Europe On The Eve Of A Total Housing Market Collapse, Or?

By Author: Morty the Shorty
Total Articles: 1
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The Dutch housing market, as most European markets, has fallen down to a absolute minimum. Realtors, mostly members of the NVM, (witch is short for Nederlandse Vereniging van Makelaars) the biggest association of realtors, just put out a press release in witch the latest reports where presented. The report makes mention of a very slow market with decreasing prices. Realtors of all association's are complaining about risk avoiding banks and consumers.

The Dutch way

The Netherlands know a system of mortgage interest deduction for home owners. In this system homeowners can deduct any interest paid for a mortgage or lone used for a home or home improvement. It can be deducted directly from income taxes. In the Netherlands income taxes can be up to 52% witch means all interest paid for a home can be reduced too 48% by tax return. This can be done for a maximum of 30 years

Political issues of interest deduction

After the latest elections a few political parties are trying to get rid of the "tax reduction system" for home owners, witch makes the housing market even more volatile. On top of political ...
... issues the Dutch Authority of Financial Markets (AFM) has degreased possibilities for consumers by telling banks only to allow 4,5 times the family year income (both partners for 100%) as a maximum loan in the form of a mortgage.

Realtors go 24/7 and still broke

The economic situation in the Netherlands, as described above is driving Dutch realtors (makelaar) mad. Consumers are more and more demanding and are looking at 6, up to 10 houses at the time before trying to get one of the houses for a bargain. Even the time they want to see the houses is chancing from daytime office ours to evening and weekend ours. The sellers market of 2000 - 2008 where nothing happened when de seller didn't want it, has gone to a buyers market where everything that a buyer wants happens.

The latest Dutch trick in selling houses

The solution for the slow housing market might lay in a "No risk article" that has been introduced by the Dutch Realtors association (NVM). The article includes a possibility for a buyer to undo a buying contract when his old house isn't sold and gives the seller the possibility to undo the buying contract when he finds a higher bidder or faster buyer for his home. When a better buyer comes along the seller gives the first buyer a chance to buy definitely or lose the deal.

Although the no risk clausal gives some, or sometimes a lot more, work for the realtor it has already proved his value to the Dutch housing market. Numerous houses have bin sold in a chain of buys and sells like no time before. It has happened that 8 houses got definitely sold just by one realtor making a small deal with a starter for a 1 room studio witch set off the whole chain of sales.

Will the Dutch resourcefulness in trading and selling again unchain a new way of business in Europe?