A primary-market flat: additional charges

Buying a new flat on the primary market is the dream of many people. Most often we buy such properties with a mortgage. When planning the budget needed for the transaction, we must also remember additional costs. What are these charges?

Mortgage-related costs: what to remember?

Not everyone can afford to buy a flat in cash. Most buyers take out a mortgage for this purpose. Before deciding on a mortgage, it is worth taking a good look at the various costs that arise with this form of payment.

Every mortgage requires a down payment. Its percentage may differ depending on the bank providing the financing. Sometimes, with a small down payment, it is necessary to buy insurance. This is what is known as low down payment insurance. In such a situation, however, the mortgage-related costs immediately rise. Therefore, if we have only modest funds for the down payment, we must take additional expenses into account when planning the budget for the flat.

We must also pay the bank an appropriate commission for granting the loan. In addition, there will be a fee for the bank's valuation of the property itself.

When taking out a mortgage there are quite a lot of these additional costs. Anyone who wants to prepare thoroughly in this respect in advance can use the advice of professionals: estate agents in Katowice, or in other cities, are able to prepare a list of the charges that come with a mortgage.

VAT instead of PCC

When we buy a flat on the secondary market, we have to pay civil law transactions tax (PCC). In the case of a new unit, on the other hand, VAT must be paid. For flats with a floor area of up to 150 m2 it is 8%. For larger floor areas it is 23%. Most often this tax is already included in the price quoted by the developer, because listings usually show gross amounts. If the purchase is made by a business, this tax can later be deducted under certain conditions.

What are the notary costs?

A primary-market flat also means notary costs. If we buy a unit through an estate agency, specialists will help take care of all these formalities. At the notary's office, the developer agreement (umowa deweloperska) is signed first. To be valid, it is drawn up in the form of a notarial deed (akt notarialny), which of course involves an appropriate fee. The second visit to the notary is the one at which the agreement transferring ownership is signed. For both of these documents, the costs are divided between both parties to the agreement.

All such additional expenses increase the total amount needed to buy a new flat. They should be kept in mind from the stage of the very first plans for acquiring the property. It is very important, after all, to plan the budget for this investment well.