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Should you buy your first home or rent it in the Netherlands as a
single person?
S. Aziz
6182097
Abstract
The decision to rent a home or buying it with an annuity mortgage was calculated for different fixed mortgage interest rates and different expected house price increases. Renting cost should be lower than buying cost, because one will own the home in the end. The difference between the renting and buying cost is savings when renting. The present value of all total savings is then compared to the present value of how much one would earn by selling the home if one took on the mortgage. The findings are that the longer the mortgage interest rate is fixed, the more profitable it is to buy. And the higher the expected house price or rent price increase, the more beneficial it is to buy. However, when one wants to decide between renting and buying one must look at the rent and selling price of a specific home and not at the averages.
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Statement of Originality
This document is written by Student Sarmad Aziz who declares to take full responsibility for the contents of this document.
I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in
creating it.
The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
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1. Motivation
Housing property prices had more than doubled from 1995 to 2007. However, the price has been declining from 2007 to 2013. The housing market is more optimistic at the moment and everywhere in the media they are saying that now is a good time to buy a house, because the interest rates are at an all-time low (de Vries, 2015). According to data from the CBS the interest rate has been dropping since 1995, where it was at 8%. As of June 2015 it’s 2.5% on average. That’s only one third the value compared to 1995. However, not just the interest rate is important when deciding to buy a home. Saying that consumers should invest is thus not entirely true. It does work in your benefit, because the lower the interest rate, the less you pay for interest
If one wants to be eligible for a social renting apartment, the income can’t exceed 34,911 euro per year (Rijksoverheid, 2015). The average starter’s income of someone with a master degree is between 30,000 and 35,000 (de Mooij, 2011). This means that higher
educated people reach the social renting maximum very soon. Combined with the long waiting list, social renting is a plausible option. However if you manage to get a social renting home and after that earn more than 34,911 per year then one can’t get kicked out. Sadly, there is a lot of demand of social renting home. This means one has to look at the other options, which are renting from the free sector or taking on a mortgage.
There are three categories of mortgages. First one is interest only mortgage, a mortgage in which one only pays the interest. The way you pay off the mortgage is that you expect an increase of the value of the house by the time you sell it. A risk is that the value of the house decreases over time, which makes the house “under water”. This means the remainder of the loan is higher than the value of the home (Donovan, 2011). To minimize the risk one should save money within the mortgage length. As of January 2013 you can only take an interest only mortgage for a maximum of 50% of the value of the house (Rijksoverheid, 2015). You have to finance the other 50% with cash or a linear or annuity mortgage.
Second there is the interest only, combined with a life insurance. You pay interest only each month, but one has to apply for a life insurance. If one passes away with a life insurance, that will be used for the payoff of the mortgage. If that is not the case, you still have to pay off the mortgage at the end of the mortgage length.
Lastly there is the interest and principal pay off mortgages. Only two mortgages are of this type; the linear and annuity mortgages. When one takes on one of these mortgages you pay off a principal and an interest amount each month for the whole mortgage length. This means that at the end of the mortgage, the house is paid off and one becomes the owner. The annuity mortgage has a fixed payment each. With each payment one pays less interest and pays off more of the principal. The linear mortgage has a fixed principal pay off with on top of it the interest payment. This means that one pays a lot more in the beginning than in the end.
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As of January 2013 the Dutch parliament has made a new rule where one only gets a tax rebate on interest with a linear or annuity mortgage scheme (Rijksoverheid, 2015). It is easier to compare renting vs buying with an annuity mortgage because of the fixed monthly payment. For these reasons this paper will focus on an annuity mortgage.
There are also two huge benefits of buying a house. After you have paid of the house the mortgage cost disappears. Your monthly cost will decrease significantly since mortgage cost make up a big portion of it. Another benefit is that people can inherit your house after you have paid it off. There are different inheritance taxes for different people (Rijksoverheid, 2015). But if one would give it to their son or wife, only 10% inheritance tax is paid for the home. In the long run it seems that it would definitely be more advantages to buy a home than rent one.
