Immobilienservice Naumann GmbH ( advises you to deal with the ancillary costs in detail before making a purchase. Depending on the region and type of property, these can account for up to 20 percent of the purchase price. The ancillary costs incurred include, for example, property transfer tax, notary and court costs and registration costs, but there are also hidden costs, which are explained below.
-Ancillary costs due to refurbishment or renovation
-Additional costs incurred through insurance
-Immobilienservice Naumann GmbH on the costs of financing
-Additional costs by hiring a broker
-Equity is important
ADDITIONAL COSTS DUE TO REFURBISHMENTS OR RENOVATIONS
When buying a property, the experts at Immobilienservice Naumann GmbH recommend dealing with possible refurbishment and renovation costs at an early stage. Although buying a house is often cheaper than building a new one, you can fall into serious cost traps here. In order to be able to estimate the costs correctly, it is important to examine the house carefully before buying it. Professional architects, civil engineers or craftsmen can help with this. In addition, it should be checked whether there is any financial aid for the planned renovation work.
Minor cosmetic repairs should also be included in the calculations. If you do work yourself, such as laying the floor covering or wallpapering the walls, you can save money. In this case, only the required material counts.
ADDITIONAL COSTS RESULTING FROM INSURANCE
When buying a house, not only the direct costs, such as the purchase price, but also the indirect costs should be considered. This includes, for example, insurance to protect the house and the people living in it. But what kind of insurance is actually necessary when buying a house? Immobilienservice Naumann GmbH has compiled a list here:
Liability insurance for homeowners is an important protection against possible damage in connection with the property or property. If third parties are injured as a result of a situation on the property in question, or damage to property occurs, high costs can quickly arise. In this case, home liability insurance can protect the owner from financial burdens. For example, a falling roof tile on someone else’s car can cause considerable damage, which can be covered by insurance.
Homeowners should take out home contents insurance to protect themselves against financial loss in the event of burglary, theft, fire or water. Home insurance covers loss or damage to the homeowner’s personal belongings, including furniture, electronics, clothing and other valuables. Whether or not you are adequately protected with household contents insurance depends on the individual contract design and the amount of the sum insured.
Building insurance helps to minimize financial risks from unforeseen events such as fire, storms, hail, lightning or tap water. These events can cause significant damage to a property and high repair costs. Homeowners insurance protects against these costs and covers the necessary repair and restoration costs. In addition, residential building insurance can also cover natural hazards, such as floods, landslides or earthquakes. Such insurance cover is particularly advisable in areas with an increased risk of natural disasters.
-Natural damage insurance
If residential building insurance does not cover elementary damage, separate elementary damage insurance is recommended. With natural hazard insurance, homeowners can limit the cost of repairs, restoration, and potential consequential damage, thereby reducing their financial risk. It is advisable to take out such an insurance policy, particularly in regions where elemental damage occurs frequently or is more likely due to structural conditions.
IMMOBILIENSERVICE NAUMANN GMBH ABOUT THE COSTS OF FINANCING
When taking out mortgage lending, one should also consider the additional cost of repaying the loan. The amount of these costs depends in particular on the interest that has to be paid for the loan. In order to save money in the end, the amount required for buying a house should be calculated as precisely as possible and the incidental costs should be included. In addition to the interest, the effective interest rate is also important for choosing the right offer. This provides information about the costs incurred for financing the house and includes, among other things, fees such as processing fees, loan brokerage commissions and discounts.
It is important, however, that not all costs are included in the effective interest rate. For example, commitment interest, valuation costs, partial payment surcharges or account management fees can increase the total cost of the loan. A transparent list of all additional costs and the effective interest rate is therefore important in order to compare different financing offers.
ADDITIONAL COSTS BY hiring a broker
When purchasing a property through an agent, there are usually agent commissions. These costs are not negligible and should therefore be planned for in good time. The brokerage fee is usually split between buyer and seller. However, the exact allocation of costs may vary. That’s why the experts at Immobilienservice Naumann GmbH recommend putting the agreements in writing to avoid misunderstandings. There are also cases where only one party, usually the buyer, has to bear the broker’s commission. It is therefore advisable to know the exact amount of the commission, which can be between three and seven percent of the purchase price, depending on the federal state. As a rule, the broker’s fee must be transferred to the broker immediately after the conclusion of the purchase contract.
EQUITY IS IMPORTANT
Mortgage financing can be attractive for buying or building a new property, explain the staff at Immobilienservice Naumann GmbH. However, one should note that this is also associated with a high monthly burden over a long period of time. For this reason, it is advisable to save up your own capital so that you can at least cover the ancillary costs. The use of equity also makes financing cheaper and the bank can offer better conditions due to the lower financial risk.
If saving equity is not possible, an installment loan can be an alternative to pay the additional costs. In contrast to construction financing, however, no entry in the land register is made. Another option is private credit, where friends or family act as lenders. The decisive factor here is that the money loan is recorded in writing and the repayment is clearly regulated. By using equity or choosing an alternative financing method, costs can be saved in the long term and financial risks minimized, according to the experience of Immobilienservice Naumann GmbH (https://info-immobilienservice-naumann.de/)
Immobilienservice Naumann GmbH
06851 – 97 77 010
Immobilienservice Naumann GmbH
06851 – 97 77 010