"After 3 years in the Netherlands we bought a 600K house in Veldhoven"

Wow, you bought a 600K house 4 years ago, not really an average house in the year of 2021?

Indeed, our house  is not in the average price category. We estimate that its value has increased to more than 750K by now. We wanted a big house with a guest room that we can host our families for extended times.  Also having a big garden is a must for us. Our garden is about 310 square meters which is big for Dutch standards. We were both lucky and unlucky when we bought the house. Lucky because the mortgage interest rates were low, only 1.5%. Also because we were younger than 35 years old we did not pay transfer tax. Unlucky, because even for this price we overbid 30K to ensure that we get the house.

You already then had some savings!

We already knew we wanted to buy a house when we moved to the Netherlands. We worked hard to secure permanent contracts and promotions so we could get the highest mortgage possible. The first few years we were not eating out a lot and we were visiting our families only once a year. We could save back then together €1500 per month. 

The highest mortgage possible sounds risky..

Indeed, I do not think we would do the same now. Back then we wanted the best we could get and the job market looked very rosy. We thought that very easily we can find a job if one of us gets fired. Looking back it would be very hard to keep up with the costs if one of us was unemployed. In hindsight purchasing the house looks smart since the house prices grew but also our wages. But nobody new this would happen, maybe the events would have been different.

Anything else you would have done differently regarding the purchase of the house?

When we bought the house, we were more focused on location, size, and overall aesthetics. The energy label didn’t seem like a big deal at the time. But as energy prices rose and sustainability became more of a priority, we realized that a home with a better label, like A or B, would have saved us a significant amount on heating and electricity. Houses with lower energy consumption tend to have higher resale value and are more comfortable year-round.

We did make some improvements, though. We insulated the floor and the attic and invested in solar panels, but had we started off with a more sustainable home, we wouldn't have had to spend so much on retrofitting.

That makes a lot of sense. Do you regret any other aspects of your home purchase?

Not regret, but maybe we would have approached things differently. For example, overbidding by €30,000 felt necessary at the time because competition was fierce. The valuator estimated the value of the house €15,000 below the price we bid. Now, we wonder if we could have negotiated better or waited for another opportunity. The housing market is unpredictable, and while we were fortunate in our case, there were risks involved.

Do you feel like homeownership has changed your financial habits or lifestyle?

Definitely. In the beginning, we were very cautious with our spending. We made strict budgets and ensured we had enough savings for emergencies. But over time, as our salaries increased, we felt a bit more secure and started allowing ourselves more flexibility. We now travel more often and enjoy dining out.

How much money do you save in a month?

We save together about €2,400 per month. Sometimes more, some times less.  

This is quite a good savings amount! Can you describe how much do you spend per month? 

Our common expenses are:

• Mortgage payments: €2,050
• Home insurance: €80
• GWE: €190,
• Health insurance: €400 (together)
• Groceries: €500
• Car: €150
• Subscriptions: €120
• Outings: €700

We also have separate accounts for spending on our hobbies and clothes. 

I see €700 in outings?!

Yes, we like to dine almost every week in a good restaurant. Other times it can be spa and a massage. We think it is important to spend relaxing time together for our relationship. We know that when we start a family we will have no time for such things so we enjoy the time now!