Buying a house in Australia is more difficult than saving and waiting for the owner to accept your offer. So these two are already the simplest.
The hardest part is having enough money to pay for unexpected expenses. A deposit is only part of the cost of buying a house.
The deposit is only part of the cost of buying a house.
After paying stamp duty and home lender insurance (LMI), you may have spent most of the cash.
To make sure you have enough money to pay the bill, I have a list of expenses that need to be prepared before signing.
Examples:
- A $500000 home purchase fee
- Expenses for self-housing (at least live here for the first annual meeting)
- 5% mortgage interest rate
- Deposit: 10% (A $50000)
Based on this scenario, there are the following projected costs. Costs vary depending on individual service providers and the state or city where the home is purchased.
- Legal costs: about $1500 A $3000, depending on the complexity of the title structure. For example, if you buy a house through a company or trust, it will be more expensive. The simpler the property right structure is, the lower the cost is.
- Stamp duty: state to state tax is different, you can use the online calculator to calculate the state stamp duty. Tips: use realestate.com.au 's simple calculator to calculate stamp duty;
According to the above example, if the property is located in New South Wales, stamp duty is estimated to be about A $17990.
- Pest and Building structure Inspection: $300 A $400: if you buy a second-hand house, pests and building structures must be checked. Even a new house can be flawed, but usually only experts can see it;
- Loan application or account opening fee: $600, a one-time fee charged by the bank when applying for a loan. Some banks may not charge this fee in the case of applicants for a full range of loans;
- Home lender insurance: 7920 Australian dollars, mortgage insurance is to ensure that lenders are willing to lend you 80% of the value of the property. If you don't want to pay the fee, you can replace it with more deposits. The final amount depends on the insurer, but this is a good budget instruction;
- Preparation of documents / legal and administrative fees: $200 to $300, which may be charged by the lender from the application documents for the housing loan;
- Bank valuation fee: 300 to 400 Australian dollars, when an independent valuer is arranged to estimate the value of the property, the bank will charge the valuation fee, and some banks will waive the fee;
- Title insurance premium: $360, property insurance will allow you to be guaranteed in any real estate property claim;
- Registration fee: $75, which is the cost of registering the property with the state government;
- City and water charges: $500 A $700, after you buy a house, you need to pay the seller's remaining annual or quarterly expenses, such as water and land taxes, effective from the date of payment, each property, regional charges vary;
- Legal investigation and inquiry fee: $285, real estate needs to carry out a series of investigations to ensure that the purchase process is unimpeded;
Estimated requirements: $11540-14050
Deposit: $50000
Projected total cost: $61540-64050
