Buying a house isn’t just about paying what’s on the property’s price tag. There are some extra costs all buyers should be aware of.
So, do you have enough cash to buy that property?
The hard truth is that a buying a home isn’t as easy as saving your deposit and waiting to hear whether your offer has been accepted. In fact, that’s the easy part. I explain to my clients that it would be wise to add another 5% to the purchase price when buying a house.
The more challenging part is making sure you have enough cash to pay for all the costs that crop up. It’s wise to know that the deposit you’ve saved is just part of the cost of buying
If you add costs such as stamp duty and lenders mortgage insurance (LMI), you may have already spent a fair chunk of your cash.
To ensure you’re prepared when the bills arrive, here is a list of the fees and costs you need to prepare yourself for before signing on the dotted line.
Let’s assume the following:
Based on this, here are some estimated costs.
Costs vary depending on the provider and the state you’re buying the property in.
Legal fees: Approx. $1,500–$3,000, depending on the complexity of the structure.
For example, if you’re buying through a company or trust ownership, you could end up paying a lot more. The simpler and more straightforward the ownership structure, the lower this cost will be.
Stamp duty: This varies from state to state. You can get an idea of how much stamp duty is by using online calculators.