03.12.18

Apartement XL #9 in the spotlight

What do you get for your money and what are the benefits of getting involved immediately? We have used an example to show that a VERTICAL apartment is also within your means.

VERTICAL STORIES

Buying a home in Amsterdam is not cheap. And if you buy a home, you really want to know what you're getting for your money. VERTICAL will offer you more than just square metres. What do you get for your money and what are the benefits of getting involved immediately? We have used an example to show that a VERTICAL apartment is also within your means. Imagine you are buying apartment #9:

1. What am I buying?

Apartment #9 is a comfortable XL apartment in VERTICAL West with living space of ca. 110m2 and a loggia of ca. 12.5m2. So, when the good weather arrives, you can simply slide open the doors to increase the size of your living room. The apartment has three bedrooms and a bathroom, but is also available in loft format. It is located on the 9th storey and has sun access from the north, east and west, which is a guarantee for relaxing summer evenings. This spacious home, which is located in a sustainable residential building, has been designed by Studio Donna van Milligen Bielke.

2. How much do I pay for this home?

This 110m2 XL apartment costs €673,300 deed-in-hand, which includes a one-hundred year lease. It thus includes a prepaid ground lease payment of €45,174.

You also have the option to buy based on an annual indexed lease payment. In this case, the home will cost €630,422, and you must make an annual indexed lease payment of €1,080 (index 2.39%). The extra amount you must pay the municipality will be determined by the ground value and the date when the deed of delivery is signed. The lease ground value is fixed until 31 December 2020.

3. What (else) do I get for my money?

  • An extremely sustainable and energy-efficient home
  • A spacious patio as well as a landscaped Vertical garden
  • A luxury bathroom and toilet
  • Under-floor heating as main heating system
  • Attractive interior doors
  • Heijmans ‘Intelligent living’ home management
  • Shared living options on the fifth storey including e.g. a communal living area, lodging facilities, a gym and a roof patio. So if you have something to celebrate, this is the ideal location.
  • Breakfast, lunch, dinner, drinks or even another place to work: all these facilities are part of the shared services offered on the ground floor
  • Use of electric mobility facilities
  • Including notary and broker costs
  • Including one-off connection costs for water, electricity and drainage
  • Including costs for the SWK Guarantee and deposit scheme
VERTICAL West

4. Can I actually afford the apartment?

Imagine you purchased a home six years ago for €220,000, and its value has now increased to €330,000. The difference (capital gain) must be invested in the new home, which means a mortgage of €560,000 is needed. If your mortgage was agreed before 2013, then half of your new mortgage will be interest only. To pay this new mortgage, you will need an income/joint income of ca. €115,000 per year.

If you buy an apartment in VERTICAL for €675,000, this will cost you a gross sum of around €1,900 per month. At the current rate of interest, your net mortgage payment will amount to approximately €1,480 per month! If you were to rent a 110m2 apartment in Amsterdam, you would definitely have to pay between €2,200 and €2,750 per month, without actually improving your capital or paying off a mortgage.

 

Price level November 2018

Costs homeowner association

VERTICAL is a high-quality building and features various functionalities for making your life as pleasant as possible. All VERTICAL residents pay monthly service costs for these functionalities. How much you pay is determined by the size of your apartment. This includes costs for maintaining greenery, structural maintenance (lifts, façade, communal entrances, etc.).

Monthly costs homeowner association will be approx. €2.50 per m2 (indication). This means you will pay around €275.00 per month.

The homeowner association will define the hight of the montly costs in a later stage.

Also take into account extra costs for:

  • Designing the kitchen
  • Designing/finishing the apartment
  • Financing costs, interest charged under the purchase/contracting agreement, standing charges and energy consumption
  • Notary costs for the mortgage

5. What are the benefits if I get involved immediately?

  • During this phase of development, a lot of choices can still be made concerning layout, finish, design of the bathroom, toilet, kitchen, etc. This will become more difficult as the plans progress.
  • Considering the low interest rates, a VERTICAL home is now quite affordable if you have a good income and reasonable capital gains on your current home.
  • VERTICAL is expected to be completed at the start of 2022. You must finance your home using a mortgage and an accompanying deposit which is used to pay progress-based instalments. This means you will have until the moment of handover to save for the interior design of your apartment.
  • VERTICAL is default sustainable. Homes in VERTICAL comply with all sustainability requirements. Because you are buying a sustainable home, many mortgage lenders will offer you an extra interest discount. This interest discount can be as high as 0.2% at various mortgage lender, and even up to 0.5% at Rabobank.
  • Next to an interest discount, some mortgage lenders will offer you extra financing capacity up to €15.000, thanks to the EPC-norm of≤0,0.