Have you finally stumbled upon the house of your dreams? Before you start celebrating like a child in a candy store, it’s crucial to consider the hidden costs that could turn your dream into a financial nightmare. We’re talking about those expenses that, if overlooked, might leave you reeling. Get ready to dive into a world of numbers and percentages you never wanted to face. Ready? Here we go!
The notary: a pivotal player in your home purchase
Let’s start with the first major character: the notary. Notary fees can vary significantly, and they are not just random figures. They depend on factors such as the property’s value, its location, and, believe it or not, whether it’s your first or second home. If you’re planning to take out a mortgage, brace yourself for higher costs, as the notary will need to draft two documents: the sale deed and the mortgage deed. And let’s not forget about the mortgage itself! Typically, the amount required is double that of the mortgage loan itself. So, start saving!
Taxes that can take you by surprise
Now let’s move on to a topic that everyone loves to hate: taxes! The registration tax for a first home is set at 2% of the assessed value. But beware, if you’re buying a second property, this figure skyrockets to 9%! And if you’re purchasing from a construction company, here’s a lovely surprise: in addition to the €200 registration tax, you’ll also need to pay VAT! But wait, there’s more; the cadastral and mortgage taxes each amount to €200, dropping to €50 for purchases from private sellers. It can feel like a financial hit!
Mortgage-related expenses
If your dream home includes a mortgage, you should be prepared for additional costs. The technical appraisal, for example, could set you back around €300, and this varies from bank to bank. Don’t forget about the processing fee, which usually hovers around 1% of the mortgage value, and the substitute tax, which can range from 0.25% to 2% depending on whether you’re buying a primary or secondary residence. Quite the treasure, isn’t it?
Condominium fees: a hidden expense
When analyzing the property’s value, don’t overlook the condominium fees. It’s wise to request the last three minutes from the condominium meetings from the seller so you can get a clear idea of what you’ll be paying. And be cautious: according to Article 63 of the Civil Code, you might find yourself liable for overdue fees if the seller hasn’t settled their bills. Essentially, you could inherit debts that aren’t yours. Isn’t that delightful?
Extraordinary maintenance charges
Last but not least, check whether any extraordinary maintenance work has been approved. The costs for these works, if approved before the sale, fall upon the seller. And then, there’s the transfer of utilities: costs can vary depending on the company and region. A real estate agency can provide you with useful information regarding this.
In summary, entering the realm of real estate purchase requires a healthy dose of preparation and attention to detail. Don’t let unexpected expenses tarnish your dreams. With a bit of planning and the right mindset, you can embark on your journey towards your dream home with a smile!