In this paper we want to analyze from a financial perspective whether it is better to rent a home or to buy it. The way that will be done is to calculate the difference between renting cost and buying cost. If buying cost is higher than renting cost, that difference will be saved up when you rent. And when you save money you get interest on it. Because we are dealing with the different periods, we need to think about the time value of money.
2. Method
2.1 Present value single cash payment
Time value of money is the theory that a euro now is worth more than a euro in the future because of the interest you can earn on it (Welch, 2009). The future value of a single cash payment looks like:
FV = PV (1 + i) n
Rewriting this gives us the present value of a single cash payment. PV = (1+ 𝑖)𝐹𝑉 𝑛 Where FV = future value PV = present value i = interest rate n = period 2.2 Annuity
When the payments are the same and paid at the end of each month, the combined present value of all the single cash payments becomes:
PV = (1+ 𝐶𝑠 𝑡)1 + (1+ 𝐶𝑠 𝑡)2 +...+ (1+ 𝐶𝑠 𝑡)𝑛∗𝑡
This can be rewritten to the ordinary annuity formula (Welch, 2009): Eq. 1: PV = 𝐶𝑠
𝑡
5 Where
PV = present value of an investment C = monthly or yearly payment s = the yearly savings interest rate. n = number of years
t = number of payments per year 2.3 Annuity for mortgage
When calculating how much is paid for the mortgage, we will use a slightly different variation. Banks distinguish between mortgage length and fixed interest rate length. Instead of using the fixed interest rate length, we need to know how long the mortgage lasts.
n = x – z
Substituting this in the annuity formula: PV L = 𝐶𝑚 𝑡 ∗ [ 1 − (1 + 𝑚𝑡 )−([𝑥−𝑧] ∗ 𝑡)] Rewriting it to get C Eq. 2: C = 𝑃𝑉𝐿∗ ( 𝑚𝑡) ∗ 1 1− (1+𝑚𝑡 )−([𝑥− 𝑧]∗𝑡) Where
m = mortgage interest rate x = mortgage length
z = passed mortgage length
Note: in the equation 1, n is the years of the fixed interest rate. In equation 2 it’s the years
remaining of the mortgage
2.4 Assumptions
2.4.1 Not included costs
When you buy a house, there are costs that overlap with renting. These costs should not be used in the calculation, because they are on both options. First, there is the cost of utilities. This depends on the size of the family and the home. We will assume a single person is going life at the home. Furthermore, we will only investigate homes that are for rent and for sell. This means the heating and electricity cost should be the same in both renting and buying.
Water taxes are paid to the company assigned by the municipality. They keep the water cleaned and leveled in the environment. When you are a homeowner, you pay a percentage of the value of your home. Renters pay a fixed amount each year. On average, homeowners pay less than 10 euro per year more. This difference is small and therefor neglected.
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Garbage taxes are a yearly tax paid to the municipality for the collection and processing of garbage. Each municipality has its own tax scheme. Most of them have a fixed amount where they distinguish between single person and multiple persons living in a home. Some
municipalities charge variably per kg of trash or per trash container emptied. 2.4.2 Renting or buying
Economic theory suggests that the cost of owning a home and the cost of renting should be somewhat the same. For instance if there is a sudden shock in the market that makes renting cheaper, consumers looking for a new home will probably look more into renting. This would then push the rent prices up. This will happen until the cost of renting is again equal to the cost of owning. This paper will look at how well the theory is reflected in reality.
Since a euro now is worth more than a euro in the future we have to discount the costs. To understand when it is better to rent or to buy we will compare the present value of renting expenses with the present value of owning expenses. It is assumed that the present value for owning expenses is (ING, 2015):
PV owning expenses = PV mortgage& maintenance + PV other cost+ PV tax rebate + PV single payment It is assumed that the present value of renting expenses is:
PV renting expenses = PV rent + service costs
When PV renting expenses is equal to or less than PV owning expenses consumers should always choose buying over renting, since the costs are the same or less when buying. And you get a house with buying. For this reason PV renting expenses should be smaller than the PV owning expenses. The
difference between the two is savings.
