Other costs related to buying property

Other costs related to buying property

Tags:

Categories: Property

In order to avoid unexpected surprises while making a property purchase, it’s good to understand some of the common costs involved.

Remember that these are in addition to the purchase price of your property.

Stamp duty

Stamp duty is a State Government tax based on the purchase price of the property and usually paid before settlement. It’s likely to be your biggest expense outside the property price, however you can increase your loan to cover this cost. Best to talk to your Bank Lender or Broker about this. First home buyers may be exempt from Stamp Duty or entitled to a rebate or concession.

Building and pest inspection

When you are ready to buy and prior to the contracts are exchanged the inspections should be conducted and completed. This ensures that the property is structurally sound and there are no imminent threats from termites and other pests.

Legal costs

The solicitor or licensed conveyancer should be able to provide an itemised quote which will include the transfer of title, property and title searches and contract reviews.

Lenders Mortgage Insurance

If you don’t have an adequate deposit you will be paying for the Lenders Mortgage Insurance. Talk to your Bank Lender or Broker about this and understand if this is going to be included in the loan borrowing or if you have to pay separately.

GST

If you are buying a brand new property, this tax may apply to the inspection and the valuation.

Registration fees

According to the different states, the Land Title Office will charge a fee when you submit any documentation relating to your property.

Insurance

Make sure you include the costs involved in insuring the new property from any potential threats.

Council rates, strata costs and taxes

Sooner or later these costs will hit your mail box. Be prepared and have a sound understanding about the rough costs.

Utilities

Make sure you consider the costs around cancellations and reconnections of the utilities.Not all of the above will apply to you, but it’s good to know which of the above will be applicable to you. So that you can plan ahead.

LoanDolphin is always here to help. If you have any topic suggestions or questions, please feel free to email us.

Disclaimer: This blog post has not taken into account your objectives, financial situation or needs. Due to this, before acting on any general advice/information in this communication, you should consider whether it is appropriate to your objectives, financial situation or needs.

LoanDolphin

LoanDolphin is a home loan bidding marketplace where you get banks and mortgage brokers competing for your loan in just a few minutes. For free!