When buying a home, there are some costs you expect and some you don’t. To help you avoid any surprises we’ve put together a list of things you might need to think about when working out your budget.
Not all of the following costs apply to all situations—so think about which ones might to yours.
Stamp duty is a tax that you need to budget for when buying a home. It is levied on the purchase value of the property, and although stamp duty on mortgages has been abolished, you can expect to pay government charges to register your mortgage.
Stamp duty is charged by the state and territory governments, so the amount you pay will depend on where you buy the property.
If you are a first home buyer, or you are building a new home, you may be eligible for some stamp duty concessions. For all other buyers, stamp duty can add quite a bit to the cost of purchasing a property.
For more information take a look at the website of the revenue office in your state or territory:
Pest inspections can be relatively cheap, particularly when compared to the cost of dealing with the problem after the property is purchased.
A combined pest and building inspection can cost upwards of around $400 depending on the size of the property. However, this expense is dwarfed by the potential cost of dealing with a major building issue.
Talk to your legal rep about these inspections—they’ll often organise them on your behalf.
Aussie Fact Sheet: Pest and Building Inspections
If you’re selling your current home and buying another you’ll probably sell through an agent and there will be an agent’s commission to pay.
First home buyers don’t have to worry about paying commissions, as the commission is charged to the vendor of the property, usually as a percentage of the sale price.
There are a handful of legal costs involved in a property transfer:
There may be a range of fees imposed by your lender such as application, valuation and settlement fees.
Make sure you ask your lender or broker about these fees.
There are a few types of insurance you might be up for:
Continue to information about the first home owners grant.
Aussie does not provide any financial or investment advice. This document has been prepared as a factual guide only. It does not take account of your objectives, financial situation or needs. Aussie recommends that you seek independent financial advice and obtain your own professional legal and taxation advice before making an investment decision.