So you’re excited to finally buy that new home, right? And you’ve probably prepared for the deposit, but you might have overlooked some of the other fees. It’s a good idea to know which fees you will have to pay, that way you can keep your budget in check.
Here are a list of some of the other costs to consider before buying a property – from stamp duty, legal fees, building inspections, and more. Note this list is not comprehensive, but will give you a good guide.
What Costs to Expect When Buying Property in NSW
As expected, the bulk of your budget will most likely be allocated to the deposit. Generally speaking, most people pay a deposit of around 20%. The remainder needs to be paid upon settlement day.
Stamp Duty: To Pay or Not to Pay
First home buyers in NSW and VIC are fortunate because since July 2017, some stamp duty costs are waived for purchases up to a set amount. For other buyers, there are what you call stamp duty concessions that can ease the burden. It is wise to always consult with your State Revenue Office to get more information about what you may be eligible for.
Qualifying for First Home Owner Grant (FHOG)
While you have to be aware of outgoing costs, you also need to think of where you can save. In this case grants, like first home owner grant (FHOG), are lifesavers. As always, conditions on who are eligible to grants vary from one state to another, so start by locating your area on firsthome.gov.au to identify how much you may be able to get. A conveyancer or a mortgage specialist can then assist you with your application to make things easier.
The Cost of Pest and Building Inspections
A lot of homeowners tend to skip pest and building inspections, thinking that it’s just an extra cost. What they don’t realise is that failing to undergo such might give you even bigger expenses due to repairs. Damages aren’t obvious until you’ve done a thorough inspection, which costs around $300 to $600 – which is much lesser than extensive overhauls.
Factoring in Legal/ Conveyancing Fees
During property settlement, your lawyer or conveyancer will be responsible of several tasks. Some of which include reviewing your contract, checking titles, coordinating with your lender, and calculating other costs. The legal/ conveyancing fee may range from around hundred to thousands, and it would depend on who’s representing you and how complicated the purchase is. We, of course offer fixed fees, so you always know what you are up for.
Considering Bank Fees
When setting up a home loan, you have to be aware of different costs that come with it. Some of which include establishment fees, ongoing fees, and fees for making any changes. Consult with your lender to have a clearer picture of the bank fees. Shop around for a good deal.
Understanding Lenders Mortgage Insurance (LMI)
In the event that you purchase a home and you deposit less than 20%, the lender will most likely impose a lenders mortgage insurance (LMI). Usually this is rolled into your home loan, so it’s not so much of a shock. It is essential, however, to be aware of it so you can budget your finances accordingly.
Costs for Moving and Repair
Of course, don’t forget about the costs you will be paying when you hire a company to move your things to your brand new home. You’ll also need to take into consideration other trades. This includes plumbing, electricians as well as general duties for items such as removal of fixtures etc..
As you may have noticed, a lot of thought has to go into buying a property. You need someone experienced with this venture, which is why CS Conveyancing Services is the first choice for many buyers in NSW. Contact us so we can look into making it a seamless transaction.