What costs are involved in buying a property?

Generally, you would knowingly or unknowingly spend a minimum of 5% of the contract price on various things like the additional charges, duties and fees. To take an example, if the cost of buying a property is $500,000, to complete the purchase nearly $25,000 would be involved. To consider purchasing a home loan, the main fees by the government are as follows:

Purchase Stamp Duty: A levied tax which is the biggest expense on all the property purchases by the State Government.
Mortgage Stamp Duty: Depending on the mortgage size, a particular amount of tax is levied by the State Government
Transfer Fee: This amount is charged by the Government for registering your name on the property after removing the vendor’s name.
Registration Fees: This fee is charged by the Government for registering the lender’s mortgage on your property title.

What other costs are there?

In this Property Purchase Calculator there are many other additional costs. You can check them below.

Conveyancing costs: An amount is required to transfer the property to your name which is done generally by a solicitor or conveyancer. $800 to $1,500 is the charges for this transfer.

Inspections / Reports: If you are planning to take a home loan for buying a property, then prior to that an inspection is done. This inspection is required for checking the entire building, any pests, etc. A strata report then needs to be prepared. This can cost upto $600.

Loan fees: If there are no mortgage brokers and you have directly approached the lender, there are chances that they might charge an application fee. This may range from $0 to $900.

Lenders Mortgage Insurance (LMI): If you have approached the lender to borrow nearly 80% of the cost of the property then it is best advised to use Lenders Mortgage Calculator apart from the property cost calculator to get a right quote.

Along with the mentioned additional costs there would be many other costs like renovation of the property, any repairing in the property, any kind of water adjustments or even for hiring a removalist. It would be advisable that professional assistance is taken.