Anyone who thinks that, when purchasing a property, the value of the property is the only expense to worry about is wrong. There are a number of other implied fees and taxes that you should pay attention to.
In this post, we list 7 of these expenses to keep you abreast of all of them and prevent you from having unpleasant surprises. Check out:
Property and Urban Property Tax (IPTU)
The IPTU is a tax charged annually, and its basis of calculation is the value of the property over the tax paid by him. Properties of all types are subject to this taxation, once they are located in urban areas.
Real Estate Transition Tax (ITBI)
ITBI is a fee charged by the city and may vary from municipality to municipality, but it is usually around 2% of the value for which the property was sold. It is worth noting that the purchase and sale process is made official only when this tax is properly paid.
The public deed is what gives legal validity to the purchase and sale process and is usually charged to those who pay the property in cash. Those who opt for bank financing have their own contract with the bank as a temporary deed.
The registration of the property is what proves by law who owns the place. Made by the notary, this registration has a value that varies according to the price of the property. Recalling that whoever financed the property must take the temporary deed directly to the registry office.
Change after property acquisition
Once the property has been purchased, you need to hire a carrier to take the furniture and appliances to your new home. In addition, it is necessary to consider the assembly and disassembly service and the packing of belongings, if necessary.
Remembering that the value of the change varies according to the distance, the amount of luggage and the chosen carrier. So research and ask for quotes before closing a deal.
Renovations and furniture
Not that the reform is a mandatory or immediate expense, but it is certainly something to take into account, especially in the acquisition of used properties.
Minor repairs to the plumbing or electrical, or even a change in paint to make the property look like you might be needed. Something that may also require extra money are new furniture to decorate the room.
Death and Permanent Disability insurance (MIP) and Physical Property Damage (DFI) are generally included in the payment of those who finance through the Housing Finance System (SFH) and have a cost of 3% to 5% in value the provision of the property.
But, if you want to evaluate these values separately, ask the bank for the Total Effective Cost (CET) calculation sheet, and, with the amounts at hand, compare the price of these insurances at other institutions.
Now that you know what expenses you need to consider when purchasing a property, learn how to make your budget spreadsheet for the purchase of your property!