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Yes, this is very true. Dutch housing is insane now. Most of the recent increase is due to lower interest rates by the ECB, driving up the price as you say. But

Yes, this is very true. Dutch housing is insane now. Most of the recent increase is due to lower interest rates by the ECB, driving up the price as you say. But in the 90s and 00s people would regularly borrow up to 120% LTV with no downpayment whatsoever. It was the norm to just also borrow for a new kitchen or bathroom, and €0 downpayment on it all. Ridiculous situation that the banks exploited by offering interest only loans or even stock-mortgages where they would put your down payment in stocks in stead of paying down the mortgage. The government slammed down hard on it all after 2008 and is also building down the interest deduction, luckily.

jonkoops 6y ago
As a young house-owner I am quite upset at the banks and at the older generation. They reaped all the benefits, whilst I end up with debt out of college and don't have access to cheap housing. We got fucked by the boomers so hard. Even my grandfather, who bought his house for 75.000 guilder and is now 83 still has outstanding debt due to this system of interest only mortgage. He's lucky that he can sell his house at a huge profit if he wants to live in a care home, but I am sure the bank earned what he borrowed and then some over his lifetime. Also the fact that the government is killing the NHG is infuriating, they know damn well that housing is too unaffordable for young people to qualify anymore.
- apexalpha 6y ago
  Yes, interest only loans only benefit one party: the banks. And they preyed on financially illiterate people for their profits. All while reaping bonuses and then getting bailed out in 2008. The government is not killing NHG, though.
- bollorior 6y ago
  Your grandfather is surely much better off than if he had been renting that house all those years. He would also have paid a huge total amount (to a landlord) and wouldn't have any share in the appreciation of his house value. He also probably has better security of tenure (a landlord could have decided to evict him and sell the property when the price went up).

jonkoops 6y ago

As a young house-owner I am quite upset at the banks and at the older generation. They reaped all the benefits, whilst I end up with debt out of college and don't have access to cheap housing. We got fucked by the boomers so hard. Even my grandfather, who bought his house for 75.000 guilder and is now 83 still has outstanding debt due to this system of interest only mortgage. He's lucky that he can sell his house at a huge profit if he wants to live in a care home, but I am sure the bank earned what he borrowed and then some over his lifetime. Also the fact that the government is killing the NHG is infuriating, they know damn well that housing is too unaffordable for young people to qualify anymore.

apexalpha 6y ago
Yes, interest only loans only benefit one party: the banks. And they preyed on financially illiterate people for their profits. All while reaping bonuses and then getting bailed out in 2008. The government is not killing NHG, though.
bollorior 6y ago
Your grandfather is surely much better off than if he had been renting that house all those years. He would also have paid a huge total amount (to a landlord) and wouldn't have any share in the appreciation of his house value. He also probably has better security of tenure (a landlord could have decided to evict him and sell the property when the price went up).