WHEN BUYING PROPERTY.

Stamp duty is a significant cost when purchasing a property, often amounting to thousands of dollars. It varies depending on the property’s price and your state. Higher property values typically attract higher stamp duty fees. For instance, a $1 million property could incur $55,000 in stamp duty.

However, first-home buyers in certain states, such as New South Wales, Victoria, and Queensland, may qualify for exemptions or concessions, such as no stamp duty on properties worth $500,000.

While it is possible to handle the legal documents for a property purchase yourself, it’s generally recommended to hire a professional conveyancer or solicitor for expert guidance. The estimated cost for these services is around $1,800. However, if the ownership structure or transaction is more complex, the fees may be higher.

When purchasing an older home, it’s important to arrange pest and damage inspections to ensure safety and wellbeing. Experts consider this a valuable investment, with estimated costs around $600. Skipping inspections may pose risks, so they are generally recommended for peace of mind.

Loan application and establishment fees typically range between $500 and $600 but can exceed $1,000 depending on the lender and loan size. Some lenders may waive this fee under certain conditions, so it’s worth exploring your options.

Mortgage registration and transfer fees are additional costs to consider when transferring property ownership. These fees vary by state, with registration fees costing around $114.90 in Victoria and approximately $181 in Queensland. In some states, they may be significantly higher.

If your deposit is below 20%, most lenders will require mortgage insurance, with costs increasing as the deposit decreases. For example, a 10% deposit on a $500,000 loan might incur insurance costs of $8,000 or more. This insurance allows Australians to purchase homes with deposits as low as 5%.

While homeownership has many benefits, it’s crucial to consider these hidden costs to make an informed financial decision.

Home building insurance is essential for protecting your property against damage or loss due to unforeseen events, such as fire, storms, or accidents. It is often a requirement by lenders when securing a home loan. The cost of insurance varies based on the value of the property and its location.