Costs of buying a home in Sri Lanka

In this series of “Buying Real State in Sri Lanka”, you are about to discover “Cost of buying a home in Sri Lanka”. You can also find the entire series on “Buyers Guide”.

Purchasing a home for the first time can seem more of a dream than a reality. It takes planning, budgeting, dedication and quite a decent amount of time.

Not sure where to begin? Not to worry, we’re here to help.

You might hear that buying a home in Sri Lanka is expensive. However, the costs of buying a home in Sri Lanka depends on what you are looking for. So here’s a concise guide on how you can get started on your journey of purchasing your dream home!

Step 1: Start Saving

First things first – start saving. A house is an establishment that requires capital – and to afford the home of your dreams you’ll need a substantial amount! If you start saving right now, when the time comes for you to actually purchase your home, you won’t have to worry as much.

Step 2: Do your research

Don’t delay your research! Start your research at least a year before you plan your purchase. This will allow you to understand market values, trends and even comprehend easy cost-cutting techniques that’s sure to help you make the best decision for you.

Step 3: Create a Budget

Your budget is the one thing that will make or break this housing deal. Always remember to be realistic when determining the value of the house you are interested in and keep track of your budget. To help you make the right decision, try to keep these points in mind :

  • Your income level
  • How much you plan on saving
  • What you can do when you don’t have the full amount to pay
  • How housing loan processes work
  • Your credit score
  • As well as your other expenses including family commitments

Step 4: Figure out your Process of Payment

When balancing your expenses, planning how to pay is another point you need to consider. If a housing loan feels like the perfect payment option for you, make sure to only strike deals with a bank that’s well reputed. Staying smart and organized always helps!

Step 5: Find your developer

A real-estate developer is someone who will support you to make your dream into a reality. Sri Lanka consists of a number of renowned real estate moguls that are sure to help you in your housing purchases. Remember to look for a well-established, trustworthy real-estate developer who will have your best interest at heart. The right one is sure to find you the best housing deal in the market!

Now that we’ve discussed the basics, you must be wondering exactly how much you’ll need to afford your dream home. In reality, there’s a number of different costs involved in buying a house/apartment, when it comes to the real estate market.

The basic costs of buying a home in Sri Lanka

Housing Cost 1: The Down Payment/ Reservation Fee

The first ever payment you need to make is the one you will have to pay to your seller/real estate developer. The amount varies according to the kind of seller and the total market value of the house you may be looking at. This upfront payment is what will guarantee you the property and is the first milestone to your dream home acquisition process.

Housing Cost 2: The Closing Cost

No deal can be complete without a closing payment. This is the final cost that allows you to purchase your property and fully call it yours. All kinds of third party payments which include inspection fees, survey fees, transfer taxes, ownership title, and other related expenses fall under this cost.

Housing Cost 3: The Moving Cost

So you’ve acquired your property – and it’s time to move in! It’s important to allocate a certain level of funds towards the moving process even before purchasing your house. This could include the payment towards your movers, transport costs, packaging costs along with other little things required during a move.

Housing Cost 4: The Cost of Customisation

This is an area most seem to undervalue but ends up taking much of the funds. Remember to preplan the work you will require to turn your new house into a cozy, attractive homely environment. These could range from a new paint job to a whole new range of furniture – so plan smart, and plan now!

Feel free to reach out to our real estate experts here at Kelsey for any doubts or queries – Kelsey Homes; the premier housing developer in Sri Lanka with over 35 years of housing excellence!!!

You can read our next article, of the Buyers guide series: “Are you ready to buy a house?” click here.

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