Unless you’re an experienced home buyer, purchasing a property is no walk in the park. The hidden costs of buying a home can soon overwhelm you, and if you’re not prepared, blow you way outside your allocated budget. Do the words “stamp duty” and good Ol’ “Government tax” sound familiar? Ah yes, these are the little hidden gems that can creep up on the exciting time that “should be” buying a home. So, to help you along the journey, here is a list of the hidden costs of buying a home.
1) Good Ol’ stamp duty and government fees.
What is stamp duty? It’s pretty simple once explained. The buyer pays stamp duty at the time of transferring the property title. Stamp duty is controlled at the state government level, so rates, concessions, and exclusions vary depending on your situation and what state you are buying in. Other Government fees may include a title transfer fee and a mortgage registration fee.
2) Don’t forget the lawyers – they won’t!
As you will soon learn from the professionals, buying a property can be a complicated process. Enlisting an experienced solicitor to review the contract of sale and explain its terms and conditions to the buyer is usually an excellent idea. They may also perform a title search, and certificates check; draw up a Transfer of Land; supply the lender with copies of the sale contract, Transfer of Land and title search (to arrange the mortgage) and arrange settlement (to name a few).
3) This one is important – Building and Pest Inspection
For peace of mind and your future wealth, this is one of the most important costs associated with buying a home. Though it’s a cost that could save you money in the long run! Having your property checked by a qualified building and pest inspector will ensure you know exactly what state the property is in, and what things will need fixing once you take over the property. When you enlist the help of Your Building Inspector, we will connect you with a professional inspector who specialises in a range of residential and commercial inspection reports. Your inspector will be equipped with ladders, torches, thermal imaging equipment and a moisture meter. If you’re chasing a pre-purchase inspection report for your new property purchase, we can organise one of our inspection partners to inspect your new property and deliver your report within 24 hours. If it’s a condition report you’re after, we can organise this for new or existing properties. Turn around on these types of reports depend on the size of the property; however we will aim to deliver your report as soon as possible.
4) Oh yes, Insurance too
Of course, it is essential to insure your asset. If you want to cover your home and contents, you will generally need home insurance. There are so many providers out there for home insurance so make sure to do your research and get the best deal to suit your circumstances.
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