In addition to the price of the apartment, you must reserve an amount for taxes and documents, after all, there are extra expenses when buying an apartment.
Anyone planning to buy an apartment must set aside an amount for additional costs, usually related to taxes and documents, the extra expenses when buying a property. Values change according to the type of business:
- Cash or financed;
- Value of the apartment.
In cash payment, the public deed is fixed and depends on the location. In the state of São Paulo, for an apartment that costs R$ 500,000, the deed will cost around R$ 3,300 and registration at the real estate registry will cost around R$ 2,000.
TIP: If the person is buying a property for the first time in their life, it is possible to get a discount of up to 50% on the value of the registration and deed, which varies from one city to another, which makes it easier when dealing with the Extra expenses when buying an apartment.
Extra expenses: ITBI
Another important expense is the Real Estate Transfer Tax ( ITBI ). In a cash purchase, it is equivalent to 3% of the value of the business (R$ 15,000, in the case of property of R$ 500,000).
There are no extra expenses when buying a property with a deed in the financing because in legal terms the real estate contract made with the bank is valid. For properties up to R$750,000, ITBI will be charged differently and is a little cheaper. The rate of half a percent (0.5%) is applied on the amount effectively financed, up to the maximum limit of R$ 73,256. On the rest of the value, it is worth 3%.
There are two registry records provided for the financed property. The first follows the same pattern as the unfinanced property. The second is a much smaller value. This document registers the fiduciary alienation, that is: it registers that until the financing is paid off, the property belongs to the bank, which is the most common model.
Other fees are also charged, such as the subscription fee for financing at Caixa Econômica, where, for a property worth R$500,000, it will cost R$7,500 in the FGTS savings system and R$5,000 in the Brazilian Savings and Loan System. In private banks, there is a property appraisal and legal analysis fee in the average amount of R$ 2,200. Therefore, it is necessary to be aware of the extra expenses when buying an apartment.
In this simulation of property worth R$ 500,000, in São Paulo, the sum of extra expenses when buying an apartment was R$ 19,906.7, via private bank financing, remembering that the exact amount of ITBI will depend on the amount actually financed.
THE BAD NEWS
You will have an extra expense of about 4% of the value of an apartment of R$ 500,000, totaling R$ 520,000.
THE GOOD NEWS
Those who finance an apartment (almost everyone) can request that the ITBI, the Registration and the Property Valuation be diluted in the total amount of the loan, so you don’t need to pay these extra expenses when buying an apartment in cash.
Did you like the content? So be sure to check out the e-book “Search and Acquisition of Property: A Jornada”. Thus, you go deeper into the details and check all the information you need to buy your new property and make your dream come true, in an uncomplicated way. Check out!