When you’re saving towards a deposit for your first home or a new property it can very easy to forget about all the upfront costs that are associated with buying a house. When planning your budget for the purchase of property, make sure you take these additional costs into consideration.
You will need a lawyer or conveyancer to look over your contract of sale, check the title of your land, calculate rates and taxes and liaise with your lender at the time of settlement. These fees can cost anywhere from hundreds of dollars to thousands, and can depend on the provider you use, the services you use, and the complexity of the purchase situation.
When you set up your home loan you may be required to pay establishment fees for the loan, ongoing fees for the loan, such as service or administration fees. If you’re buying a property with less than a 20 per cent deposit, your lender will also charge lenders mortgage insurance, which is usually rolled into your home loan.
Land transfer or stamp duty costs vary from state to state and depend upon the value of your property. As of July 2017, Victoria and NSW have waived stamp duty costs for first home buyers purchasing properties up to a certain amount and introduced stamp duty concessions for some other buyers. Stamp duty also varies depending on if the property is Owner Occupied, Investment or a First Home.
Before you purchase a property it’s incredibly important to undertake pest and building inspections to ensure you know exactly what you are spending your money on, and what you’re getting yourself into in terms of maintenance. Costs are usually between $300–$600, but this is much cheaper than trying to fix an infestation or structural damage once you’ve already purchased the property
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