The major costs typically associated with buying a property include:
After settlement there are these costs to usually consider:
You may need to consider mortgage insurance. Generally when you are borrowing more than 80% from the bank you need to pay mortgage insurance. The amount is dependent on how much you borrow. This is normally capitalised into your loan.
The solicitor fee includes the search costs and conveyancing. Before the property transaction, your solicitor will normally conduct the title searches to make sure the property is OK to transact. When you go to settle, the solicitors will talk to the vendor’s solicitor to take care of the settlement process.
If you’re a first home buyer, you’ll get stamp duty exemption if your purchase is under 500k and you’ll get a concession up to 550k. Generally, the stamp duty is equal to 3%-5% of the property price, according to the value of the purchase. Buying your primary residence is a bit cheaper than investment in terms of stamp duty charges.
Building and Pest Inspection:
Brand new properties typically come with structural warranty. Therefore, Building and Pest Inspections become more important when it comes to old properties. We strongly recommend getting this process completed before settlement as some building and pest problems can be really difficult to resolve.