A Complete Home buying Guide | Buy Home in Kathmandu

Buying home in Kathmandu is the dream of many people. At some point in time, most of us will surely build or buy a house of our desire. You are always nervous and curious when you try something new. Likewise, when you try to buy your first house it is as challenging and anxious as giving an exam. We are here to help you out with buying home in Kathmandu.

Most of us will surely worry about making some expensive mistake while buying home in Kathmandu, after all, it is where you and your family will spend all of your time. There are so many legal steps, tasks, and requirements you should follow and know when you enter the real estate business in Nepal. In this article, we will guide you step by step to buy home in Kathmandu.

Transaction Costs While Buying Home in Kathmandu

In Nepal, buying costs are usually low compared to other developed nations.

Registration Fee	1% - 4.50%	Paid by buyer
Legal Fees	0.10%	Paid by buyer

Total Costs are usually paid by the buyer and the seller rarely has to pay a penny.

Total TRANSACTION COSTS paid by the buyer = 1.01% - 4.51%

Total Registration Fees In The Municipal Areas

Property Valuation in NPR	RATE
Up to 10,000	NPR 400 only
10,000 to 25,000	NPR 1,000 only
25,000 and above	4.50%

Total Registration Fees In Non- Municipal Areas

Property Valuation in NPR	RATE
Up to 10,000	NPR 300 only
10,000 to 25,000	NPR 500 only
25,000 and above	2 % only

• If you decide to rent your home or some rooms, then you will be subjected to pay 10% tax to the government.
• The tax for apartments based in municipal or non-municipal is only 1% of the total property’s worth. You will get a 50% concession for any unit higher than 5 stories.
• For any kind of group housing like ‘Civil Homes’, a total of 2% tax is applicable, for both municipal and non-municipal areas. Especially inside Kathmandu valley, an extra 5% tax is applicable on your property’s worth, which is charged by Bagmati Savyata Kosh.

As an encouragement, a total of 25% tax concession is available to a women owner in the municipal areas and a total of 30% concession in non-municipal areas. Transferring the property to your wife or mother can save you some amount, especially if you own very large real estate.

Calculating The Best Price To Buy Home In Kathmandu

First, check the list of lands that are sold currently in that area and its surroundings. Since the price of land is also included while buying home in Kathmandu, it’s important to know how much is the cost per Aana in that area?

Now that you have a good idea about the land price, know what type of house you are buying and how old is it? Normally the modern and newer the house, the more expensive it is. A totally furnished and decorated house would probably cost you more than simply a designed house. When you estimate the price of land and house, it wouldn’t be a problem for you to know how much money to invest in that house.

10 Things To Consider Before You Buy Home in Kathmandu

Most of the time, your first home will be your last home. So, you should be very careful choosing the best location for your home. If you have some long-term goals, you should be focused to meet those goals. Maybe you are fed up paying for your rents every month and finally motivated to invest in your own home, whatever the case, buying home in Kathmandu is always a good investment.

1. Know your financial condition

Before you commit to investing to buy your dream house make sure you have decent financial health. Maybe you might like some home which could be a little more than your budget, in such case you might as well take some loans. So, you should be well prepared to do some serious expenses. Doing an audit of your expenses will also be fruitful. Most of the time this audit will be helpful to determine if you are capable of taking big steps and buy your dream home.

How much savings do you have? 

The first thing you should look at is your savings account. Unless you have a good amount of saving in your account, jumping into real estate is not a good idea. It’s obvious that you have to pay certain up-front costs while buying home in Kathmandu, which may include some down payment and closing costs. So, your saving amount will be crucial.

Document all of your spending.

You are most likely taking out a mortgage which is not a bad move, most people buy their first home on the mortgage. The problem will arise when you are unable to pay certain payments as per the requirement. Hence documenting everything that you spend is vital to estimate your expenses and where you can save up to successfully pay the mortgage fees.

2. Find the home as per your need

Aiming very high than what your budget can afford will be very audacious and not so thoughtful. Some might be satisfied with a single-family home, while some, with a bigger budget, might go for a duplex or even multifamily building. Whatever the case, choosing a home as per your needs is the best and sane decision you can make.

Before choosing the type of home you should be familiar with the pros and cons of respective homes. Consulting with the family members and deciding what you can sacrifice and what you consider absolutely necessary will determine what type of home best suits you and your family.

You can sacrifice extra coziness and save some money for furniture or you could sacrifice your salary and go for coziness instead.

3. What features do you desire in your home?

Like we said, your first home might be the last home you ever buy so when it comes to features you can be as choosy as you like. Furniture and Co. can be added anytime when you have enough money but some features you might want come with the house. Listing all of your basic desires, size of the bedroom, number of restrooms, kitchen size, what kind of neighborhood you prefer, or are you an off-grid guy? All these needs will determine where and what type of home you buy as your first home.

In today’s time, there are plenty of online websites and real estate agents who can provide you with every detail you need to buy home in Kathmandu.

Ghar Sansar has been the best online real estate agent having satisfied tons of customers with the help of our highly qualified professionals.

