Buying a home can be a daunting process, especially when you do not know how much money you may be liable to spend. There are many costs that should be factored in to your budget when purchasing a property. Here are a few costs you may need to consider:
Building/ Property Inspection: you may wish to have a building or property inspection carried out as a condition of sale. This is always a good idea as it brings to light any issues or areas of concern.
Pest Inspection: having a pest inspection done will allow you to establish that your new dream home is free of any additional tenants such as termites.
Strata fees: If you are purchasing in a strata complex, there are fees associated with this. These fees are normally disclosed at the time of purchase. If you are not aware of these costs, be sure to do some investigation prior to settlement.
Rates: Both water and council rates will be paid at the time of settlement. The owner may have already paid these rates and will need to be reimbursed. These costs are regular, yearly expenses that need to be factored in to your ongoing budget.
Settlement fees: you will need to appoint a settlement agent to finalise the purchase. Their costs are based on a percentage of the purchase price.
Stamp duty: depending on your personal circumstances and the price of the property, you will be liable to pay stamp duty at the time of purchase.
Mortgage fees: depending on who you use, there can be a myriad of costs associated with your mortgage including an application fee, valuation fee, document preparation fee. All of this is on top of your regular repayment amount. You may also need to take out lender’s mortgage insurance.
Other fees may include registration of title, and legal search and enquiry fees.
Be sure you understand all of the costs involved in purchasing your property so that you are well prepared.