Home buyers in Bucharest pay among the lowest taxes and associated costs in Europe when purchasing a home through a mortgage loan, about EUR 2.500 for an average one-bedroom apartment, according to a market analysis issued by online broker Ipotecare.ro.<\/p>\n
The associated costs when buying a home include the property registration fee, notary costs, mortgage loan granting fees charged by financial institutions, the property valuation cost, and the possible fee of the credit broker.<\/p>\n
The lowest level of associated costs, reported as a percentage of the price of a two-bedroom apartment, are paid by buyers in Chisinau, of 0.85% of an average property value, which amounts to approximately EUR 1.120, and by buyers in Prague, of 1.08% of an average property value, about EUR 7.450.<\/p>\n
The next position is held by Bucharest, where the minimum costs associated with buying a home through a mortgage loan amount to 1.59% of the property value or EUR 2.530. The report considered a value of EUR 107.500 for a one-bedroom apartment.<\/p>\n
The largest share of the associated costs in the case of Bucharest represents notary costs, which amount to an average of 1,5% – 2% of the property price, while the mortgage loan granting fee has a value between zero and EUR 200. The property valuation cost has an average value between EUR 100 and EUR 200. The broker\u2019s credit services are free of charge.<\/p>\n
On the other hand, the associated costs paid by buyers of a home in other European capital cities are much bigger and could reach tens of thousands of euros for an average one-bedroom apartment. A home buyer in Sofia pays an average of 3.78% of the home price, or EUR 5.125, while a one-bedroom apartment in Budapest pays additional costs of 5.48% of the home price, or almost EUR 10,000.<\/p>\n
Costs in Rome can reach 5.66% of the home price, or about EUR 35,780, the biggest cost being the property registration fee, which amounts to 2% of the value, or 9% in the case of a second property owned. At the same time, home buyers in Madrid end up paying minimum associated costs of 7.99% of the property value, which can go up to a minimum of around EUR 20,500, while those in Amsterdam pay minimum costs of around 3% of the property value, or around EUR 15,000.<\/p>\n
\u201dThe impact of the associated costs is much greater and, considering that the additional costs could reach tens of thousands of euros in other analysed capital cities, they can be a decisive factor in closing the transaction or not. The affordability of buying a home in Romania, given the price\/wage ratio, is doubled by the lower level of associated costs,\u201d said Laurentiu Bogdan, managing partner Ipotecare.ro.<\/p>\n
Percent-wise, the highest additional costs relative to the home prices are paid by buyers in Vienna, at 11.64%, with total costs rising to almost EUR 56,000 for a one-bedroom apartment, while the highest net amount is registered in Paris, where the minimum total associated costs amount to just over EUR 58,000.\u00a0<\/p>\n
In general, the highest costs are represented by the property registration taxes. If they are equal to zero in Bucharest, in Madrid go up to 6% of the home price, and in London, they vary between 2% and 5% of the property value.\u00a0<\/p>\n
Notary fees vary between 0,2% of the home price in Chisinau and 8% for properties older than three years located in Paris. Mortgage loan fees charged by financial institutions are between zero in Bucharest, Chisinau, and Warsaw, and 1.2% of the property value in Paris, respectively 2% in Rome.\u00a0<\/p>\n
The credit broker services are free in Romania, Bulgaria, the Czech Republic, Germany, Greece, Hungary, and Poland. They can reach 1% – 2% of the home price in Spain, 1% – 3% of the property value in Italy, 3% – 4% of the property price in Vienna, and between EUR 1,300 \u2013 2,000 in Amsterdam.\u00a0<\/p>\n