Con­sider the costs of buy­ing

Pilbara News - - Property - Sa­man­tha Jones Sa­man­tha Jones is a rep­re­sen­ta­tive of the Real Es­tate In­sti­tute of Western Aus­tralia.

Buy­ing prop­erty can be a solid in­vest­ment into your long-term fi­nan­cial fu­ture, but the costs in­volved should be prop­erly con­sid­ered be­fore jump­ing in.

There are nu­mer­ous out­go­ing costs that can hurt you if you aren’t aware of them, so we’ve com­piled a list to pre­pare you.

De­posit

A home de­posit is a one-off pay­ment to se­cure the pur­chase and fund­ing of your home. The amount re­quired is gen­er­ally 10 per cent of the ask­ing price.

Loan es­tab­lish­ment fee

Some fi­nan­cial in­sti­tu­tions re­quire an es­tab­lish­ment fee to cover the set-up costs of your loan.

Lenders mort­gage in­sur­ance

If your de­posit is less than 20 per cent of the prop­erty value, your lender will re­quire you to pay a one-off mort­gage in­sur­ance fee to cover the lender.

Mort­gage regis­tra­tion

If you take out a mort­gage, it is a re­quire­ment that the deed be reg­is­tered with the WA Gov­ern­ment, re­quir­ing a one-off pro­cess­ing fee.

Trans­fer duty

Trans­fer duty, pre­vi­ously known as “stamp duty”, is a State Gov­ern­ment tax based on the pur­chase price of the prop­erty.

Con­veyanc­ing

If you en­gage the ser­vices of a con­veyancer, then the max­i­mum fee payable is set by law.

Mort­gage re­pay­ments

Mort­gage re­pay­ments are usu­ally made on a monthly ba­sis.

This amount can fluc­tu­ate over time as in­ter­est rate changes oc­cur.

Con­nec­tions

Be­fore mov­ing into your new home, you will need to pay for your re­quired util­i­ties and ser­vices to be con­nected. Coun­cil rates Coun­cil rates are de­pen­dent on where your prop­erty is lo­cated and its over­all value.

Strata fees (grouped homes)

If your prop­erty is part of a shared de­vel­op­ment — units, apart­ments and town houses — you have to pay strata fees to cover the cost of main­te­nance to com­mon ar­eas.

Build­ing in­sur­ance (pri­vate lot homes)

For homes that ex­ist on their own block.

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