More often than not, when you are looking to buy a home, all of your focus is on inspection lists and the price of the actual home, but it’s important to remember that there are a number of additional costs that you need to also consider.
Strata Reports
If you’re buying into a strata complex, it is important that you obtain a strata report straight away - this will tell you whether the building is financially healthy and whether there are any issues, or required maintenance. The strata reports are generally available to purchase through the real estate agent and usually range from $30 to a few hundred dollars.
Building Inspections
Before you rush ahead and start signing papers, there’s one more crucial thing you need to do - order a building inspection! These range from approximately $500 - $1000. This may seem like a burden when you are already spending so much money, but the truth is, it can save you a lot of time, stress and cash in the long run.
Conveyancing and Legal Fees
You will need a professional conveyancer to handle the legalities of purchasing or selling a property, they handle a range of matters to ensure your rights are protected and the sale goes smoothly. Average conveyancing fees can range from $500 to more than $2,000.
Council and Utility Rates
Once the property purchase has been finalised, you will also be responsible for paying rates and utility bills. These costs are ongoing and something you should consider when setting your budget.
Stamp Duty
Stamp duty (land transfer duty) is by far the greatest fee you will need to pay when purchasing property - it is a general tax imposed on the purchase of real estate in Australia. It's charged by the state and territory governments and is calculated as a percentage of the market value of the property. Stamp duty can cost tens of thousands of dollars.
Insurance
If you have not saved 20 percent of the property’s purchase price, you may need to pay Lenders Mortgage Insurance (LMI). This protects the lender in the situation that you are unable to meet mortgage repayments. It can usually be paid as a one-off sum or added to your home loan.
