Nowadays it is necessary to work on both to buy a reasonable house. People with children and two busy jobs experience a lot of stress. The lives of these families are also set up for two incomes, making it not possible to work less. Labor participation in the Netherlands has increased in recent years. There are few families where one of the partners focuses entirely on the children and the household. In the past, one of the parents was usually at home to take care of the children. Both partners now have jobs, but on average work fewer hours than before. In the past, it was common for one parent to have a full-time job of 40 hours and the other parent to stay home full-time. Nowadays both parents work, but neither has a full-time job. For example, the parent who is the breadwinner works 32 hours a week and the other parent works around 20 hours. This means that only limited childcare needs to be arranged.
The price of a lifestyle
Families with two incomes have a large monthly income. Families where both partners have a low income can also live more comfortably compared to the situation in the past. To buy an expensive house, a second income must be available. This is also the pitfall. Spending patterns also increase due to greater income. With two incomes it is possible to buy a house that is beyond the possibilities with one income. The major disadvantage is that both partners have to continue working to meet the monthly mortgage payments. As soon as one of the partners loses his or her job, problems can arise. The income is first reduced to a percentage of the previous income (unemployment benefit), after which the second income is canceled completely.
Buying a house without taking second income into account
Although it is no longer possible to buy a house on one average income in most parts of the Netherlands, it is still advisable not to fully include the second income. Buying the home of your dreams seems feasible, but it can also be too much of a burden. You must also take your situation in the future into account. Families with a top mortgage based on two incomes must carefully consider the consequences of financial setbacks and rising costs.
High costs in the future
Despite a large monthly income, dual-income households must take into account worse and more expensive times. Once the children start studying, you cannot rely on the government to provide the funds to make studying possible. They are now still entitled to limited student financing, but this is no longer sufficient to pay for their studies. In the future, even more emphasis will be placed on financing expensive training courses yourself. You can cover yourself against the consequences of disability by taking out housing costs insurance. If you become incapacitated for work, this insurance will cover all or part of your monthly mortgage costs.
Uncertainties due to government measures
Your financial position can also deteriorate significantly due to government measures. This could include mortgage interest no longer being deductible or a deteriorated arrangement for compensation for childcare costs.