Discover How Much It Costs To Buy A House

Buying a home is one of the most important financial decisions in a person’s life. Price is one of the factors that most influences this operation, although other aspects must also be analyzed, such as the economic scenario and the financial situation of the future owner.

House prices were stable during the first months of the year. Now, with the economic recovery and the return of activity in the real estate sector, this indicator has started to rise.

Expenses associated with buying a home

The price of the house is not the only indicator that must be taken into account in order to know the total financial outlay involved in the purchase. There is, in addition, another series of expenses associated with this operation and that represents between 10% and 15% of the purchase price:

• Notary fees. The purchase of the home is formalized by means of a public deed in which a notary intervenes. This procedure allows to know the rights and obligations of the parties. This expense is regulated by law and usually ranges between 0.3% and 0.5% of the total value of the property.
• Expenses of the Property Registry. The public deed of the purchase of the house has to go through the Property Registry and its cost is also related to the amount of the sale.
• Management expenses. These costs can be saved if the owner himself carries out the procedures, among which the registration of the deed and the settlement of taxes stands out. The prices of the agencies to do this work are around $400.
• Expenses associated with financing. The signing of a mortgage can entail other expenses such as the appraisal. In addition, the buyer must have saved 20% of the price of the property since banks offer financing, at most, for 80% of the value of the home appraisal.

Why buy a home now?

In addition to the cost of housing, before buying a property you have to consider the evolution of the market and the financing conditions. In the current scenario, the economic recovery and low interest rates create an ideal context for acquiring a home.

All in all, the growth in gross domestic product (GDP) for the coming months suggests that the rise in prices will continue and interest rates are likely to follow suit, so buying a home today may be a better opportunity.