In addition to paying attention to the price and location of the house itself, there are a number of additional costs to be taken into account when purchasing second-hand homes, including the cost of moving. The transfer costs are an inevitable part of the real estate transaction process and an understanding of how they are structured and calculated can help purchasers better plan their budgets. So, what are the costs of second-hand house transfers? Let's find out more。
I. What is a second-hand house transfer
The second-hand house transfer is the process of transferring ownership of the house from the seller to the buyer. In this process, buyers and sellers are required to carry out a series of formalities and pay the related taxes. Once the transfer is completed, the buyer can become the legal owner of the house。
Ii. Major costs of continued housing
1. Taxes
The tax is an important tax to be paid by the purchaser, whose rates vary according to the size of the house and whether it is the first flat:
- general dwellings (less than 90 square metres): 1 per cent
- general dwellings (over 90 square metres): 1. 5 per cent
- non-ordinary dwellings or two apartments: 3 per cent
It should be noted that the specific tax rates of the tax may vary according to regional policies, and it is recommended that local housing authorities or tax authorities be consulted in advance。
2. Value added tax and surcharge
If the right to housing is less than two years old, vat and its surcharge are paid. The vat formula is:
\text{value added tax} = (\text{total house price} -\text{original house price})\times 5\%
The surcharges usually include city maintenance taxes, education fees plus local education surcharges, which together amount to about 7-12 per cent of vat。
3. Personal income tax
The personal income tax applied to the seller but was sometimes passed on to the buyer. Generally, personal income tax is levied on the basis of 20 per cent of the added value of the house. If the seller holds a house for five years and is the sole dwelling, personal income tax is avoided。
4. Real estate registration fees
The real estate registration fee is a fixed fee to be paid for the processing of the property certificate. Currently, the rate for most districts is $80 per item。
5. Intermediary services (if applicable)
In the case of transactions through intermediaries, there is also a fee for intermediary services. The percentage is usually between 1 and 3 per cent of the transaction price, and the amount can be determined in consultation with the intermediary。
6. Other miscellaneous expenses
In addition, there may be minor incidental costs, such as assessment fees, notary fees, fees related to loans, etc. These costs, although small in monetary terms, cannot be ignored in aggregate。
Iii. How to calculate the total cost of second-hand house transfers
In order to facilitate the purchaser's quick estimate of the cost of household transfers, the following is a simple calculation formula:
\\text{total cost} =\text{compensation tax} +text{value added tax and additional tax} +text{personal income tax (if any)} }text{real property registration fees} }text{intermediary services (if any)} }text{other incidental expenses} \
Of course, the ratio of costs needs to be adjusted in practice to take into account specific circumstances。
Iv. Notes
1. Early counselling policy: there may be differences between local policies on second-hand house transfers, and buyers are advised to confirm the latest rates to the relevant department prior to the transaction。
2. Reasonable choice of payment: if funds permit, the option may be to pay the house in a lump sum in order to save interest expenses; if a loan is needed, additional factors such as bank interest rates will need to be considered。
Retention of documents: throughout the course of the transaction, it is essential that all documents and documents be kept in safe custody for subsequent search or defence。
In any case, it is essential to have full information on the cost of the transfer before purchasing the used room. It is only by being adequately prepared that unnecessary trouble can be avoided and property transactions successfully concluded. I hope this will help my friends who are considering buying a house
