In a modern state, there is no escaping taxes, especially when it comes to buying an apartment. This important operation on the way to cherished freedom in personal space is accompanied by many additional processes, which professionals and relevant authorities will gladly help you to cope with. Earlier we talked about how to become a full owner of an apartment. But that's not all! What you will have to face and how much to spend on all this - we will talk about this in a new article. Lawyers, real estate agents, notaries and public institutions, as well as cooks in a restaurant where you will "wash" the purchase in the circle of loved ones, work for more than one sincere "thank you"...
You will have to add to the cost of the apartment...
With the purchase of real estate side by side there are associated costs. Their size and number may change in specific conditions and largely depend on the object itself. In most cases, you will have to face the following additional costs:
- real estate appraisal is optional. The need to carry out such a procedure may arise when the buyer takes a loan from the bank. An accurate determination of the object's market value will convince the financial institution that every penny will be spent as intended. The cost of the assessment can range from 1 to 500 hryvnias and depends on the location and characteristics of the specific property
- upon re-registration of real estate and its registration in the state register, a corresponding registration fee is charged, which is 1% of the value of the object. There are certain limits beyond which its dimensions cannot go. from 3400 to 51000 hryvnias
- VAT or value added tax will have to be paid if the seller is a legal entity. This tax is 20% of the total amount
- paying annual real estate tax for "extra" square meters or excessive luxury has become an unpleasant but obligatory tradition for those who already own an apartment or house. If the seller did not take care of paying this tax in advance, the new owner will have to pay it after signing the relevant agreement on the transfer of property from one hand to another. You can find out more about this tax in the appropriate articles in our blog
- just signing the contract and handing over the keys is not enough for the deal to be considered closed, and most importantly, legal. Only after its official registration, you can proudly call yourself the full owner. Only a notary can certify the legality of the transaction and your new status. The average price tag of a specialist is 1-3% of the real estate value, but it cannot be less than 5 hryvnias
- the size of the realtor's commission is within the same limits
- without the qualified consultation of a lawyer, you will not be able to make sure that all the documents are drawn up correctly and that there are no fraudsters hiding on the other side of the contract. You have to pay for your peace and safety
Here we immediately want to point out a great way to save a little. Why hire a lawyer and a realtor separately when you can go to a real estate agency T.H.E. Capital and get the "2 in 1" service? We offer qualified assistance from our experts and lawyers to each of our clients. We accompany you at all stages, make sure of the reliability of the other party and relieve you of the slightest doubts that can torment the soul in such large and expensive purchases.
Not only taxes, but also fees: additional costs when buying an apartment
Deducting from your savings the necessary amount for the purchase of an apartment, prepare to put a little more than planned into the initial budget. In addition to the costs already announced, you may face fees - pension and military.
- Contribution to the Pension Fund - 1% of the real estate value
- Military levy - 1,5% of the real estate value
Despite their different sizes, these taxes have a lot in common. As a rule, they can be included in the costs associated with the registration and conclusion of the contract of sale. Most often, both of these taxes are paid by the seller, but this issue is decided individually. Payment of fees may be fully or partially the responsibility of either party. Such cases are not uncommon when, for the sake of convenience, the buyer and seller decide to divide the responsibilities between themselves. one pays taxes and the other covers the cost of the notary's services.
When buying real estate, you can be exempted from payment to the Pension Fund, if you meet at least one of the following conditions:
- this is your first real estate purchase
- you are registered in the queue for housing
Even if additional expenses could not be avoided, do not attach great importance to them, because instead you get the apartment that you have dreamed of for so long and that you were lucky to find among thousands of options on the market.
