So you have saved a deposit and you are ready to buy your first home?
But have you taken into consideration all the costs involved?
Mortgage Insurance
You will probably have to pay mortgage insurance (to an independent mortgage insurance company) if you want to borrow more than 80% of the value of the property you are purchasing.
Solicitor or Conveyancer Fees
Include this is your budget. Negotiate fees with your solicitor or conveyancer; don’t just accept their ‘set fee’.
Stamp Duty
Stamp duty charges have changed over recent years and will differ from state to state. You should discuss your personal situation with your conveyancer to determine if you’ll need to pay any fees. You may be eligible for a rebate on the stamp duty you pay on your property. Check with your State Revenue office.
Are you over paying for the property you want?
Try to visit at least 10 to 15 properties before you buy; this should provide you with a good idea of the current market.
Building and Pest Report
Before you sign a contract it is advisable to have the house inspected for defects and problems. Think of it as a short term cost for long term security.
Moving costs
Moving costs can add up. Have you budgeted for all the costs involved, including carpet cleaning and pest control of your current home upon exit?
Insurance
You’ll have to secure insurance for the property before your loan is approved.
Contents Insurance
Remember it’s a good idea to insure the contents of your home before you move in. You may also want to think about installing a security system as it may reduce the amount you pay in insurance.
Location
Do you need to factor in extra petrol and car related costs due to your new home being located further away from employment, family or school?
Replacement Costs for Appliances
What is the condition of the built-in-appliances such as dish washers, ovens, hot water and air-conditioning? Can you afford to replace or repair any of these in the first 12 months?