PV Savings = PV owning expenses - PV renting expenses
In the calculations above we didn’t account for the present value of when you sell the house, which is called PV house sold. Here lies the answer to the question whether it is better to rent or to buy. If PV savings is higher than PV house sold one should rent it. Vice versa, one should buy it.
2.4.3 PV mortgage & maintenance
When you want to take on a mortgage the bank looks at your present income and your contract terms. You need to have a fixed income each month, because the bank expects you to be able to make the monthly payments. Some banks also accept variable income, such as income earned from selling websites, painting etc.
Then you decide with the bank, what the maximum amount of time is for which you will pay off the mortgage, which is called the mortgage length. I will assume that is 30 years in all cases, because you only get a tax rebate on interest for the first 30 years of your mortgage (Rijksoverheid, 2015). Then the consumer decides if he wants a variable or fixed mortgage rate. If the interest rate is fixed, he must decide for how long. In this paper we will only work with fixed rates. We will only look at starters at the housing market, which means they have 0 years
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of mortgage passed. Since the mortgage is paid monthly, the number of payments per year is 12. The house price at period 0 is used for the present value.
To calculate the present value of the monthly mortgage payments we first need to calculate how much we need to pay each month using Eq. 2. We get:
C = 𝑃𝑉𝐻∗ (12 𝑖) ∗ 1
1− (1+12𝑖 )−([30−0]∗12)
Maintenance cost are cost such as repainting, changing or maintaining of central heating, changing of window frames, etc. However these are costs that heavily depend on the situation and the state of the house. When you change the window frames for example, you pay a lump sum immediately and this value has to be discounted. Then you need to estimate the years it will last until another replacement needs to be made. It is assumed that the maintenance cost is 1% per year of the house value at period 0 (ING, 2015) and that it’s a monthly expense instead of yearly. Since both maintenance and mortgage cost are monthly we can combine the cost and calculate the present value.
Monthly payment = C + 0.01 * PV H
To calculate the present value we use the annuity for consumers (monthly). PV mortgage & maintenance= Monthly payment 𝑠
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∗ [ 1 − (1 +12 𝑠)−(𝑛∗12)] 2.4.4 PV housing taxes
OZB is a yearly tax for owning property. This is paid to the municipality. The ozb-tax differs per municipality. Sewer tax is divided in owner and usage tax. The usage tax is applied to the ones that are using the house and not the owner of the house. Therefor this will not be used in in the calculation. Sewer owner tax is also a yearly tax paid to the municipality for the connection of your house with the sewer system. This is a fixed amount which differs per municipality.
HT = OZB + S = P * ozb + S Where
HC = other costs P = value of house
ozb = yearly property tax, % S = yearly sewer tax, euro
Since this is a yearly payment, substituting HT in equation 1 we get: PV house taxes = 𝐻𝑇𝑠 ∗ [ 1 − (1 + 𝑠)−(𝑛)]
8 2.4.5 PV tax rebate
I assume that this individual is between the age of 18 and the pension age, for tax purposes. To calculate the tax rebate on mortgage interest we firstly need to know the taxable income of the individual. This is used to calculate how many taxes would be paid. Secondly we need the value of the home to calculate the income from homeownership. IFH will be used as abbreviation for income from homeownership. IFH is another tax on property. IFH is seen as income you have which needs to be accounted for in your taxable income which is paid to the government. IFH depends on the value of the house at each year. Lastly we need the sum of the mortgage interest paid in that year. For simplicity I assume that the consumer has no other investments or companies owned in home or foreign countries. The only income is from the earnings from an employer.
Taxable income = yearly earnings.
If this individual does have a mortgage, the taxable income changes to (Rijksoverheid, 2015): Taxable income mortgage owner = yearly earnings – yearly interest + IFH
For the taxable income you pay taxes. For the Taxable income mortgage owner you pay taxes mortgage owner. The taxes are calculated according to the Dutch income taxation system of 2015. The following is the annual tax rebate on mortgage interest.
