let's take a peek at the other costs behind buying a house

Humans essentially have needs that need to be met to support daily survival including clothing, food and shelter. So, you know, friend, the last mentioned need is the human need for a place to live. Yes, owning property is everyone's dream. Not a few of us have to work hard, save and invest to get our dream home. When there is enough money to buy a property, we may forget that besides the price of the house, there are other costs, friends, that may be charged to you. Surprised? Curious? Come on, let's just take a peek at the other costs behind buying a house!

booking fees

This cost is the first cost that will be incurred when you are initially interested in a particular house that fits your budget and dreams, especially if you buy a house through a developer. When you find a suitable house, then you need to prepare some funds for the booking fee, friend. So, the amount of this booking fee can vary according to the provisions of the developer. You need to understand, friends, that this booking fee is not a Down Payment (DP). Although, many of the developers will deduct the DP according to the booking fee paid in the end.

Notary deed fee

When buying a house, you need validation of the buying and selling process that occurs through the services of a notary or often referred to as the Land Deed Making Officer (PPAT). The role of the notary is crucial because he is the only party authorized to legitimize the buying and selling of houses. This notary fee really depends on how many documents must be taken care of and the price determined by the notary himself.

Certificate Check Fee

One of the costs that looks trivial, but you shouldn't forget, friend, is the cost of checking the certificate. Why is the certificate check fee important? Yes, because you don't want, for example, the house you want to buy turns out to be standing on disputed land, both in cases of bank confiscation and multiple certificates. Precisely if you ignore this process just because of cost constraints, you can lose big friends because you have the potential to buy a house that is stuck in a dispute case.

You can check this house certificate at the local land office and the costs can vary depending on the area. However, it generally ranges from IDR 50,000 – IDR 300,000. It's not that big, but don't ignore it!

Transfer Fee

Title Transfer Fee (BBN) is a fee charged to the buyer during the process of returning the name of the Certificate of Ownership from the seller. Transfer costs can usually be taken care of by the developer if buying a house through a developer or taken care of by yourself if you buy the house yourself. The fees for this BBN can vary, friend, but the average amount is around 2% of the transaction value that you make. Don't forget to return the name, friend, later what you have will buy property but it's not in your name anymore. Wow, this is what you pay for, but you don't get anything...

Customs and Taxes

One that can be said to be spending a lot of money on you, friend, is the payment of various kinds of duties and/or taxes. There are at least 3 (three) duties and/or taxes that you have to pay, friends, namely Land and Building Rights Acquisition Fees (BPHTB), Value Added Tax (PPN), and Luxury Goods Sales Tax (PPnBM).

First, BPHTB is a sale and purchase tax that is charged to the buyer. The amount of this BPHTB is 5% (five percent) of the transaction value minus the acquisition value of the non-taxable tax object (NPOPTKP). This NPOPTKP has a different amount, right, friend, according to local government policies. Second, VAT is a tax charged to buyers for primary property (new property). So, for friends who are planning to buy a new home, then you have to take this tax into account. The amount is 10% (ten percent) of the price of the house you buy. The minimum transaction collected is above IDR 36 million, friend. Third, PPnBM is a tax charged to buyers whose homes are categorized as luxury goods. Oh yes, a house is classified as a luxury item if the selling price exceeds Rp. 20 billion and Rp. 10 billion respectively for houses and/or town houses of the non-strata title type as well as condominium apartments, town houses of the strata title type, and/or the like, right? Buddy. The amount of this PPnBM is 20% (twenty percent) of the selling price.

Insurance

For those of you who use KPR services, there are insurance costs that you need to know, one of which is life insurance for KPR which guarantees assistance if something unexpected happens. This insurance plays a role in minimizing risk, both for those who serve mortgages and also mortgage customers. In the event that the KPR customer dies, the KPR Team will later help the heirs to pay off the remaining mortgage installments. Thus, this insurance will help ease the burden on the heirs to pay off the remaining installments.

In addition to life insurance for mortgages, there is also property insurance that can provide protection for your properties. This insurance can help reduce losses in the event of damage to the insured home. The causes of the damage incurred vary, in the property all risk/ industrial all risk policy specifically stated is the exclusion. So, in other words, an all risk property policy guarantees all risks as long as these risks are not excluded. Some examples of risks contained in these exceptions include those caused by terrorism, war, nuclear war, and intentional malicious intent by the insured or other people known to the insured. You can add to the extended warranty by including some of these exceptions. However, keep in mind that the wider the coverage range, the greater the premium.

Well, it turns out that there are a lot of costs that you have to prepare when buying a house. However, if you have anticipated these costs by planning and managing your finances from now on, this will no longer be a problem, especially if it becomes a burden on your finances. So, how are you friends, how far have you managed your finances to buy your dream house?