How Much Does A $700,000 Property In Sydney Really Cost? [Infographic]

Buying a house involves more than slapping down a deposit and moving in. There are all manner of hidden costs and financial complexities that ramp up the total price significantly. Once you factor in stamp duty, conveyance fees, mortgage insurance and miscellaneous bank fees, you can expect to pay tens of thousands of dollars more than the advertised price tag -- and that's before you take interest, council rates and general upkeep into account. Here are some tips that will help to keep the total cost down to a less terrifying level.

Photo: Shutterstock

The below infographic comes from the guys at Home Loan Experts. Using a $700,000 Sydney property as a template, it shows how you can keep "hidden" costs down by planning ahead and using common sense tactics. Note that most of the advice below also applies to properties anywhere in Australia.

Home Loan Experts


Comments

    Sydney's property market is far from sustainable and we will be seeing the bubble burst in the next 5-10 I would imagine. There is no way our wage growth can support a generation of new home owners paying 6 million plus for a two bedder.

      What you talkin bout mate, Australians don't need homes!
      When foreign money dries up, then the bubble will pop
      So yeah, somewhere within 10 years, it'll happen instantly when the derivatives market implodes

    It's weird that they would use the current low rate, rather than the longterm average - which is a touch over 7%, making your interest payments closer to $890k. Of course, that's a meaningless number, since it hasn't been discounted to present value.

    Also, the proposition that growth can continue at historical norms is absurd, when you consider the two main drivers - the move from single to dual incomes, and the deregulation of the banking sector. Unless we all turn Mormon and take a half dozen wives. I guess.

    Hahahaha, if there was any proof that the bubble has to burst, it is that infographic. Who can afford 7 million for an average suburban house nowhere near anything? At the rate we're going, the chinese will own most of inner Sydney, and only the crap will be left.

      My parents lived in a 4 bedroom house in Double Bay back in the late 70s. They paid a touch over $70k for it...

      Ni Hao,

      I'm not sure where you're getting your Chinese facts from. Here's a summary of nationalities v/s suburbs - you'll notice that foreigners are all over the place.

      http://www.living-in-sydney.com/where-to-live-in-sydney.html

      Do you also complain that the Jewish control Bondi, or the Danes and Swedes control Manly? Bondi and Manly are affluent areas. Either this website lies, or the "Chinese" story isn't as clear cut.

      According to the ABC,
      http://www.abc.net.au/news/2014-03-05/chinese-buyers-to-invest-44-billion-dollars-in-australian-real-/5300494

      "While Chinese buyers are still a relatively small proportion of the overall property market - especially since non-permanent residents cannot buy established homes - the report's authors say they have a large influence on prices."

        I dont think he was speaking in racial terms - more in foreign investment capitol from our Chinese neighbours. At least I hope he wasn't speaking in racial terms...

    Look at that a mortgage broken recommends several times to use a mortgage broker.

      Hi, Tenzing from Home Loan Experts here!

      Just would like to add something to your comment: Use a GOOD mortgage broker :)

        I did, I walked straight into one of the big 4 banks. Saved thousands.

    Inflation, inflation, inflation...

      Inflation + people speculating up prices to profit without any work + Ridiculous government polices on housing + Refusal to expand city borders to alleviate demand + foreign buyers = THE MOST INSANE PROPERTY MARKET ON PLANET EARTH

      It's so ridiculous when you consider how big Australia is
      Sure, we shouldn't turn the entire continent into apartments

      I'm about ready to move to Mars, where none of you can bother me!
      That or live like a hermit crab

        Or you could just live in space... think about it, Mars can be "owned" by a country/corporation but space can't be :)

        Last edited 12/08/14 3:06 pm

    The broker gets an up front commission and an ongoing percentage of every repayment you make for the life of the loan, which has to impact on the rates banks offer. How bout skipping the broker and going direct to the bank.

      Brokers have access to more products than general consumers, you're not going to get access to the best offers going direct.

        Hi, Tenzing from Home Loan Experts here!

        grantguest is totally correct! Take our team for example - we have access to over 40 different lenders.

        If you were looking for a bank how many would you be able to visit or talk to? Would you be sure that you would be getting the best deal? :)

      There's actually no difference in rate (in normal circumstances) by going direct vs through a broker.

      The bank sets money side to acquire business. With a broker, that's commission. Going direct the money goes to marketing and employee commission etc.

        Hi, Tenzing from Home Loan Experts here!

        That's not entirely true since mortgage brokers can get better rates if they have a good relationship with the lender. Also, we hear about new policies/loan products faster and some packages are simply not advertised as much.

        Another good thing about using a mortgage broker is that you get access to all of our lenders (our team deals with over 40!). This means that 1. you can get a better deal and 2. if your situation isn't suitable to one lender, we can find another one. The second point is especially if you have a bad credit history or are in a complicated financial situation.

        When you go to your bank, you just get their loan products - that's it! Your bank is not going to tell you about a better rate, are they? :)

        More info here if you would like to know why you need an EXPERT http://www.homeloanexperts.com.au/about_us/

        Last edited 12/08/14 2:58 pm

    Much like insurance policies which also pay an upfront and ongoing commission, the rates are often the same or worse if you go direct with the company offering the product.

    For example:

    TAL Life offers insurance through Advisers and Direct at the same price.
    InsuranceLine (by TAL) offers insurance directly via TV ads etc and costs more than retail policies provided through advisers and even directly from TAL.

      Another example are hotels - travel agents will always get you a better deal. Even among them you can find a (slight) difference in prices).

    Never take for granted all the additional fees and taxes that come into play when you buy property, or anything else for that matter. When I bought my storage facility I’m glad that I had the help of a reliable broker who helped me to understand just how much I needed to put into my business so I wouldn't be shocked at the final bill.

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