‘More housing market flow if the over-60s start renting’ | Financial

Homeowners do not always see renting as a logical next step. However, this can also be a smart choice from a financial point of view. “It is true that the monthly rent is sometimes high, but the extra rent can often be covered for a long period with the equity”, says Michiel Meijer, general manager at Van Bruggen Adviesgroep.

A major advantage of moving to a rental home is that the paper equity that was still available until then is released. “This equity of an average of €300,000 per household can be spent entirely at your own discretion. You no longer have to worry about a correction in house prices.”

Maintenance costs

Switching to renting takes away the worry of maintaining a house for the over-60s. Meijer: “These costs are often uncertain and can mean a big bite out of the household pot, not to mention the physical effort that people over sixty no longer have to make themselves.” Moreover, the additional costs are often lower than for an owner-occupied home. For example, the costs for home insurance and property tax for an owner-occupied home are often higher than the service costs for renting.

Increase offer

This will not solve the housing shortage, as this will require a large number of new homes. “Unfortunately, increasing the housing supply requires a lot of patience. However, the housing shortage also requires other solutions that can already slightly lower the temperature in the market. As far as we are concerned, a better match between the offer and the different life phases in which people find themselves is part of that solution,” says Meijer.

“Many people over 60 would prefer to live smaller. According to Statistics Netherlands, this concerns 43 percent of 55 to 65-year-olds. By moving to a smaller but more suitable rental home as a person over sixty, larger owner-occupied homes become available for starters and families,” says Meijer. In this way, despite the lack of new living space, some flow in the market is stimulated.

More senior housing

Incidentally, it is also a challenge for people over 60 who want to rent out to find a suitable home. Meijer: “There are too few homes for the elderly in the Netherlands due to the sharp growth in the number of seniors. This applies to both the rental and owner-occupied sector. That is why we will have to build a lot of senior housing in the coming decade, so that the housing stock is in line with the demographics of the households.”

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