In a detailed survey into the hidden costs of buying property abroad produced byWhich?, the British independent advice experts, it has been revealed that there is a huge discrepancy between fees and charges assigned to the buyer of a home abroad depending on where they choose to purchase.
This is important information to take on board because, according to multiple sources, the UK TV presenter Amanda Lamb has allegedly stated that now’s a great time to buy a home overseas as prices are falling and everywhere is seemingly a bargain. However, if some nations have lower fees than others, that surely makes them potentially more of a bargain than others.
So, what’s the difference between property in Turkey and property in Greece? About £10,500 in fees on the purchase of a £100,000 property according to Which?!
Greece is one of the most expensive countries in Europe in which to buy a second home according to the survey, with transfer taxes, land registry and other notary fees alone adding a whole £10,000 to the price of a £100,000 home. Then with all other fees added on, this brings the ‘hidden cost’ total to a staggering £17,500. Whilst many people who plan on buying a home abroad factor in that they will have to pay some charges, few factor in that they will have to find a further 17.5% on top of the asking price!
At the opposite end of the scale one has Turkey – a nation already developing a very healthy international property landscape, and one highly likely to continue to enjoy its current successes as long as it doesn’t tamper with what appears to be a winning property formula! In the Which? survey, total costs for the purchase of a £100,000 property came in at about 7% or £7,000. Broken down these are £3,000 in estate agent’s fees, £1,000 in legal fees and £3,000 in the likes of transfer taxes and land registry fees.
Other nations examined included Bulgaria where buying a £100,000 home will cost you an additional £9,000, Croatia and Portugal where fees are in the region of 10% on top of the asking price, Spain where you can expect to have to find £12,000 for a £100,000 purchase, and Italy and France where fees add up to between 16 and 16.5% to the purchase price.
So as you can no doubt see, when setting your budget for a purchase of a property abroad, you really need to know in advance how much you are likely to have to pay out for the likes of the following: –
Estate agent’s commissions
Local purchase taxes
Land registry fees
Notary costs and
Company establishment costs
Find out what these costs will amount to in advance of making any form of positive decision about a home purchase, only then will you avoid the harsh reality that so many people face when they discover that they cannot actually afford their dream home after all.