Costs associated with buying a property
You’ve just spent your life savings on your dream family home. So that’s it, right? Well, there are actually some additional and often unexpected costs that home buyers face when they come to purchase a home, townhouse, unit, or apartment. Just so you’re prepared and not totally taken by surprise, below is a list of some of the costs associated with buying a new property.
Stamp duty
Stamp duty is an unavoidable government tax that differs from state to state, with different fees also applying to first home buyers. The rates vary from state to state and there are often different rates depending on whether you are a first home buyer, an investor etc. The Barry Plant website has a handy stamp duty calculator.
Building inspection
It’s always a wise decision to undertake a building inspection, no matter how old the property you are thinking about buying is. You may think this an unnecessary undertaking, especially if you’re considering a brand new or near new home. However, you never know what defects may exist below the surface, where the quality of the build may not be as first rate as you thought. Building inspections can range from $200-$1000 depending on size (apartment or home) and location (metro or regional) of your potential new home.
Conveyancing
Whether you’re buying or selling a home, you’ll need the property to be legally transferred over to you. A conveyancer or solicitor will set you back anywhere from $500-$1400.
Body Corporate
If you’re purchasing an apartment or unit, you will most likely be up for some Body Corporate (Owners Corporation in Victoria) fees which can vary greatly in amount. If you’re living in a CBD apartment in a complex with world class facilities, you can likely expect the Body Corporate fees for the property to be high. On the other hand, if you’ve bought a unit which is part of a three property development, after insurance, garden maintenance, and other miscellaneous costs, you might only be up for a few hundred dollars.
Miscellaneous
Other fees when buying a home may include pest inspections, loan application fees, lender mortgage insurance, home and contents insurance, utility connection fees, council rates, and any additional legal fees.
Try out the purchasing costs calculator on the Barry Plant website.
* Estimations made in April 2019. The contents of this article are believed to be accurate at the time of posting. Any advice here is of a general nature only and has not been tailored to your personal circumstances. Please seek professional advice prior to acting on this information.