It is important when you purchase a property that you take into account all the costs of purchasing, like:
- Purchase price
- Stamp duty
- Bank fees for the incoming mortgagee
- Lenders mortgage insurance for the incoming mortgagee
- Legal costs for the solicitor acting on the purchase
- Pest and building reports or strata reports and any government searches required
- The legal costs associated with any necessary guarantees
- Home insurance (which you might have to pay up front to secure the mortgage)
- Removalist costs
- Connecting or transferring services to the new property like telephone, electricity or internet
- Bank fees for discharging any other loans you have
- Time off of work
- An allowance for council and water rates, if the vendor has already paid that quarter up to date
There are other expenses that you might find payable very shortly after you purchase the property, like your Council Rates or Strata Levies might fall due in that first month. Additionally depending on the actual property you choose you might find yourself needing to get additional expert reports like a Building Certificate to confirm that all additions have Council Approval or a Survey.
It is also important that you also check that you can afford the property, not just the loan repayments. The NSW Government has a handy budget planner that you can use to see if the mortgage repayments fit within your family budget.
For more information about other property issues please click on this link to see our other articles.