Annual tax rebate = Taxes - Taxes mortgage owner
The annual tax rebate changes each year because the interest decreases each year. On the other hand, IFH can increase or decrease depending on the house price change. Therefor we can’t use equation 1. To calculate the present value of the tax rebate we discount each annual tax rebate separately with the present value of single cash payment.
PVTR = (1+𝑠)𝑇𝑅11 + (1+𝑠)𝑇𝑅22 +...+ (1+𝑠)𝑇𝑅𝑛𝑛
2.4.6 PV single payment
The single payment costs consist of: notary fees, structural survey cost, mortgage advisory cost, assessment of house value cost, real estate agent fees and transfer tax. Of all the single
payment costs, only the transfer tax is nonnegotiable. This is always 2% of the value of the house. The rest of the costs depend on where you live and how expensive the fees are in your area. For this reason the total single payment costs will from here on out be the same as 6% of the value of the house (ING, 2015). The single payment is easy to calculate, since all the costs are assumed to be made in period 0. We don’t have to discount the value. This is equal to:
9 2.4.7 PV rent & service cost
As seen in figure 1, the rent has always increased since 1959. The average yearly increase is 4%. So when we calculate the present value of the rent payments, we need to take the growth into account. Because the payments are monthly, but the growth is yearly, we can’t use the annuity formula. Instead we have to rely on the present value for single payment which will look like: PV rent & service cost = (1+𝐶+𝑠𝑒𝑟𝑠
12)1 + … + (1+𝐶+𝑠𝑒𝑟𝑠 12)12 + 𝐶 ∗(1+𝑔)(1+𝑠1+𝑠𝑒𝑟 12)13 + … + 𝐶 ∗ (1+𝑔)(1+𝑠 1+𝑠𝑒𝑟 12)24 + 𝐶 ∗ (1+𝑔)(1+𝑛−1𝑠 +𝑠𝑒𝑟 12)𝑘 + … + 𝐶 ∗ (1+𝑔)(1+𝑠 𝑛−1+𝑠𝑒𝑟 12)𝑘+11 Where
C = monthly rent at period 0 g = percentage growth of the rent
n = number of years of fixed mortgage rate s = savings interest rate
ser = service cost k = the month 2.4.8 PV house sold
After the fixed interest rate period is over the consumer can again choose how long he fixes the interest rate. So we can calculate the costs he needs to pay for the number of year’s
corresponding to that interest rate. However the consumer also has the choice to sell the house after fixed interest rate period finished. The house must be sold, and the money used to pay off the remainder of the loan. The only exception is if the consumer has a fixed rate of 30 years, in which case he has paid of the whole mortgage. The value of the house is assumed to change over time. This paper will look at different scenarios where the house price increases and decreases and at the average price increase per province. The change in house price is:
FV H = PV H * (1 + hg) 𝑛 Where
FV H = future value of the house PV H = house value at period 0 Hg = house growth
N = number of years the interest rate is fixed
We need to discount the loss/profit of the selling to get the present value. PV house sold = 𝐹𝑉(1 + 𝑠)𝐻 −𝑅𝐿𝑛
Where
10 2.5 Hypotheses:
Based on the assumption that the rent increases with 4% each year I expect that the longer the mortgage rate is fixed the more beneficial it is to take a mortgage. The rent will keep increasing each year, while your mortgage payment will stay the same. Although the mortgage interest rate increases the longer you fix it. I believe this effect will be overpowered because the rent increase is higher.
Since we will be looking at different house price growths, I assume that the higher the house growth the earlier it would be beneficial to take on a mortgage. On the other hand if the house growth is negative I think that none of the homes would be beneficial if you take on a one year fixed rate. That’s because you pay the single payment cost in the beginning. This can only be offset if the rent price is significantly higher than the mortgage price.
