Now you have worked out your stamp duty and any grants or concessions that you may be eligible for but what are the other costs involved in a property purchase that you must consider?
It is important to keep in mind your own situation and take these costs as a guide to ensure you are well informed and prepared before purchasing a property.
Each person’s situation is differs, for a first home buyer purchasing within the grant or schemes criteria the costs can be very low (you may even be eligible for the grant which means up to $10,000 in your pocket!) but if you are looking for your next property while self-employed and do not have your tax returns finalised your purchasing costs may be significantly greater.
When purchasing a new property, it is always advised that you should carry out reports or inspections to ensure the building is sound and there are no hidden issues. You may need to order a building or strata report and a pest inspection, for this we generally recommend allowing up to $700.
You will need to hire a solicitor or conveyancer to facilitate the transfer of your new property into your name. Conveyancers tend to be a bit cheaper however it is best to allow $800 - $2,000 for your legal costs.
Depending on which lender and product best suites your needs the charges can vary greatly. For a very straightforward loan you should allow $0 to $1,000 and for a complicated or specialised loan you may need to allow upwards of $2,000.
There are a other costs which you should also keep in mind that may occur after you settle your purchase such as Home and Contents Insurance, service set ups and any potential repairs that may be required. Contact one of our home loan experts to help you crunch the numbers.