4. How much mortgage should you go for?

Before going on a vacation or a tour, you estimate how much are you going to spend and how much extra can you afford? The case is the same with real estate. Before you commit to spending, make sure how much mortgage you can pay and how many years it would take you. Of course your salary, other incomes should be taken into consideration before you take out a mortgage.

Keep in mind interests would only pile up if you are unable to pay a certain amount of loans on time and your dream home could be just a dream for you before you know it. If you can pay a certain amount of your salary and still can survive with the rest, then definitely you should go for it.

5. How much should you really spend?

If you are one of those fortunate ones who have enough savings available on their savings account, then spending what you have on your dream home wouldn’t be a bad investment. But taking a large sum of loans just because banks trust you and lend you and investing all of it in your dream lavish home could be a bad investment. Most of the time first-time buyers are easily tricked into investing more in a home than they should. This could haunt them back in the near future when they fail to pay their mortgage.

6. There is no time limit

Many people believe they have to buy a house before they reach a certain age. This might act as a positive step if you have a really good job and are doing good in your life. But for many, this might put stress on their life leading to frustration and whatnot. When people have set a time limit, the chances of errors and mistakes are likely to happen. People might over-commit and take the wrong steps. When it comes to buying home in Kathmandu, there is no room for errors. You have to accept the situation and back up if you feel you can’t afford a house right now. Buying a perfect home next year is way better than buying a home now that doesn’t satisfy your demands.

7. Check the surrounding and neighborhood 

Even if the house is situated in the right place and eye-catching location, it always takes some time to know the neighborhood. Check the surroundings and make sure there is not any house or land-related conflict with the neighbors. A nosy neighbor is the last thing you want when you shift. Check the plot area carefully, always consult with the lawyers for legal advice. Having the development work going in your area will obviously increase the market valuation of your house in the near future. But make sure development works like roads don’t affect your house or land.

8. Negotiation is the key

How much can you save and profit depends on how much of a negotiator you are? If you don’t have the skills to convince the seller and put your points accurately, always take help from the professionals and your relatives who have good experience in the real estate business. A small mistake might cost you and your family a lot of money, so having good negotiation skills is always the plus point.

9. Choose the trustworthy real estate agent

Choosing the best one from the lot will ultimately decide how much money you will end up saving in the end. A good qualified real estate agent will guide you step by step all the way till you finally buy your first home for great value.

10. Best place to buy a house in Kathmandu

Ghar Sansar Nepal

Ghar Sansar is the online platform that provides the best valuation of your property if you want to sell it.  We also guide you through every step to get you your dream home. It’s very easy to stay in touch with us. Just go to our website and submit your information and verify your details, from there it is our responsibility to get you your perfect match.

In a very short span of time, Gharsansar Nepal has already gained a lot of respect from the clients due to the great efforts shown by our professionals and negotiators while doing business.

Fill up this form if you want our experts to help and guide you for a home loan or buying home in Kathmandu. When you choose Ghar Sansar, our negotiators make sure you get the perfect house or property at the right price.

Q) How much does a house cost in Nepal?

On average, building a standard 30X30 concrete house of one story will cost you around NPR 26 to 28 Lakhs. For two stories the cost can go up to 60 Lakhs NPR.

So the price for buying a concrete house at Nepal = price of house + price of land (on which house is built).

Q) Is it expensive to live in Nepal?

The average cost of living in Nepal is 427 USD (with rent) and 271 USD (without rent).

If you compare it to the world, the living cost in Nepal is actually 1.73 times cheaper. However for Nepalese citizens, living in Nepal, especially in major cities on rent, can be quite expensive, considering the average monthly salary in Nepal is 20,000 NPR. (Around 167 USD).

Q) Can I buy a house in Nepal?

If you are a Nepalese citizen, you can buy a house anywhere in Nepal. But for foreign citizens, buying and selling a house is not allowed by the government of Nepal, unless it is an organization or foreign company.

Q) Is real estate good in Nepal? 

Even in the pandemic, especially after the lockdown, the real estate business is booming like never before. When most of the industries and businesses are vastly affected by the Covid-19, people are investing highly in the real estate business. Looking at the present context, the real estate business is really good and blooming in Nepal.

Q) How much does a house cost in Kathmandu?

In the major cities, the cost of buying a house, on average, can cost you around 3 crore NPR for a 2.5 storey house.

In major residential areas near the capital city, the price could be around 1 crore, on average, for a 2.5 storey house.

As the prices keep sky-rocketing, you can always keep in the loop and check the current prices of houses in Kathmandu on Ghar Sansar Nepal.

Q) Can US citizens live in Nepal?

Yes, like many other countries, Nepal provides visa-on-arrival to US citizens which usually lasts for at least 15 days. If the US citizen wishes to stay longer, he/she simply can extend the Visa by paying an extra amount.

Tourist Visa Fee Details	Visa Fee effective from 17 July 2019
15 Days (Multiple Entry access)	USD 30 only
30 Days (Multiple Entry access)	USD 50 only
90 Days (Multiple Entry access)	USD 125 only
Visa Extension (Within Valid Visa Period)	USD 3 per day only
Visa Extension (With Multiple Entry access)	Additional USD 25 only (total 28 USD)
Visa Extension (After Visa Expiration)	Late fee USD 5 per day only