Consider the costs of buying
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.
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.
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, previously known as “stamp duty”, is a State Government tax based on the purchase price of the property.
If you engage the services of a conveyancer, then the maximum fee payable is set by law.
Mortgage repayments are usually made on a monthly basis.
This amount can fluctuate over time as interest rate changes occur.
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.