Extra Costs to be aware of before buying a home
Whether you’re looking to buy your first home in France, or trading up / down, there are many costs – on top of the purchase price – that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on completion day if you’re not properly informed and prepared.
Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however it’s better to know about them ahead of time so you can budget properly.
Remember, buying a home is a major milestone. Whether it’s your first, second or tenth home, there are many important details to address, during the process. The last things you need are unbudgeted financial obligations cropping up hours before you take possession of your new home.
Read through the following check-list to make sure you’re budgeting properly for your next move.
Property Taxes – ask for copies of the previous year’s Tax Habitation & Foncières bills.
Property Insurance - Home insurance covers the replacement value of your home (structure and contents).
Legal fees – Notary fees include all of the stamp duty and taxes payable. Check with your agent for a quotation / estimation of these fees. Also be prepared to pay extra if you need a mortgage or special marriage contract.
Mortgage Fee - A mortgage lender will typically charge you a fee of around 1% in order to organise the financing. The Notaire’s fees will also increase where a mortgage loan is secured against a property.
Moving Costs - The cost for a professional mover can vary enormously. Arrange for a quote as early as possible and bear in mind that you are probably funding for a van and 3 movers for 2-3 days, plus fuel costs and potentially 10-20% higher during peak demand periods.