{"id":6809,"date":"2017-10-30T00:00:57","date_gmt":"2017-10-30T00:00:57","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/the-hidden-costs-of-buying-a-home\/"},"modified":"2017-10-30T00:00:57","modified_gmt":"2017-10-30T00:00:57","slug":"the-hidden-costs-of-buying-a-home","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/the-hidden-costs-of-buying-a-home\/","title":{"rendered":"The hidden costs of buying a home"},"content":{"rendered":"

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Buying a house<\/a> isn\u2019t just about paying what\u2019s on the property\u2019s price tag. There are some extra costs all buyers should be aware of.<\/span><\/strong><\/p>\n

So what costs are involved in buying a home?\u00a0<\/span>Here are some of the common:<\/p>\n

\"modern<\/p>\n

Buying a house costs more than you\u2019d think. Picture: realestate.com.au\/buy<\/p>\n<\/div>\n

Conveyancing & legal fees<\/h2>\n

While it is possible to complete the legal aspects of buying a property yourself, it\u2019s generally recommended that you engage a conveyancer or solicitor to prepare the documents for you and provide advice.<\/p>\n

Buyer\u2019s agent Amanda Segers says legal fees average around $1800, but they can also be significantly more if the ownership structure is complex.<\/p>\n

Stamp duty<\/h2>\n

Stamp duty can cost\u00a0ten of thousands of dollars, depending on your state and the price of the home.<\/p>\n

The more expensive the home, the more you\u2019ll pay, with a $1 million purchase attracting stamp duty as high as $55,000.<\/p>\n

There are some exemptions for first home buyers.<\/p>\n

On a $500,000 house, first home buyers will pay nothing in Victoria, New South Wales and Queensland, while for those buying subsequent homes, they can expect to pay between $8750 (Queensland) and $21,970 (Victoria) on a house at that price.<\/p>\n

Yet if you have bought before, the stamp duty a $500,000 home attracts can vary from between $8750 (Queensland) to $21,970 (Victoria).<\/p>\n

Learn more about calculating stamp duty:<\/strong><\/em><\/p>\n

Pest & building inspections<\/h2>\n

Having the home checked for pest and other damage is a must, particularly for older properties.<\/p>\n

Segers says it\u2019s money well spent, though some buyers do baulk at the cost and prefer to take the risk.<\/p>\n

\u201cFor building and pest inspections, around $600 will cover most inspectors,\u201d she says.<\/p>\n

\u201cWe\u2019re seeing a lot more people not doing those inspections, because they don\u2019t want to spend more money. Realistically, the pest inspection is the most important thing.\u201d<\/p>\n

\"Building<\/p>\n

Have the home checked for pest and other damage to avoid costly issues further down the track. Picture: Getty<\/p>\n<\/div>\n

Mortgage registration & transfer fees<\/h2>\n

You\u2019ll pay for the privilege of formally registering your mortgage<\/a>, while the cost of transferring the property into your ownership will also fall to you, as the new owner.<\/p>\n

Mortgage registration fees vary from state to state, from $114.90 in Victoria to $181 in Queensland.<\/p>\n

While transfer fees are generally more expensive, from a flat $138.80 fee in New South Wales, into the thousands in South Australia, Victoria and Queensland.<\/p>\n

Loan application or establishment fee<\/h2>\n

When you take out a home loan<\/a>, you won\u2019t just be paying off the loan \u2013 you\u2019ll also have to pay to apply for and set up the loan in the first place.<\/p>\n

Home loan application fees are one-off costs, and are generally around $500-600, though they can be more than $1000, depending on the loan and lender.<\/p>\n

It\u2019s worth noting that some lenders<\/a> will waive this fee under certain circumstances, so it\u2019s worth asking.<\/p>\n

What do the banks look for when assessing loan applicants?<\/strong><\/em><\/p>\n

Mortgage insurance<\/h2>\n

Without a deposit of 20% or more, most lenders will require you to pay mortgage insurance.<\/p>\n

This cost is a sliding scale \u2013 the smaller your deposit, the more insurance you\u2019ll pay. On a $500,000 home with a 10% deposit ($50,000), you\u2019ll be asked to pay insurance of around $8000.<\/p>\n

But this insurance does allow buyers to purchase a home with as little as 5% of the purchase price as a deposit.<\/p>\n

Council and utility rates<\/h2>\n

After purchasing the property, you\u2019ll need to pay the vendor for council or water rates.<\/p>\n

The vendor will have paid any rates owing to the council \u2013 generally to the end of the quarter\u00a0\u2013 and they\u2019ll simply add your portion of that amount to the purchase price.<\/p>\n

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Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Buying a house isn\u2019t just about paying what\u2019s on the property\u2019s price tag. There are some …