Many people strive towards becoming a homeowner at some stage in life, whether that be owning an investment property or a place for permanent residency. Whichever reason you are looking to secure a property, there are many costs involved other than an initial house deposit.
From bond cleaning, stamp duty fees, hiring removalists to building and pest inspections – the cost of buying a home all adds up.
Loan application fees
This cost is one-off fee and is associated with setting up your loan. Loan application fees are generally around $500-600, although it depends on the loan and lender. With such a competitive market for first home buyers, there may be instances where this fee can be reduced or waived, so make a note to always ask.
Conveyancing and legal fees
In order to transfer land ownership from one person or entity to another, you’ll need to engage with a conveyancer or solicitor. They will provide advice and information about buying a property, transferring ownership, and assist you throughout the process. The estimated costs of legal fees is approximately between $500 – $1400 for a professional to oversee the legal due-diligence, settlement, and official transfer of property ownership.
Stamp duty and transfer fees
Stamp duty is the tax you pay on certain transactions and documents – and in this case it refers to the tax you will pay when you purchase a property. Most states offer stamp duty exemptions and concessions to first-home buyers. For example, on a $500,000 house, first home buyers won’t pay any stamp duty in Victoria, New South Wales, Northern Territory or Queensland. Stamp duty and transfer costs can cost tens of thousands of dollars depending on the property value, location, purchase reason and property type.
Building and pest inspection
Having the property you’re interested in checked for pest and other damages can be one of the hidden costs when buying a house but is particularly important for older homes. There’s nothing worse than moving into your newly purchased home and discover it has termites, or a structural fault. While it can cost approximately $500-$600, it’s better for your peace of mind.
Connecting or switching utilities
There’s a lot to think about when moving house, and one thing that you’ll need to get sorted ahead of time is utilities. The good news is that disconnecting and connecting your utilities is straightforward task, and with some research, you could even save money by switching over to cheaper plans. Having your power, gas and internet services connected on the day you move makes for a smooth transition to settling in – so, review providers and save yourself some money.
Removalist costs
A professional removalist team will help remove the stress of lugging your own belongings back and forth. If you’re looking to hire help, make sure to shop around for quotes to get the best price. This cost will also vary depending on how many belongings you need to move, how far you’re relocating and how much physical labour you need. Although you may want to save in this area, we recommend seeking reputable removalist.
We know these additional or ‘hidden’ costs may seem daunting at first, but make sure you understand these costs ahead of time. Owning your own property is an achievable goal, simply know your budget, stick to it and continue to save as much as you can.
The information in this publication is intended for general and/ or product information purposes only. It does not serve as specific advice to any particular person or organisation and should not be relied upon as such. Any information contained is general in nature and does not take into account any person’s or organisation’s situation, circumstances or individual needs. Before acting on anything held within you should consider professional advice and the information’s appropriateness to you, having regard to your objectives and needs.