A real estate acquisition hides many costs that buyers underestimate. – IStock / City Presse
Evaluating a real estate purchase budget is not easy. And for good reason, since the simulations carried out in a hurry on the Internet are far from taking into account all the costs inherent in such an acquisition. To have an idea, know for example that, for a house bought 300,000, it is necessary to pay more around 450,000 euros. Not to mention other costs.
Lots of taxes
After the price of housing itself, the first item of expenditure to be expected is of course that of “notary fees”. This language distortion actually designates multiple costs that are paid at the same time in the office of the notary office but do not, for the most part, come back to this professional. The majority of this envelope is in fact made up of transfer duties for a consideration, in other words taxes and duties related to your acquisition. Between departmental law, municipal tax and the levy for assessment and collection costs, it takes almost 8% of the price for an old property, against 2 to 3% for a purchase in the new.
The notary’s emoluments, that is to say his remuneration, are themselves limited by law to 0.814% for a transaction of more than 60,000 euros. Fees, this time free, can also be added for an unregulated ancillary service such as legal advice for example. Finally, the public officer can request costs and disbursements corresponding to a reimbursement of the sums he has advanced for the transaction (less than 1% of the price of the property).
Expensive extras
If you want a house whose owners have used a real estate agency, you will also have to go to the cash register. Although in principle these costs are the responsibility of the seller, they are generally included in the final sales price. Sometimes the contract even provides for another method of distribution. Be aware that the agency’s commission is between 3 and 7% of the price of the property.
Likewise, it is customary for the two parties to share the local taxes and any co-ownership charges due for the year of the sale. The calculation is then made in proportion to the months of use of the asset. On a total bill of 1,200 euros per year, for example, you will have to pay 800 euros if you moved in on May 1. And unless you have a colossal cash contribution, you will also have to go through a mortgage. In addition to the interest rate, it is necessary to take into account the administrative costs, insurance, even the costs of deposit or mortgage. To find out the real cost of a loan, refer to the annual percentage rate of charge or APR, which must be mentioned in the offers.
Other expenses to plan
- Compliance: old houses sometimes require compliance with the non-collective sanitation installation. An operation invoiced between 9,000 and 10,000 euros.
- Development work: unless you buy a refurbished property, it is often necessary to provide an envelope to finance the development or even the renovation of the home. However, redoing a kitchen, tiling or changing the windows can quickly become very expensive. Be careful to have the work estimated before purchasing.
- Co-ownership work: in the case of co-ownership, the seller is supposed to give you the minutes of general meetings for the last three years. Peel them to check if there are any projects to be done or if they have been voted on but have not yet been carried out.
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