First Home 101- The Finance Essentials - #1. What are the costs of purchasing?

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#1. What are the costs of purchasing

When you buy property you need to put down a deposit (skin in the game) and cover the purchase costs, the main being:

Stamp duty

The strategy tax on transferring property

Typical Cost: between 2% and 5% of the purchase price

Legal representation

Conveyancer or lawyer to advise you on the contract and keep you out of trouble

Typical Cost: $1,500 to $3,000.

Lender costs

Application and valuation fees

Typical Cost: $0 to $1,500.

Inspections and searches

To make sure you’re not buying a lemon (pest and building report, strata search etc) 

Typical Cost: $0 to $3,000.

Lender’s Mortgage Insurance

A once off charge which protects the bank if you go bad 

Typical Cost: 0.5% to 4.5% of the loan amount.

Adjustment

Reimbursement of the water and council rates paid in advance by seller

Typical Cost: $0 to $1,500.

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