Buying a new home: what are the additional costs to expect?

The success of your real estate project depends on its adaptation to your budget. When defining the budget that will be allocated to the purchase of your dream apartment, you must take into consideration several elements. Indeed, the acquisition of a property does not only involve the purchase price. Other expenses are added to this price and weigh down your budget.

Notary fees for new real estate programs

Contrary to the notary fees to pay when buying an old property, the fees to pay to acquire an apartment in a new program are lower. However, you must take them into account when calculating your budget. They vary from 2 to 3% of the price of the apartment and are composed of several points.

The notary's fees

The notary's fees are determined on the basis of the tariff set by the State and vary according to the amount of the property. It should be noted that the notary may incur other expenses (formalities fees) on your behalf. These include, for example, surveyor's fees, stamp duties, the salary of the registrar of mortgages, the tax on publicity and others. The total amount of notary fees cannot exceed 10% of the purchase price of the new program. Apartments that have been built less than 5 years ago and remain unoccupied are also considered new.

Transfer taxes

These fees are related to the registration fees and are paid directly into the State's coffers. The fees are paid at the time of signing the deed of sale in the presence of the notary. You must pay the totality of the fees except in the case of a purchase on plan or a purchase in VEFA (Sale in the Future State of Completion).

The expenses relating to the real estate credit

Most buyers of new programs finance their real estate project with a loan. When you buy your home, you have the option of taking out a mortgage. This subscription commits you to pay the loan amount with the agreed interest rate. You must also pay the loan insurance. The amount of the insurance affects the total cost of the loan. For this, you must take your time to compare loan insurance contracts. You also have to pay the credit guarantee and the bank fees. The bank fees vary from one institution to another and according to your status. For this, you can call on a real estate agency to help you compare offers.

VAT and local taxes

VAT is the main expense you need to take into account when calculating your budget for the purchase of a new home. It is estimated at 20% of the purchase price of a new home program in most cases. VAT can be reduced in certain situations, particularly when you want to make the property your primary residence. You can benefit from a tax exemption of more than 12%. But, the new housing should be located in a development and urban renewal zone (ANRU). This reduction is also applicable for new real estate programs that are located in the priority of the city policy (QPV). It should also be noted that this VAT reduction is subject to other conditions, including the amount of purchase of a new apartment and your income. You must meet all the conditions to qualify for a possible reduction. Before making your real estate investment, it is important to find out about the local tax system. Property tax, garbage collection tax, housing tax and other taxes vary from one municipality to another. You should anticipate and avoid unpleasant surprises by asking the developer to provide you with his tax form. In practice, the sales document anticipates the payment of the property tax. It is generally divided between the developer and the buyer. The notary is responsible for this distribution.

Moving expenses and agency fees

Leaving your old home and moving into the new one involves other moving-related costs. For this, you must set aside a part of your budget for the move. These costs can add up to thousands of euros when you use a professional. You can also set aside a portion of your budget for special tasks. For example, you may want to add some special touches to the home to personalize it and make it more modern. In addition, you should also consider the agency fees when you consider using a real estate agent to make your real estate investment. They represent a significant amount that influences the overall cost. These fees can be as high as 7% depending on the nature of the real estate agent's service.