|Buying a home is a big decision. For most people, a house will be the most expensive thing they invest in during their lifetimes. There can be many hidden costs you should be aware of. With that in mind, here is an overview of some of the costs of buying and owning a new home.
When purchasing a home, you will also have to incur all kinds of fees that we listed below...
There is no regulation for the amount and payment of this, however in general, 10% of the selling price is payed upon signing the Purchase Contract which is considered a downpayment. Certainly this could be different in case of any other agreement between the seller and buyer parties.
The last price of the property.
This is the asking price that you have negotiated and finalized with the seller. The payment could be either in total by cash or bank transfer upon handover, or by bank loan which requires 1/3rd of the price to be paid by cash or the coverage of this expense by mortgaging a currently owned property.
The fee of the legal attorney or notary.
The charge of theirs depend on the actual selling price, but generally can range from 0.5% to 1.5%. This too includes the writing of the Purchase Contact and the cost of a Certified Copy of Property Title.
Taxation of a purchased property.
The property tax
in Hungary is currently 4% up to the value of 1 billion HUF and 2% above this, which should be paid directly to the National Tax and Customs Administration (NAV). The amount can differ and be reduced, in case the buyer himself previously sold any properties in the last years after which he already payed the taxes.
Change of the owner in the Land Registrar.
This process is usually comes with the Purchase Contact and is handled by the lawyer, yet it can be the responsibility of the owners' upon agreement. This cost should be payed via stamp duty to the local authorities.