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Don’t Let Surprise Expenses Derail Your Homeownership Dream
Buying property in Zimbabwe is a big investment, but the purchase price isn’t the only cost you’ll face. Many buyers focus solely on the asking price and overlook the hidden costs that can add up to 5–10% or more of the purchase price.
According to a 2024 survey by Property.co.zw, over 60% of homebuyers reported unexpected expenses during their purchase process, leading to budget overruns or delays.
This updated guide breaks down the common hidden costs you should budget for in 2025 to avoid surprises.
1. Transfer and Registration Fees
These are fees paid to the government to register the property under your name.
- Usually around 4% to 6% of the purchase price.
- Includes Deeds Office fees, Capital Gains Tax (CGT), and local council charges.
- CGT is currently at 5% for primary residences and higher for investment properties.
2. Legal and Conveyancing Fees
Hiring a registered conveyancer or lawyer is mandatory to handle paperwork and verify title deeds.
- Fees typically range from 1.5% to 3% of the purchase price.
- Includes document preparation, title searches, and registration services.
3. Valuation and Inspection Fees
- Property valuations for mortgage approvals or purchase due diligence can cost between US$100 to US$500, depending on property size and location.
- Structural inspections by qualified professionals usually cost between US$150 to US$400.
4. Agent Commissions
- Real estate agent fees in Zimbabwe typically is 5% of the sale price.
- Sometimes these are paid by the seller, but clarify this upfront.
5. Municipal and Utility Charges
- Outstanding rates or utility bills must be cleared before transfer—these can be significant, especially on older properties.
- New connections (water, electricity, sewer) may cost extra if not already installed.
6. Renovations and Repairs
- Many buyers underestimate renovation costs, especially in older homes.
- According to recent market data, the average renovation budget in Harare is around 10% of the property’s value.
7. Mortgage and Financing Fees
- Bank application fees, insurance premiums, and bond registration fees add to your costs.
- Budget for loan processing fees of 1% to 2% and monthly interest payments.
8. Miscellaneous Costs
- Stamp duty, advertising fees, clearing agents, and even relocation expenses.
- Always keep a contingency fund of at least 5% of your total budget.
Final Tips to Manage Hidden Costs
- Get a full breakdown from your conveyancer and agent before signing any contract.
- Use Property.co.zw’s Property Price Tool to understand market values and realistic budgets.
- Always factor in extra 10% to 15% above the asking price for safety.
Final Thoughts
Being aware of and planning for hidden costs can make your property purchase in Zimbabwe smoother and financially safer. The dream of homeownership comes with expenses beyond the sticker price, but with knowledge and preparation, you can avoid costly surprises.
