houses: The foundation of a house can be a critical factor, particularly in areas with soft or reclaimed land, such as some parts of the Netherlands. Older houses may require foundation reinforcement, which can be costly. Checking the foundation condition before purchase is essential.
  
  TIP: Many Dutch houses built before the 1970s have wooden pile foundations, which remain stable if submerged in groundwater but can rot if exposed due to fluctuating water levels. In contrast, houses with concrete foundations are more durable and resistant to such issues. When buying a home, checking the foundation type is crucial, as concrete foundations generally require fewer repairs over time.
  
  
• Apartments: Apartment buildings often have stronger, reinforced foundations due to their size and structure. However, older buildings may still be prone to foundation issues, which could lead to high repair costs shared among all owners in the VvE.

Additionally, when purchasing a house or apartment, it is advisable to consult a technical specialist to assess the condition of the foundation and exterior walls. While not mandatory, such an inspection can help identify hidden defects that might not be immediately visible to the untrained eye.

3. Renovation and Personalization

• Houses: Offer greater freedom to renovate and personalize, as you are the sole owner. However, significant changes, like for example roof extension (dakkapel) may still require municipal permits.
  
  
• Apartments: Renovations often require approval from the VvE, especially if they affect communal areas or the building's structure. This can limit the extent of modifications you can undertake.

4. Location and Lifestyle

• Houses: Typically found in suburban or rural areas, offering more space, privacy, and often gardens. Ideal for families or those seeking tranquility.
  
  
• Apartments: Commonly located in city centers, providing proximity to amenities like shops, restaurants, and public transport. Suitable for individuals or couples who prefer urban living.

5. Space and Future Planning

• Houses: Generally offer more living space, both indoors and outdoors, accommodating future needs such as a growing family or home office.
  
  
• Apartments: Often have limited space, which might be a challenge for families or those requiring additional rooms. Consider your long-term plans when choosing.

6. Amenities and Facilities

• Houses: May include private amenities like gardens, garages, sheds, or driveways. However, access to public facilities might require travel, depending on the location.
  
  
• Apartments: Often come with shared amenities such as gyms, pools, or communal gardens. Additionally, urban apartments usually have essential services within walking distance. Many apartments also include private basements, providing extra storage space.

7. Community and Social Interaction

• Houses: Provide more privacy, with interactions limited to immediate neighbors.
  
  
• Apartments: Living in close proximity to others fosters a sense of community, with more frequent interactions among residents.

Conclusion

Choosing between a house and an apartment in the Netherlands depends on various factors, including your financial situation, lifestyle preferences, and future plans. Additionally, erfpacht and foundation stability are key considerations that can influence the cost-effectiveness of your investment. Assess your priorities carefully to make a decision that aligns with your long-term goals.

If you need help with the buying process, we will be happy to assist you. Check our website and contact us for more information.