Difference in ancillary employment costs between existing property & new construction

Hello,

to the old hands: are the ancillary acquisition costs cheaper with one of the two variants?

Best regards

Yes, but it depends...

Clear answer: it depends. Real estate transfer tax applies to the acquired property according to the purchase price. If I buy a plot of land, the purchase price is likely lower than for an existing house. If I buy a "finished" house from the developer, it is more comparable. If a broker is involved, you also pay a commission on the purchase price - same argument. Conclusion: the property with the lowest purchase price incurs the least ancillary acquisition costs.

And now seriously... What is the purpose of your question and what are you comparing? Same size or same purchase price? What comes to mind immediately is, if you don’t build with a developer but buy the land separately, then for the new build you only pay the property transfer tax on the land and not on the entire "volume".

With an existing property, a small amount of real estate transfer tax can be saved if the inventory (e.g., fitted kitchen) is listed separately.

With an existing property, you can save a little on property transfer tax if you list the inventory (e.g., fitted kitchen) separately.

However, this also reduces the value of the property for financing purposes and can lead to paying several times more interest due to worse terms than the amount saved on property transfer tax.