The costs involved when purchasing property
The costs associated with buying property can often be over looked. The following costs should be considered prior to any purchase of residential property and be inclusive of your deposit:
Costs from the Lender
Loan Application fee – Paid to the lender for applying for a home loan. This fee can be upwards of $1250.00. Thankfully most lenders only charge around $600 and in some cases will waiver this fee altogether. Some lenders will add this to your loan.
Valuation fee – This is a cost to either you or the lender you are applying to for a home loan. The lender employs an independent property valuer to attend the address and conduct an assessment of the property. This person then provides a report to the Lender with what they think the property is worth. This fee can vary depending on the property’s value. Some lenders will fund this cost.
Lender Mortgage Insurance (LMI) – Usually a one off cost (insurance premium) paid by you if borrowing more than 80% of the purchase price. This cost can range from hundreds to thousands of dollars.
Property Stamp Duty – This is payable to the government on most property purchases. The amount varies from state to state, and also depends on the value of the property and if you are a first home buyer. Note: stamp duty concessions apply for first home buyers.
Mortgage Stamp Duty – This fee depends on the size of your loan and is different from state to state.
Mortgage Registration Fee – This is a charge made by the Government to register your mortgage document.
Conveyancing fees – This fee is payable to your solicitor or conveyancer and can vary. This fee is usually charged based on the amount of time and work has been put into checking your property purchase. The fee can range from hundreds to thousands of dollars and may also include search fees and checking the contract.
Building and Pest inspections – This cost is usually in the hundreds of dollars and is paid for by you. You employ a professional building inspector to carry out a full inspection of the property you are purchasing.
Removalists – Costs can vary depending if you are moving locally or interstate. A cost of a removalist can range from hundreds to thousands of dollars.
Connection of utilities – Gas, water, rates, electricity, telephone and internet are costs we must all live with.
Although not comprehensive all of these costs must be considered when purchasing property. If you would like to have an estimate completed of the costs for your next property purchase, then contact us today!