Beware of hidden costs

Oh no! Not another bill! When buying property, take care not to be ambushed by unexpected charges.

You’ve finally agreed on the purchase price and just taken out a bank loan. Everything has been worked out precisely and you’re looking forward to taking occupation of your new house/flat. That’s just when you’re confronted with an unexpected invoice. How is it possible? This expense was never discussed before!

Buying a property is an expensive business – which, like the actual purchase price, cannot be avoided. To help you ward off unwelcome surprises, we’ve put together a list of the most significant ‘hidden’ costs when buying a property.

• Notary fees should amount to a single-digit percentage of the purchase price, and these can add up considerably when you’re buying a house.
• If you’re taking out a bank loan, make sure you’re fully informed. Make sure you have enough time to compare the various offers from different banks. Pay careful attention to the loan interest rates and other related charges.
• You should consider whether to opt for a fixed or variable interest rate on your mortgage. If you decide on a variable interest rate, there’s the risk that increases in the base rate could negatively impact on the interest rate – and thus on your budget.
• More taxes: time and again. Find out in advance exactly which taxes need to be paid when buying a property. Taxes could vary and don’t just depend on the type and usage of a property. It also matters if the seller is a private person or a company. In each case, be sure to ask your tax/financial consultant for advice.