November 27, 2021

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The owner of the house is much richer than the renter, not even counting the house

The owner of the house is much richer than the renter, not even counting the house

In addition to the value of their home, the average capital for Dutch homeowners is 36,000 euros and renters only 2,600 euros. The difference has only increased in recent years. who appears from Preparation from CBS.

Due to rising home prices, many homeowners already own more wealth on paper than renters. But even if you ignore home value and mortgage debt, it’s warm compared to renters.

He. She Rate Tenants’ wealth has remained more or less the same since 2013, but homeowners’ wealth has increased by at least €10,500 in the period up to 2020.

“Loads for homeowners remain the same”

“If you own your own home, you often have more money left over from your income, and homeowners invest that in stocks, for example,” says Nick Friselaer, housing market economist at Rabobank. He says that renters often can’t because they spend a much larger portion of their income on paying rent than homeowners on paying interest and paying off their mortgages.

Moreover, homebuyers’ costs will remain roughly the same over time, according to Frieselaar. “They limit their housing costs when they buy a house and therefore take out a mortgage. The interest that needs to be paid is often set for a longer period of time. But rents go up every year.”

If you receive a regular wage increase, then homeowners will have more and more money left, while tenants will be able to deduct a portion of the potential wage increase because rent is also rising, Vrieselaar explains.

Mortgage interest deduction

According to Vrieselaar, home buyers also have an advantage due to the mortgage interest deduction. “Consumers who buy a home often have a higher income, but still receive income support.”

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“You can also lower the mortgage interest deduction and lower income tax. It will be a payment to the tenants, after which they will not be taxed in unfavorable circumstances, and they will have more money left because they pay less tax.”

60 percent of tenants have a maximum of 5,000 euros

Nearly 60 percent of renters in the Netherlands have little or no capital of up to €5,000, according to Statistics Netherlands. This only applies to 18 percent of homeowners.

There are also renters who pay a large average. For example, 5 percent of it has a capacity of one ton or more. But among homeowners, this group is much larger at 27 percent.

Young people up to the age of 25 often have few assets or even debts. They also often own less of their own home than the rest of the Dutch population.