Even the inventor of economics, Adam Smith, noted that land is a finite commodity. By purchasing a piece of land the owner secures a small share of our world. This is almost always profitable in the long run, but due to the mentioned limitation of the land, there are also some costs associated with this purchase. A loan can rarely be avoided in these cases, but what fees will the new property owner have to pay in addition to the actual purchase price?? This article shows which expenses the buyer of a plot of land has to reckon with, among other things.
Note: Individual land prices can only be determined by forensic experts – the overview is therefore kept very general. However, we draw on the empirical data of a Tyrolean expert in this list.
How much does a property cost?
The following table shows several land prices in different categories and the additional costs to be expected (many taxes and fees are given as percentages – determining the exact land prices occupies an entire industry, so we are only giving guidelines here – for example, the Tyrolean housing subsidy recommends a price per square meter of 180 to 400 euros for building land, while there is still much cheaper land in Upper Austria – this proves the strong regional differences).
Cost Favorable Average High / Expensive
|Building plot land||20 Euro / m²||100 Euro / m²||150 euros / m²|
|Building plot city||650 Euro / m²||1.000 Euro / m²||5.000 Euro / m²|
|Land transfer tax||3,50%||3,50%||3,50%|
|A different tax scale applies to the acquisition of real estate free of charge!|
|Land Registry Fee||1,10%||1,10%||1,10%|
|For mortgage||1.2% of the deposit||1,2% of the lien||1.2% of the lien|
|Notary fees||1 – 3 %||1 – 3 %||1 – 3 %|
|Brokerage fees||4% up to 36336,42 €||3% from €48448.51||3% from €48448.51|
|The cost of certifying the signature depends on the chamber rates!|
|The costs for the development (telephone, electricity etc.) can be reduced.) differ depending on the situation!|
|Total at 150 m² of land||10.062 Euro||16.770 euros||25.155 euros|
|Total at 900 m² of land||60.612 Euro||100.620 euros||150.930 euro|
|Sum at 150 m² city||108.030 Euro||166.200 euros||831.000 euros|
|Total at 900 sqm city||648.180 euro||997.200 euros||4.986.000 euros|
A cheap plot of land can be bought in the rural area already for roughly 10.000 euros and in exceptional cases can be had for less. In the city it can be 800.000 euros and cost much more. But we have to note here again that we make a lot of assumptions here to arrive at these figures. So these are only rough guidelines that we give in this calculation. If it is remembered that the valuation of a property alone can cost several thousand euros, and we have left this point out completely here, then we can only recommend that you consult an expert before making a purchase and taking out a loan.
The loan for the purchase of land
By the way, the banks also help with the valuation of a property and are happy to help with the exact cost estimate. Finally, financial institutions in Austria prefer to grant a loan for hardly any project than for the purchase of a good property.
Note: Always consider also the development of the surrounding area before investing in a property with little equity!