What Are the Costs of Buying a Home?

When deciding on how much you can afford when considering buying your new South West home, there are some additional expenses above and beyond the purchase price you need to take into account.

The Deposit

Generally you will need a minimum five-to-ten per cent deposit saved (the minimum will vary between lenders) before the Bank will agree to lend you the balance of the money required. Having a deposit of twenty percent is preferred by the banks and saves you the cost of mortgage insurance.

Government Stamp Duties

Approximately 5% of purchase price.

Loan Establishment Fees

The banks can sometimes also charge a fee for the work involved in establishing a loan.  Many Banks may waive establishment fees, especially if you have other business with them, or the banks are competing for new customers.

For first home buyers, some of the financial outlay can be reduced by the Government's First Home Owners' Scheme. Approved first-time buyers receive $7,000 for an established home or new home. If you spend under $135,000 you may get some reduction on your Government stamp duty as well.

Legal fees, Rates and Assessments

Settlement agents fees plus the cost of title searches, transfer fees and so forth make up the other component of your buying costs. These fees are subject to a regulatory scale, but most settlement agents will provide a quote if you ask them.

Any other inspections you want done as part of your subject-to clauses will need to be paid by you. Building inspections range from $300 to $400 and termite inspections are a $100 - $200.

Moving costs and insurance

The cost of moving all your furniture from your current location to your new home needs to be considered as well. Call for a few quotes and satisfy yourself that your possessions will not be damaged in transit. You will also have the standard utility costs such as the connection of power and phone, hiring of gas bottles (if needed), adjustment of council and water rates, insurance and re-direction of mail.

Time and energy

One of the major factors of buying a home has less to do with money but more to do with time and energy expended.

The average buyer devotes many hours to finding  'the' home.  This includes attending home opens, following prices in the area and learning to recognise what a property is worth.

As anyone who has searched for a home will tell you, it can be an exhausting process – and there may be times when you feel frustrated or disillusioned. We understand this and will work our hardest to find the right home for you and make the whole experience enjoyable.

To also save time, try our calculators section for more information on the costs involved with purchasing your new home.