Legal expenses related to buying your own home
Acquiring your own home is a decision that not only implies the payment of the initial fee or the duties that the obligations of a mortgage loan entail, but that, in addition to these costs, there are legal expenses that you must take into account at the time of buy a home.
So it is necessary to have extra savings that can cover their responsibility. In some cases, the banking entities with which the mortgage loan is taken give the possibility of increasing the value of the disbursement so that it covers said legal expenses.
When buying a house or apartment you must take into account the procedures to be carried out in order to have all the requirements and expenses generated by the purchase process as followed by capital smart city Islamabad.
Some of these legal expenses include:
– Withholding tax at source.
-Contributions to the Office of Public Instruments.
-Charity expenses: departmental tax.
-Registration of the deed.
However, in Vínculo Desarrollo Inmobiliario the client only has to pay the notarial rights, rents and registration.
In addition to these legal expenses, if you want to buy a home through modalities such as mortgage credit or housing leasing, you must take into account the following expenses:
This expense is necessary to determine the commercial value of the home and the fair price that must be paid for it, based on some factors that are already established.
In this sense, the commercial advisor of the financial institution will report on the amount to be paid for the service. It should be noted that to proceed with this activity, the corresponding fees must be paid in advance.
Minute and study of titles
These are the fees of the external attorneys that have been assigned by the bank, this in order to carry out the study and know-how favorable the property is, it is also feasible to know whether or not it is an admissible guarantee for the bank.
Once this is done if the concept is favorable, the bill of sale and mortgage or the transfer bill is drawn up to send it to the Notary.
Notary fees are established by the Superintendency of Notaries and Registry; in this, both the buyer and the seller must assume the notarial expenses in equitable parts.
The seller must pay 1% for Withholding at Source on the value of the act. These values must be paid at the notary, just at the time of signing the deed.
Among the specific expenses of notaries are:
- Study of the mortgage credit:
- Promise of sale at a notary’s office.
- Certificate of tradition and freedom.
- Deed process.
- Registration rights.
- Mortgage value.
This corresponds to a deed tax. Just in this case, whoever buys the property must pay a percentage above the sale value of the property. It is important to clarify that in some cities there are additional taxes that will be assumed as the two parties have dealt with.
These are the expenses corresponding to the registration of the act before the Public Instruments Registry Office. The corresponding cancellation of the registration of the deed must be made, this is 1.67% above the value of the sale (must be paid by the buyer of the property).
It should be clarified that for the sale of the property the buyer must pay 1.94% above the value acquired by the home, in this case whoever makes the purchase must make a payment corresponding to 1.27% of the value for the who sold the property.
Among other legal expenses involved in acquiring a home of your own are housing taxes that are divided into municipal tax, certificate of tradition and freedom, registration fees.
Finally, it is important to note that the homes acquired with financing obtain a discount in the mortgage registry, paying only 70%. In another sense, the VIS (Social Interest Housing) cancel 40% and if they have a subsidy only 10%.
Lastly, you must take into account all the expenses involved in settling in your new home. You must plan the move so that everything can go well; remember to make a detailed list of everything you need to make you fit into your new home. Save extra money for expenses that may arise along the way.
We tell you how you can calculate the real estate profitability of a home
Real estate profitability
In these times of change due to the Coronavirus pandemic, it is always good to be certain about what is being invested, especially if investing in real estate is about, because in these times, especially, where financial uncertainty is on the edge of the abyss, is when you must be sure that the economic investments in real estate that are being made must have a real estate profitability.
It is necessary to take into account that unlike other types of investments, in order to calculate real estate profitability it is necessary to understand that there are several variables, that is, of a type that include not only the amount of money that is being invested but the amount of use that will be given to the property:
If the property is for rent, the rental income and maintenance expenses (capital flow) must be taken into account.
If, on the other hand, the house is to be sold, it is necessary to take into account the price of the sale of the property and the amount of money that was invested (capital gain).
How to calculate the real estate profitability of a home?
The profitability of a home that you are going to take into account for sale will be calculated after having sold the property, since this way the operation can be carried out with the exact amount for which the property was sold.
In this sense, the return on investment when selling a property is calculated with the following operation:
(Final sale price – investment price/investment price) x 100
Example: If the cost of an apartment you bought is $ 135,000,000 and with the help of the capital gain it is sold for $ 148,000,000, the return on the investment is obtained as follows:
(148,000,000 – 135,000,000 / 135,000,000) x 100 = your profitability was 9.62% and your profit was $ 13,000,000
So then, in the case of the profitability of the sale of a property, details such as:
Sometimes the property is not sold at the price that the market demands, which is why sometimes you can get much less, and at other times, depending on the geographical and social context, much more.
The advertising costs that will be generated by the immediate sale of the property must be taken into account.
Commissions for real estate sales agencies.
This is why, in this case, you can subtract all these expenses from your profit, then perform the corresponding calculation in order to obtain the real profitability of your investment.
3 factors to know if the property will be profitable
1. Selection of properties
The selection prior to the purchase of a property is quite important since with this it is proposed to locate the best real estate offers. This is why the more comparison between properties, the better.
Searching on Internet platforms, specifically in real estate portals of Tajarat properties or doing a crawl in real estate agencies are good options. Compare real estate with similar characteristics: rooms, bathrooms, appliances, common areas, surface.
2. Real purchase price
The main key is to know how much can be lowered during the negotiation. For this you can resort to official studies such as notarial ones, this to find out what is the real price with which the houses in the sector that interest us are sold.
Most of the professionals in the real estate sector estimate that the percentage of discount compared to the initial price is between 10% and 20%.
3. The most practical formula
When the price for which the house is to be bought is known, a profitability calculation must be carried out. Borja Mateo, a real estate professional affirms that “a home must have an annual profitability of at least 5%, less than this it is not worth buying.”
Investments in the real estate sector continue to position themselves as one of the most reliable assets on the market; this regardless of the financial situation and the economic context of the country.
Time are constantly changing and people who dare new opportunities to grow no longer place their decisions on instincts and compasses; now the world has vast access to information and expert advice that allow support to make good decisions.
Now you can also know the profitability offered by our real estate projects, the great return on investment that you can have when acquiring a new property and all the benefits of a project with our company.