If you buy a house freely in your name (for example, a new-build house) you do not pay any notary fees. When it comes to the Winston Salem NC real estate then you will be able to have the smartest choices now.
Transfer tax
You pay a transfer tax when buying a house. This is 2 percent of the purchase price. If you buy a house (for example, a new-build house) you do not pay a transfer tax.
All in all you have to assume that the extra costs when purchasing the house amount to approximately 6 percent of the purchase price. So suppose you want to buy a house for 200,000 euros, keep in mind that you have to put in 12,000 euros of your own money. Please note that this is an estimate. The actual extra costs may be higher or lower.
In addition to the hidden costs above, searching for a good house (and renovating it) will also take time. And you know what they say: time is money. Keep in mind that the house hunt will cost days off – and indirectly also money.
Notional rental value
If you have your own house, you pay no rent, you build up your assets and you can rent out part of your house. For these reasons, the tax authorities see owning a house as a source of income. This (possible) income is offset by a consideration: the notional rental value. This amount is added to your taxable income. In this way, you pay more tax. In short: if you have your own house, your taxable income is higher and you therefore pay more tax.
Property insurance
Your household contents consist of all movable items in your household (with the exception of money). For example, think of clothing, curtains or awnings. You can ensure these matters. You pay a monthly amount for this. Mortgage lenders can make this insurance mandatory.
Home insurance
As a homeowner you must have home insurance. This insures you against damage to the property.
Maintenance costs
When you buy a house, you have to take into account maintenance costs. As a tenant, you have less to worry about because the landlord takes care of most of the maintenance. This is therefore different for buyers and these results in higher monthly charges.
Other municipal taxes
In addition to property tax, as a homeowner you also have to pay sewerage and waste levy. How much you pay for this depends on the municipality where your house is located.
Term life insurance
Mortgage risk insurance is often linked to a mortgage. This insurance means that a certain amount will be paid to your next of kin if you die. Part of the mortgage can be paid off with this amount. This gives the mortgage provider the certainty that the next of kin can continue to pay the house.
Tax-deductible?
Fortunately, there is also light at the end of the tunnel: tax deductibility. Some financing costs that you incur when buying a house can be deducted from the tax once. You can find what is deductible and what is not on the website of the tax authorities.
