Unveiling the True Cost of Buying Property
Congratulations! You’ve found your dream property. But before you clink champagne flutes, there’s a crucial financial step: understanding the true cost of buying. While stamp duty often grabs the spotlight, numerous other expenses come into play. We want to ensure you’re fully prepared at You First Finance.
Beyond the Bump of Stamp Duty
Sure, stamp duty can be a hefty sum. But it’s just one piece of the puzzle. Here’s a breakdown of additional expenses to factor in:
- Conveyancing Costs: Don’t try to navigate the legal complexities of property transfer alone. Conveyancing fees, typically ranging from $600 to $2,000, ensure a smooth settlement process.
- Stamp Transfer Fee: This varies depending on the property price and covers transferring ownership to your name.
- Mortgage Registration Fee: This secures your loan with the property as collateral.
Rates & Adjustments: Council Rates, Water Rates and Land Tax (if applicable) might need adjusting based on the settlement date. Don’t get caught off guard – factor these prorated amounts into your calculations. - Bank Fees: Be mindful of application, settlement and potential offset account fees charged by your lender. Legal fees associated with the loan may also apply.
- Lenders Mortgage Insurance (LMI): If your loan surpasses 80% of the property value, LMI is typically required. This can be added to your loan or paid upfront.
Planning Makes Perfect
Acknowledging these hidden costs can help you create a more accurate budget for your property purchase. Talk to our friendly team at You First Finance. We’ll help you navigate the entire process, ensuring a smooth and informed journey towards your property goals.
