{"id":18915,"date":"2017-12-30T12:23:31","date_gmt":"2017-12-30T09:23:31","guid":{"rendered":"http:\/\/www.amlak.net.sa\/?p=18915"},"modified":"2017-12-30T12:23:31","modified_gmt":"2017-12-30T09:23:31","slug":"%d9%85%d9%82%d8%a7%d9%84%d8%a7%d8%aa-%d8%b5%d8%ad%d9%8a%d9%81%d8%a9-%d8%a3%d9%85%d9%84%d8%a7%d9%83-%d8%a7%d9%84%d8%b9%d9%82%d8%a7%d8%b1%d9%8a%d8%a9-%d8%b9%d8%a8%d8%af-%d8%a7%d9%84%d8%b9%d8%b2%d9%8a","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/18915\/","title":{"rendered":"Articles of Amlak Real Estate Newspaper ... Abdulaziz Al-Issa writes: Ten hidden costs in real estate"},"content":{"rendered":"

The real estate sector is beginning to enter a new period of uncertainty following\u00a0 <\/span>The approval and implementation of Value-Added Tax (VAT) at the start of 2018, and despite the efforts of the Zakat and Income Authority to clarify the matter and the method by which it would be levied on real estate; it has been unable to convey a comprehensive and clear picture to real estate professionals for many reasons, including the diversity of stakeholders in the real estate sector\u2014such as marketers, developers, individuals, endowments, financiers, residents, government agencies, and the various methods of property transfer\u2014such as gifts, inheritance, investment, and joint ownership\u2014all of which have further complicated the matter. .<\/p>\n

Therefore, we will discuss a new category of costs that falls under the umbrella of hidden costs in commercial real estate. The ten most significant of these costs are as follows:<\/p>\n

1- \u00a0 <\/span>Cost of capital: This is the cost of money to the investor, measured using scientific methods, or the cost of financing if the investor were to borrow the same amount from a bank.<\/p>\n

2- \u00a0 <\/span>Opportunity cost: This is the cost calculated based on the assumption that you had invested this amount or allocated it to another area\u2014what return would you have received?<\/p>\n

3-\u00a0 <\/span>Value-Added Tax (VAT): 5% on the purchased property.<\/p>\n

4-\u00a0 <\/span>Commission: The market standard is 2.5%.<\/p>\n

5. Collection fees: Up to 5% of the rent amount.<\/p>\n

6- \u00a0 <\/span>Time-related costs: either the cost of vacating the leased premises or the duration of construction.<\/p>\n

7-\u00a0 <\/span>Electricity costs: for the building's hallways, fences, and common areas.<\/p>\n

8- \u00a0 <\/span>Water Cost: Because it is a shared tank.<\/p>\n

9-\u00a0 <\/span>The cost of nonpayment or late payment: This cost may extend over several months.<\/p>\n

10-\u00a0 <\/span>Maintenance and cleaning costs: These are ongoing expenses that require monitoring, and the risk lies in their higher costs.<\/p>\n

Most of these hidden costs, zakat, and other expenses must\u00a0 <\/span>Real estate investors should take these factors into account and pay close attention to them, as some or all of them could lead to a deterioration in the investor\u2019s financial situation and the loss of all or most of their wealth if they are overlooked.<\/p>\n

These days, we have begun to see some banks seize the properties of certain real estate developers who were unable to repay their loans, Some real estate developers who took out loans have even gone so far as to mortgage or sell their own homes to settle their financial obligations.<\/p>\n

Therefore, risk management is essential to avoid market disasters, and you should consult experts in management and finance to benefit from their advice in developing optimal strategies and solutions, in order to achieve the desired success and minimize risks, so that when the market declines, you are not left searching for solutions and ways out, at which point you may find no one willing to offer you a helping hand. .<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>The real estate sector begins to enter new stages of uncertainty after the approval of the imposition of fees related to the value-added tax and its application at the beginning of 2018, and despite the efforts of the Zakat and Income Authority to clarify matters and the method that will be imposed on the real estate; however, it was unable to communicate a complete and clear picture to real estate for many reasons, including the diversity of segments that work in real estate from ... \u0633\u0643\u0646\u064a<\/a>","tag_info":"\u0633\u0643\u0646\u064a","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/18915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=18915"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/18915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media\/18739"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=18915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=18915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=18915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}