3. Data & results
3.1 Data
The ozb and sewer tax are different between municipalities. According to CBS, there are 393 municipalities as off 2015. Each one has its own value for the sewer and ozb taxes. The data on it was found on overheid, a government affiliated database. The ozb tax is always a percentage value. The sewer tax has different values, depending on the municipality. As explained in chapter 1, I am only interested in the sewer ownership tax and not the sewer usage tax. About half of the municipalities divided it this way, in which I have the correct fixed amount
representing the sewer owner tax. The other half of the municipalities made no distinction between the two. This means that there is a fixed amount, comprising of owner and usage, which will be all paid by the owner of the house. I am assuming that the owner passes the usage tax in the rent price to compensate for this.
When one considers to buy a home, one must be able to afford it. To estimate the minimum income you need for a certain house I used data from nibud, which is the national institute for budget education. When you know the value of the house in period 0, you can look up the minimum income that is needed with their table. This minimum income is assumed to be the earnings from employment which will be used to calculate the tax rebate.
The housing data will come from funda. This is a company which enlists (almost) all available houses for sell and for rent in the Netherlands. The data changes each day because houses are sold or were rented. This means the data used is from a single moment in time. A program was written to scan through the whole website to find the necessary information. The day it was scanned is 30th may 2015. Total houses for sell was 239,469 and total houses for rent was 12,016. The question we want to answer is whether it is better to rent or buy. In order to minimize all unnecessary variables, I will only look at houses that are for rent and for sell at the same time. By doing this quantative differences such as surface space, number of rooms, etc. are eliminated. And at the same time non-quantative differences such as, good or bad
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neighbors, if the house is close to the mall, etc. are eliminated. What remains are 724 houses that are for rent and for sell. These homes were ground houses and apartments (flats). Out of these houses another 24 are not used because they are service flats. Service flats are flats for which you need to pay lots of extra service costs because they also have an emergency line ready, cooking and cleaning is done by the apartment owner etc. These homes are targeted for seniors. Another 130 are not used because they are too expensive. The table from nibud
accounts until an income of 110,000 euro gross per year, with which you can buy a house with a maximum value of 555,000. This leaves us with 570 houses in our data set. From this the selling price, the renting price and the post code were collected. The post code is used to connect that house to the right municipality.
3.2 Results
In table 1 are the descriptive statistics. The average house price in the Netherlands in this sample is 276,328 with the cheapest house costing 45,000 and the most expensive as much as 555,000. The most houses are sold in the province Gelderland, Noord-Brabant, Noord-Holland and Zuid-Holland. On average the renting price is 1188. Figure 2 is the histogram of the rent prices. This data set is not normally distributed and skewed to the left. The maximum rent price of 4,250 is also a big outliner which only occurs once. In figure 3 the histogram of the selling price is shown. This also doesn’t appear to be normally distributed.
In figure 4 there are five different lines that each depict the growth rate of the homes for those years. Looking at the 4% increase of a 2 year fixed mortgage then the house value will have increased by 1.042. It can be seen here that in all cases it is true that, the longer the fixed interest rate period the more beneficial it is to buy a home. This is what was expected, because as the house price increases over time, one will earn more from selling the house at a later point in time. What is interesting to see is that even when the house price decreases by 4% each year that it is still beneficial to buy houses. As a matter of fact, the likelihood of buying increases over time. A possible explanation is that when you rent, the money paid is “wasted”. But with a mortgage you are “investing” in your home. One won’t get the full value back, but you get something. Another more plausible explanation is because it’s assumed that the rent increases each year. In the long run rent cost will be much higher than the mortgage cost. Indeed this seems to be the case when looking at figure 5. Everything is the same as figure one except that the rent increase is 0% instead of 4%. A big difference in the figures is that there is a convergence to almost 100% buying in figure 4 where the rent increase is 4%. In figure 6 the difference between figures 4 and 5 is compared. In the short term the rent increase matters less than in the long term; this is to be expected because the more years pass the higher the rent. Interesting to see is that the increase of rent only matters when you expect a decrease or a zero percent change in the house value. If one expects an increase of 2% or 4% in house value, it doesn’t really matter if the rent increases by 0% or 4%.
