When preparing to become a homeowner, the purchase price of the property is not the only expense to anticipate. Numerous fees are added to a real estate purchase: credit, notary fees, agency fees, insurance ... Discover what additional costs to anticipate when buying a property, to better prepare for them.
The costs associated with a mortgage
The majority of buyers finance their new home with a mortgage, which implies various additional expenses to the amount to be repaid: insurance, application fees, cost of guarantees, etc. The total cost of a mortgage varies according to three factors: the amount of the personal contribution, the duration of the loan, and its interest rate.
Taken out in case of death or job loss, insurance is not mandatory when taking out a loan. Note that a borrower can freely choose the institution that will insure them, provided that the insurance contract offers a level of guarantee equivalent to that proposed by the lending institution.
Notary fees and real estate agency fees
Notary fees amount to about 7 to 8% of the purchase price for old properties and 2 to 3% for new ones. Several factors are taken into account in calculating the amount:
- Transfer duties, that is, a set of taxes that the notary collects and forwards to the Public Treasury on behalf of the buyer.
- Registration and management fees.
- The notary's remuneration and reimbursement of any costs they incurred in compiling the file (surveyor expenses, land registry, etc.).
When using a real estate professional, you will also have to pay agency fees. They are generally expressed as a percentage of the property's price, only when it is to be paid by the buyer, which remains rare.
Other post-purchase costs not to be overlooked
Don't forget that moving costs time, but also money! Indeed, it would be wise to plan a budget dedicated to the purchase of certain furniture, renting a vehicle, or even contracting with a moving company.
Also, if you choose to buy an older property, you will probably need to carry out small works like repainting, changing the wallpaper, etc., or even more significant works, such as knocking down a partition.
Do not overlook the amount of taxes and local charges you will have to pay. Indeed, you will have to pay the housing tax and property tax, whose amounts vary depending on the municipalities and the composition of your household.
The case of co-ownership
If your new home is also part of a co-ownership, you will also have to pay co-ownership charges. Legally, it is the owner at the time of the call for funds who must pay all the charges. This call takes place at the beginning of each quarter.
It is often customary for an equitable distribution to be made between seller and buyer. As for the works voted in the general assembly, it is the owner at the time of the call for funds who must pay for them. If works have been voted, but the call has not been issued before the sale, it is the buyer who will bear the cost.
In summary, buying a property is not limited to the price displayed on the real estate advertisement. This price is only part of the overall budget you will need to allocate to your project.