Home Buying Costs
When purchasing a property whether it is ‘New’ or established, there are additional purchase costs that need to be factored into your budget.
#1 Property Inspections
Before you purchase an established the property or at the end of your build, it is advisable to obtain a property inspection/report. This will confirm the structural integrity of the property and any illegal work that has been done. For an established property it is also wise to get a pest inspection to make sure that there are no pest issues.
#2 Stamp Duty and Government Fees
The stamp duty is a state tax which is calculated on the price paid for the property and is payable by the purchaser. The transfer and registration of title are also state government fee’s and again are payable by the purchaser. For more details see our stamp duty calculator.
#3 Borrowing Costs
Your chosen lender may charge upfront loan costs such as;
– Loan application fee; this can range from $0 to $700
– Lender valuation cost; this can be around $300, higher for remote country locations
– Lenders mortgage insurance (LMI); this is a one off payment when you are financing more than 80% of the property value.
#4 Settlement and Legal Costs
The settlement cost will vary between providers so it is worth getting some quotes.
– Settlement or conveyance agent is required to facilitate the settlement of the property
– Land and water rates adjustment for the financial year
This is a must to protect what you have worked so hard to obtain.
– Home and contents insurance to protect your newly acquired asset and your belongings.
– Mortgage protection insurance can help pay off your loan or cover the repayments if the unexpected happens.
#6 Moving Costs
When your ready to move into your new home, you will need to pay for;
– Relocation costs from your old residence (e.g Furniture etc)
– Utility connections; gas, water, electricity, phone
– Mail redirection
For expert assistance with your home buying cost?