Here are 5 costs a homebuyer should be considering from the start By Sharon Bartlett
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home is considered one of the most significant purchases in a person’s lifetime. Several expenses are incurred in the process. They include;
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1. STAMP DUTY AND PROPERTY TAXES The buyer must pay these taxes and vary depending on the state. A house located in the city or the suburbs is also a reason for price variation. Typically a stamp tax is 4%-7% of the total cost of the house. It authenticates the sale agreement and evidence that a home has been sold or bought. The buyer should also consider other taxes that are paid annually and increase after a while. As first-time buyers intend to get out of rental houses due increase in rent every year, they should also be aware of these taxes to avoid being surprised after buying a home.
Property taxes are crucial and should never be overlooked. When one buys a house under construction, the buyer must pay good and service taxes. It is 1% depending on the house’s location and size. Registration fees are paid for transfer of ownership from seller to buyer and records updated properly. It usually is around 1% of the total cost. 2. MAINTENACE COSTS Buying an older home is cheaper, but the buyer should take caution in unforeseen costs due to numerous repairs done on the house. People not familiar with older homes are advised to use contractors. JULY 2022 | 27
