The Additional Costs To Factor In When Purchasing A Property
Buying a property is an exciting time in anyone’s life. Whether it’s your first purchase, stepping up the property ladder, buying a holiday home or a property abroad, nothing quite equates to the feeling you get when you receive the keys and take your first steps through the door. In Aruba, or any other location, purchasing a property is a serious investment; even the predicted 45.7% of foreign-born individuals that will populate Aruba by 2030 can’t get away from the additional costs that come with buying a home on a sunny island.
Fees and taxes
There are additional costs other than the agreed sale price that will be charged as part of a property’s purchase agreement, most notably, transfer tax and notary fees. Notary fees allow a transfer of deed document to be drawn up, providing the checks performed as part of the notary, including current owner checks, are satisfactory. A transfer tax will also be due once the house purchase has been successfully complete.
Following these immediate additional costs, real estate tax is required to be paid annually by all owners of real estate property. In Aruba, the real estate tax is capped at 0.4% of the property’s value, regardless of whether the property is in a finished or unfinished condition.
Homeowners insurance
Get covered for peace of mind that should anything happen to your home, you’re insured. Modern technology means many homes have a vast number of appliances that need protecting, add to this other personal possessions such as jewelry and high-end pieces of apparel and the total value of your household goods is likely to be a considerable sum. Insuring your items means they’ll be replaced or repaired in the event of occasions such as theft or damage, whilst your property will be covered for repairs should it suffer flood damage or be struck by lightning.
Living costs
Once you’ve sorted out taxes and insurance, it’s time to kit out your home. This can be one of the most expensive costs when buying a house, especially if you’re a first-time buyer having to buy everything from scratch or you’ve migrated to the country bringing a limited amount of possessions with you. Furniture, kitchen appliances and decorating tools and equipment are all items you’ll likely need to factor into the overall cost of your purchase price.
Needless to say, don’t be put off by the additional costs that come with purchasing a home. Buying a home is an exciting thing and some careful planning and research will prepare you for any additional costs due.
