A little background first, before we get to the questions. On average, the WOZ value of Dutch houses will increase by a historic 17 percent. How much municipal tax you pay depends on the WOZ value. So pay a lot, you might think.
‘I have not insulated with gold’
Some are taking to social media with a hatchet in hand. “The WOZ value of my house is 66,000 euros higher than last year. I really didn’t insulate with gold,” writes one Richard on Twitter.
Iris says on the same platform that she wants to ‘screech and cry’ now that her WOZ value has increased by 27 percent. A small selection of a large number of messages on the same subject: that enormous increase!
Ruud Kathmann works at the Valuation Chamber. This body monitors the implementation of the Property Valuation Act (WOZ) by municipalities. Hans André de la Porte is spokesperson for the Vereniging Eigen Huis.
These experts answer seven questions for RTL Nieuws about the increased WOZ values. Then you can judge for yourself whether screaming and crying is really necessary. Spoiler: there may be money to be made at question seven.
1. What is the WOZ value of a house and how is it determined?
The WOZ value is an estimate of the value of a house on 1 January of the previous year. So if you now have your WOZ value, that will be the value of January 1, 2022. Municipalities determine the WOZ values of all houses within their borders by using computer models.
When determining the value of your house, the amount for which comparable houses in your neighborhood were sold around the reference date, i.e. January 1 of the previous year, is taken into account.
Sometimes you are also asked to provide photos of your bathroom or kitchen, for example, so that the value can be determined more accurately.
2. House prices are falling, so why are the WOZ values still going through the roof?
This has to do with the fact that the WOZ value is actually a year behind. What your house was worth on January 1, 2022 has now just been determined.
Ruud Kathmann of the Valuation Chamber: “On that reference date, the housing market was really a completely different story. Overheating, with large price increases and overbidding was quite normal. The influence of that special period is now reflected in the WOZ values.”
3. If the WOZ value of my house rises sharply, will I automatically pay much more tax?
Municipalities derive their own tax revenue mainly from property tax (OZB). The OZB is a percentage of the WOZ value of your home.
But, says André de la Porte: “Municipalities have lowered those rates. They look at what resources they need to pay for facilities for their residents. They too have to deal with rising costs and inflation and there should not be a budget gap. But the property tax is certainly not rising as fast as the property tax. At the bottom of the line, the assessment is usually a few percent higher than last year.” That will probably be a few tens.
Tomorrow the Vereniging Eigen Huis will publish an up-to-date overview of housing costs per municipality. “There are risers, but also municipalities in which housing costs are even falling. In general, it produces a very moderate picture.”
4. When is the WOZ value of your house perhaps really overestimated?
“One question is really important,” says Hans André de la Porte of Vereniging Eigen Huis. “If you had sold the house in which you now live on January 1, 2022, would you have received the WOZ value for it?” If the answer is: yes, I would have received that amount – or even more – for it, then your WOZ value is not too high.
Ruud Kathmann: “In the first months of 2022, prices still rose sharply. The peak was somewhere in the middle of the year. On January 1, 2022, the market was not that much different than now. So look at the amount on your new WOZ decision (that letter from the municipality that may have shocked you) and ask yourself: if I sell my house now, will I get this amount for it? If so, then the value is not too high.”
5. Can I check whether my WOZ is correct?
“Call your municipality and ask for an explanation”, is Kathmann’s first advice. “Municipalities make an appraisal report for every home and can tell you where you can find it. They may refer you to MijnOverheid.nl for this. Such a report states for a few homes in your neighborhood for what amount they will pay around January 1, 2022. are sold.”
Then ask yourself if those homes are really comparable. Maybe you have an extension, brand new kitchen, solar panels, you name it. Or maybe there is a large crack in your facade, which is also possible.
Kathmann also points to the website of the Appreciation room with a lot of information on it WOZ value counter that is accessible to everyone. “In it you can see the WOZ values of all houses in your home or neighborhood. So even more comparison material.”
It Cadastre consultation is one of the tips on the website of Vereniging Eigen Huis. In that Kadaster you can, for a few euros, find single prices of houses in your zip code area in recent years. André de la Porte: “And we have a quick online free WOZ-checkwhich shows whether there is any point in objecting.”
6. I see that there are companies that are willing to object for me free of charge. Useful?
Many municipalities have a standard objection form, which you can easily fill in yourself, according to Kathmann. “It’s really not very complicated.”
If you still want to engage a company, it is good to know what the revenue model of those companies is: “If such a company is found in the right, your municipality must pay that company a reasonably generous compensation of around 700 euros.”
If many objectors are proven right, this can cost quite a bit. “Ultimately, we as taxpayers pay that back ourselves.” If you object yourself, you often get a decision much faster, Kathmann knows. For companies, the procedure is longer. You will not receive that 700 euros as an objector. It is compensation for the work that a company has put into it for you.
RTL Z previously made the video below about the costs of massive WOZ objections for municipalities.
7. At the top of this article it is stated that a high WOZ value may make me money. What’s up with that?
This is especially interesting for people who have recently bought a new house and still have a high mortgage debt, says Kathmann: “If your house is now suddenly worth much more than the amount of your current mortgage debt, your mortgage lender may be inclined to increase your mortgage interest. You are then less of a risk.”
Whether that mortgage lender wants to lower depends on the mortgage terms you signed, says Kathmann. “But in certain cases it can yield an advantage of 100 to 200 euros per month. Your property tax will not increase that much: profit.”
Finally, André de la Porte also refers to the ‘notional rental value’. This is a percentage of your WOZ value that is added to your income by the tax authorities. So you pay tax on that. “The percentage of the WOZ value that is added to this has been reduced from 0.45 to 0.35 percent to compensate for the increase in home values. Even with an increase in your WOZ value that is even higher than 17 percent, Don’t you feel that very heavily in your tax bill.”
