Financial opportunities for new homeowners in 2024: How do the rules work in your favor?

The beginning of 2024 brings about changes, and while the jubilee tax relief is a thing of the past, there are other attractive financial opportunities for new homeowners. Together with Joris Valk, financial advisor at Reijn&Partners, we explored some promising changes that could benefit you in 2024.

 

Increased transfer tax threshold for young buyers

Good news for young homebuyers: the transfer tax threshold has been raised to €510,000 for buyers aged 18 to 35. Even if one of the buyers is older than 35, the exemption still applies to the portion of the younger buyer. This is a welcome boost for first-time buyers in the housing market.

 

Favorable drop in mortgage interest rates, especially for longer fixed-rate periods

Since October 2023, mortgage interest rates have dropped, particularly for longer fixed-rate periods. Depending on the mortgage provider, this could result in a significant decrease of approximately 0.6% to 0.9% for a 10-year fixed rate. Short-term mortgage rates have remained stable, and the expectation is that they will remain reasonably stable in the coming months.

 

Higher borrowing capacity for energy-efficient homes

For mortgages on homes with an energy label of D or higher, the borrowing capacity based on income has been increased. This means additional financial room, ranging from an extra €5,000 for energy labels D & C to up to €30,000 extra for energy label A+++. A greener home can now not only contribute to sustainability but also enhance your financial possibilities.

 

Increase in interest rates on savings accounts

Saving is appealing again! The interest rates on savings accounts have risen to an average of over 2%. Additionally, it is worthwhile to shop around with savings, as the interest rates between banks can vary significantly.

 

Alternatives to the 'jubelton': parental gifts remain possible

Despite the abolition of the jubelton, parents still have opportunities to financially contribute. A one-time tax-free gift of €31,813 (2024) is allowed for children aged 18 to 40. Additionally, parents can annually give €6,633 (2024) tax-free, which can also be used for the purchase of a home

In some cases, it's even possible to work with a loan from parents to children, creating more financial flexibility. Moreover, seniors can now purchase a home without hindrances. The amount of pension income is crucial in this regard, providing more flexibility for older homebuyers. Property Owners' Associations (VVEs) can also benefit from subsidy programs for the sustainability of their buildings. In summary, although the jubelton has been abolished, 2024 offers new financial opportunities and benefits for new homeowners.

 

Curious about how any of these rules can work in your favor or in need of personal financial advice? The real estate agents at Von Poll Real Estate, in addition to having a good network of real estate agents, also have extensive contacts with related professionals such as notaries and financial advisors. Reijn&Partners, a financial advisory firm in Amsterdam, is a good example of this. We would be happy to connect you with them to assist you with your personal financial queries when buying a new home.