Article on: NU.NL
It can be attractive to use Duokoop in the current tight housing market. You only need a mortgage for the new house. Duokoop buys the ground and then rents from the National Land Bank (DNGB). As a result, you need a slightly lower mortgage, but the construction has drawbacks.
"At the moment, you can only buy one house in Almere with a gross family income of 50,000 euros," explains Olav Koenders of DNGB. In 2009 he devised the Duokoop construction. "With Duokoop, you can choose from seven houses in Almere. We see such differences in all provinces."
According to Koenders, starters and people buying their second home uses Duokoop. Municipalities sometimes also opt for a mandatory Duokoop scheme to make it easier for their residents to buy a house, he says. "Certainly, with slightly more expensive homes that have to be more energy-efficient, it can make the difference. And starters on the housing market see the construction mainly as a start-up, as a bridging arrangement. After all, as soon as they have more income, they can repurchase the land or move to a bigger house."
Gelderland also benefits the leasehold construction, the provincial government announced this week. There will be a housing fund through Stichting Koopsmarter that will finance the land. The buyer buys the house, the foundation buys the land, and the province and municipality guarantee the loan for the land purchase. According to deputy Peter Kerris, more construction projects will get off the ground this way. "With this, we stimulate the flow from (social) rent to owner-occupied homes so that these rental homes become available for others." The province is currently starting a trial.
There are also disadvantages to Duokoop
The Home Owners Association draws the attention of homeowners to the disadvantage that the increase in the price of land in a Duokoop is not for them. After thirty years with this construction, they calculate a missed capital accumulation of many tens of thousands of euros. Koenders acknowledges this but also says: "Almost no one has lived in the same house for more than thirty years. Especially not starters. As soon as you have more income, you can buy the land at any time."
With Duokoop you pay a monthly ground rent of 3 per cent on an annual basis on the value of the land. Suppose the land costs 200,000 euros, then you will spend 6,000 euros per year on a ground lease, or 500 euros per month. If the house also costs 200,000 euros and you have a mortgage with 1.5 per cent interest, you will lose 3,000 euros per year in interest or 250 euros per month. More than 500 euros in repayment. The monthly costs are then 1,250 euros. The advantage is that you do not have to pay off the 200,000 euros for the ground so that the monthly expenses remain slightly lower. The difference grows when the land is cheaper compared to the house.
Although the seller did not benefit from the land price increase, he did benefit from the value of the house itself."
An objection raised by the Home Owners Association is that it is more difficult to resell a house whose land is on a long lease through the Duokoop scheme. "People find it difficult if they have to buy a house if it has a long lease on it," thinks Vereniging Eigen Huis. "They're afraid they'll stick them with that for the rest of their lives." However, can terminate the scheme per month, says Koenders. "At the time of resale, you can also have the land bought by the new owner. Although the seller did not benefit from the land price increase, he did benefit from the increase in the value of the house itself."
The previous fund, launched in 2019, helped around 1,750 home buyers find a home. Duokoop is only possible in combination with a mortgage with National Mortgage Guarantee (NHG).
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