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Costs to think about before you buy

Buying a property: it takes preparation. Determining your borrowing capacity, finding your property, finding your loan... Your special acquisition to-do list is probably already full. But have you thought about all the additional costs that may be involved? Notary fees, mortgage fees and housing fees, we tell you more in this article!

Agency fees

If you use an estate agent to help you with your property search, you will have to pay agency fees. In Luxembourg, agency fees are 3% of the sale price of the property.

Using the services of a real estate agent can be useful if you have little time available.

An estate agent...

Knows the local market very well: he knows the market price, depending on the location and the type of property (flat, house) and will therefore be able to guide you on what you need.

Is attentive to detail: he or she will accompany you on visits and show you what you need to watch out for.

Accompanies you until the signing of the deed of sale: it is responsible for protecting your interests during the signing of the preliminary sales agreement, and then for collecting and transmitting all the documents required for the signing at the notary's office.

The essentials of a property sale: notary fees 

This is a box that we must pass through to see our real estate project become a reality. The notary's fees are made up of several types of fees. On the one hand there is 7% which represents registration fees minus the Bellegen Akt and the notary's fees.

Discover our complete file on the sales agreement for more information with a specific focus on the role of the notary.

What are the property prices at the moment?

Prices are slowing down. Interest rates are rising. What are the trends for the coming months?
Read the analysis

The costs of the mortgage 

It is no secret that when we borrow from the bank, whatever the project, we pay interests. But in addition to interest, you have to think about mortgage fees. A mortgage on the property being acquired is required by the bank. This is a a guarantee for her in case of inability to repay the loan. The notary is responsible for registering it with the Mortgage Office.

It is also preferable to subscribe outstanding balance insurance. It is not compulsory but it is a protection for clients generally in the event of death. The insurance will take over the loan, especially in the case of a couple, so that the co-borrower does not have to pay the entire loan.

It should be noted that the bank's administration fees are not included, mortgage fees and outstanding balance insurance are deductible from your tax return.

Housing purchased: should I expect other costs? 

In addition to the usual costs such as home insurance, water, electricity and gas, there are other costs to consider.
Some municipalities require an infrastructure fee and a connection feePlease check with your future commune.

Becoming a homeowner also means being confronted with some unforeseen events or renovation work. This is why it is often preferable to include a special budget for works in your purchase budget. Don't hesitate to contact your broker who will advise you on the budget to allow for your project.

If you have already identified a property that you would like to work on, receive free quotes from Luxembourg craftsmen

Our brokers, thanks to their expertise and experience, are also at your disposal to establish with you a budget adapted to your real estate project. Make an appointment!

That's it! You have all the keys you need to make a success of your property purchase with complete peace of mind. 

Still have some questions? As a bonus, we offer you our series of judged loans!

atHome

Written by

atHome

Posted on

21 December 2021

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