Whether it is your First House, an upgrade on your current home or an investment property there are various costs you need to allow for in your buying budget.
Building and Pest Inspection – When buying a property you should undertake a building and pest inspection. This is a cost you must cover regardless of whether you go ahead with the purchase or not. Usually this can range from $600 to $1,000 depending on what is covered in the report. This outlay could save you thousands down the track.
Legal or Conveyancing Fees – This cost is to review your contract and handle the transfer of ownership of the property on your behalf by a legal professional. Ranging from around $800 to over $2,000, this service makes sure all is correct with your purchase on the contract and once again saving you from possible issues down the track.
Government Costs – Varying from state to state and also from property type to property type i.e. owner occupied, investment and first home. Usually made up of three different costs, being Stamp Duty, Transfer of Land and registration of documents. Your broker can help you determine these.
Loan Costs – Every bank and lender has different costs that they may or may not charge depending on each circumstance. Most common are application fees, valuation fees and settlement fees. These can range from $200 to over $2,000 depending on the type of loan.
Lenders Mortgage Insurance – If you do not have a 20% deposit of the purchase price, the bank or lender will charge this to protect the loan from default.
Home & Contents Insurance – As part of taking out a mortgage you must have building insurance on the property unless it is part of a strata title (unit / townhouse). There are many different companies offering this insurance and it pays to shop around and read the terms and conditions.
Council Rates – When ownership of the property transfers to your name (settlement) your local council will start to charge you rates. These rates cover community services such as garbage collection, water usage, roads etc.
Connections – Remember to allow for the cost of connecting power, gas, phone or internet on your purchased property, or those first days in your new home could become quite challenging.
Body Corporate Fees – If you buy an apartment or Strata titled property, body corporate fees will be charged and some fees can be quite significant – particularly if the building is in need of a major work or if there are lifts, or pools in place.
Contact Trevor today on 0420 422 320 for more information on how we can help you get the right loan for your new property.
Helping you achieve home ownership & financial independence
Reach Lending Group is all about taking the journey with our clients to achieve home ownership and financial independence. We come highly experienced and offer a service of excellence to educate and equip you to reach your financial goals sooner.
Whether it be buying your first home or growing your investment property portfolio we walk with you every step of the way. Helping you with your budget, finding the best home loan solution for your individual needs, negotiating with your lender, keeping you informed along the way and taking care of all the time-consuming paperwork and processes involved.