Costs associated with buying your first home
Buying your first home is an exciting step, and understanding the costs involved will help you plan ahead
Taking that first important step on the property ladder is about more than managing home loan repayments. Buying your first home also comes with other costs. Here are some of the main ones you should look to budget for.
Along with a deposit, a number of upfront expenses are likely to apply when you purchase your first home.
Stamp duty is a one-off state-based tax so it varies according to the state/territory where you buy, and it’s calculated based on the price you pay for your home.
Good news – as a first home buyer, you may be entitled to valuable savings on stamp duty in some states. Take a look at Aussie’s stamp duty calculator to know how much you will pay on your first home.
Can you borrow money for stamp duty?
The answer may be yes! Some lenders will let first home buyers borrow money to pay for stamp duty. This is something to talk through with your Aussie Broker about.
When you buy your first home, the property will need to be formally transferred into your name (yes!) in a process known as “conveyancing”, and that calls for some legal expertise. You can use either a conveyancer or a solicitor for this job as well as reviewing the contract of sale before you sign it – that’s a must-do. Conveyancing costs vary widely, so shop around and
Pest and building inspections
The last thing you need is to buy a home with dodgy building work or a serious pest problem. That’s why organising a pre-purchase pest and building inspection is a sensible precaution.
To find a service near you just Google “pest and building inspections”, and ideally contact a couple of providers to compare prices.
Mortgage protection insurance
Your first home is likely to be your biggest financial asset, so it’s worth protecting your ability to keep up with loan repayments through mortgage protection insurance. This covers your ability to meet your loan repayments if you get sick or lose your job.
Moving from one address to another can involve a number of costs – redirecting mail for instance, or any expenses associated with ending a lease if you’ve been renting. Don’t forget to add these costs to your list.
No matter whether you have the barebones of furniture or a full house load, you’re going to need help moving all your belongings into your new home. The cost of moving can range from hiring a DIY truck to engaging a professional removalist service. But either
No matter whether you have the bare bones of furniture or a full house-load, you’re going to need help moving all these belongings into your new home. Removalist costs can range from hiring a DIY truck to engaging a professional service. Which choice suits you depends on how much you need to move and how far you need to transport everything. If you choose a professional service
Connection/disconnection of utilities
Having power, gas and internet all connected makes settling in a breeze. Remember, electricity charges can be based on your home's location, so this could be an opportunity to select a new plan and potentially save on power bills.
Add it all up
Once you have a list of all the costs associated with buying your first home, you have a better idea of how much to set aside to start living comfortably in your new place.
The good news is, your local Aussie Broker understands the home buying
Navigate to the next article
Ready to keep learning?
Almost 30 years of home loan expertise, delivered to you monthly
Take the next step to buying your first home
- Chapter One : Getting started
- Chapter Two : Your dream home
- Chapter Three : Money matters
- Chapter Four : Ways to purchase
- Chapter Five : Understanding interest rates
- Chapter Six : Understanding home loans
- Chapter Seven : Lending sources
- Chapter Eight : Getting your loan
- Chapter Nine : Choosing a home
- Chapter Ten : Steps to settlement