How It All Started

How It All Started – Part III: Above Water and Finding a New House

In June of 2015 we were finally above water on the mortgage according to conservative estimates of our house value (€195.000). At that time I was just in the middle of a very demanding traineeship and I felt like it wasn’t the best time to move just yet. However, by April 2016 we were so done with our neighbors and wanting to move to the city, that we met with a mortgage adviser and started looking at houses. Unfortunately the market was up again and houses were selling really fast. We’ve put offers in for several houses above asking price, and also had a hard time even getting a showing for houses before they were sold. It was very stressful and discouraging and I felt like we chose the wrong time to buy a house again. Finally, by December 2016 we were lucky that a house went up for sale in a neighborhood we checked out earlier for a previous house sale that fell through. This time we knew that we really wanted to live there, so we could move fast. We were the first to see the house and put an offer in the same day. After two days we knew that the house was ours!

Because the house buying process was taking so long and the housing market was so booming, we had not listed our own house yet. I will admit that I was extremely worried that something would go wrong and our house wouldn’t sell. Our house was sold within a week, but the buyer had some trouble getting his mortgage approved at first, so that was a stressful period. In the end everything worked out and we got the keys to our new house on May 2nd and we transferred ownership of our own house on May 15th.

In 2017 we did not make any extra payments on the mortgage of the old house because we wanted to just pile up savings in case anything would come up during the move. After settling in though we starting looking into paying extra on this mortgage as well. We also received €47.635 from the sale of our previous house in equity. This is not really a profit considering we paid off an extra €71.500, but still we were quite happy that the house sold for €230.500 in the end. In Holland we are required to put down the equity from a house sale in the last three years towards the new house in order to keep the tax deduction for interest paid. So regardless of our plans it would be necessary to use the €47.635 to pay down the mortgage on our new house.

In the next post I will share the details of our new mortgage and our plan of attack going forward.



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