Real costs of home ownership in Mauritius

Owning a home is the dream of many, and those who are fortunate to experience it may be surprised by the many additional costs often overlooked before the final purchase. What home buyers may not be aware of are some hidden costs that should be taken into consideration along with saving for a deposit / down payment, what kind of home loan is best and what are the other fees associated in finalizing your purchase. We break down some key expenses to be aware of:

(1) Home loan deposit
Mauritius banking regulations normally require a minimum of 30% down payment. Recently banks have improved their offers to 20% down and in some cases, Mauritian citizens can offer up to 100% home loans. For a non-resident looking to acquire property in Mauritius the normal deposit required is 40%. 

(2) Home loan fees
Financial institutions charge initiation fees to set up and maintain your home loan facility. These can include; stamp duty fee, security fee (approx. Rs 1,500), registration/facility fee (Rs 50,000), and monthly loan maintenance fee (up to Rs 100). An additional fee required is a Life Insurance Policy, paid upfront on an annual basis (starting from Rs 10,500).

(3) Transfer fees
Before taking ownership of your home, a 5% transfer fee is payable through a notary to the government of Mauritius. Compared to many other countries this is quite favourable and unavoidable as transfer of ownership is a standard procedure when buying a home.

(4) Notary fee
In order to facilitate the transfer of the property into your name, the assistance of a notary is required to prepare the documents and validate the title deed through the registrar. This fee in Mauritius is calculated on a sliding scale from 0.5% - 2.0% of the property value.

(5) Agency fee
If purchasing a property through an agent, Mauritius follows French law where both seller and buyer share the cost of the agency role. Each pays 2% of the property value. For off-plan properties in new projects, there is no fee associated with the buyer.

(6) Syndic fee
If your property is located in a residential estate or apartment building (or designated property scheme for foreigners), you are likely to incur an additional monthly expense for the contribution to the running costs of the complex. This can range from anywhere between Rs 2,000 pm to over Rs 30,000 pm. 

(7) Insurance
And lastly, it is strongly advisable that for any property ownership, a home insurance policy is sought to protect your investment and assets. These range in price depending on the property and can start from as little as Rs 6,000 p/y to upwards of Rs 300,000 p/y depending on the value of the property. 

With all that said, home ownership provides an owner with many benefits such as; an investment asset, capital appreciation, rental income, and a path to long-term wealth that has been a proven success over time!