Costtool

About this model and its assumptions

Acquisition Costs

Model

Calculating Acquisition Costs involves adding up the various taxes, fees and charges a homebuyer pays when taking ownership of a home. Acquisition costs are made up of two set of costs: (i) the costs related to the registering of the change of ownership of the property (from the developer to you or from the previous owner to you as the case may be) called Home Acquisition Costs in our model and (ii) the one-off costs related to the mortgage you may need to take out to finance your home called Mortgage Closing Costs in our model.

Assumptions

The State of Luxembourg fixes stamp Duty and Notary Fees that depend upon your personal situation, the house price and the mortgage amount. For New (off-plan) properties, we consider in our calculation that the land value corresponds to 35% of the total property price. Please refer to the Nexvia Tax smart card if you wish to view the applicable Stamp Duty rates.

Other Notary Charges include the VAT payable on the Notary Fees plus other expenses and disbursements your notary will charge for executing the transfer of ownership (+/- €1,000) and the mortgage registering (+/- €500). These expenses and disbursements charged by the notary may slightly vary depending on the specific situation of your acquisition. Our estimate should however be very close to the actual price you will pay.

Banking Charge is the one-off fee that banks usually charge when taking out a mortgage. We estimate this fee to €500 but this may change from one bank to another.

While you will need to contract a Mortgage Insurance when financing your home through a mortgage, we have not considered a Single Premium Payment as part of the Mortgage Closing Costs since we believe most acquirers will opt for an Annual Premium Payment that are included in the Monthly Charge of our Calculator.

Monthly Charge

Model

We believe that having the full picture on your Monthly Charge in relation to home buying is highly important when considering ownership. This is why we have estimated all charges you will face when buying a home during the length of your mortgage. On top of your mortgage payment (divided between principal and interest), our model automatically estimates all other expenses related to your home year on year.

Assumptions

Property Charges & Maintenance are the recurring costs we estimate you will pay for maintaining and heating your property plus the property management costs (if your property is an apartment). A fair estimate of these costs is 0.5% of the home price annually.

Mortgage Insurance is our estimate (based on data from insurance providers) of the Annual Insurance Premium you will pay (spread monthly) for the credit life insurance required from your bank on your mortgage. The model is based on an insurance taker aged 35 and non-smoking, and an insurance covering the death of the insurance taker and not his/her spouse/husband.

Property Tax & Communal Charges correspond to (i) the annual property tax calculated on the unitary value of the home which rate varies depending on the municipality, and (ii) other communal charges for the different services provided by the municipality (water provision, waste management, water cleaning,...) which amounts vary depending on the municipality.

We believe our estimate to be very close to reality. For further information about the income tax and property tax payable on your property, please refer to the Nexvia Tax smart card.

Mortgage Balance & Home Equity

Model

Mortgage Balance & Home Equity automatically calculates the outstanding balance of your mortgage at the end of each year and the corresponding home equity based on your forecast of annual home value increase. Home Equity is the expected future value of your home minus the outstanding mortgage balance.

Assumptions

Our Mortgage Balance & Home Equity calculator is based on the information you have entered, especially the Annual Home Value Increase calculating the expected future value of your home.