Frequently Asked Questions

Are there other financial institutions that can be approached when building?

Banks are the main financial institution to go to when considering building a home.

Based on the amount I can borrow what size home can I build?

The bank will give a guideline on the amount that can be spent per M2 which includes materials, equipment and labor.

Do I need to have an architect draw my house?

In some cases one may wish to have an architect draw a specific style, but you can also purchase an approved plan through D.O.W

Do I need to make a deposit when building a home?

As a resident, depending on the cost of the home and length of time given to pay back the mortgage a deposit may be requested.

As a non resident a deposit is requested.

How do I choose a contractor?

When choosing a contractor check that the person or company is registered at the Chamber of Commerce. Ask to for referrals. In some cases you can also request to speak to someone whose home was recently built.

What additional costs can one expect when building a home?

When purchasing a home, one can expect the following additional costs:
Monthly Premiums for the different Insurances taken out.
Surveyor's fee
Utilities deposits (electricity, gas,water)

What are the steps involved when building a home?

When building a home you will need to request information from your lending institution.
Plan your budget. Knowing the estimated cost will help you in planning and keeping within your budget.
Acquire Land. (Property or Lease land)
Prepare architectural drawings of the house and submit them for approval by DOW
Get an appraisal report.
Choose a contractor and get a quote for building.
Apply for a mortgage at your bank or financial institution.
Fill out the necessary insurance forms, and get them approved.
Loan signing at the financial institution
Apply for a Water and Electricity meter
Sign the deed at the Notary office
Have a confirmed date to start construction of the home.
Check with your lending institution on the first payment terms.

What is the cost per sq. meter (and sq. foot) for building a home?

Currently the going rate is Awg 1750 per M2 or Awg 163 per sq ft.
It is best to shop round for contractors than can give the best construction price.

What is the difference between lease land and property land?

Lease land is land owned by the Government on which a lease is granted for a long term (60 years), to a title holder. To obtain lease land, one can apply for at Domeinbeheer (Directorate of Land Administration). With lease land there is a yearly rent that has to be paid by the holder to the government.

Property land is land that is owned outright (freehold) by the title holder, and tends to be a more expensive. Property Tax (Grondbelasting) is charged by the Tax Department on the land and also the value of building the building constructed on it. The effective tax rate is about 0.4% of the land and property value after any exemptions.

What notary charges are involved when building a home?

Notary Fee, Registration cost, Stamps, Power of attorney,Inspection cost and transfer tax

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