Acquisition costs

Acquisition costs represent the total expenses involved in purchasing a property, separate from the actual purchase price. These one-off costs significantly impact the total investment requirement and must be factored into any financial plan or investment appraisal.

Standard components include:

• Estate agent commission (0.5–2% of purchase price)
• Notary and legal fees
• Transfer tax (6–10.5% depending on jurisdiction)
• Surveys, appraisals and cadastral searches
• Professional advisory and legal counsel
• Renovation or refurbishment costs at handover

For investors and entrepreneurs, accurately estimating acquisition costs upfront is critical to determining true capital requirements and assessing investment yield.