Property valuation fees
|
Before you purchase a property you may want to have your own pre purchase property valuation done so that you feel comfortable that you are paying an appropriate price for your new home.
Property valuation fees will vary, depending on the type of company or service you enlist to do your valuation. There are a number of online and ‘free’ property valuation services around. However, as you will likely use a property valuation to help you make your purchase decision, it’s advisable to first check the company or service provider’s history and credentials before going ahead with your property valuation. After all, you want the most accurate and market appropriate result from your valuation – and you want it to have been made by a qualified valuer.
|
Stamp duty
|
All State Governments charge stamp duty on the amount that you borrow and on the purchase price. Stamp duty will vary from state to state, but on average, this can range from between 3% and 5%.
First home buyers in some states are eligible for reduced rates on their stamp duty outlay and if you are building a new home the stamp duty may even be waived.
Make sure you know what stamp duty regulations apply to you. For more information about the stamp duty regulations in your state, refer to your state government’s website. Registration of transfer fees
|
These fees relate to the registration of your ownership of the property. Again, these fees vary from state to state. Some states impose a fixed registration fee whilst others impose a variable fee based on the purchase price of the property. Usually your solicitor or conveyancer pays this fee on your behalf and will then pass on the cost as part of his/her fees. It’s a good idea to ask your solicitor or conveyance what these fees will cost, so that you know what to expect.
|
Inspection costs – building and pest
|
It’s advisable to have a building inspection report done before signing the contract of sale, in order to identify any ‘costly’ issues that may exist with the property you are purchasing. These can be structural issues or interior issues, such as mould or rising damp which may, in the long term, cost you money to manage or repair.
You should also consider having a pest inspection done to identify if there are any ‘pest’ issues with the property such as spiders, rodents, termites etc. These types of infestations can be rather costly to fix.
A pest inspector will also help identify any possible potential damage caused by pests so, if your property is located in an area that is prone to termites or ‘white ants’, it’s a good idea to have the property thoroughly inspected before making your purchase. Termite damage, if left unattended, can have disastrous ramifications on both the building - and your wallet.
Inspection costs will vary according to the type of inspection(s) you have done and the service provider you use. Before giving approval to a company or individual to do your inspection(s), make sure you check their credentials and know exactly what sort of report you will receive upon completion of the inspection and the costs that are involved.
|
Legal fees and conveyancing fees
|
The legal transfer of ownership for a property is called conveyancing and is normally performed by a professional licensed conveyancer or solicitor. Again, this can also vary state by state. For instance, in Victoria a conveyancer must work with a solicitor, whereas in Canberra, Queensland and Tasmania, solicitors generally manage all conveyancing work.
Some lenders provide property conveyancing services to their customers as part of the home loan package.
It is advisable that you ask the conveyancer or solicitor - up front – what costs are involved for their services, so that there are no unpleasant surprises.
|
Mortgage insurance
|
Most lenders will charge a mortgage insurance premium depending on the loan size and security value. This does not insure you against loss – it insures the lender. This insurance covers the lender’s costs and any losses if you are unable to meet your mortgage repayments. These fees will vary depending on the lender, the purchase price and the deposit amount on 95% LVR loans (or 5% deposit), the amount would typically be up to 1.5% of the loan amount. As you get closer to 80% LVR home loans (or 20% deposit), the cost usually discounts substantially. If you have 20% or more deposit and all other factors are in line, mortgage insurance is generally not charged.
|
Relocation costs
|
Hiring a professional removalist can take a lot of the stress (and hassle) out of moving. However, costs can range from $500 to $5000 or more, depending what you have to relocate. If you are moving a long distance, or interstate, your removalist costs will be more significant than if you are just moving a few suburbs.
If you want to cut costs, you can hire a removalist van and do the relocation yourself. This will save you money, however, you have the added hassle of properly packing your goods and moving heavy or awkward items yourself. And any breakages are at your own cost.
|
Temporary accommodation costs
|
If you need to move out of your existing home before you can move into your new home, or you are relocating interstate, you may need to find temporary accommodation. Costs will vary depending on the type of accommodation you need and the length of your stay in the accommodation.
|
Cleaning costs
|
Before you move into your new home you may want to have the surfaces, windows and carpets professionally cleaned by a cleaning company so that everything is ‘spick and span’ in your new home. Make sure you get a quote from the cleaning company and are fully aware of exactly what services are provided – well before they even pull on their rubber gloves and get the cleaning products ready.
|
Real estate agent fees
|
If you’re selling your home in order to buy a new one, then you will also need to account for real estate agent fees. Most real estate agents charge a commission, which can range between 2% and 5% percent on the final sale price. Be sure to discuss and negotiate the fees with the real estate agent before signing on with them. You can also shop around for a real estate agent that will do the job to your liking and at a rate that suits your budget.
|
Home owners insurance
|
Home owners insurance covers you against any risk of damage to the building. It is wise to insure your newly purchased home as soon as you have signed on the dotted line, so that you are covered for any damage that may happen before you move in. Talk with your insurance company to find out what costs you will incur.
|
Home Contents insurance
|
It is recommended that you take out Home Contents insurance before you move into your new home so that your contents are ‘covered’ when they arrive at their new location and so that your home is insured against any possible damage. Insurance costs will vary according to your insurance provider, the value of your home contents and the location . If you have an insurance policy on your current home, your provider should be able to assist you by transferring the policy over to your new home. If you do not already have home and contents insurance, be sure to shop around and find the best provider to suit your needs.
|
Life, total permanent disability and trauma insurance
|
When taking on a mortgage it’s wise to give consideration to taking out a life insurance policy on the primary income earner or the person you rely on most to meet mortgage repayments. This insurance then protects you and your family from having to sell the family home, should something unfortunate happen to the primary income earner.
Total permanent disability insurance also protects you and your family in the event that the primary income earner becomes disabled, due to either injury or illness. Again, this sort of insurance will help to protect you from having to sell your home if this happens.
|
Income protection insurance
|
Income protection covers you in the event that you are unable to make repayments to your mortgage due to unemployment. As none of us is able to predict the future, it’s a good idea to consider whether this would be beneficial to you.
|
Utility connection costs
|
Connection fees may apply to your new home for electricity, gas and phone services. Make sure you discuss these fees with your current providers and find out if they service the area you are moving to and if so, whether they will give you a discount or any ‘benefits’ for keeping your services with them.
|
Council rates
|
Every property incurs council rates in accordance with the local council requirements. Council rates vary in each state and suburb and in line with the ‘value’ of the property. It may be worth researching with the local council, or the seller, to find out approximately what your rates will be so that you don’t get a ‘surprise’ once you’ve moved in.
|
Owners’ Corporation fees
|
If you are moving into a property that is governed by an Owners’ Corporation or a Strata Body Corporate, you will be required to pay regular Owners Corporation fees or strata levies – usually on a quarterly basis. These fees will cover standard Owners’ Corporation rates as well as the costs of maintenance and repairs to any common land / property etc.
|
Decoration costs – new furniture, appliances and ‘finishing touches’
|
It is always nice to start ‘afresh’ with a newly furnished home. Your old furniture and appliances may not suit the ‘style’ of your new home, or you may find that you have more room and less ‘stuff’ and need to purchase additional items in order to fully furnish your new home.
|
Share
