The Data and Research Department of the NVM (the leading association of Dutch real estate brokers) recently surveyed its members for their opinion on the current state of the domestic housing market. The survey was carried out in the period between the December 22, 2011 and January 3, 2012, and there were 734 responses.

Rating

The average rating given by respondents was 4.0 on a ten-point scale. This is slightly higher than the rating from mid 2011. The current economic climate and economic prospects for the coming year dominated the market outlook, with the media regarded as an important factor in creating negative sentiment and depressing the market.

Positive aspects and opportunities in the current market received limited coverage. The ongoing discussion regarding the mortgage interest deduction has also inhibited housing sales.

While preservation of the deduction is no longer the key to boosting the market, clarity on what will (or could) happen regarding this deduction and when changes could occur is considered critical.

Opportunities

In the haze of negativity, it is easy to forget that there are a lot of opportunities in the current market for making a good purchase. For instance, the combination of lower prices, lower interest rates and changes in rental regulations have made "buying-to-let" a very viable strategy for generating returns from real estate investments

Another positive aspect is that transfer tax will remain at 2 percent until July 1, 2012, after which it will revert to 6 percent. In other words; a house of 250.000 euros is 10.000 euros cheaper!

Current market circumstances have led to an increase in the quality of properties for sale, while prices have dropped. If you are considering buying residential real-estate, keep in mind that more than ever, value is determined by location and quality and that there are some excellent deals out there.

Johan Grijzenhout is an Expat Service Provider, who specialises in real estate. For more information, please comment below or visit Perfect Real Estate.