If you are considering becoming a private landlord or property investor it’s good to know the hidden costs of buying a property to rent out.
It does not matter which country you want to invest in there are usually hidden costs.
“Don’t I just negotiate a co2-abgabe vermieter berechnen figure with the seller and organize finance?”
I’ts never that simple I’m afraid, there is usually somebody, normally governments, (local, state, national or federal) and the legal profession that want to stick you for a percentage of your hard earned cash. They aren’t content with taking a share of your profits and earnings, they need to hit you every-time you purchase a property.
Sure they’ll call the hidden charges “administration fees”, could be they are just ripping you off, but you must pay anyway.
So other than the money you agree to pay to the seller of the property you want to buy, there are additional charges you need to factor into your purchasing costs.
Depending on the country you are buying property in, the fees may very well be known as “Title fees” or “Conveyancing Charges”. These are the fees for registering the title in your name on the local property register. The costs differ by country, in some countries you’re permitted to do it yourself, in others you need a lawyer (solicitor/attorney).
“That is it then, I am, I just pay the seller and the title charges”
Well not yet, there is “transfer tax” or “stamp duty” that is often a local authority fee (another grab for your cash) allowing you the private landlord the privilege of transferring the property from the owner to you.
In the USA sales tax (“whoa you didn’t mention sales tax” -, I am not finished yet) sales tax – this tax is not always imposed on the purchase of property. But in 36 US states a property transfer tax of 1% to 5 % is charged on the assessed value of your property. Stamp duty may also be charged if you take out a mortgage but not if you happen to pay cash.