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4. Conclusion & discussion
4.1 Conclusion
In this paper the present value of the money saved while renting is compared with the present value of the money earned by selling the home and paying of the remainder of the loan while buying. The following conclusions can be drawn. The longer one fixes the interest rate the more likely that it’s better to buy the house instead of renting it. With a better growth prospect of the house, the more likely that it’s better to buy the house. The most surprising result is that even when one assumes that the house value will decrease with 4% each year. That it’s still beneficial in some cases to buy a house. For instance if one fixes the interest rate for 10 years, it would be beneficial in 11.37% of the houses to buy it.
With that being said, to know whether renting or buying is better one has to look at the specific situation and not the average of selling or renting prices. For instance looking at figure 5, at the line with 2% expected price growth. It is seen that 80% of the houses should be bought instead of rented on average. But if one wants to know for a specific home whether to rent or buy the answer will be a 0% for renting or 100% for buying.
4.2 Discussion 4.2.1 Suggestions
We assumed that the consumer sells the house after the first fixed mortgage rate period is over. That’s because I could not estimate what the mortgage rate would be in the future. Maybe there can be further research which makes a model of the future rates, which then can be applied with the model in this paper.
Another improvement is to look at the numbers when you calculate for multiple people instead of a single person. I don’t expect too much of a difference, but there are different tax rules for single and multiple people. It would be interesting to see for who it would be more beneficial if there is a difference.
4.2.2 Problems
In this paper we assumed that the IFH tax stays the same, however the past 5 years there has been a small increase in the tax. It’s small but a change none the less. We saw that it is more beneficial in more than 95% of the houses when you take on a 30 year mortgage. A problem which is not taken into calculation is the cost of not being able to move, because you have a 30 year contract. You can pay up a fine for breaching the contract.
The second problem with the model is that it’s implicitly assuming that the house value is liquid, which is definitely not the case. When we compare PV savings with PV house sold then savings is what you have in your bank account. The cash from PV house sold is only seen after you have sold the house and paid off the remainder. This is not something that happens in mere minutes. You don’t know what the future of the market looks like. The cash from PV house sold
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does not account for this risk. In this paper we assumed that if PV house sold > PV savings that you should buy, but PV house sold should be significantly higher to also compensate for this risk.
The third problem is that it is assumed that the consumer always has the single payment amount available when buying a home. Or that this amount would be put in a savings account when renting. It would be better to assume that the money is readily there. When buying, the consumer should take on an extra loan. The interest rate on the loan is much higher than the savings interest rate. If this method was used for the calculation of the single payment cost, the percentage of buying should decrease in all the results.
The last two problems are about PV savings. The first one is that the average variable savings rate is assumed instead of a fixed savings rate. The variable rate obviously changes over time. So assuming that it doesn’t change is not a strong assumption. The advantage of the fixed savings rate is that it is usually higher than the variable savings rate. However with the fixed savings rate deposit, there were two requirements. First the payment needs to be at least 500 euro’s in most banks (ING, 2015), second you can’t save all your money on a single deposit. You will have to make different deposits accounts. This means you won’t get compounded interest on all the cash put aside for saving, but only compounded interest on each separate cash payment. It is not clear which method would be better for renting or buying. The second problem is that there is a limit to saving tax free, which is 21330 euro. Anything above this amount gets a 1.2% tax. If the savings rate is lower than 1.2% you will stay stuck at 21330 euro each year. Taking this into account would bring a positive effect on buying a home.
