Dienst Wonen: a new political wind is blowing

Since my article about this bureaucratic Amsterdam city organization a couple of years ago, I lot has changed in Amsterdam. After decades of socialist ruling, now VVD and D66 are the new rulers in town. This has led to a whole new approach to things. From semi-communism to "everything must be possible". Shops open 24/7 and bars open till 8 AM. Business intrests prevail over citizens intrests. Especially the bar owners and their lobby groups have quite a say in Amsterdams politics, and have been able to close one on one agreements (convenant) with the city counsel, leaving out the other stakeholders, like e.g. the people living in the neighborhood. Investment in real estate is now much more attractive. In a new article I will go into these things in more detail next time.

Our Vacation Villa at Watersong resort in Davenport near Orlando, Florida is ready for rental.

Vacation Villas in Orlando Florida

Have you ever considered renting an Orlando Villa instead of a hotel room? There are so many advantages to doing so.

Many years ago it was probably different but now vacation villas, condos and town houses offer so much more than many hotels and at a cheaper price. It is not uncommon to be able to rent a property on a resort that has a communal pool, clubhouse with bars and restaurants, fitness centers, fishing lakes and much more. With such enchanting names such as Watersong, Emerald Island and Thousand Oaks they all live up to it with beautifully landscaped gardens and conservation.

Most villas have private pools that can be heated on request again some of them overlook breath taking views of lakes or conservation giving you the opportunity to see some Florida wildlife close up.

Increasingly, there are now many homes that offer high speed internet access, free long distance and international phone calls, large screen TV’s, DVD players, spa’s/hot tubs and everything you need to make the villa your home from home, including, all linen, cooking equipment, towels etc. All included in the price. If you want mid stay cleans these can always be arranged.

If you consider the cost of say a group of 6 travelling to Orlando, work out the cost to stay in hotel rooms, then compare the cost of a vacation home. I am sure you will be surprised. Plus you have all that privacy, independence and freedom. If you want to cook in the villa then there are all the modern appliances at your disposal. If you need to do any washing, no need to drag all your washing to whichever floor the washing machines are located in a hotel, you have your own washer and dryer.

All vacation homes are within a short drive to Disney World and the other Orlando attractions.

A have look at our vacation villa at Watersong Resort in Davenport, near Orlando, Florida at http://www.vactioninflorida.nl

Dienst Wonen Amsterdam uncontrollable; reconsider your real estate investment strategy

The housing situation in the Netherlands has its peculiarities. Low income (and sometimes even moderate to high income) depends on renting houses from the so called Woningbouwvereniging. This is a semi governmental organization dividing accommodation to lower income people.

This applies also for Amsterdam. It has long waiting lists, because there is not enough accommodation to provide housing to this group, and people stay put in a locked pricing model even if they climb the social ladder and should be moving on.

Unfortunately there are people that make misuse of this and illegally rent their subsidized houses to others, making a bundle of money on the difference. Also brokers offer these dwellings and earn a commission on the transaction.

Therefore the city council of Amsterdam decided to pass a law which enforces rental brokers to apply for a permit. This law was passed in June of 2007.

The intention was to crack down on illegal rental brokerage.

Enforcing this law was given to Dienst Wonen, a department within the civil servant organisation of the city of Amsterdam.

For all intend and purpose they probably started of with success. Only after some time this department lost complete track of the letter of the law and started to impose this rule on well established expat rental brokers and even on private persons who offered their dwellings to the expat community, either through other’s internet site or their own. Keep in mind that the expat community by the nature of their limited stay, will never be able to apply for subsidized housing. Too high income and to short time.

This was not done in the way known by the Dutch as the Polder Model, but the full fist of the law was laid down on innocent people. The tradional model -innocent until proven guilty-, was thrown overboard.

If you think you can post a message on the pin board of the grocery store, you’re wrong. You will be hunted down and confronted with hefty penalties.

The style and the manner of this megalomaniac and power crazed department is unheard of.

It works as a police institution and does not add any value to the housing market. Hours and hours of civil servants time (and our tax money) is spent surfing the internet for people offering rentals. The whole atmosphere within this organisation resembles the story depicted in the German movie “Das Leben der Andern”.

