Buying a property can be a costly exercise! Did you know that as well as the purchase price of the property, there are some other costs to be considered? Read on to find out more.
Stamp Duty is a State Government tax based on the purchase price of the property. It is usually around 4% of the purchase price of the property, and is paid just before settlement. Some mortgage brokers are able to increase your home loan to accommodate this amount. First home buyers may be exempt from Stamp Duty or may be entitled to a rebate or concession.
Strata searches / building and pest reports
These can be arranged through your Buyer's Agent; they record the condition of the property and alert you to any issues you should know about before to purchase the property, for example the structural integrity of the property, disharmony in the Strata Committee and so on.
Lenders Mortgage Insurance
This is a charge that is applied to your loan if you are borrowing more than 80% of the value of the property. It is rolled into your home loan and is not generally a direct cost to you at the time of taking out your home loan.
Buyer's Agent Fees
A buyer's agent saves you time and money across the duration of your property purchase. A skilled buyer's agent advises on the best properties to purchase based on your needs and goals, and helps you to avoid making poor choices for your purchase. A buyer's agent provides accurate appraisals of properties, preventing you from paying too much for your property, and saves you money on unnecessary building and pest / strata reports. A buyer's agent prevents you from over-bidding at auction and does all the leg work for you in searches and inspections.
Legal fees are incurred for transfer of title, property and title searches and contract reviews. Many conveyancers structure their fees as a flat fee for the purchase (including one contract review), and additional fees for additional contract reviews.
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