6.1.4 How much does it cost?
This quiz tests your ability to calculate the costs of buying a home.
Activity 1
a.
£150,000
b.
£153,250
c.
£152,750
d.
£150,500
The correct answer is b.
b.
Well done. The total costs are as follows:
Cost of property £150,000
Stamp Duty Land Tax (£25,000 x 2%) = £500
The other costs are £500 + £250 + £750 + £250 + £1000 = £2750
The total cost of buying the property is therefore £150,000 + £500 + £2750 = £153,250
a.
2.17%
b.
2.76%
c.
0.28%
d.
3%
The correct answer is a.
a.
Well done!
The extra costs are (£3,250 /£150,000) × 100 = 2.17% on top of the cost of the property.