If they would limit themselves to the abovementioned illegal brokerages, then that stands to reason, but these people think they have card-blanche to grill any person.

So should you consider investing in housing in Amsterdam, think twice. The political climate of some parts of the Amsterdam city council organization is such that they want to determine what is going to happen to your money. Sound considerations like return on investment and long term strategies, are a great risk in such a climate.

What is also at jeopardy is the availability non-subsidized furnished accommodation for the expate community. Amsterdam is suffering from decreasing foreign investment and not being able to house your temporary brain workers is not going to help here.

So in a nutshell, if thinking of investing in real estate in the Netherlands fine, but eliminate Amsterdam of your investment list, until the political situation changes or people are corrected by their peers and made to realize for whom they work and by whom they are being paid.

This is a revisit to my blog to refresh some content. I hope the next enteries will interest you. They will be about living in Holland in general and in Amsterdam in particular. Issues like where to live and how to acquire housing are among the things I like to share with you all. Should you want further reference please also visit http://members.ziggo.nl/b.maurits/ and http://www.amsport.nl/

The Parade is back in town!

Celebrating its fifteenth anniversary, De Parade is an annual summer event that is something of mix of travelling circus and funfair, with cabaret, theatre, music, dance and food. Enjoy various cuisine, surprising shows

Where to go to find housing in the Netherlands?

There are two basic choices: a dedicated rental agency or a real-estate company that does a bit of rental on the side. Go for the former and, if possible, look for one with experience assisting foreign business professionals.

Someone arriving on the banana-boat from Ireland has very different concerns, requirements and constraints than, say, Jan Dutchman moving to Amsterdam from Utrecht.

An agency's claim to have experience helping people 'just like you' is stronger if they have materials in English (e.g. contracts, websites, other information) and can relate to your situation ( see this site as an example). Your rental agency must have a meaningful number of properties on its books. Two apartments is not an agency. Eight and upwards is. Ask how many apartments they represent; whether they look outside their portfolio if there is no match; how many apartments matching your spec they have free currently. Be clear on their fee structure. Also check their willingness to show you the property after office hours and during the weekends. Your temp boss might not be to happy if your called away from your desk to go house shopping. It's also an acid test on their service levels.

30 percent ruling

As part of the process of qualifying for the 30 percent ruling, you are officially classified as a non-resident taxpayer. This can lead to complications for both the possibilities of mortgages and eligibility of tax deductions based on "primary residence". Experts disagree on the level and sort of impact the 30 percent ruling can have on buyers and taxation and there are always exceptions depending on individual circumstances. The advice, therefore, is to get some expert advice. Also see http://members.ziggo.nl/b.maurits

Tax implications

Rent is not tax deductible in the Netherlands and, if your employer either pays the rent or contributes to a housing allowance, this is taxed as a benefit.

The tenant normally pays OZB (a local tax for users of properties based on the value of the property) to the local government separately from the yearly tax return.

Buying a house can offer very good tax deductions and benefits. The points below outline the general tax implications for homeowners, however, they are meant as a general guideline only as individual circumstances will vary, see Housing in the Netherlands.

Renting

For expat assignments of less than three to five years, in the current market, is almost always better to rent: costs are fixed, contracts can be ended, and the headaches of repairs and maintenance are the landlord's responsibility.

In addition, renting gives the added bonus of flexibility. If you are called home or have to relocate unexpectedly, it is much easier to wrap up a rental property than to be left with a house to sell on short notice in the current market. For more information here.

Solving the expat rental dilemma
There is a chronic housing shortage in the Netherlands.
And the obvious, long-term solution to the crisis is to build more homes. But this remedy does little to help expats forced into the more expensive end of the market due simply to their immediate need for furnished apartments. This is where sky-high rent is the norm, rather than the exception.

Dutch nationals, however, who are primarily found in the unfurnished housing market where rents are under EUR 550 per month, have to wait on average up to two and a half years for a rental house. Explainations to be found here.

Epats generally use realtors to find housing. In Holland, due to the new tax system, many private owners of houses are willing to offer their property directtly. This has the advantage of cutting out the middle-man, and saves you at least one month rent in commissions. An example of such offerings can be found at the Amsterdam Housing site.