Tips on the expenses you will incur when purchasing property
Apart from down payments, first-time homeowners may also have to pay other expenses when purchasing a property. The following are some examples of common costs that may arise:
Real estate brokerage commissions
Commission fees will be incurred if a real estate broker facilitates the transaction of a property. These fees are paid to brokers by the buyers and sellers of the property.
When purchasing a property, the buyer is required to pay tax rates to the Inland Revenue Department. Stamp duties are determined based on the transaction price of a property. Prior to purchasing a property, buyers should seek advice from the Inland Revenue Department or relevant professionals to better understand how stamp duties are calculated.
When purchasing property, prospective homeowners should appoint lawyers to handle contract details. There is no uniform standard used for setting legal fees: they are determined by factors such as the transaction price and age of the property. Prospective homeowners should compare cost specifics with different law firms before choosing one.
Additionally, you may incur various miscellaneous fees when moving into a new home, including rates, building management fees and renovation fees. Costs vary, so find out what they will be before purchasing and be sure to set aside enough money to cover them.