July 2017 Market Update - Buying your first property?
Are you just about to buy your first property?
If the answer is yes, congratulations! Buying your first home is a truly wonderful experience.
And while buying your first property is deeply rewarding, there are some hidden costs that you need to be aware of.
To help you understand the true cost of buying a home, I am going to spend the next couple of minutes outlining some of the expenses you will face.
So let’s get started.
One of the biggest costs outside of a property’s purchase price is stamp duty. It is a state government tax that covers a range of transactional costs. The cost of stamp duty will vary depending on the price of your property and where you buy.
In addition to stamp duty, you will also have to pay a title registration fee. When you buy a property, you have to register the title with your state government. As part of this process, you will be charged a title registration fee, which is approximately $75.
If you are borrowing more than 80% of the total purchase price, you may have to pay lenders’ mortgage insurance, or LMI. This insures your lender (not you) in the event you default on your loan. The cost of Lenders Mortgage Insurance will vary based on the size of your loan, what your loan to value ratio is and your chosen lender. It is important not to confuse LMI with building insurance or mortgage protection.
You may also have to pay a loan establishment fee when you take out a home loan.
In addition, you will have to pay for your solicitor’s services as they are responsible for conducting all of the legal paperwork on your behalf.
Pest and building inspections will also need to be paid. These are usually conducted by qualified inspectors before exchanging contracts, at your expense.
Finally, there will be other, small expenses like removalist fees, new furniture, and packing materials to name but a few.
As you can see, there are a lot of expenses associated with buying property, so it good to have a financial buffer in place to help you foot the bills.
If you would like to know more about the home buying process and the costs associated, give Mortgage Choice a call today on 13 66 78.