DUOKOOP

Aside from buying or renting a house, you can now also purchase a house with ‘Duokoop’. The Duokoop scheme was developed to enable more people to buy a home, increasing the options for buyers and sellers.

FIRST-TIME BUYERS EXPERIENCE DIFFICULTIES IN THE HOUSING MARKET

Despite historically low mortgage interest rates, it is becoming increasingly difficult for (young) first-time buyers to arrange financing for their home purchase.

Due to changes in the housing and mortgage market, this group is spending a larger share of their income on housing costs. With stricter lending standards restricting mortgage amounts, many first-time buyers are unable to enter the housing market without help from their family.

First-time buyers often have to rent for a longer period of time (and at too much expense) or make concessions when buying a home, frequently resulting in a home that does not meet their requirements. Many first-time buyers report being unable to acquire a reasonable house.

A NEW SOLUTION FOR FIRST-TIME BUYERS: DUOKOOP!

Duokoop makes it, for a large group of first-time buyers, easier to buy a home. The scheme is based on ground lease and was developed by DNGB B.V. in Almere.

With Duokoop, the starter purchases -in an economic sense- a property, but not (yet) the land (also called bare ownership). The land is purchased by DNGB Fund. The buyer finances the home with a mortgage loan and pays a monthly ground rent for the land. The ground rent is deductible for income tax purposes. Duokoop’s lower monthly payments can be used to buy a more suitable home.

The land is purchased by the foundation Stichting DNGB Fonds I (the DNGB Fund). European pension funds invest in the DNGB Fund, which has a target value of 1 billion euros. The distribution of Duokoop is exclusively through mortgage advisors, who can generate an online offer through DNGB’s internet platform.

The Duokoop scheme is recognised by the Homeownership Guarantee Fund, which means that Duokoop can only be used in combination with a National Mortgage Guarantee (NHG) mortgage. Acceptance by DNGB takes place in accordance with the NHG criteria, which limits the risk of over lending and residual debt for consumers.

The Duokoop scheme puts consumer interests first, and is based on transparency, flexibility and customer-friendliness. Consumers may purchase the land from DNGB whenever they so desire, thus acquiring full home ownership.

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