Buying a new-build house, and everything that comes with it
With the increasing offer of new build houses in Amsterdam it can be interesting to know a bit more about the process of buying one. Buying a new build house is a little bit different than buying an existing house. For example; when you buy the house, you buy it from the project developer and the price will be “without additional costs payable by purchaser”. On this page we will go more in-depth about what this means.
Where can you find new building projects?
Our new construction projects are offered via our offer page for new construction. We also make a separate website per project where you can find more information about the location, what type of homes are being offered, the size, estimated construction time and of course the prices. If you want to apply for a new-build house, you can register on the website of a specific project.
Note: the construction time of a new house in Amsterdam is about 2 to 3 years in general.
Found one, and now…?
In Amsterdam there are two different ways in which new-build houses are offered for sale:
- A fixed sales price. You sign up for a building number of your choice (usually you can enter multiple construction numbers). When there are more interested parties, they will do a draw.
- You can bid on a new build house of your choice. We advise you to ask for professional advice from a purchase agent about the amount of your bid. Since there are no comparable properties yet, it is difficult to determine the right price. A purchase agent can also make an overall estimate of the expected value developments in the neighborhood.
The appointment with the broker
If you got picked at the draw or made the best offer, you will have a meeting with the real estate agent who is selling the new build project. During this conversation you can (together with your purchasing agent) check the plot-, specifications-, and construction drawings. The possibilities for reduced and additional work will be discussed just as the construction process and any additional costs. Always take account of notary fees, construction interest and possible additional work. After a (short) reflection period, a follow-up appointment is made to sign the purchase and contracting agreement.
Signing the purchase and contracting agreement
The second appointment will be for signing the contracts. The contracts can be two separate contracts or a combination of both, so called purchase and contracting agreement.
The purchase agreement: this concerns the land and development costs where the land is almost always issued on leasehold. The development costs are the costs incurred by the project developer in the preparatory phase.
The contracting agreement: this contains all costs and payment terms, but also the resolutive conditions, the expected construction time, reflection period of one week, various guarantees and how to deal with any conflicts. Your purchasing agent will take a critical look at this agreement.
Both contracts contain the rights and obligations of both the selling and purchasing parties. A few particularities are that your future house will be built according to the environmental permit that has been given. In the Netherlands there are a lot of rules when it comes to making any building decision. Almost all new houses in the Netherlands are covered by a guarantee that gives the buyer certainty about the quality of their future home.
Also included in the purchase agreement is the price that you will pay for the land (including ground lease) and in de constructing agreement the price for building the house. Paying for the building process will be done in terms.
What will ultimately be your costs for the house?
New build houses are offered free of charge (v.o.n.), which means that the seller will bear the costs for the transfer of the house and there are no additional costs for you, the buyer. It concerns the transfer tax and notary costs, which you do pay if you buy an existing house. On the other hand, you do have to pay construction interest and VAT. This construction interest is tax deductible. Let your broker advice you about which financing suits you. The VAT on the property is already included in the purchase price.
Delivery of the house
New-build houses are delivered as hulls, or with basic equipment such as a bathroom and sanitary facilities. This differs per project. In a technical description is described how the house is constructed and what it consists of. All additional options are listed in a so-called additional and reduced work list. If the house is almost finished the buyer gets the opportunity to check if everything meets the agreements that have been made. At the final delivery, when the buyer receives the keys, a delivery inspection follows which is linked to the guarantee scheme. An independent consultancy can be called in for this. From that moment on you can start decorating and living in your house.
If you want more information or help with your search, do not hesitate to contact us!