A house is always more expensive than the asking price. You always have to take into account additional costs. Especially now that, from 2018 onwards, you can only finance 100% of the purchase price. The extent of these costs depends on various factors. One of these factors is whether the purchasing costs are payable by the purchaser or not. The advantage of a house offered at no additional costs payable by the purchaser is that there is no transfer of ownership. Consequently, the following costs do not apply:
- Costs for the deed of transfer
- Transfer tax
- Registration as owner at the Land Registry Office
What is the difference between no additional costs payable by the purchaser and purchasing costs payable by the purchaser?
Apart from the obvious, practically all houses offered at no additional costs payable by the purchaser are newly-built homes or new developments, whereas existing homes are, in principle, always offered on the basis of purchasing costs payable by the purchaser. As stated previously, when purchasing a newly-built house, some of the additional costs no longer apply. These are mainly costs related to the transfer of ownership.
When buying a newly-built house at no additional costs payable by the purchaser, it is wise to ask the contractor to clarify what costs are included in the asking price. This way, you avoid any unpleasant surprises and thus financial setbacks! Are there any other differences when the purchasing costs are payable by the purchaser and when they are not? Yes, there are!
The transfer of the property must be paid for somehow. These costs are normally factored into the original asking price. When purchasing a house at no additional costs payable by the purchaser, you pay 21% VAT. That is much higher than the 2% you would normally pay for transfer tax. The room for negotiation is an important difference. Whereas room for negotiation is limited in the event of a home offered at no additional costs payable by the purchaser, you can negotiate the price when the purchasing costs are payable by the purchaser.
Purchasing a house at no additional costs payable by the purchaser
Buying a house at no additional costs payable by the purchaser does not mean that there aren’t any additional costs! Instead of the 6% when purchasing costs are payable by the purchaser, you are looking at 2 to 3% for the purchase. As from 1 January 2018, you can no longer include these costs in the overall financing package. Therefore, when buying a house, you are required to invest some money of your own. As a result, we can see more and more people starting to compare prices for:
- Signing the mortgage deed (civil-law notary)
- The valuation of the property (the valuer)
- Reliable advice from a consultant (the mortgage advisor)