Understanding the costs of buying a home can help you avoid unexpected bills and allows you to work out how much you’ll need to save as a deposit for your home.
The most common home buying costs, in addition to the purchase price of the property:
Stamp Duty: this is a State Government tax based on the purchase price of the property and usually paid prior to settlement. First home buyers may be exempt from Stamp Duty or entitled to a rebate or concession such as the First Home Owners Grant http://www.osr.nsw.gov.au/grants
Building and pest inspections: these should be completed when you are ready to buy,
Registration fees: these are paid to the Land Titles Office in your state or territory when you submit any documentation relating to your property
GST: this tax may apply to the inspection and valuation of new properties. It’s not payable on bank charges and fees or when you buy an established property
Lenders’ Mortgage Insurance or Low Deposit Premium: this one-off charge is applied to your loan if you borrow more than 80% of the value of the property
Insurance: there are various forms of insurance you will need as a home owner, including protection against theft, storm, fire, flood, damage and contents
Legal costs: your solicitor or conveyancer should be able to provide you with an itemised quote which will include the transfer of title, property and title searches and contract reviews
Utilities: make sure you budget for the connection, cancellation or transfer of electricity, water, gas, Pay TV and broadband from your rental to your new home
Council rates and strata fees and taxes.
Remember, some costs will vary depending on your state or territory, so talk to one of our financial advisors who can support you through the process. Make an appointment online or email firstname.lastname@example.org.