Financing of ancillary costs for real estate purchases

When buying a property, many people first think of the purchase price of the property itself. However, in addition to this amount, there are a number of ancillary costs that also need to be financed. These additional costs can quickly make up a considerable proportion of the total amount and should therefore be planned for carefully. In this article, we explain which additional costs are incurred when buying a property, how high they can be and what financing options are available.

What additional costs are incurred when buying a property?

1. land transfer tax: This tax varies depending on the federal state and is between 3.5% and 6.5% of the purchase price. It is due immediately after the purchase and is one of the largest additional costs. In Leipzig and Saxony it is now 5.5%.

2. notary and land register costs: The notary is responsible for notarizing the purchase contract and entering it in the land register. These costs generally amount to around 1.5% to 2% of the purchase price.

3. estate agent's commission: If an estate agent is involved, a commission will be charged. This also varies depending on the region and is usually between 3% and 7% of the purchase price.

4. surveyor's fees: Before buying, many buyers have a survey carried out to check the value and condition of the property. These costs vary and depend on the scope of the appraisal.

5. financing costs: These include commitment interest, processing fees and costs for registering the land charge.

Total amount of ancillary costs

In total, ancillary costs can account for between 7% and 15% of the purchase price when buying a property. For a purchase price of 300,000 euros, additional costs of between 21,000 and 45,000 euros can therefore be expected.

Financing options for ancillary costs

There are various ways to finance additional costs:

1. equity: Ideally, ancillary costs should be paid from equity. This reduces the risk and costs of financing, as no additional loan interest is incurred.

2. bank loans: Some banks offer special loans to finance ancillary costs. These are often linked to certain conditions and have higher interest rates than regular construction financing.

3. KfW loans: The Kreditanstalt für Wiederaufbau (KfW) offers funding programs that can also be used to cover ancillary costs under certain conditions. These include, for example, programs for energy-efficient refurbishment.

4. personal loans: For smaller amounts, a personal loan can be an alternative. These loans are often unsecured and therefore carry higher interest rates.

5. seller participation: It is also possible to negotiate with the seller that they will pay all or part of the additional costs. In this case, they can often be financed by the bank.

6. combinations: A combination of equity and loans is often a good way of covering the ancillary costs. You should calculate the costs carefully and compare different offers.

Conclusion

The ancillary costs of buying a property are a significant factor that is often underestimated. Careful planning and the right financing are crucial to avoid financial bottlenecks. The financial burden can be optimally distributed through a combination of equity and favorable loans as well as the use of subsidies. If you plan early and compare different offers, you are on the safe side and can realize your dream of owning your own home without any nasty surprises.

About the author: Sven Schwarzat is Managing Director of Schwarzat Capital GmbH, based in Lützen. With this GmbH, he holds numerous properties in his portfolio, carries out construction projects and rents out his apartments. His main focus is in and around Leipzig and Magdeburg. He is a good advisor for everyone. His expertise and experience make him a reliable advisor for real estate-specific questions, and not just for Leipzig and Magdeburg.

For further information, please contact (also the person responsible for this press release):

Schwarzat Capital GmbH
Mr. Sven Schwarzat
Ernst-Thälmann-Straße 18
06686 Lützen
Germany

phone ..: 034444909876
web ..: http://www.schwarzat-capital.de
email : info@schwarzat-capital.de

You may use this press release - even in modified or abridged form - free of charge on your website with a source link to our homepage.

Press contact:

Schwarzat Capital GmbH
Mr. Sven Schwarzat
Ernst-Thälmann-Strasse 18
06686 Lützen

phone ..: 034444909876
web ..: http://www.schwarzat-capital.de
email : info@schwarzat-capital.de

Schwarzat Capital GmbH
Ernst-Thälmann-Straße 18
06686 Lützen
Germany

http://www.schwarzat-capital.de

Herr Sven Schwarzat
034444909876

info@schwarzat-capital.de

Schwarzat Capital GmbH was founded in 2019 and is based in Lützen. It holds real estate in Central Germany, in particular Leipzig and Magdeburg. It was founded by Sven Schwarzat and continues to be managed by him.

This release was published on openPR.