14 Bibliography
Rouwendal, J. Alessie, R. (2002) House Prices, Second Mortgages and Household Savings: An Empirical Investigation for the Netherlands, 1987-1994 Tinbergen Institute Discussion paper 2002-074/3
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=321022
Shelton, J. P. (1968) The Cost of Renting versus Owning a Home, Land Economics vol. 44 No. 1 http://www.jstor.org/stable/pdf/3159610.pdf
Welch I. (2009) Corporate Finance: An Introduction United States of America: Pearson Education, Inc. De Mooij, M. Geerdink, M. Oostrom, L. van Weert, C. (2011) inkomens van afgestudeerden, 2007 - 2009 Seen last on 24-06-2015.
http://www.cbs.nl/NR/rdonlyres/F5336C46-8EF5-444B-9ABA-C266CD41B5DE/0/2011x4213.pdf De Vries, J. (12-01-2015) Spaar- en hypotheekrentes op laagste niveau in tien jaar. Seen last on 24-06-2015.
http://nu.nl/economie/3968940/spaar--en-hypotheekrentes-laagste-niveau-in-tien-jaar.html Donovan, C. Schnure, C. (2011) Locked in the House: Do Underwater Mortgages Reduce Labor Market Mobility? National Association of Real Estate Investment Trusts
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1856073
Rijksoverheid (2015) Hoeveel erfbelasting betaalt u? Seen last on 24-06-2015.
http://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/relatie_f amilie_en_gezondheid/erven/erfenis_krijgen/hoeveel_erfbelasting_moet_u_betalen/
Rijksoverheid (2015) Sociale huurwoning (sociale huur) Seen last on 24-06-2015.
http://www.rijksoverheid.nl/onderwerpen/huurwoning/sociale-huurwoning-huren Rijksoverheid (2015) Nieuwe regels hypotheek Seen last on 24-06-2015.
http://www.rijksoverheid.nl/onderwerpen/koopwoning/nieuwe-regels-hypotheek
ING (2015) Een huis kopen. Wat zijn de eenmalige en de maandelijkse kosten? Seen last on 24-06-2015.
https://www.ing.nl/particulier/financieel-fit/artikel/een-huis-kopen-wat-zijn-de-eenmalige-en-de-maandelijkse-kosten.html
15 Table 1: descriptive statistics
Province price sum mean min max
Netherlands rent 570 1188 350 4250 sell 276328 45000 555000 Drenthe rent 21 1050 500 3000 sell 250048 95000 500000 Flevoland rent 8 1128 650 2200 sell 248406 115000 495000 Friesland rent 24 1033 350 2750 sell 267288 107500 479000 Gelderland rent 62 949 500 1895 sell 245273 79500 499500 Groningen rent 24 1484 450 3000 sell 179663 79500 319000 Limburg rent 40 1216 590 2700 sell 278950 99000 535000 Noord-Brabant rent 108 1156 550 3000 sell 280045 99000 550000 Noord-Holland rent 60 1492 675 4250 sell 325380 98000 550000 Overijssel rent 41 1050 450 2750 sell 255329 45000 500000 Utrecht rent 24 1283 650 2000 sell 327888 115000 555000 Zeeland rent 11 876 675 1250 sell 242909 145000 433000 Zuid-Holland rent 148 1319 550 3150 sell 287494 79000 550000
16 Figure 1 Figure 2 Figure 3 -10 -5 0 5 10 15 20 19 60 19 62 19 64 19 66 19 68 19 70 19 72 19 74 19 76 19 78 19 80 19 82 19 84 19 86 19 88 19 90 19 92 19 94 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 %
Rent, inflation and house price % change
rent inflation house 0 100 200 300 400 500 1000 1500 2000 2500 3000 3500 4000 4500 fr e q u e n tie rent price
Histogram (rent)
0 20 40 60 80 100 120 fr e q u e n tie selling priceHistogram (sell)
17 Figure 4 Figure 5 Figure 6 0 20 40 60 80 100 0 5 10 15 20 25 30 b u yi n g % Years
buying per fixed years (4% rent increase)
-4% -2% 0 2% 4% 0 20 40 60 80 100 0 5 10 15 20 25 30 b u yi n g % Years
buying per fixed years (0% rent increase)
-4% -2% 0% 2% 4% 0 20 40 60 80 1 2 3 5 6 7 10 15 20 25 30 b u yi n g % years
