Buying accommodation: don’t forget the additional costs

When you decide to buy an existing home, you have to plan an adequate budget. The main expense will of course be dedicated to the purchase of the property itself, but you have to be aware that there are a whole lot of other ancillary costs that add to the bill a little more. Here are the main costs to consider:

Notary fees

What is generally called “notary fees” actually groups together different fees. These are the registration and transcription fees at the Registration and Domains Administration which are calculated at 7% (6% for registration fees and 1% for transcription fees) on the value of the land and the construction on it. Under certain conditions, these costs may be subject to a tax credit called “Bëllegen Akt” (up to 20,000 euros per head).

To this must be added the notary’s fees which are fixed by a Grand-Ducal regulation and correspond to approximately 1% of the amount of the acquisition. The
site justarrived.lu
offers a calculator to simulate these expenses.

The notary will also request reimbursement of the costs incurred to collect the documents necessary for the transaction, such as the request for the cadastral extract, surveyor’s fees, etc. as well as mortgage fees (see below).

Costs related to the bank loan

In the majority of cases, the acquisition of a home is carried out with the help of a mortgage taken out in a bank. This loan comes with mortgage fees. Indeed, the bank requires a mortgage on the property being acquired in order to be able to sell it and recover its money in the event of inability to repay the credit. The mortgage deed must be drawn up by a notary who registers it with the Mortgage Office. The amount of these fees depends on the amount of mortgage loan granted.

Who says credit, says interest to be repaid, the amount of which depends on the profile of the borrower, the duration of the loan, and its amount. This is generally subject to negotiation with the bank.

Along with this, it is generally advisable to also take out outstanding balance and disability insurance, although this is not compulsory. This insurance covers the remaining monthly payments in the event of premature death or disability. The price of insurance varies depending on the length of the loan and its amount and may also be subject to negotiation.

Finally, you will have to pay the application fees related to the opening of the loan. These are generally modest and are sometimes offered as a gesture of goodwill on the part of the bank.

Costs related to the accommodation itself

In order to be able to fully enjoy the property, you must also plan for other costs, such as home insurance, connection costs to water, electricity, possibly gas, telecommunications or, depending on the case. , the costs of sanitation of the land and the development of the surroundings.

Some municipalities also require an infrastructure tax and / or a connection tax. In the case of a condominium purchase, there will be common charges and potentially future expenses foreseen by the condominium (facelifting of the facade, roof maintenance, change of gutters, etc.). All this without forgetting future property taxes and contingency costs.

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