How much money do you need to save to buy an apartment in Lazio? Within the province of Rome, the amount set aside can range from 25,000 euros to over 100,000 euros for a 75-square-meter home.
How much money do you need to have set aside to be able to afford to buy a home in Rome?
The amount of money you need to spend to buy a home depends on several variables: whether you are buying a house to renovate, what the buyer’s salary is, what kind of job he or she does (if he or she wants to apply for a mortgage), how much he or she has saved, etc. Although ads on major real estate portals report that a 75-square-meter three-bedroom apartment costs €350,000 in a semi-central area of the Capital, it is not mandatory to have the full amount at the time of purchase and sale. And besides, smaller solutions can be found with a lower cost, even not in the center but close to the metro station.
Most home purchases, are finalized through obtaining a mortgage loan with a lending institution. In order to qualify, depending on age, there are various facilities. For example, it is possible for those under 36 to purchase their first home by applying for a youth mortgage assisted by the State’s First Home Fund, managed by Consap, to obtain an amount that covers up to 100 percent of the value of the property (maximum cost 250,000 euros). The young person’s ISEE must not exceed 40,000 euros and must have a permanent employment contract. Priority clients include others, such as a single parent with a dependent minor child or a couple living together (with or without marriage) for at least two years, where one of the two is under 36 years old.
For those over 36 with a permanent contract or VAT number (by submitting the last two income models), one can apply for a mortgage with coverage up to 95 percent of the value of the property (without Consap).
The conclusion: how much money does it take to buy a home?
There is no single answer to this question. Consider an under 36 applicant for a 100% mortgage for a 250,000-euro house. The house in question is not in need of renovation and is already furnished. How much will he have to spend on the purchase?
- Registration Tax (from Private) € 3,500 – € 4,500
- Estate Agency 3% of the Purchase Price (€ 250,000) + VAT 22% € 7,500 – € 9,150 (commission varies from 2% to 4%)
- Notary Fee (Purchase and Sale) € 2,000 – € 3,500
- Notary Fee (Mortgage Deed) € 1,500 – € 2,500 (mortgage in favor of the bank)
- Banking Fees: Investigation 0.5% – 1% of the Mortgage Amount € 1,500 – € 2,500 (varies by institution and customer rating)
- Banking Charges: Appraisal Fixed Cost € 300 – € 500
- Banking Charges: Substitute Tax 0.25% of the Mortgage Amount (First Home) € 625
- Banking Charges: Fire/Burning Policy € 400 – € 800 the cost depends on the insured amount and the duration of the mortgage
- Credit/Financial Mediator 0% – 2% of the Mortgage Amount € 0 – € 5,000 the cost varies whether the service is free (sponsored by the bank) or fee-based (on a percentage basis)
So the estimated total to be covered by equity varies from € 17 thousand to € 29 thousand.