What are the Costs When Buying a House?
Various costs may arise during the home buying process. In order to be efficient in budget management in the home buying and selling process, it is necessary to know all the details. The costs that may be incurred in the home buying process are as follows:
Costs When Buying a House
- house price
- Real Estate Consultant Service Fee
- Title deed fee
- Revolving Fund Fee
- Property tax
- renovation costs
- Environmental cleaning tax
- Subscription costs
- TCIP
- loan costs
House Fee
The cost of the house is the amount demanded by the buyer and this is the biggest expense item you will make when buying a house.
Real Estate Consultant Service Fee
Another cost that may arise in the process of buying a house is the real estate agent service fee. In accordance with the Regulation on Real Estate Trade, real estate consultants can request a service fee of 2% + VAT (18%) separately from both the landlord and the buyer of the house. The real estate agent may also receive a different amount of service fee by agreeing with the buyer and the seller.
TCIP
TCIP, Compulsory Earthquake Insurance policy is also required during the title deed transfer process when buying a house. This insurance is renewed every year and the buyer is required to carry this insurance on his own behalf when buying a house.
Title Deed Fee
As of 2021, 4% of the sales price is paid as a residence title tax. This price is divided between the buyer and the seller as 2%-2%. In addition, the title deed revolving fund fee is 385 TL as of 2021.
You can find up-to-date information about the title deed fee on the e-Government Directorate of Land Registry and Cadastre page.
Revolving Fund Fee
When buying a house, the title deed revolving fund fee must also be paid. This amount is determined each year by the relevant institutions and the payment is made through the land registry offices.
Property tax
Every home owner is subject to Property Tax, which is calculated on the value of the home. This tax has to be paid every year, starting with the year following the purchase of the house.
Renovation Costs
If the purchased house is not brand new, renovation costs may arise along with it. Examining the house to be purchased thoroughly in advance and calculating the renovation costs ensure that the budget is determined correctly.
Environmental cleaning tax
Although it is not among the expenses incurred when buying a house, it is another expense after owning a house. Environmental Cleaning Tax, also known as Garbage Tax, is calculated on the basis of water consumption and is paid in two installments per year.
Subscription Charges
In order to benefit from services such as electricity, water, natural gas and internet, you need to open subscriptions. It is also possible to move previous subscriptions to the new home. At this point, the cost of transportation can be an expense.
Loan Charges
Housing loans are mostly given as 75% of the price of the house and the buyer is expected to pay the rest of the cost of the house. If you are going to use a loan, you should examine the installment interest and down payment amounts in detail. You can use the Loan Offers service on to compare the loan offers that are most suitable for you.
