Have you checked all hidden costs before purchasing your home?

There are many hidden costs when buying a home that you may never have heard of…find out what they are below!

Stamp duty
Stamp duty, also known as transfer duty, is a state or territory government tax that can cost tens of thousands of dollars. The cost will vary depending on the purchase price of your property but also which state or territory you live in. Other factors such as being a first home buyer or investor will also change what you pay. In Victoria, New South Wales, and Queensland you do not need to pay stamp duty up to a certain price.

Lender’s Mortgage Insurance (LMI)
You can avoid this cost altogether by having a house deposit of at least 20% however due to skyrocketing property and rental prices this can be extremely difficult. If you decide to purchase in this way, be prepared to pay LMI, a one-off fee that protects your lender against potential loan defaults. This fee will depend on your lender and the size of your deposit.

Legal fees
There are complicated legal requirements involved in purchasing a property. It is a must to engage a solicitor or conveyancer as they are essentially the mediator between you, the bank, and the vendor. They will prepare and clarify all the paperwork involved in the property transaction, including contracts. Conveyancers are usually cheaper than solicitors and deal only with real estate laws and the finer details.

Building and pest inspections
Building and pest inspections are crucial when purchasing a property. What looks like a dream home might actually have damp and cracked walls, termite infestations, and other structural issues which if go unchecked could cost you thousands later on in finances.  If buying an apartment, ensure you organise a strata report inspection which will reveal any work done on the property as well as any that’s needed in the future.

Home loan fees
There is a wide range of home loan fees, including mortgage registration fees, title transfer fees, loan application or establishment fees, and valuation fees. These fees may have different names depending on the state and lender.

For further information on home, loans see the link below!
https://lendingloop.com.au/

PerryCooper Property / Real Estate Agency Buderim / 0438 162 520