Why do you usually pay no buyer's costs on a new-build home?
When you buy vrij op naam (v.o.n.), meaning with the costs included, the buying costs are already included in the purchase price. You then pay no separate transfer tax and no notary fees for the transfer deed. With that deed, the notary puts the home in your name. With an existing home, you do pay these yourself, as buyer's costs (kosten koper, or k.k.).
There is no transfer tax because of VAT. The seller charges VAT on a new home, and that VAT is already included in the purchase price.
If you are going to live in an existing home yourself, you pay 2% transfer tax. That rate drops to 0% with the first-time buyer exemption if you are under 35. So you do not need that exemption for a new-build home bought vrij op naam. After all, there is no transfer tax to be exempt from.
Anyone who buys a new-build home signs a purchase and construction agreement (koop-/aannemingsovereenkomst) for the land and the construction. Always check in this agreement whether the purchase price really is vrij op naam. If you buy the land and the construction separately, look extra carefully at the costs.
{{cta}}
Which additional costs do you still pay on a new-build home?
With a new-build home, you mainly pay costs for your mortgage, the construction period and the finishing. You pay them at the notary, during construction and at completion. So paying no buyer's costs on a new-build home does not mean you pay nothing extra. For example, you still pay the notary fees for your mortgage deed yourself. That deed gives the bank security for your loan.
As a first-time buyer, you have no money from the sale of a previous home. You therefore often pay these extra costs of a new-build home from your savings. That is why homeup believes you should know every cost item in advance, without surprises. The table helps you plan how much you need and when. It also shows which items are tax-deductible.
Cost item | When do you pay this? | Tax-deductible? |
|---|---|---|
Advice and brokerage for your mortgage | When you take out the mortgage, before the notary appointment | Yes, for the mortgage you take out |
Notary for the mortgage deed | At the notary, on transfer | Yes |
Construction interest | At the notary, on transfer | Yes, from the signing of the purchase and construction agreement |
Extra work and buyer options | During construction or at completion | No |
Completion inspection | At completion | No |
Floors, garden and furnishings | After completion | No |
With these four items, it pays to look carefully in advance:
- Construction interest is interest on the land and the construction instalments until the transfer. Construction instalments are the parts of the price you pay per construction phase. The later the transfer at the notary, the higher the construction interest.
- Extra work and buyer options are extras you order from the builder. A more luxurious bathroom or an extension then comes on top of the purchase price.
- A completion inspection is a check of your new home by your own expert. They check at completion whether everything has been built as agreed.
- Double housing costs arise because you start making mortgage payments as soon as the notary appointment has taken place. The money borrowed for the construction is then held in a construction deposit. If you still live in a rented home, you pay twice until completion.
Which questions about the costs should you ask the builder as a first-time buyer?
Ask the builder in advance about the purchase price, the extra work and the schedule. That way you know before signing what is included and what you pay yourself. A brochure mainly lists what is included in the price. What falls outside it only becomes clear in the technical specification. That is the document describing all the materials and the finishing of your home.
With these five questions, you will not face any surprises as a first-time buyer:
- Ask what is included in the purchase price and what is not. Check in particular whether the kitchen, bathroom, floors and garden are included.
- Ask for the price list for extra work before you sign. Put every order in writing, so that there is no dispute about the price later on.
- Ask whether the heating system is included in the purchase price. That is not the case with every project.
- Ask from what date you pay construction interest and when the construction instalments are due. Then you know how much is added at the notary.
- Ask when completion is scheduled. If it is delayed, you pay rent and mortgage at the same time for longer.
homeup is the housing platform for first-time buyers and always takes your side. That is why we look at your situation with you in a free initial mortgage consultation. Bring the builder's answers, and you will see what you can borrow. You will also see what you pay from your own savings. With a mortgage certificate from homeup, your financing is in place before you start searching. Also keep a reserve for costs you do not see coming. You can ask your question about your own situation via our contact page.
{{cta}}
