What are some of the hidden costs of buying and moving into a new house?
New home image from Shutterstock
Buying a home isn’t as simple as just forking out the amount that has been listed for a property. There are a number of costs that you’ll need to factor in when you become a homeowner. How much extra you need to pay will depend on a number of things including the value of the place you’re purchasing, the type of property it is and where it is located.
There are legal fees which can cost thousands of dollars. Then there is stamp duty, which varies from state to state. You can estimate the cost with this online calculator. You’ll also need to pay for pest and building inspections to check for infestations and defects. Those could cost a few hundred dollars.
We’re not done yet. There is the loan application or establishment fee, cost of putting together additional legal documents, real estate agent fees, council rates and a few smaller fees here and there. If you’re borrowing more than 80 per cent of the property’s value from the bank you will also need to pay lenders mortgage insurance but that can be avoided if you save up for a bigger deposit.
For a property that costs around $500,000, the additional costs could add up to between $10,000 and $15,000.
So before you commit to buying a home, do your research first. It is best to speak to your real estate agent, bank, and legal representative to get some exact costings so you can budget for the additional charges and avoid any nasty surprises.
Good luck on finding a new home to call your own!
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